Mutual Fund Performance and Governance Structure: The Role of Portfolio Managers and Boards of Directors

PurposeThe purpose of this study is to investigate whether the direct and indirect sentiment measures are similar in explaining mutual fund performance.Design/methodology/approachThe authors examine the role of direct and indirect sentiment measures on fund performance in two scenarios. One is when a sentiment measure is added to market models, and the other is when it used independently. Also, the authors propose a system science theory to explain the findings.FindingsThe authors find that both direct and indirect sentiment measures are integral to the benchmark models to explain fund performance. However, while the explanatory power of the direct sentiment index is robust when used independently or collectively, the indirect sentiment measures can explain fund performance only when used along with other market factors.Originality/valueGiven the number of sentiment measures, it is critical to determine whether these measures contain the same information of sentiment. This paper represents the first study on this topic.

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Analysis of Stock Mutual Fund in Indonesian Economy

Business and Entrepreneurial Review ◽

10.25105/ber.v5i1.985 ◽

2016 ◽

Vol 5 (1) ◽

pp. 19

Author(s):

Victor Siagian

Keyword(s):

Mutual Funds ◽

Mutual Fund ◽

Fund Performance ◽

Portfolio Diversification ◽

Mutual Fund Performance ◽

Performance Variable ◽

Unconditional Model ◽

Portfolio Managers ◽

Independent Variable ◽

Portfolio Return

Mutual Fund is one of developing industries. Since it was launched in 1996, mutual fund industry has repidly grown. This fact was indicated by more and more mutual funds that are operated. This condition provides more choices for by investors. Beside considering of benefit and value which will be given by mutual fund, investors must also consider performance of mutual fund. The objective of this research is to evaluate performance of mutual fund in Indonesia and what factors which influence the performance of mutual fund. Measure the performance of the mutual fund, this research used model a<br />which was developed by Alpha Jensen. Using Jensen model caused an unconditional model, which performance of mutual fund can be compared without focusing on the differentiation of the portfolio diversification level. This model measures performance by intercept of regression between excess portfolio<br />return as dependent variable and excess market return as independent variable. The result of this research that is only two of six mutual fund has outperform toward market perform as a benchmark performance. Variable of excess market retum level was consistent influenced portfolio return with positive significance. The bad mutual fund performance more caused by stocks election ability of portfolio managers in selecting<br />accurate stock to porlfolio. Beside uncapability of portfolio managers in selecting accurate stock, the different characteristic of mutual fund caused bad observed mutual fund.

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Corporate ownership and mutual fund performance: evidence from Taiwan

Corporate Ownership and Control ◽

10.22495/cocv5i4p12 ◽

2008 ◽

Vol 5 (4) ◽

pp. 128-134 ◽

Cited By ~ 1

Author(s):

Chun-An Li ◽

Hung-Cheng Lai

Keyword(s):

Mutual Fund ◽

Negative Relationship ◽

Fund Performance ◽

Board Members ◽

Mutual Fund Performance ◽

Corporate Ownership ◽

Foreign Institutional Investors ◽

Institutional Shareholders ◽

The Relationship

We examine the relationship between corporate ownership and fund performance in Taiwan. Using the panel regression after controlling for fund attributes, the proportional share held by foreign institutional investors is positively correlated with fund performance. Furthermore, we also find a negative relationship between the number of board members and the return gap measure of fund performance, but ownership concentration are not effect on fund performance. Our results imply that foreign institutional shareholders are now playing a significant monitoring role of fund companies in Taiwan

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Conceptual Framework for the Determinants of Mutual Fund Performance in Malaysia

Summer - GATR Journal of Finance and Banking Review ◽

10.35609/jfbr.2018.3.4(2) ◽

2018 ◽

Vol 3 (4) ◽

pp. 48-53

Author(s):

Hafinaz Hasniyanti Hassan ◽

Nazimah Hussin

Keyword(s):

Conceptual Framework ◽

Mutual Funds ◽

Mutual Fund ◽

Structural Equation ◽

Fund Performance ◽

Mutual Fund Performance ◽

Mediating Role ◽

Fund Governance ◽

The Relationship

Objective - The aim of the study is to identify the determinants of mutual fund performance. Mutual funds have grown in the global financial scene since the 1890s. Past studies have examined various issues associated with mutual funds. However, in Malaysia, mutual fund related studies are rather limited. While most global researches observe the determinants of conventional mutual fund performance, the literature in Malaysia focuses only on a comparison of the performance of mutual funds. Hence, this study aims to fill that gap by providing a framework to assess the determinants of mutual fund performance. More specifically, the study proposes a conceptual framework to determine the effect of historical return, fund governance, timing and selection skills on mutual fund performance. The advancement of the study can be found through the use of theory of performance and mutual fund fees as a mediator in determining the performance of mutual fund fees. Methodology/Technique - A quantitative approach based on secondary data will be used in this study. Multivariate regression analysis and structural equation modelling is also used to evaluate the relationship between the variables. Findings - A conceptual framework is proposed based on the Theory of Performance. The model fit and the mediating role of mutual fund fees will be confirmed after the collection of the research data. It is expected that historical return, fund governance, timing and selection skills will affect mutual fund performance and mutual fund fees will mediate the relationship between the two. Novelty – This study will provide a new perspective on mutual fund performance by using the Theory of Performance. In addition, the mediating role of mutual fund fees is further examined in relation to the specified determinants and mutual fund performance. Type of Paper - Review. Keywords: Mutual Funds; Fees; Performance; Mediator; Theory of Performance. JEL Classification: G10, G11, G19.

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