Nonfinancial traits and financial smartness: International evidence from Shariah-compliant and Socially responsible funds

Azmi, Wajahat; Mohamad, Shamsher; Shah, Mohamed Eskandar

doi:10.1016/j.intfin.2018.02.001

Cited by 10 publications

(2 citation statements)

References 42 publications

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“…In addition, their analysis confirmed both Islamic and conventional funds' asymmetric and convex flow-performance relationships, as well as investors' best-performance-chasing behaviour. SRI funds have shown an asymmetric relationship between flow and performance; that is, investors' reaction to negative outcomes is not as aggressive as it is to positive returns (Azmi et al, 2018 Marzuki (2020) found that the characteristics of fund families affected both Islamic and conventional funds within the family.…”

Section: Previous Studiesmentioning

confidence: 99%

“…In spite of previous studies at the fund level, which propose that fund performance has a positive impact on fund cash flow (Marzuki & Worthington, 2015;Azmi, Mohamad, & Shah, 2018), no study has tested the rationality of fund investors who buy into another fund from the same star fund family. In addition, it is not known if star fund-owning families perform better than non-star ones.…”

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confidence: 96%

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Star and Poor Fund Phenomena in Islamic- And Conventional-Focused Families: Emerging Country Evidence

Atta

Marzuki

2021

JIMF

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The aim of this study is to investigate star and poor phenomena and their impact on the flows of Islamic-focused family (IFF) and conventional-focused family (CFF). The sample includes the four emerging countries with the largest number of Islamic mutual funds from 2007 to 2018 (Saudi Arabia, Malaysia, Indonesia, and Pakistan). Panel regression analysis was used to examine the impact of dummy star and poor as independent variables, and family age, size, number of funds, past returns, and total risk as control variables for fund family flows. The results show that the dummy star has a significantly positive relationship with family flows. Family managers have succeeded in attracting more investors by using the strategy of advertising the best performing funds. However, in both, all families and IFF, the dummy poor has a negative relationship, but is insignificant. On the other hand, for CFFs, the dummy poor is significantly negative. This is because investors in IFFs, unlike those in CFFs, have more loyalty due to their moral and religious goals in addition to traditional goals. The novel finding of the study is the difference in the star phenomenon between the IFF and CFF. The findings are important for managers, as they will help them to create appropriate strategies to attract more flows and increase the assets under their management. In addition, the findings will help investors to direct their money to appropriate families.

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Section: Previous Studiesmentioning

confidence: 99%

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confidence: 96%