Relationship between Macroeconomic Variables and Net Asset Value (NAV) of Islamic Equity Unit Trust Funds: Cointegration Evidence from Malaysian Unit Trust Industry
Journal Title: GATR Global Journal of Business & Social Science Review - Year 2013, Vol 1, Issue 3
Abstract
Objective - Even though the unit trust industry witnessed high growth in portfolios size, performances and regulations, however, there is still insufficient understanding of various aspects of the industry such as the lack of information on the funds' unit price behavior and their trend in the long-term investment. This study, therefore, aims to investigate the long-run relationship between the chosen macroeconomic factors and the NAV of the Islamic equity unit trust funds as well as the effect of the (2007-2008) global financial crisis on the performance of Islamic equity unit trust funds and their unit prices. Methodology/Technique - The study utilized Vector Autoregression (VAR) framework in order to analyze this relationship over the period January 2006 to December 2012 using monthly data. Findings - The findings of the investigations confirmed that the selected macro-economic variables do share long-run relationship with the NAV of the Islamic equity unit trust funds in the Malaysian capital market. Novelty - A successful innovation of the relationship between the funds NAV and the selected macroeconomic variables will assist the entire interested group, such as, investors, management of the funds, government agencies, industry players and policy makers to estimate the future trend direction of the NAV and accordingly decide on the operational, managerial, and sustainable growth decisions.
Authors and Affiliations
Anwar Hasan Abdullah Othman, Ahamed Kameel, Hasanuddeen Abdul Aziz
Keywords
Related Articles
- EP ID EP185622
- DOI -
- Views 138
- Downloads 0
The Impact of Capital Structure on Financial Performance of the listed Agriculture Companies in Indonesia
Objective - The paper analyzes the impact of capital structure on the financial performance of the agriculture companies listed in Indonesia Stock Exchange. In addition, this paper also analyzes which one between equity...
Market Segmentation of Organ Donors in Malaysia: A Systematic Literature Review
Objective- The objectives of this paper are to determine bases in segmenting organ donors and to examine potential variables that could be used to segment and target potential organ donors. Methodology/Technique To unde...
Determinants of Women Involvement in Sarawak Cooperative Movement
Objective - The purpose of this study is to examine the determinants of women involvement in Sarawak cooperative business whether interest, life impulse, having necessary skills and environmental influence has any relati...
How To Mismanage Organisations: A Lawyer's Perspective
Objective The purpose of this paper is to promote and to enhance sound management practices in organisations. Methodology/Technique - In particular, this paper identifies four interrelated management practices which, in...
Core Competency and Industry Environment: Its Influences on the Competitive and Cooperative Strategy and Its Implication on the Performance of Sharia-based Financial Institutions in Aceh Province
Objective The aims of the research are to describe and investigate the causal relationship among underlying exogenous Variables (Core Competency and Industry Environment) and Endogenous Variables (Competitive Strategy an...