Motivations behind the Acquisition of Mutual Funds

21 Pages Posted: 31 Mar 2006  

Xiyu (Thomas) Zhou

University of Alaska Fairbanks - School of Management (SOM)

Kevin C.H. Chiang

University of Alaska Fairbanks - School of Management (SOM); Louisiana State University, Baton Rouge - Department of Finance

Date Written: October 2005

Abstract

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

Zhou, Xiyu (Thomas) and Chiang, Kevin C.H., Motivations behind the Acquisition of Mutual Funds (October 2005). Available at SSRN: https://ssrn.com/abstract=892906 or http://dx.doi.org/10.2139/ssrn.892906

Xiyu (Thomas) Zhou (Contact Author)

University of Alaska Fairbanks - School of Management (SOM) ( email )

P.O. Box 756080
Fairbanks, AK 99775-0500
United States

Kevin C.H. Chiang

Louisiana State University, Baton Rouge - Department of Finance ( email )

E.J. Ourso College of Business Administration
Baton Rouge, LA 70803
United States
225-753-4978 (Phone)
225-388-6366 (Fax)

University of Alaska Fairbanks - School of Management (SOM) ( email )

P.O. Box 756080
208C Bunnell Building
Fairbanks, AK 99775-0500
United States
907-474-7049 (Phone)
907-474-5219 (Fax)

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