Bris, Arturo; Gulen, Huseyin; Kadiyala, Padmaja; Rau, … - School of Management, Yale University - 2005
We examine a sample of 125 equity mutual funds that closed to new investment between 1993 and 2004. We find that funds close following a period of superior performance and abnormal fund inflows. Fund managers raise their fees when they close to compensate managers for losses in income due to the...