scholarly journals Effects of human capital and fund characteristics on mutual fund performance in Malaysia

F1000Research ◽  
2021 ◽  
Vol 10 ◽  
pp. 905
Author(s):  
Venny Sin-Woon Chong ◽  
Ming Ming Lai ◽  
Lee Lee Chong
Keyword(s):  
Human Capital ◽  
Least Squares ◽  
Fund Performance ◽  
Ordinary Least Squares ◽  
Simultaneous Equations ◽  
Primary Concern ◽  
Fund Management ◽  
Fund Managers ◽  
Turnover Ratio ◽  
Managed Funds

Background: The evolution of the mutual funds industry has changed investors’ perspective. Instead of just focusing on which fund performances are best, investors pay great attention to who is managing and delivering superior returns in their investment portfolios. Nonetheless, it is very scant of comprehensive studies concern with human capital managerial characteristics that link with fund performances. Hence, this study proposes the integration of fund performances, managerial characteristics, systematic risk, expense, and turnover ratio, with single and simultaneous equations based on asset pricing models. Methods: Using a sample of Malaysian fund managers, data from fund management companies, Thomson One database, and fund master prospectus over the periods of January 2012 to December 2014, the fund performance was measured using Jensen alpha (CAPM single factor), and Fama and French three-factor model on single and simultaneous equations. The examination was further carried out by employing the ordinary least squares and three-stage least squares methods. Results: The results suggest that for fund managers, holding a business degree was the key factor to determine the fund performance, while having Master’s degree was not the primary concern. Fund performance and risk behavior varied across fund managers of different gender. Conclusions: The expense ratio, turnover ratio, and fund objective were significantly correlated with fund performance. This study provides ultimate implications for fund management companies, when it comes to the efficient allocation of human capital. Fund management companies should focus more on the team-managed funds phenomenon, instead of on single-managed funds. Overall, this study provides significant guidance for the Malaysian Securities Commissions and fund management companies, to develop a more competent funds market in Malaysia. Specifically, by strengthening the fund industry policies, the typical agency problems, such as too-high managerial expenses, and excessive risk-taking can be alleviated.

Does Fund Managers's Human Capital Add Value for The Fund Performance in Malaysia

2021 ◽  
Vol 12 (1) ◽  
pp. 92-92
Author(s):  
Venny Sin-Woon Chong ◽  
Ming-Ming Lai ◽  
Lee-Lee Chong
Keyword(s):  
Human Capital ◽  
Least Squares ◽  
Mutual Fund ◽  
Empirical Studies ◽  
Fund Performance ◽  
Ordinary Least Squares ◽  
Performance Model ◽  
Fund Managers ◽  
Developed Markets ◽  
Three Stage Least Squares

This study examines the integration of fund managers' human capital characteristics (including education, gender, race, experience, age, team manager) relative to the fund performance model. A few previous empirical studies paid attention to human capital characteristics and mutual fund performances based on developed markets and have obtained mixed result findings. However, very little attention has focused on fund managers' human capital characteristics in the Malaysian mutual funds industry. Hence, this study attempts to fill this research gap.Based on a sample of Malaysian mutual fund managers, data is sourced from fund management companies, Thomson One database and fund master prospectus, from January 2012 to December 2014. The study employing ordinary least squares (OLS) and three-stage least squares (3SLS) methods to integrate fund performances and human capital characteristics with single and simultaneous equations based on asset pricing models. Keywords: Human capital, fund manager, fund performance.

scholarly journals The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?

