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Independent Directors and Favoritism: When Multiple Board Affiliations Prevail in Mutual Fund Families
- Source :
- Financial Management. 45:529-582
- Publication Year :
- 2016
- Publisher :
- Wiley, 2016.
-
Abstract
- I examine whether independent directors with multiple board affiliations (IDMAs) trade off the interests of one fund relative to another (fund favoritism) or whether they benefit fund shareholders by increasing the level of the board's expertise. Using a sample of mutual funds affiliated with the top 55 fund sponsors from 2002 to 2008, I find that the presence of IDMAs is negatively related to performance/resource shifting across funds within fund families. IDMAs appear to decrease fund fees, increase the return gap associated with the unobserved actions of fund managers, and facilitate the transfer of information across funds in a fund family.
- Subjects :
- 040101 forestry
Fund of funds
Economics and Econometrics
050208 finance
Manager of managers fund
business.industry
05 social sciences
Closed-end fund
Target date fund
Accounting
04 agricultural and veterinary sciences
Fund administration
0502 economics and business
Open-end fund
0401 agriculture, forestry, and fisheries
Income fund
Business
Finance
Mutual fund
Subjects
Details
- ISSN :
- 00463892
- Volume :
- 45
- Database :
- OpenAIRE
- Journal :
- Financial Management
- Accession number :
- edsair.doi...........ef175fb2d846fa46c41fe494cd590530