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Faculty & Staff Focus, Media Advisory, Research

Journal of Banking Accepts Gary Sanger’s Paper

10/11/2013 03:46 PM

BATON ROUGE – Gary Sanger, William H. Wright Jr. Endowed Chair for Financial Services and C. C. “Cliff” Cameron Professor in Finance, recently co-authored a paper that the Journal of Banking and Finance has accepted for publication. “Asset Sales in the Mutual Fund Industry: Who Gains?” written with LSU Ph.D. alumnus and Assistant Professor of Finance at Quinnipiac University Fan Chen and LSU Professor Emeritus of Finance Myron Slovin, analyzes gains from intercorporate sales of mutual fund subsidiaries, using mandated SEC disclosures to assess the performance of mutual funds transferred by these transactions.
 

“It was a great pleasure to work with my colleagues, Fan (Chen) and Myron (Slovin),” said Sanger. “I believe our work makes a significant contribution toward understanding the value creation resulting from major asset sales.”
 

“Sellers are financial conglomerates (banks) using equity-based deals to transfer poorly performing funds to highly focused asset management companies,” the paper reads. “The transferred funds experience significant improvements in risk-adjusted returns, efficiency, and asset growth. These improvements are closely correlated with the gains in wealth to buyers and sellers at deal announcements, indicating the market efficiently capitalizes expected performance improvements.”
 

To read the paper in full, visit http://www.sciencedirect.com/science/article/pii/S0378426613003506.
 

Sanger is the director of the college’s Securities Markets Analysis Research and Trading Lab, or SMART Lab, and of its CFA Program. He earned his Ph.D. in finance with a minor in econometrics in 1980, and his bachelor’s degree in management in 1973, both from Purdue University. He joined the faculty at LSU in 1985.
 

According to Elsevier.com, The Journal of Banking and Finance publishes theoretical and empirical research papers spanning all the major research fields in finance and banking. The aim of the Journal of Banking and Finance is to provide an outlet for the increasing flow of scholarly research concerning financial institutions and the money and capital markets within which they function.
 

The Department of Finance is a Chartered Financial Analyst Program Partner and a Certified Financial Planner Board-Registered Program that offers high quality curricula to undergraduate and graduate students interested in careers in corporate finance, asset management, real estate, insurance, banking, financial planning and business law. The department boasts internationally renowned research faculty in several areas, including derivatives, asset management, banking and spatial econometrics. The department’s SMART Lab boasts the Bloomberg Professional service, the platform used by more than 300,000 leading business and financial professionals worldwide to make informed business decisions, and an extensive library of financial data bases including the Wharton WRDS System. Additionally, the department encourages, supports and conducts research in real estate by housing the nationally renowned Real Estate Research Institute.
 

For more information, visit www.business.lsu.edu/finance or call 225-578-6291.

E. J. Ourso College of Business
225-578-8865