Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 3, 2014 erstellt
Beschreibung:
This paper identifies information transfer in a common shareholder relationship, in which a shareholder of a fund management company (FMC) also has a large stake in the listed company held by the FMC. We find that mutual funds prefer stocks with common shareholder links. Moreover, the holdings of common shareholder-connected FMCs exhibit stronger predictability in stock returns over a 3- to 36-month investment horizon than those of unconnected FMCs. An investment strategy based on the common shareholder relationship realizes an annualized return of at least 3.96%. Further investigation suggests that this information advantage is not driven by leaks of non-public information around major corporate news announcements. Overall, the common shareholder relationship appears to provide funds with fundamental information regarding the long-run stock performance