Rob Jans and Rogér Otten
The purpose of this paper is to examine the tournament hypothesis in the UK mutual fund market. Based on a previous US study, fund managers were expected to alter risk‐taking…
Abstract
Purpose
The purpose of this paper is to examine the tournament hypothesis in the UK mutual fund market. Based on a previous US study, fund managers were expected to alter risk‐taking behaviour in response to their performance relative to competing fund managers.
Design/methodology/approach
Based on an earlier methodology, contingency tables were used to examine the risk‐taking behaviour of fund managers after an interim performance period. The sample consists of 422 UK equity mutual funds with monthly data from 1989 to 2003. To avoid survivorship bias, funds that did not survive the entire sample period were also included. This leads to a total of 3,617 observations.
Findings
The main conclusions are two‐fold. First, using the entire 1989‐2003 sample period no consistent evidence for tournament behaviour is found. This is robust to the effects of survivorship bias and window dressing. Second, splitting the sample period into two sub‐periods reveals an interesting pattern. During the first part of the sample period, 1989‐1996, significant evidence for tournament behaviour is found. During the second part of the sample period, 1997‐2003, significant support for strategic behaviour, as described theoretically by Taylor has been documented.
Research limitations/implications
The results suggest that after 1996, managers entered into a strategic game that takes the actions of competing managers into account instead of seeing them as exogenous benchmarks.
Originality/value
By studying the UK fund market, the US results can be tested to see if they are sample specific or can be carried over to other countries as well. Furthermore, the sample period includes data after 1996, the year of the first publication on the tournament hypothesis. This enabled investigation in to whether managers adapted their strategies.
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Rogér Otten and Mark Schweitzer
Outlines previous research on the mutual fund industry and compares the characteristics of the US and European mutual fund markets using the structure‐conduct‐performance…
Abstract
Outlines previous research on the mutual fund industry and compares the characteristics of the US and European mutual fund markets using the structure‐conduct‐performance paradigm. Shows that the European industry is smaller, with more funds and more emphasis on fixed income, with the UK and US having lower concentration ratios than mainland Europe; and the US a wider range of fees. Contrasts the use of different distribution channels and performance statistics; and uses 1991‐1997 data to compare actual stock market returns against benchmarks and between countries. Analyses this in detail and notes with surprise the European funds have a better average performance than US funds.
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This study aims to comprehensively examine sustainable mutual funds (SMFs) research by conducting a systematic literature review and bibliometric analysis of articles spanning…
Abstract
Purpose
This study aims to comprehensively examine sustainable mutual funds (SMFs) research by conducting a systematic literature review and bibliometric analysis of articles spanning 33 years from 1991 to 2023. This review seeks to uncover the principal contributors and the structural framework of knowledge within the realm of business, finance and management research concerning SMFs.
Design/methodology/approach
Following the “Scientific Procedures and Rationales for Systematic Literature Reviews (SPAR-4-SLR)” methodology, the author selected 597 documents for the analysis and collected the bibliographic information from the Scopus database. The author uses RStudio and VOSviewer software to address five research questions.
Findings
The findings indicate a notable expansion in research concerning SMFs within high-quality journals over the last 33 years. The review illuminates the principal contributors in SMFs research by using performance analysis based on journal, article, author, country and institution criteria. By using science mapping techniques, the author identifies five prevailing themes and outlines future research prospects in the domain of SMFs.
Practical implications
This review paper can serve as a roadmap for future researchers, aiding them in discerning the trending research topics within this domain.
Originality/value
To the best of the author’s knowledge, this is the first study that comprehensively provides an overview of different variants, diverse strands and research hotspots of SMFs literature. The study offers insight into the evolution of SMFs, showcasing their progression from a segmented market to a prominently specialized domain in the contemporary landscape.
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Kyriacos Kyriacou, Jakob B. Madsen and Bryan Mase
The aim of this paper is to identify why the historically observed equity risk premium is larger than most researchers believe is reasonable. Whilst equity is undoubtedly riskier…
Abstract
Purpose
The aim of this paper is to identify why the historically observed equity risk premium is larger than most researchers believe is reasonable. Whilst equity is undoubtedly riskier than government issued securities, the extent of the realised premium on equity has been characterised as a “puzzle”.
Design/methodology/approach
This paper measures the equity premium for a number of countries over the past 132 years, and then uses a pooled cross‐section and time‐series analysis to investigate the relationship between the equity premium and inflation.
Findings
This paper shows that the equity premium over the past 132 years has been significantly positively related to the rate of inflation and, therefore, has resulted in an equity premium that is substantially higher in the post 1914 period than before. This effect results from the relative performance of bonds and stocks during inflationary periods. The relatively poor performance of bonds during periods of inflation drives much of the equity premium.
Research limitations/implications
Counterfactual simulations in the paper show that the average equity premium post 1914 would have been 4.61 per cent and not 7.34 per cent had the rate of inflation been zero. This is much closer to theoretically derived estimates.
Practical implications
The size of the equity premium has implications for investors' asset allocation decision. The importance of inflation suggests that in a low inflation environment, the expected equity premium will be considerably lower than the historically realised equity premium.
