| Summary: | 碩士 === 元智大學 === 財務金融學系 === 96 === In recent years, 401(k) plans, one type of defined contribution plans, have been widely adopted by employers in the United States. One of the characteristics of 401(k) plans is that most participants can make investment decisions based on the investment options provided by their employers. But it is documented that employers may not fulfill their fiduciary duty by providing virtuous lists. Therefore, the purpose of the study is to investigate the determinants of a mutual fund being selected into the 401(k) plans, and being kicked out of the plans once the fund has been chosen. The empirical results show that a fund with better performance in the prior one year is more likely to be selected into the 401(k) plans. In addition, the reputation of a fund family and the fund size are positively related to the likelihood of a fund being selected into 401(k) plans. On the other hand, expense ratio is negatively related to the probability of a fund being selected into plans. But only past performance is the factor to explain why a fund is kicked out of 401(k) plans, compared to other funds still in the plans.
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