Why Fund Managers Disappear from the Market?

• Main Authors: Hsiang-Fu Yang, 楊翔富
• Other Authors: Chai-Liang Huang
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/41110808367319712629

碩士 === 國立中正大學 === 財務金融所 === 97 === In recent year, funds have become the major investment vehicle for investors and more and more funds are managed by management team. In this research, we try to help investors to examine the fund manager and provide another evidence for the effectiveness of control mechanism. Specially, we use Split Population Duration Model to find out whether difference in the management structure and scale of management will have an effect for fund manager on the probability of survival and survival time. In our 1163 growth fund sample, of which 817 funds are belong to demotion sample. We find that sole fund manager has higher probability of survival than fund managers in the management team. It provides the evidence indicated that fund managers who managed funds solely on average are more talent, while fund managers in the management team are ordinary and less experienced. In addition, for sole fund manager, the number of other fund managed in the meantime is a good indicator to exhibit how talent he is. On the other hand, management team with large scale management displays longer survival time, which implies that management team can bring his advantage into full play when the tasks are complex enough.