Shareholder Satisfaction with Overlapping Directors

We investigate whether mutual fund shareholders are particularly supportive of “overlapping directors,” individuals who serve simultaneously on at least one corporate board and at least one mutual fund board. Overlapping directors may have a conflict of interest because of their dual fiduciary duty to both the fund and the company of which they are board members. While connected funds that share an overlapping director with a firm may benefit from such a connection, non-connected funds (not directly sharing a director with the firm) may be at a disadvantage. Nevertheless, we find that both connected funds and non-connected funds are particularly … Read more