Abstract

This study employs a two‐stage network data envelopment analysis model to analyze the decision quality and capital magnet efficiencies of 155 mutual funds in Taiwan during the period 2007–2016. The empirical results show that fund managers improved their decision quality; however, their capital magnet efficiency declined. This study also found 10 mutual funds performing in decision quality and capital magnet efficiencies, from which practical suggestions are provided to investors. Finally, this study constructs a market competition matrix to help fund managers (and investors) improve their operating and portfolio performance, plus resource allocation.

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