Motivations behind the Acquisition of Mutual Funds
21 Pages Posted: 31 Mar 2006
Date Written: October 2005
This paper studies the motivations behind mutual fund acquisitions. Results indicate that, consistent with the existing corporate mergers and acquisitions literature, a desire to seek synergy in the form of cost reduction in distribution and internal operation drives mutual fund acquisitions. In addition, acquisitions are partly driven by a desire to acquire managerial talent and a respectful performance record.
Keywords: mutual fund, acquisition, synergy
JEL Classification: G2, G23
Suggested Citation: Suggested Citation