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Mutual Fund Trading Pressure: Firm-Level Stock Price Impact and Timing of SEOs

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dc.contributor.author Khan, Mozaffar Nayim
dc.contributor.author Kogan, Leonid
dc.contributor.author Serafeim, George
dc.date.accessioned 2012-12-07T19:59:30Z
dc.date.available 2012-12-07T19:59:30Z
dc.date.issued 2012-07
dc.identifier.issn 0022-1082
dc.identifier.uri http://hdl.handle.net/1721.1/75299
dc.description.abstract We use price pressure resulting from purchases by mutual funds with large capital inflows to identify overvalued equity. This is a relatively exogenous overvaluation indicator as it is associated with who is buying—buyers with excess liquidity—rather than what is being purchased. We document substantial stock price impact associated with purchases by high-inflow mutual funds, and find the probability of a seasoned equity offering (SEO), insider sales, and the probability of a stock-based acquisition increase significantly in the four quarters following the mutual fund buying pressure. These results provide new evidence that firm managers are able to identify and exploit overvalued equity. en_US
dc.language.iso en_US
dc.publisher American Finance Association en_US
dc.relation.isversionof http://dx.doi.org/10.1111/j.1540-6261.2012.01750.x en_US
dc.rights Creative Commons Attribution-Noncommercial-Share Alike 3.0 en_US
dc.rights.uri http://creativecommons.org/licenses/by-nc-sa/3.0/ en_US
dc.source SSRN en_US
dc.title Mutual Fund Trading Pressure: Firm-Level Stock Price Impact and Timing of SEOs en_US
dc.type Article en_US
dc.identifier.citation Khan, Mozaffar, Leonid Kogan, and George Serafeim. “Mutual Fund Trading Pressure: Firm-Level Stock Price Impact and Timing of SEOs.” The Journal of Finance 67.4 (2012): 1371–1395. en_US
dc.contributor.department Sloan School of Management en_US
dc.contributor.mitauthor Kogan, Leonid
dc.contributor.mitauthor Khan, Mozaffar Nayim
dc.relation.journal Journal of Finance en_US
dc.identifier.mitlicense OPEN_ACCESS_POLICY en_US
dc.eprint.version Author's final manuscript en_US
dc.type.uri http://purl.org/eprint/type/JournalArticle en_US
eprint.status http://purl.org/eprint/status/PeerReviewed en_US
dspace.orderedauthors KHAN, MOZAFFAR; KOGAN, LEONID; SERAFEIM, GEORGE en


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