How Europe Recovered from the Black Death – Recovery Podcast Series - Part 1

ICMA Centre Visiting Fellow Keith Arundale was recently published in the ICAEW’s Finance and Management Faculty’s report on “Growing your business”.

"Institutional Cross-ownership and Corporate Strategy: The Case of Mergers and Acquisitions" by Professor Chris Brooks, Dr Yeqin Zeng, and PhD Zhong Chen has been awarded Best Corporate Finance Paper at the 2016 Southern Finance Association annual conference. About the paper: The paper provides new evidence on the important role of institutional investors in affecting corporate strategy. We study institutional investors who hold stocks of both acquirers and targets before the announcements of mergers and acquisitions (M&As). The existence of these institutional cross-owners not only increases the probability of two firms merging, but also affects the outcomes of M&As. Institutional cross-ownership reduces target firm prices, lowers completion probabilities of deals with negative acquirer announcement returns, and increases the use of stock payment in M&A transactions. Furthermore, deals with high institutional cross-ownership have lower transaction costs and disclose more transparent financial statement information.

New research by Professor Adrian Bell, Chris Brooks (both of the ICMA Centre, Henley Business School) and Nick Taylor (of the University of Bristol) has been published in Cliometrica: The Journal of Historical Economics and Econometric History.