An analysis of the determinants and shareholder wealth effects of mutual fund mergers

• 成果类型: Article
• 署名作者: Jayaraman, N; Khorana, A; Nelling, E
• 署名单位: University System of Georgia; Georgia Institute of Technology; Drexel University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/1540-6261.00468
• 发表日期: 2002
• 页码: 1521-1551
• 关键词: industry; Managers

摘要

This study examines the determinants of mutual fund mergers and their subsequent wealth impact on shareholders of target and acquiring funds. Results indicate significant improvements in postmerger performance and a reduction in expense ratios for target fund shareholders. In contrast, acquiring fund shareholders experience a significant deterioration in postmerger performance. The net asset flows continue to remain negative for the combined fund in the year following the merger. The likelihood of a fund merger is inversely related to fund size for both within- and across-family mutual fund mergers. However, poor past performance is a significant determinant for only within-family mergers.