How do the characteristics of managers and mutual funds affect the return when the managers are under systematic risk?

• Main Authors: Lilian Yi-Lien Chou, 周宜璉
• Other Authors: Li, Chuan-Yuan
• Format: Others
• Language: zh-TW
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/71433375334847676796

碩士 === 國立臺北大學 === 企業管理學系 === 88 === The dissertation’s research purpose is to discuss how the characteristics of managers affect the return of mutual funds from the investors’ perspectives. The ultimate goal for investors is to earn a better return by investing in mutual funds, which are managed by mutual fund managers. Currently, the investment banking firms in Taiwan grow drastically. Nevertheless, it is doubtful whether the training of mutual fund managers corresponds to the growth of these banking firms. Hence, the paper intends to analyze whether the characteristics of mutual fund managers would affect the return of mutual fund in the face of systematic risk and how they are associated. Unlike other research’s bearish and bullish markets, the risk variable studied in the paper is systematic risk. Systematic risk is defined as the risk due to the political, economical and catastrophic issues in Taiwan occurring within the past two years. There are two variables specified in the manager’s personality -internal and external control tendency, and risk taking tendency. The variables of individual attributes include sexuality and education level. The target pools of the research are the mutual fund managers in Taiwan and they are asked to complete the survey regarding portfolio management. Among the target pools, only 36 surveys could be used for further analysis. Finally, regression analysis and other statistical methods are done by the S-Plus program to interpret the data collected. The results are as followed: 1. According to the statistical results, there is no significant relationship between sexuality/ education level, and mutual fund performance/turnover rate. Therefore, sexuality does not affect the performance of mutual funds. Currently, men and women have equal access to educational and social resources. Therefore, it is difficult to say that sexuality affects mutual fund performance. Furthermore, in this survey, there is no major difference in education level. Among all, more than 72% of the mutual fund managers obtained graduate degrees. This proves that education level is not a major cause of mutual fund performance. 2. In this research, not one single variable can explain the relationship between mutual fund performance and the turnover rate. The results show that the return of the mutual funds will be the best only when male, risk-taking managers take internal control. The mutual fund mangers achieving the highest performance were risk takers with a higher level of education. 3. In the months of non-systematic risk, there is no single variable related to the return of mutual fund. In contrast, in the month of systematic risk, female mutual fund managers and managers who possess internal control affect the funds’ return and turnover rate, but the relationship is less significant. Consequently, when facing major issues, the mutual fund managers in Taiwan still need much improvement regarding their handling techniques. This is the major point that venture capital companies need to consider greatly and handle.