Exit decisions in the US mutual fund industry

Xinge Zhao (First Author)

Research output: Contribution to journalJournal

28 Citations (Web of Science)

Abstract

This paper examines the similarities and differences in the determinants of the three mutual fund exit forms: liquidation, within-family merger, and across-family merger. All defunct mutual fund portfolios have smaller size and lower inflows. A family is less willing to liquidate a portfolio but more likely to merge a portfolio within the family if it offers more share classes. Large families are more likely to merge portfolios within the family, while a family with poor performance is more likely to sell relatively unique portfolios to other families to stay focused. This paper also compares within-objective mergers with across-objective mergers.
Original languageEnglish
Pages (from-to)1365-1401
JournalJournal of Business
Volume78
Issue number4
DOIs
Publication statusPublished - 2005

Corresponding author email

zxinge@ceibs.edu

Keywords

  • DETERMINANTS
  • PERFORMANCE PERSISTENCE
  • SURVIVORSHIP BIAS

Indexed by

  • ABDC-A*
  • Scopus
  • SSCI

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