2020 ◽  
Vol 47 (9) ◽  
pp. 1143-1159
Author(s):  
Roseline Tapuwa Karambakuwa ◽  
Ronney Ncwadi ◽  
Andrew Phiri
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Least Squares ◽  
Ordinary Least Squares ◽  
African Countries ◽  
Content Type ◽  
Econometric Approach ◽  
The Impact ◽  
The Relationship ◽  
Ssa Countries

PurposeThe purpose of this study is to examine the impact of human capital on economic growth for a selected sample of nine SSA countries between 1980 and 2014 using a panel econometric approach.Design/methodology/approachThe authors estimate a log-linearized endogenous using the fully modified ordinary least squares (FMOLS) and the dynamic ordinary least squares (POLS) applied to our panel data time series.FindingsThe empirical analysis shows an insignificant effect of human capital on economic growth for our selected sample. These findings remain unchanged even after adding interactive terms to human capital, which are representatives of government spending as well as foreign direct investment. Nevertheless, the authors establish a positive and significant effect of the interactive term between urbanization and human capital on economic growth.Practical implicationsThe results emphasize the need for African policymakers to develop urbanized, “smart”, technologically driven cities within the SSA region as a platform toward strengthening the impact of human capital-economic growth relationship.Originality/valueThis study becomes the first in the literature to validate the human capital–urbanization–growth relationship for African countries.

scholarly journals CRESCIMENTO ECONÔMICO REGIONAL NO BRASIL: A EDUCAÇÃO COMO FATOR DE CONVERGÊNCIA – 1970/1996

2004 ◽  
Vol 30 (2) ◽  
Author(s):  
José Raimundo Vergolino ◽  
Antônio Pessoa Nunes Neto ◽  
Marcelo Andrade Bezerra Barros
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Least Squares ◽  
Ordinary Least Squares ◽  
Regional Disparities ◽  
Per Capita

Este trabalho tem como principal objetivo analisar o papel da educação no processo de crescimento econômico das microrregiões brasileiras no período de 1970-1996. A hipótese central do trabalho é a de que tal processo apresentou tendência convergente, sinalizando uma redução nas disparidades inter-regionais. Utilizando-se a metodologia proposta por Barro e Sala-I-Martin, foram estimadas regressões a partir do uso do método dos mínimos quadrados ordinários, a fim de captar a existência do fenômeno da convergência e identificando a velocidade (β) pela qual o mesmo se processa. Por fim, procurou-se verificar a importância da educação na equalização das rendas per capita microrregionais. Os resultados encontrados apontam para a existência de um processo convergente nas rendas microrregionais, quando consideradas as variáveis educacionais. Abstract The main purpose of this paper is to analyze the role of education in the process of economic growth for the Brazilian microrregions during the period 1970-1996. The hypothesis is that economic growth associated with educational improvements has led to a reduction in the inter-regional disparities in that period. Following the methodology proposed by Barro e Sala-I-Martin, regressions were estimated using the method of ordinary least squares, in order to identify the existence of the convergent process and the convergence velocity (β) of the former. The importance of education in the equalization of per capita microrregional income were also discussed. The results support the hypothesis under which human capital plays an important role in the economic growth of a region or country.

A SIMULTANEOUS EQUATIONS MODEL OF THE CAUSE-EFFECT RELATIONSHIPS AMONG BIOLOGICAL VARIABLES: AN ANALYSIS USING POSTPARTUM BEEF COWS

1990 ◽  
Vol 70 (1) ◽  
pp. 287-299
Author(s):  
R. C. GREER ◽  
R. E. SHORT ◽  
R. A. BELLOWS
Keyword(s):  
Least Squares ◽  
Body Condition ◽  
Biological System ◽  
Beef Cows ◽  
Ordinary Least Squares ◽  
Biological Data ◽  
Simultaneous Equations ◽  
Parameter Estimates ◽  
System Of Equations ◽  
Biological Variables

A path diagram, as the basic model of a biological system, was used to explore the possible relationships generating observed correlations among physiological and body-trait responses in beef cows. The implications for statistical model specification and estimation were discussed. The model specified was a simultaneous system of equations with the physiological and body-trait responses constituting the set of endogenous variables; length of postpartum anestrous interval (PPI) was chosen as the physiological response of primary interest. The set of predetermined variables representing basic determinants of the biological system included plane of nutrition and obstetrical assistance experiments. From the generalized least-squares parameter estimates it was concluded that basic determinants in common explained much of the correlation among observed values of the physiological and body-trait responses. The cause-effect relationships included a recursive dependency of PPI upon postpartum body condition score and parturition date. In addition, it was concluded from the results that management decisions and events before the experimental period were more important in explaining variation in PPI than were the experimental treatments. Leading to the further conclusion that ignoring or attempting to randomize over such influences in the experimental design may jeopardize experimental results. The system of equations approach to analysis of biological data makes clear the importance of completely thinking through the problem before the experiment, the limitations of ordinary least-squares procedures and should have applications in other biological systems. Key words: Simultaneous equations analysis, anestrus, beef cows, body condition, return interval

Does human capital matter for reduction in energy consumption in India?

