The role of investment committee and board of directors on Malaysian unit trust performance

Rafidah Othman  (ZP00639)

Please use this identifier to cite or link to this item: https://ptsldigital.ukm.my/jspui/handle/123456789/513684

Full metadata record

DC Field	Value	Language
dc.contributor.advisor	Low Soo Wah, Prof. Dr.	-
dc.contributor.author	Rafidah Othman (ZP00639)	-
dc.date.accessioned	2023-10-16T04:49:43Z	-
dc.date.available	2023-10-16T04:49:43Z	-
dc.date.issued	2017-03-06	-
dc.identifier.other	ukmvital:100293	-
dc.identifier.uri	https://ptsldigital.ukm.my/jspui/handle/123456789/513684	-
dc.description	This study examines the role of the board of directors (BOD, hereafter) and the investment committee (IC, hereafter) in influencing fund performance and its components (selectivity and market timing) for 92 Malaysian equity funds over 8-year period from January 2005 to December 2012. The role of the BOD is investigated from the perspectives of its size, independence and direct influence of its participation in the IC. The role of the IC is examined based on its size and independence. The main motivation for examining the role of the BOD and the IC on fund performance is due to the lack of evidence on the former and an absence of evidence of the latter. The roles of the BOD and the IC in explaining fund performances are examined using cross-sectional regression analyses. The results show that only two of the main independent variables are significant, namely the BOD ratio in IC and the IC independence. On the BOD involvement in the IC, as hypothesized, this study finds significant evidence supporting its role in positively influencing fund managers’ selectivity performance. However, this same factor has a significantly negative impact on fund’s market timing performance. Additionally, this study reports significant negative influence of IC’s independence on the overall and selectivity performance of funds. The selectivity performance results of the direct involvement of the BOD in the IC seem to suggest that excessive BOD’s involvement somewhat causes delays in the decision making process especially in time of adverse market movements when immediate responses are needed. This is supported by the finding on negative timing returns when the involvement of the BOD in the IC surpasses a level of 70%. The insignificant findings for the direct roles of the BOD in terms of its size and independence on fund performance could possibly suggest that the funds are practically under the direct control of the IC. The negative findings for IC’s independence on the overall and selectivity performances suggest that stricter regulations and guidelines should be imposed in selecting independent members of the IC and that the appointment of the IC should include members with various capital market backgrounds for better investment decision-making purposes. Drawing on the negative results of IC’s independence, the top management of unit trust management companies should consider conducting regular assessment on the IC to ensure that they contribute positively to fund performance. The findings of this study enhance understanding on agency related issues within the unit trust context.,Certification of Master's/Doctoral Thesis" is not available	-
dc.language.iso	eng	-
dc.publisher	UKM, Bangi	-
dc.relation	Graduate School of Business / Pusat Pengajian Siswazah Perniagaan	-
dc.rights	UKM	-
dc.subject	Investment advisors	-
dc.title	The role of investment committee and board of directors on Malaysian unit trust performance	-
dc.type	Theses	-
dc.format.pages	205	-
dc.identifier.callno	HG4621.R336 2017 tesis	-
dc.identifier.barcode	003359(2018)	-
Appears in Collections:	Graduate School of Business / Pusat Pengajian Siswazah Perniagaan

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