Record Details

Fund Manager Overconfidence, Compensation Incentives and Performance of Mutual Funds in Kenya.

Journal of Insurance and Financial Management

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Title Fund Manager Overconfidence, Compensation Incentives and Performance of Mutual Funds in Kenya.
 
Creator Omondi, Ojwang’ George
 
Description This proposal seeks to investigate the relationship between fund manager overconfidence and performance of mutual funds under the intervention of fund flows and moderation of compensation incentives. By adopting a positivistic philosophy with a correlational descriptive research design, a census survey will be targeted at mutual funds operating in Kenya from 2012 to 2017. Primary data will be captured through semi-structured questionnaires directed at asset managers and chief executive officers complemented by secondary data sourced from Capital Markets Authority, Central Bank of Kenya and Central Bureau of Statistics. Data envelopment analysis, multiple linear regression at 5 percent level of significance, multicollinearity tests, adjusted coefficient of determination, F-tests and t-tests will be part of data analysis. Actively managed mutual funds continue to coexist with index funds despite cost differentials between them. Afundamental question has beeen whether these actively managed funds add value to their investors by producing superior returns commensurate with added manageria; input or not. In a bid to post positive alphas and improve their compensation incentives, fund managers rely on past returns, intuition and gut feeling  to build their confidence levels as they make their daily portfolio balancing acts. Overconfident fund mangers who post positive alphas receive increased fund inflows leading to better compensation incentives and more visible fund families.
 
Publisher Journal of Insurance and Financial Management
 
Contributor —
 
Date 2017-02-12
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/76
 
Source Journal of Insurance and Financial Management; Vol 2, No 5 (2017): Journal of Insurance and Financial Management
2371-2112
 
Language eng
 
Relation https://journal-of-insurance-and-financial-management.com/index.php/JIFM/article/view/76/pdf
 
Rights Copyright (c) 2017 Ojwang’ George Omondi
http://creativecommons.org/licenses/by/4.0