@article{c4d509ac1e964525b1dd5d92d7183965,
title = "Mutual funds' reporting frequency and firms' responses to undervaluation: The role of share repurchases",
abstract = "We examine a regulatory change that increased the reporting frequency of mutual funds' portfolios. Using a difference-in-differences design, we find that firms with greater ownership by mutual funds increase share repurchases following the regulatory change. We show that these share repurchases are a firm's rational response to undervaluation, which occurs because fund managers become shortsighted following the regulation and sell companies with good long-term prospects. Collectively, our results shed light on an unintended consequence of more frequent reporting in a delegated asset management framework.",
keywords = "mutual funds, myopia, reporting frequency, share repurchases",
author = "Thomas Bourveau and Xinlei Li and Daniele Macciocchi and Chengzhu Sun",
note = "Funding Information: The authors are indebted to Paul Hribar (editor), two anonymous reviewers, Jan Bouwens, Emmanuel De George, Fabrizio Ferri, Pouyan Ghazizadeh, Rachel Hayes, Davidson Heath, Allen Huang, Zachary Kaplan, Hwa Young Kim, Frank Weikai Li, Beatrice Michaeli, Roni Michaely, Miguel Minutti-Meza, Arthur Morris, Gaizka Ormazabal, Andrea Prat, Matt Ringgenberg, Sandra Schafhautle, Chao Tang, Sanne van Duin, David Veenman, David Windisch, and Haifeng You for helpful comments and discussions. The authors also thank workshop participants at the University of Amsterdam and the University of Illinois Chicago for their helpful comments. Thomas Bourveau gratefully acknowledges financial support from Columbia University Graduate School of Business. Xinlei Li and Chengzhu Sun gratefully acknowledge financial support from the Hong Kong University of Science and Technology. Daniele Macciocchi gratefully acknowledges financial support from the University of Miami Herbert Business School. Publisher Copyright: {\textcopyright} 2023 The Authors. Contemporary Accounting Research published by Wiley Periodicals LLC on behalf of Canadian Academic Accounting Association.",
year = "2023",
month = oct,
day = "1",
doi = "10.1111/1911-3846.12887",
language = "English",
volume = "40",
pages = "2616–2642",
journal = "Contemporary Accounting Research",
issn = "0823-9150",
publisher = "John Wiley and Sons Inc ",
number = "4",
}