The assistant professor of finance examines whether active trading on mergers and acquisitions is associated with better performance of mutual fund managers.
Margarita Kaprielyan, assistant professor of finance in the Martha and Spencer Love School of Business, co-authored the paper “Mutual fund trading around mergers and fund performance,” which was published in the International Journal of Managerial Finance.
Kaprielyan co-authored this paper with Md Miran Hossain from the University of North Carolina Wilmington and Charles Armah Danso from California State University Los Angeles.
The authors investigated whether mutual funds take positions in companies that engage in mergers and acquisitions and whether fund managers adjust portfolio holdings in the same direction as wealth creation from mergers. Their research sample included mergers conducted by publicly traded acquirers of public and private targets from 2003 to 2016.
The findings show that fund managers who are more vested in the firms engaged in mergers and acquisitions and who are more active in their trades of merger and acquisition firms generate higher contemporaneous and subsequent risk-adjusted performance, indicative of managerial skill.
The International Journal of Managerial Finance aims to give its readers the latest research and commentary in all areas associated with managerial finance. Although financial in nature, the journal is interested in papers from all disciplines; in particular knowledge management, accounting and economics.
Kaprielyan joined Elon in 2017 after earning her doctorate in finance from Florida Atlantic University. Her scholarly interests include mutual funds, investments, mergers and acquisitions, divestitures and dividend policy.