ISSN (Print): 2333-8849

ISSN (Online): 2333-8857

Currrent Issue: Volume 4, Number 1, 2016

Article

Can Mutual Funds Outguess the Market: Evidence from Bangladesh?

1Department of Finance and Banking, Islamic University, Kushtia, Bangladesh

2Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia


Journal of Finance and Accounting. 2016, 4(1), 11-19
doi: 10.12691/jfa-4-1-2
Copyright © 2016 Science and Education Publishing

Cite this paper:
Md. Bokhtiar Hasan, A. F. M. Mainul Ahsan. Can Mutual Funds Outguess the Market: Evidence from Bangladesh?. Journal of Finance and Accounting. 2016; 4(1):11-19. doi: 10.12691/jfa-4-1-2.

Correspondence to: Md.  Bokhtiar Hasan, Department of Finance and Banking, Islamic University, Kushtia, Bangladesh. Email: bokhtiar_bank@yahoo.com

Abstract

This study principally analyzes the fund managers’ ability to outguess the market in Bangladesh. We perform the investigation on weekly data of 25 mutual funds for the period of May 16, 2010 to April 28, 2016. To serve our objective, we tested both selection and market timing skills of the fund managers. We have used six measures; average return, Sharpe ratio, Treynor ratio, Information ratio, Jensen’s alpha and M square; to confirm the selection skill of fund managers and found no selection skill persistent to most of the fund managers (excluding Aims 1st M.F, ICB AMCL 2nd NRB M.F. and 6th ICB M.F.). In addition, the negative values of alpha indicate that fund managers become not only failed to add value to their portfolio, but also pool wrong assets which hurt the return resulting negative profit. On the other hand, we have employed two popular methodologies; Treynor and Mazuy [24] and Henriksson and Merton [10]; to test the market timing skill of fund managers and found no market timing skill persistent to the fund managers. Thus, with a little exception, we can conclude that fund managers have no ability to outguess the market in Bangladesh.

Keywords

References

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Article

The Effect of Commercial Banks’ Credit on Agricultural Production in Nigeria

1Department of Banking and Finance, Faculty of Management Sciences, University of Calabar, Calabar, Nigeria


Journal of Finance and Accounting. 2016, 4(1), 1-10
doi: 10.12691/jfa-4-1-1
Copyright © 2016 Science and Education Publishing

Cite this paper:
Chris O Udoka, Prof. D. O Mbat, Stephen B. Duke. The Effect of Commercial Banks’ Credit on Agricultural Production in Nigeria. Journal of Finance and Accounting. 2016; 4(1):1-10. doi: 10.12691/jfa-4-1-1.

Correspondence to: Chris  O Udoka, Department of Banking and Finance, Faculty of Management Sciences, University of Calabar, Calabar, Nigeria. Email: udokaco@yahoo.com

Abstract

This study examined the effect of commercial banks’ credit on agricultural output in Nigeria. Four research hypotheses were formulated to guide and direct the study. The ex-post facto research design was adopted for the study. Data for the study were collected from published articles and the Central Bank of Nigeria Statistical bulletin. To estimate the specified equation, the ordinary least squares regression technique was employed. Based on the results obtained, the following result arose; the estimated results showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural production in Nigeria. This means that an increase in agricultural credit guarantee scheme fund could lead to an increase in agricultural production in Nigeria; there was a positive and significant relationship between commercial banks credit to the agricultural sector and agricultural production in Nigeria. This result signified that an increase in commercial banks credit to agricultural sector led to an increase in agricultural production in Nigeria. Again, there was a positive and significant relationship between government expenditure on agriculture and agricultural production in Nigeria and a negative relationship between interest rate and agricultural output also confirmed theoretical postulations. This is because an increase in the rate of interest charged farmers for funds borrowed discouraged many farmers from borrowing and thus less agricultural investment. The study recommended that the positive effect of agricultural credit guarantee scheme fund on agricultural production called for the proper funding of the scheme by the government. To this end, there was the need for the government to continue to guarantee loans lent to farmers as this would encourage the banks to lend more to farmers.

Keywords

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