| Summary: | 碩士 === 輔仁大學 === 管理學研究所 === 91 === In the past, U.S. mutual fund gives people a healthier and sound image compared to Wall Street’s financial institution. Unfortunately, this situation has been changed due to constant financial scandals happened last year which brought SEC’s high attention to closely monitor on it.Taiwan has similar situation in recent years. A research regarding Taiwan stock ownership structure indicates that family members are the central control in decision making in most of the stocks. Based on this theory, the purpose of this research is to study if above stated situation result to investment fund agency problem which damages the benefits of the public stock holders/investor. This research covers the period from Jan 01 2001 until Dec., 31, 2001 contains four parts.
The first step is to analysis the structure of Taiwan equity connected Investment Trust. Next step is to survey the relationship between the board member of investment fund and the public stocks. Based on the method brought up by La Porta, Lopez-de-Silanes and Shleifer (1999), the next step is to get the controlling shareholders of firm to calculate their cash flow rights which is a foundation to observe the equity-connected fund and equity-disconnected fund buy and sell the stock monthly revenue.The final stage is to verify if investors are affected by agency problem based on equity connected issues.
Research indicated that regardless investment trust exists the equity-connected relationship, revenue performance should not be affected significantly. However, individual equity-connected fund does come up with poor performance by the equity-connected stock. More research points out that equity-connected investment trust utilize some better funds as coverage to attract finance support for investors to buy the equity-connected stock in order to help equity-connected shareholders selling their stocks faster and easier. Bottom line is above activity leads to the result of poor (CI, CF) performance and public investors are the biggest victim in this war.
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