This document summarizes a study on the relationship between fund performance, flows, and liquidity/illiquidity for Taiwanese open-end equity mutual funds from 1991 to 2011. Prior research found performance positively impacts flows and younger/smaller/less expensive funds have higher sensitivity to returns. However, few studies examined whether illiquid funds experience more outflows than liquid funds during periods of poor performance. The presented study analyzes Taiwan Economic Journal database fund data to investigate if illiquid funds have more outflows than liquid funds when performance is low, using regression analysis while controlling for size, age, and expenses.

1. Presenter ： Chia-Yi Abi Lin Instructor ： Dr. Pi-Ying Teresa Hsu Date ： June 01, 2011

2. Methodology 3 - Participants - Procedures - Instruments - Statistical Analysis Contents Literature Review 2 - Flows - Research Gap - Purposes of the study - Research Question - Background Introduction 1

3. - Background Introduction

4. purchases inflows redemptions outflows Flows Mutual Funds Open-end equity

5. Literature Review - Flows - Research Gap - Purposes of the study - Research Question

8. Flows-Size The size of previous-period market has a strong influence on fund’s flows . (Roston, 1996)

10. Research Gap No providing empirical evidence of differentiating the high and low of flows Few studies have focused on using Taiwanese data from Taiwan Economic Journal (TEJ) database.

13. Methodology - Participants - Procedures - Instruments - Statistical Analysis

14. Taiwan Economic Journal (TEJ) database Participants Open-end equity mutual funds Stock funds (at least 70%)

16. Regression analysis Statistical Analysis Sample Control Variables Instrument Database

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