2019 ◽  
Vol 13 (2) ◽  
pp. 359-376 ◽  
Author(s):  
Vaseem Akram ◽  
Bhushan Praveen Jangam ◽  
Badri Narayan Rath
Keyword(s):  
Human Capital ◽  
Energy Consumption ◽  
Energy Conservation ◽  
Least Squares ◽  
Negative Relationship ◽  
Ordinary Least Squares ◽  
Annual Data ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose This paper aims to investigate whether improvement in human capital can foster energy conservation by reducing the energy consumption in India using annual data from 1980 to 2014. Further, this study examines the relationship between human capital and various forms of energy consumption such as electricity, coal, natural gas, hydrocarbon gas and petroleum consumption. Design/methodology/approach To attain the objective, the study investigates this relation through the auto-regressive distributed lag model (ARDL) technique to find a long-run and short-run relationship. Second, to check the robustness of the results, the authors use alternative econometric methods such as dynamic ordinary least squares and fully modified dynamic ordinary least squares. Findings The results reveal a negative relationship between human capital and energy consumption, which implies that improvement in human capital lowers the energy consumption and various forms energy consumption, except for petroleum consumption. The results derived from ARDL show that there exists a long-run and short-run association between human capital and energy consumption. The results are consistent across the econometric techniques. Practical implications Because G20 countries including India aim at reducing carbon emission to a certain level, this study provides an insight that by emphasizing on human capital, India can reduce energy consumption, which would foster energy conservation. Originality/value To the best of the authors’ knowledge, this the first study in India which attempts to examine the effect of human capital on energy consumption and its various forms.

scholarly journals Determinants of Growth in Indonesia

2019 ◽  
Vol 3 (2) ◽  
pp. 255-277
Author(s):  
Raymond Rayendra Elven
Keyword(s):  
Human Capital ◽  
Least Squares ◽  
Method Of Moments ◽  
Fixed Effects ◽  
Generalized Method Of Moments ◽  
Physical Capital ◽  
Ordinary Least Squares ◽  
Fixed Effects Model ◽  
Income Per Capita ◽  
Per Capita

Paper ini bertujuan untuk mengidentifikasi faktor-faktor penentu pertumbuhan ekonomi di Indonesia. Untuk itu, dilakukan analisis terhadap data panel dari 33 provinsi di Indonesia mulai tahun 2006 sampai 2015. Analisis empiris pada paper ini melibatkan dua metode estimasi: 1) Ordinary Least Squares (OLS) dengan Fixed Effects Model, dan 2) Generalized Method of Moments (GMM). Hasil penelitian menunjukkan bahwa rasio investasi sebagai akumulasi persediaan physical capital, tingkat pendidikan sebagai akumulasi persediaan human capital, pertumbuhan penduduk, desentralisasi, dan perdagangan memiliki dampak positif yang signifikan terhadap pendapatan per kapita. Selanjutnya, pengeluaran pemerintah dan proporsi penganut agama Islam memiliki pengaruh negatif yang signifikan terhadap pendapatan per kapita. Disisi lain, proporsi penganut agama Kristen Protestan dan Kristen Katolik tidak memiliki pengaruh terhadap pendapatan per kapita.This paper identifies the determinants of economic growth in Indonesia. To accomplish this, panel data for 33 provinces in Indonesia, for the years of 2006 through 2015, were analyzed. The empirical analysis involved two estimation methods: 1) Ordinary Least Squares (OLS) with a Fixed Effects Model, and 2) Generalized Method of Moments (GMM). The results reveal that investment ratio as the stock of physical capital, education level as the stock of human capital; population growth, decentralization, and trade across the provinces have a significant positive impact on the income per capita. Government expenditures and the proportion of adherents to the Islam religion have a significant negative influence on the income per capita. However, the proportion of adherents to the Protestant and the Catholic religions do not affect the income per capita.

