دانلود رایگان مقاله انگلیسی تاثیر استانداردهای گزارشگری مالی بین المللی بر عملکرد صندوق - امرالد 2017

Abstract

Purpose – The purpose of this paper is to examine the effect of international financial reporting standards (IFRS) on the performance of UK investment closed-end trust funds with domestic equity focus using Carhart’s Four-Factor model. Design/methodology/approach – The paper is based on the Efficient Market Hypothesis, which argues that all available information is already included in the price of assets, and therefore, investors cannot beat the market or generate abnormal returns. Findings – The results show that on average, UK investment trusts neither do generate abnormal returns, nor is their performance persistent. This paper provides empirical evidence to support the efficient market hypotheses and provides proof that the adoption of IFRS has, on average, a decreasing impact on the excess returns generated by UK investment trusts. Originality/value – The findings of this paper have business policy implications for investment trust in the UK.

8. Conclusion

Our paper focuses on three main objectives. First, it measures the performance of UK closedend funds with UK domestic equity focus. The second is to examine if there is any persistence in performance of those funds and the third examine whether the EU wide adoption of IFRS has any influence on the performance of those funds. Our study focuses on investment trusts which are incorporated in the UK and have a domestic equity investment focus from January 1997 to December 2014 and divided into six non-overlapping three-year periods.

Our study extends the existing literature on closed-end funds by examining the performance of UK domestic investment trusts over a more recent time period. Furthermore, our paper makes significant contribution to the extant literature on the mandatory IFRS adoption in the UK by investigating the impact of the adoption on the performance of UK domestic investment trusts. The result indicates that, on average, the adoption of IFRS has a decreasing significant impact on the excess returns of the UK domestic investment funds. This is further corroborated by the increased percentage of loser funds following the subperiods after the 2005 mandatory adoption.

The Carhart (1997) Four-Factor model is used to determine if UK investment trusts generate abnormal returns, while the Pearson Correlation Coefficient and the OLS regression are used to test if the performance of UK investment trusts is persistent. The results provide evidence that in the period from January 1997 to December 2014, the UK investment trusts did not generate significant positive abnormal returns. The results on the persistence of fund performance show no consistent pattern of persistence and suggesting that investment trust performance is not persistent and that prior investment trust performance should not be used as an indicator for future performance. The policy implication is that investors should not make investment decisions based on the prior performance of a fund. This is because the performance of the UK investment funds market is incongruent as it has no consistent pattern. The findings also give some evidence of Efficient Market Hypothesis in the UK investment funds market as the adoption of the IFRS seems to have made the markets more efficient and, therefore, harder to generate abnormal returns.