Mutual funds' reporting frequency and firms' responses to undervaluation: The role of share repurchases
研究了共同基金报告频率提高后，企业因基金经理短视行为而增加股票回购以应对低估的现象，揭示了更频繁报告的意外后果。
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.