scholarly journals Investing into the abyss: The continued misclassification of multi-sector managed funds

2010 ◽  
Vol 8 (1) ◽  
pp. 600-623
Author(s):  
John R. Watson ◽  
N. Allen ◽  
Kok Fai Phoon ◽  
Jayasinghe Wickramanayake
Keyword(s):  
Asset Allocation ◽  
Fund Performance ◽  
Style Analysis ◽  
Sample Period ◽  
Fund Managers ◽  
Insufficient Attention ◽  
Tactical Asset Allocation ◽  
Monthly Sample ◽  
Sector Funds ◽  
Managed Funds

The objective of this paper is to assess whether Australian multi-sector managed funds are misclassified, and then, having found this to be the case, determine if this misclassification has any impact on fund performance. We adopt a strong form of returns based style analysis to investigate a monthly sample of Australian multi-sector funds over the five-year sample period 2003:04-2008:03. The evidence provided demonstrates that insufficient attention has been paid as to whether fund managers are able to keep within their tactical asset allocation ranges and presents that misclassification exist for Australian multi-sector managed funds but that the effect on fund performance is not significant. The paper adds to the literature by demonstrating that no association exists between misclassification and fund performance.

Risk management committee and risk management disclosure: evidence from Australia

2019 ◽  
Vol 31 (3) ◽  
pp. 438-461 ◽  
Author(s):  
Jing Jia ◽  
Zhongtian Li ◽  
Lois Munro
Keyword(s):  
Risk Management ◽  
Human Capital ◽  
Least Squares ◽  
Empirical Evidence ◽  
Design Methodology ◽  
Independence Number ◽  
Ordinary Least Squares ◽  
Content Type ◽  
The Relationship ◽  
Risk Management Committee

Purpose This paper aims to examine the relationship between risk management committees (RMCs) and risk management disclosure (RMD) quality. Specifically, the existence of stand-alone RMCs and a number of RMC characteristics, including RMC size, RMC independence, number of RMC meetings and RMC members’ human capital is investigated. Design/methodology/approach The sample comprises top 100 Australian Securities Exchange (ASX)-listed companies during the period between 2010 and 2012, when RMD began to be guided by detailed recommendations in Australia. Following the RMD framework used by Jia et al. (2016), RMD quality is measured based on its quantity, relevance, width and depth. Ordinary least squares (OLS) regressions were used to test the relationship between stand-alone RMC, RMC characteristics and RMD quality. Findings The results show that the existence of a stand-alone RMC, the human capital of RMC and RMC size are positively associated with RMD quality. In contrast, RMC independence and the number of RMC meetings are not found to have a significant association with RMD quality. Originality/value This study contributes to the current RMD literature by investigating whether a stand-alone RMC and different RMC characteristics are associated with RMD quality. The results of this study provide useful and new empirical evidence about the relationship between RMCs and RMD quality for researchers, companies, and regulators.

scholarly journals Impact of Human Capital on Aggregate Organization Performance in Malaysia

SPLASH Magz ◽  
2021 ◽  
Vol 1 (2) ◽  
pp. 44-47
Author(s):  
Clara Schneider ◽  
◽  
Cahya Budhi Irawan ◽  
Keyword(s):  
Human Capital ◽  
Least Squares ◽  
Qualitative Method ◽  
Positive Relationship ◽  
Ordinary Least Squares ◽  
Organization Performance ◽  
Company Performance ◽  
Capital Acquisition ◽  
The Impact

This study examines the impact of human capital on the aggregate performance of companies in Malaysia using the OECD's Human Capital Acquisition Index (OECD) using the Ordinary Least Squares (OLS) qualitative method. Based on the estimation results we find that human capital acquisition has a positive relationship with company performance in Malaysia.

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