Do manager characteristics matter in equity mutual fund performance? New evidence based on the double-adjusted alpha

Jia-Hui Lin, Meng-Feng Yen and Wei-Cheng Hsieh

Pacific-Basin Finance Journal, 2023, vol. 77, issue C

Abstract: Numerous studies investigate the relationships between fund manager characteristics and fund performance. However, most evaluate fund performance by using traditional factor alphas, such as the Fama–French–Carhart four- and six-factor alphas. In the present study, we analyze data from Taiwanese equity mutual funds from January 2009 to December 2018 and reevaluate the relationships between fund manager characteristics (namely gender, education level, and tenure) and fund performance by using a recently proposed performance measure: the double-adjusted alpha. Double-adjusted alphas reflect fund manager skill more accurately than do the traditional four- or six-factor alphas because they control for returns attributable to fund holding characteristics. In contrast to the fact that team management has become the dominant management structure in the U.S. recently, domestic mutual funds in Taiwan are all managed by solo managers, and one manager can manage more than one fund. This solitary working environment in Taiwan's domestic fund industry motivates us to re-examine the relationship between fund performance and characteristics of these solitary managers at the manager level but through using the recently developed double-adjusted alpha method.

Keywords: Fund manager characteristics; Double-adjusted alpha; Stock holding characteristics; Female managers (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927538X22002207
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:77:y:2023:i:c:s0927538x22002207

DOI: 10.1016/j.pacfin.2022.101925

Access Statistics for this article

Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee

More articles in Pacific-Basin Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().