Higher Tenure or Seniority? Higher Performance? Restudy of the Relationship between Fund Managers’ Seniority and Performance.

• Main Authors: Hsu-Yu Wu, 吳旭裕
• Other Authors: Jen-Sin Lee
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/93580759858583198026

碩士 === 義守大學 === 財務金融學系碩士班 === 95 === This paper investigates the relationship between the fund managers’ characteristics and the fund performance and particularly focuses on the effect of the fund managers’ tenure and seniority to the fund performance. To our knowledge, this is the first case using tenure and seniority as the dependent variable at the same time, and we match them to estimate the impact patterns to the fund performance. In addition, we use row return rate, market adjusted return rate, Jensen’s alpha and Sharpe ratio as the indicator of fund performance. The sample is 122 Taiwan open-end equity mutual funds from 2001 January to 2006 August. In the two indicators model, in opposition to the seniority, the high tenure is the better indicator for fund performance, and the threshold value of the high tenure means that the length of time a manager has managed his or her find exceed 24.33 months. Moreover, this paper finds that when if the fund managers with high tenure, the relationship between seniority and fund performance will be negative, and the reason might be that as fund managers’ seniority raise, the fund managers’ age is also increase, and these causes the negative effect to fund performance. Therefore, this paper suggests that if the fund managers with high tenure and also with low seniority will create the best fund performance.