| Summary: | 碩士 === 國立聯合大學 === 管理碩士學位學程 === 97 === This study examines the determinants of mutual fund mergers and liquidation, and discusses their subsequent wealth impacts on shareholders. It’s found that, in comparison with surviving funds, liquidated funds and funds merged within the same family display worse performance, smaller assets under management, much more cash outflows, being younger ones. When compared liquidated funds with merged ones, liquidated funds are worse-performing, smaller in size, with greater fund outflows, and younger. Except for the characteristics of fund itself, the determinants of fund exit decisions also include fund numbers in the family, numbers of corresponding objectives and flows of corresponding objectives. Acquiring fund shareholders experience a significant deterioration in performance subsequent to the merger activity. In contrast, the target fund shareholders appear to benefit from these combinations, as their fund’s performance improves in the year after the merger. The net asset flows continue to remain negative for the combined fund in the year following the merger. Expense ratio of combined funds will decline in the second postmerger year because of economics of scale after the acquisition.
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