Directors' ownership in the U.S. mutual fund industry

Journal Article (Journal Article)

This paper empirically investigates directors' ownership in the mutual fund industry. Our results show that, contrary to anecdotal evidence, a significant portion of directors hold shares in the funds they oversee. Ownership patterns are broadly consistent with an optimal contracting equilibrium. That is, ownership is positively and significantly correlated with most variables that are predicted to indicate greater value from directors' monitoring. For example, directors' ownership is more prevalent in actively managed funds and in funds with lower institutional ownership. We also show considerable heterogeneity in ownership across fund families, suggesting family-wide policies play an important role. © 2008 The American Finance Association.

Full Text

Duke Authors

Cited Authors

  • Chen, Q; Goldstein, I; Jiang, W

Published Date

  • December 1, 2008

Published In

Volume / Issue

  • 63 / 6

Start / End Page

  • 2629 - 2677

Electronic International Standard Serial Number (EISSN)

  • 1540-6261

International Standard Serial Number (ISSN)

  • 0022-1082

Digital Object Identifier (DOI)

  • 10.1111/j.1540-6261.2008.01410.x

Citation Source

  • Scopus