Originality/value
This paper establishes a clear link between the rate of inflation and the equity premium.
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Suhadak Suhadak, Kurniaty Kurniaty, Siti Ragil Handayani and Sri Mangesti Rahayu
The purpose of this paper is to evaluate how much influence good corporate governance (GCG) has on corporate value, as well as moderating effect of stock return and financial…
Abstract
Purpose
The purpose of this paper is to evaluate how much influence good corporate governance (GCG) has on corporate value, as well as moderating effect of stock return and financial performance on the influence of GCG on corporate value.
Design/methodology/approach
This study was an explanatory study. The unit of analysis was the companies listed in LQ45 in Indonesian Stock Exchange and the sources of data were ICMD, annual report and financial reports of the companies. Indonesian Stock Exchange was selected as the setting of the study since Indonesian Stock Exchange is one of trading places for various types of companies in Indonesia, and it provides complete information on company’s financial data and stock price. The population was 84 companies listed in LQ45 in Indonesian Stock Exchange between 2010 and 2016.
Findings
The higher GCG, independent commissioners proportion, institutional managerial and public ownerships resulted in higher corporate value. MBE and PER stock return is a moderating variable in the influence of GCG on corporate value. Financial performance is moderating variable in the influence of GCG on corporate value.
Originality/value
Based on the previous studies, it may be concluded that there is a gap between the influence of GCG on corporate value and the influence of stock return on financial performance, and moderating variable is needed to evaluate the influence of GCG on company performance, more particularly stock return and financial performance. This discrepancy creates opportunity for conducting an in-depth study on those variables. Its novelty is correlation between stock return and financial performance as moderation. Previous studies used these as mediating variables. This study is going to generate different finding as it is conducted in different setting (country where this study is conducted), type of industry, research period and using different method of analysis.
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Since the beginning of the new millennium, Confucian doctrines on one’s self-cultivation have been re-introduced to curriculum in China. The revived cherish of the Confucian…
Abstract
Since the beginning of the new millennium, Confucian doctrines on one’s self-cultivation have been re-introduced to curriculum in China. The revived cherish of the Confucian legacy in the twenty-first century is a reverse from the official rejection of Confucianism in the Mao era (1950–1976). It also appears as a counterweight to the individualism proliferating among the Chinese youths born at the beginning of the new millennium (Gen Z). The re-introduction of Confucianism is thus ideologically purposeful. Yet how does the mixed exposure to Confucius’ legacy and the modern idea of self-awareness impact this cohort of young people, in particular their way of learning? This chapter focusses on Chinese Gen Z studying in Australia. Using the Bourdieuan theory of human habitus, this chapter examines how these students negotiate between the ideas of self-cultivation and self-awareness, and what implications such experiences have in an intercultural academic community.
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Keith Hooper, Howard Davey, Roger Su and Dani A.C. Foo
Many studies have discussed mutual funds performance, especially about the persistence of excess returns. Regression is the most common method to be used to research the fund…
Abstract
Many studies have discussed mutual funds performance, especially about the persistence of excess returns. Regression is the most common method to be used to research the fund persistence. Dutta (2002) proposes a simpler approach – a direct annual examination of whether a fund beats a market proxy or not, to research the persistence in American mutual fund returns. In this study, authors use a similar methodology to analyse New Zealand growth mutual funds. In addition, a statistically robust method is juxtaposed as a comparison. The study finds that the most of the funds sampled during the period 1996‐2003 are unable to better the benchmark of the world index.
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Kjersti B. Tharaldsen and Edvin Bru
Since more than 450 million people worldwide suffer from mental disorders, interventions that promote mental health have been called for. Mindfulness-based coping (MBC) is an…
Abstract
Since more than 450 million people worldwide suffer from mental disorders, interventions that promote mental health have been called for. Mindfulness-based coping (MBC) is an intervention based on coping skills from cognitive behavioral therapy integrating mindfulness practices. The aim of this study was to examine the effectiveness of the MBC program for psychiatric outpatients. The study employed a mixed research method with a qualitative approach using semi-structured patient interviews and clinical assessments from patients' therapists and a quantitative approach using instruments measuring mindful coping, mental ill health, and life satisfaction. The study sample included 38 psychiatric outpatients from a district psychiatric outpatient service in Norway. Results suggested that although use of the different skills varied, participants had a positive experience with the program and positive changes in psychological functioning were observed. Findings provide knowledge regarding the design of interventions integrating mindfulness to promote more adequate psychological coping.
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It is possible to say that an expert in any field of knowledge can be expected to know particular things and techniques. This can be said of a stone mason, a physicist or a…
Abstract
It is possible to say that an expert in any field of knowledge can be expected to know particular things and techniques. This can be said of a stone mason, a physicist or a midwife. The expertise consists of a notional core of knowledge and skills (i.e. applied knowledge). Such expertise arguably can be found in other experts in the same field, although there will be idiosyncrasies of approach and valuation and quite probably divergencies in what is considered “right” and “wrong”.