Well, oil and water don't mix, as they say, so you are filling the spaces not bulking the fibers. They will shrink when they finally dry, so all you gain is weight. A mallet already dry will soak fine, and the risk of splitting will be past. How much sludge are you getting with the soak? If you said not much, then you can tell how effective the soak is at filling the spaces originally occupied by water.
Personally, I soak carving mallets in PEG for a few months to bulk the fibers and add weight by filling lumens. They suck water from the air when it's available, so the surfaces remain a bit softer, which keeps me from jarring my elbow.
Of course, if the proponents of alcohol "drying" are right, I'm on a fool's errand, because the lower boiling point water will cause the higher boiling point alcohol to evaporate. 🙄 But I think the chemists are right.
If you are speaking of a head and handle, rather than a carving type, you can play the game and put a reverse taper dry handle into a damper head and let the shrink tighten it up for you.