Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment
Researchers have doubted Islamic funds’ ability to provide promising financial returns due to the shariah screening procedures. Despite its popularity, Islamic funds are still in doubt to generate attractive returns. Survival of Islamic funds is highly contingent on their capacity to foresee Shari...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2022
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| Online Access: | http://journalarticle.ukm.my/21479/ http://journalarticle.ukm.my/21479/1/AjA_8.pdf |
| _version_ | 1848815360388628480 |
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| author | Maimunah Johari, Nor Balkish Zakaria, Aziatul Waznah Ghazali, Raja Adzrin Raja Ahmad, |
| author_facet | Maimunah Johari, Nor Balkish Zakaria, Aziatul Waznah Ghazali, Raja Adzrin Raja Ahmad, |
| author_sort | Maimunah Johari, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | Researchers have doubted Islamic funds’ ability to provide promising financial returns due to the shariah screening
procedures. Despite its popularity, Islamic funds are still in doubt to generate attractive returns. Survival of Islamic
funds is highly contingent on their capacity to foresee Shariah compliance opportunities in economic shifts. Investors
defer fund withdrawal of the worst-performing funds and anticipate the manager will adjust the fund’s investing strategy
for a future with higher yields. Thus, this paper aims to investigate investors’ reactions to the Islamic equity fund results
(IEs) according to the opportunity motive of Warren Buffet. This is accomplished by evaluating the relationship between
fund flow and performance. This allows us to determine whether investors behave toward the greatest and worstperforming
funds by transferring cash into or out of the funds. This study uses panel data analysis to investigate 134 IEs
from 2007 through 2019. The findings revealed that the link between fund flow and performance of IEs is incompatible
with the asymmetric relationship, implying that the cash outflow for poorly performing funds declined. In contrast, cash
inflow fell for funds that performed the best. Consistent with Warren Buffet’s advice. |
| first_indexed | 2025-11-15T00:48:44Z |
| format | Article |
| id | oai:generic.eprints.org:21479 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:48:44Z |
| publishDate | 2022 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:214792023-04-17T01:20:14Z http://journalarticle.ukm.my/21479/ Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment Maimunah Johari, Nor Balkish Zakaria, Aziatul Waznah Ghazali, Raja Adzrin Raja Ahmad, Researchers have doubted Islamic funds’ ability to provide promising financial returns due to the shariah screening procedures. Despite its popularity, Islamic funds are still in doubt to generate attractive returns. Survival of Islamic funds is highly contingent on their capacity to foresee Shariah compliance opportunities in economic shifts. Investors defer fund withdrawal of the worst-performing funds and anticipate the manager will adjust the fund’s investing strategy for a future with higher yields. Thus, this paper aims to investigate investors’ reactions to the Islamic equity fund results (IEs) according to the opportunity motive of Warren Buffet. This is accomplished by evaluating the relationship between fund flow and performance. This allows us to determine whether investors behave toward the greatest and worstperforming funds by transferring cash into or out of the funds. This study uses panel data analysis to investigate 134 IEs from 2007 through 2019. The findings revealed that the link between fund flow and performance of IEs is incompatible with the asymmetric relationship, implying that the cash outflow for poorly performing funds declined. In contrast, cash inflow fell for funds that performed the best. Consistent with Warren Buffet’s advice. Penerbit Universiti Kebangsaan Malaysia 2022 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/21479/1/AjA_8.pdf Maimunah Johari, and Nor Balkish Zakaria, and Aziatul Waznah Ghazali, and Raja Adzrin Raja Ahmad, (2022) Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment. Asian Journal of Accounting and Governance, 18 . pp. 111-119. ISSN 2180-3838 https://ejournals.ukm.my/ajac/issue/view/1555 |
| spellingShingle | Maimunah Johari, Nor Balkish Zakaria, Aziatul Waznah Ghazali, Raja Adzrin Raja Ahmad, Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment |
| title | Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment |
| title_full | Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment |
| title_fullStr | Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment |
| title_full_unstemmed | Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment |
| title_short | Do investors of Islamic equity funds follow warren buffet’s advice? A regression assessment |
| title_sort | do investors of islamic equity funds follow warren buffet’s advice? a regression assessment |
| url | http://journalarticle.ukm.my/21479/ http://journalarticle.ukm.my/21479/ http://journalarticle.ukm.my/21479/1/AjA_8.pdf |