Abstract:

This paper explores the trading activity of busy fund manager in the mutual fund industry for 10 years (2002 Q1 to 2012 Q2) of domestic stocks in Taiwan. It investigates the past busy behavior of the fund’s manager affected the future performance. On the other side, it also reflects the past performance led the fund manage future busy behavior. The empirical result shows that the busy behavior of the busy fund manager indeed has a negative influence to the performance which is one of the contributions. It also shows significant relationship between the fund performance of manager and the profile of mutual funds.

The prior studies were mostly focus on manager and board member busy behavior of the firm which may causes management inefficiency and ineffectively. The issue of relationship between mutual fund performance and busy manager behavior is still inadequate. This article is not only exploring the behavior of the busy fund manager but also discuss the phenomenon of financial industry of mutual fund in Taiwan. It offers a new thinking of financial system and will submit the suggestion to financial industry and academic. The meanings of management are discussed in the paper.