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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,...

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Main Authors: Mahat, Fauziah, Md Nasir, Annuar, Ali, Noor Azman
Format: Article
Language:English
English
Published: Centre for Promoting Ideas (CPI), USA. 2010
Online Access:http://psasir.upm.edu.my/id/eprint/17245/1/The%20mediating%20effects%20of%20risk%20tolerance%20on%20fund%20performance.pdf
http://psasir.upm.edu.my/id/eprint/17245/
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spelling my.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 English
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
English
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.
format Article
author Mahat, Fauziah
Md Nasir, Annuar
Ali, Noor Azman
spellingShingle Mahat, Fauziah
Md Nasir, Annuar
Ali, Noor Azman
The mediating effects of risk tolerance on fund performance.
author_facet Mahat, Fauziah
Md Nasir, Annuar
Ali, Noor Azman
author_sort Mahat, Fauziah
title The mediating effects of risk tolerance on fund performance.
title_short 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_sort mediating effects of risk tolerance on fund performance.
publisher Centre for Promoting Ideas (CPI), USA.
publishDate 2010
url http://psasir.upm.edu.my/id/eprint/17245/1/The%20mediating%20effects%20of%20risk%20tolerance%20on%20fund%20performance.pdf
http://psasir.upm.edu.my/id/eprint/17245/
_version_ 1643826458389381120
score 13.211869

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