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Determinants of returns and decisions of fund managers: Survey evidence from four Turkish banks

Author

Listed:
  • Omar Masood
  • Hosein Piranfar

    (Business School (UEL), Docklands Campus, 4-6 University Way)

Abstract

The article is based on data collected by the authors in 2007. Using these data, we estimate models for the determinants of Turkish fund managers’ return on investment and the degree of personal judgement used in investment decisions. This data set is relatively rare and valuable for understanding the collective behaviour of fund managers. Employing truncated regression, we find that one factor is positively correlated to return on investment. Other factors are either insignificant or negatively correlated. In addition, we find that some fund managers are systematically better than others. This finding is consistent with Chevalier and Ellison's (1999) results for the United States, and is consonant with their rationalisation that managers operate in a nearly, rather than fully, efficient market. Using ordered probit models, we find that experience does influence a manager's judgement, but not strongly enough to impact the returns to investment.

Suggested Citation

  • Omar Masood & Hosein Piranfar, 2010. "Determinants of returns and decisions of fund managers: Survey evidence from four Turkish banks," Journal of Asset Management, Palgrave Macmillan, vol. 11(1), pages 43-54, April.
    • Handle: RePEc:pal:assmgt:v:11:y:2010:i:1:d:10.1057_jam.2009.25
    DOI: 10.1057/jam.2009.25
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    References listed on IDEAS

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