TITLE:
What Affects a Taiwan Fund Company’s Operating Performance? An Analysis on Market Share
AUTHORS:
Feng-Huei Chang, Yeong-Jia Goo
KEYWORDS:
Mutual Fund, Fund Company, Operating Performance, Market Share
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.5,
August
1,
2017
ABSTRACT: This study aims to explore the factors that affect
the operating performance of 37 Taiwan fund companies by examining monthly data
from open-end domestic equity funds and balanced funds from January 2001 to
April 2013. The market share of domestic equity funds and balanced funds is
used as the proxy variable to measure a company’s operating performance. The
results show that there is a significant difference in market share between
foreign and domestic fund companies. The age of the fund company, the average
turnover rate, and the number of people subscribing for dollar-cost-averaging
investment plans are found to be positively related to a company’s market
share, while the average rates of transaction cost and management fee are negatively
related to the market share. We also find that star funds have a significantly
positive effect on the market share of a mutual fund company.