The mediating effects of risk tolerance on fund performance.
Risk tolerance in fund performance is a topic which is of enormous interest not only to researchers all over the world, but also to investors. Motivated by limited empirical studies on the effects of risk tolerance on fund performance in Malaysia and in response to reasonable gaps in the literature,...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English English |
| Published: |
Centre for Promoting Ideas (CPI), USA.
2010
|
| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/17245/1/The%20mediating%20effects%20of%20risk%20tolerance%20on%20fund%20performance.pdf |
| _version_ | 1796969217247936512 |
|---|---|
| author | Mahat, Fauziah Md Nasir, Annuar Ali, Noor Azman |
| author_facet | Mahat, Fauziah Md Nasir, Annuar Ali, Noor Azman |
| author_sort | Mahat, Fauziah |
| collection | UPM |
| description | Risk tolerance in fund performance is a topic which is of enormous interest not only to researchers all over the world, but also to investors. Motivated by limited empirical studies on the effects of risk tolerance on fund performance in Malaysia and in response to reasonable gaps in the literature, the objective of this paper is to examine the mediating effect of individual fund manager risk tolerance(IFMRT) measured as level of confidence (LOC) and level of risk tolerance (LORT) as these mediate on the individual fund manager characteristics (IFMC) and fund performance (FP) relationship. The fund performance measures in this study use Sharpe (FPS), Treynor (FPT)m and Jensen (FPJ) ratios. The results indicate a weak linear correlation between individual fund manager characteristics and level of confidence, and also between individual fund manager characteristics and level of risk tolerance. Simultaneously, when the level of confidence and level of risk tolerance is added in the individual fund managers and fund performance relationship, it shows that the LORT variable acts as a mediator between IFMC and FP but LOC does not act as a mediator between IFMC and FP. |
| first_indexed | 2024-03-06T07:39:51Z |
| format | Article |
| id | upm.eprints-17245 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:39:51Z |
| publishDate | 2010 |
| publisher | Centre for Promoting Ideas (CPI), USA. |
| record_format | dspace |
| spelling | upm.eprints-172452015-10-20T07:42:59Z http://psasir.upm.edu.my/id/eprint/17245/ The mediating effects of risk tolerance on fund performance. Mahat, Fauziah Md Nasir, Annuar Ali, Noor Azman Risk tolerance in fund performance is a topic which is of enormous interest not only to researchers all over the world, but also to investors. Motivated by limited empirical studies on the effects of risk tolerance on fund performance in Malaysia and in response to reasonable gaps in the literature, the objective of this paper is to examine the mediating effect of individual fund manager risk tolerance(IFMRT) measured as level of confidence (LOC) and level of risk tolerance (LORT) as these mediate on the individual fund manager characteristics (IFMC) and fund performance (FP) relationship. The fund performance measures in this study use Sharpe (FPS), Treynor (FPT)m and Jensen (FPJ) ratios. The results indicate a weak linear correlation between individual fund manager characteristics and level of confidence, and also between individual fund manager characteristics and level of risk tolerance. Simultaneously, when the level of confidence and level of risk tolerance is added in the individual fund managers and fund performance relationship, it shows that the LORT variable acts as a mediator between IFMC and FP but LOC does not act as a mediator between IFMC and FP. Centre for Promoting Ideas (CPI), USA. 2010-11 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/17245/1/The%20mediating%20effects%20of%20risk%20tolerance%20on%20fund%20performance.pdf Mahat, Fauziah and Md Nasir, Annuar and Ali, Noor Azman (2010) The mediating effects of risk tolerance on fund performance. International Journal of Business and Social Science, 1 (2). pp. 89-102. ISSN 2219-6021 Financial risk management. Risk management. English |
| spellingShingle | Financial risk management. Risk management. Mahat, Fauziah Md Nasir, Annuar Ali, Noor Azman The mediating effects of risk tolerance on fund performance. |
| title | The mediating effects of risk tolerance on fund performance. |
| title_full | The mediating effects of risk tolerance on fund performance. |
| title_fullStr | The mediating effects of risk tolerance on fund performance. |
| title_full_unstemmed | The mediating effects of risk tolerance on fund performance. |
| title_short | The mediating effects of risk tolerance on fund performance. |
| title_sort | mediating effects of risk tolerance on fund performance |
| topic | Financial risk management. Risk management. |
| url | http://psasir.upm.edu.my/id/eprint/17245/1/The%20mediating%20effects%20of%20risk%20tolerance%20on%20fund%20performance.pdf |
| work_keys_str_mv | AT mahatfauziah themediatingeffectsofrisktoleranceonfundperformance AT mdnasirannuar themediatingeffectsofrisktoleranceonfundperformance AT alinoorazman themediatingeffectsofrisktoleranceonfundperformance AT mahatfauziah mediatingeffectsofrisktoleranceonfundperformance AT mdnasirannuar mediatingeffectsofrisktoleranceonfundperformance AT alinoorazman mediatingeffectsofrisktoleranceonfundperformance |