THE PERFORMANCE PERSISTENCE OF WINNER FUND MANAGERS – EVIDENCE FROM THE TIMING AND STOCK PICKING ABILITY
Journal Title: Asian Economic and Financial Review - Year 2017, Vol 7, Issue 6
Abstract
This study aims to investigate the persistence of timing and stock picking ability of ?winner fund managers? instead of winner funds. The sample of this study is the previous and next equity funds which the same fund managers manage in Taiwan. we measure the ranking of timing and stock picking ability of fund managers for the period they manage the specific fund. The result shows that for the whole fund managers, the successive two funds they manage are performance persistent. Moreover, the stock picking ability of the two funds they manage is persistent no matter the two funds belonging to the same fund company or not. Regarding the winner fund manager, we find no persistence of return, timing ability and stock picking ability. No matter the winner fund managers change the jobs to the other fund companies or not, the next funds the winner fund managers manage are not timing and stock picking ability persistent. The result of logistic regression demonstrates that the probability of becoming timing or stock picking winners of the next funds which the timing or stock picking winner managers manage is not significantly higher than other funds. The result indicates that investors do not necessarily follow the timing and stock picking winner fund managers. The performance of the next funds which the winner fund managers manage may reverse especially for the successive two funds belonging to the same fund company. Little literature investigates the issue regarding the fund timing and stock picking performance from the viewpoint of ?fund managers?. The results of this study provide investing implications for fund investors when they are choosing funds.
Authors and Affiliations
Ying-Fen Fu| Assistant Professor, Department of Finance, Tainan University of Technology, Taiwan, Hai-Ching Liu*| Assistant Professor, Department of Finance, Southern Taiwan University of Science and Technology, Taiwan
Keywords
Related Articles
- EP ID EP2396
- DOI -
- Views 575
- Downloads 75
INTERDEPENDENCE OF SOUTH ASIAN & DEVELOPED STOCK MARKETS AND THEIR IMPACT ON KSE (PAKISTAN)
The objective of this study was to investigate the interdependence among the South Asian and developed markets and their impact on Karachi Stock Exchange. The data were collected from eight worldly stock exchanges, four...
CAN EMERGING MARKET PROTECTIONISM BE BENEFICIAL?
This paper employs a sequential trade competition model to analyze differential trade effects on an emerging market. We find that free trade is not able to alter the ex post dominance of the foreign incumbents and, conve...
MARKET EFFICIENCY OF ASEAN STOCK MARKETS
In this paper, we examine the stock market efficiency of the members of the Association of South East Asian Nations (ASEAN). We use the conventional individual variance ratio tests like the Lo and MacKinlay (1988) test,...
PATTERN AND SOURCES OF GROWTH OF THE VIETNAM ECONOMY: A DEVIATION FROM PROPORTIONAL GROWTH ANALYSIS
The purpose of this paper is to conduct a deviation from proportional growth (DPG) analysis for the Vietnamese economy over the period of 1996-2007. This aims to determine the pattern and sources of growth of the economy...
CORPORATE INVESTMENT AND CASH-FLOW SENSITIVITY: EVIDENCE FROM A JASMIN REVOLUTION PERIOD IN TUNISIAN MARKET
This study investigates the impact of financial constraints on investment decisions and corporate cash holding of Tunisian firms over the period of 2003-2013. We will investigate this task in a particular context which i...