The Relationship Between Mutual Fund Investors and Performance Based on Liquidity

• Main Authors: Chia-yi Lin, 林珈儀
• Other Authors: Yen-hsi Lee
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/92723012295068770391

碩士 === 朝陽科技大學 === 應用外語研究所 === 101 === This research provided evidence that strategic complementarities among investors generate fragility in financial markets. Using the investment flow of open-end equity mutual funds, with a unique data from Taiwan Economic Journal (TEJ) database, the aim of this study is to analyze the investors’ behavior of redemption in Taiwan mutual fund flows according to the regulations stipulated by Taiwan Stock Exchange (TWSE). This study tried to test that outflows are more sensitive to bad performance in illiquid funds than in liquid funds. According to the results gained from data analyses, funds with illiquid assets exhibit stronger sensitivity of outflows to bad past performance than funds with liquid assets. Results further indicated that the panic of investors was the cause of financial fragility.