Search results

This chapter examines the performance persistence evidences of pension fund managers who managed the constituent equity funds included in Hong Kong Mandatory Provident Fund (MPF) schemes over the period 2001–2004. Nonparametric two-way contingency table and parametric OLS regression analysis are employed to evaluate performance persistence. The evidence suggests that the raw returns, traditional Jensen alphas, and conditional Jensen alphas in the previous year possess predictive abilities. When the funds are classified into high-volatile and low-volatile samples, the high-volatile funds are found to possess stronger performance persistence. Neither hot-hand nor cold-hand phenomena are found in the equity funds managed by same investment manager.

In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are perceptions and attributions – cognitions that determine the “what” and the “why” of performance. Perceptions are first-order cognitions that assess what is the performance feedback: positive or negative? After performance feedback is perceived, attributions are second-order cognitions that attempt to establish why the performance is positive or negative.

Cognitive evaluation theory (CET; Deci, 1975), SDT's first mini-theory, was built from research on the dynamic interplay between external events (e.g., rewards, choice) and people's task interest or enjoyment – that is, intrinsic motivation (IM). At the time, this research was quite controversial, as operant theory (Skinner, 1971) had dominated the psychological landscape. The central assumption of operant theory was that reinforcement contingencies in the environment control behavior, which precluded the existence of inherently satisfying activities performed for non-separable outcomes. During this time, Deci proposed that people – by nature – possess intrinsic motivation (IM), which can manifest as engagement in curiosity-based behaviors, discovery of new perspectives, and seeking out optimal challenges (see also Harlow, 1953; White, 1959). IM thus represents a manifestation of the organismic growth tendency and is readily observed in infants' and toddlers' exploratory behavior and play. Operationally, an intrinsically motivated activity is performed for its own sake – that is, the behavior is experienced as inherently satisfying. From an attributional perspective (deCharms, 1968), such behaviors have an internal perceived locus of causality, as people perceive their behavior as emanating from their sense of self, rather than from experiences of control or coercion.

This chapter presents empirical evidence on the effects of attributional retraining (AR), a motivation-enhancing treatment that can offset maladaptive explanatory mind-sets arising from adverse learning experiences. The evidence shows that AR is effective for assisting college students to adapt to competitive and challenging achievement settings.

This chapter describes the characteristics of AR protocols and details three primary advances in studying AR efficacy in terms of achievement performance, psychosocial outcomes, and processes that mediate AR-performance linkages. The psychological mechanisms that underpin AR effects on motivation and performance are outlined from the perspective of Weiner’s (1974, 1986, 2012) attribution theory.

Laboratory and field studies show that AR treatments are potent interventions that have short-term and long-lasting psychosocial, motivation, and performance benefits in achievement settings. Students who participate in AR programs are better off than their no-AR counterparts not just in their cognitive and affective prospects, but they also outperform their no-AR peers in class tests, course grades, and grade-point-averages, and are more persistent in terms of course credits and graduation rates.

This paper contributes to the emerging literature on treatment interventions in achievement settings by documenting key advances in the development of AR protocols and by identifying the next steps critical to moving the literature forward. Further progress in understanding AR efficacy will rest on examining the analysis of complex attributional thinking, the mediation of AR treatment effects, and the boundary conditions that moderate AR treatment efficacy.

Over the last decades, the accounting and control literature has featured much studying of and debate about the role and designing of incentives. Over the last year or so, the debate over incentives and bonuses has become a much more public one, as illustrated by the current public furor over bankers' bonuses and frequent calls to limit them and/or tax them more heavily. The public nature of the debate is new, but the emotional intensity is not; an intense emotionality has often characterized discussions of these subjects in print, as recently illustrated by a controversy between supporters and opponents of goal setting published in Academy of Management Perspectives.

This chapter tries to structure the debate by defining – and clarifying the interactions between – key components of the debate. I then review some – by no means all – of the evidence available in three streams of research: goal setting, self-determination theory, and economics. A surprisingly large number of commonalities emerge from this review. I then revisit in light of this review two accountability models I had introduced at a previous conference as well a forthcoming field study of the sophisticated approach developed by a successful multinational corporation.

We review the interventions that promote motivation in academic contexts, with a focus on two primary questions: How can we motivate students to take more STEM courses? Once in those STEM courses, how can we keep students motivated and promote their academic achievement?

We have approached these two motivational questions from several perspectives, examining the theoretical issues with basic laboratory research, conducting longitudinal questionnaire studies in classrooms, and developing interventions implemented in different STEM contexts. Our research is grounded in three theories that we believe are complementary: expectancy-value theory (Eccles & Wigfield, 2002), interest theory (Hidi & Renninger, 2006), and self-affirmation theory (Steele, 1988). As social psychologists, we have focused on motivational theory and used experimental methods, with an emphasis on values – students’ perceptions of the value of academic tasks and students’ personal values that shape their experiences in academic contexts.

We review the experimental field studies in high-school science and college psychology classes, in which utility-value interventions promoted interest and performance for high-school students in science classes and for undergraduate students in psychology courses. We also review a randomized intervention in which parents received information about the utility value of math and science for their teens in high school; this intervention led students to take nearly one semester more of science and mathematics, compared with the control group. Finally, we review an experimental study of values affirmation in a college biology course and found that the intervention improved performance and retention for first-generation college students, closing the social-class achievement gap by 50%. We conclude by discussing the mechanisms through which these interventions work.

These interventions are exciting for their broad applicability in improving students’ academic choices and performance, they are also exciting regarding their potential for contributions to basic science. The combination of laboratory experiments and field experiments is advancing our understanding of the motivational principles and almost certainly will continue to do so. At the same time, interventions may benefit from becoming increasingly targeted at specific motivational processes that are effective with particular groups or in particular contexts.

Research and development (R&D) is a vital strategy for firms to sustain their competitive locus and profitability in the global marketplace. Therefore, the existing research is engrossed in the correlation between firm performance (FP) and R&D intensity (RDI) meta-analysis. It also examined the ‘Type of Firm’ as a moderator in this relationship.

This study is motivated by its potential to address existing knowledge gaps, guide decision-making, influence policy and contribute to advancing theoretical and practical insights in the domain of business, economics and innovation.

This study is based on the secondary data. The researcher uses ‘Meta- Essentials 1.5’ for meta-analysis covering the studies of developed and emerging economies from 1985 to 2022.

The outcome conveys a small effect of magnitude between RDI and FP. It also indicates the positively significant linkage between them, directing that investing in R&D projects leads to improvement in the performance of companies. It also points out that private firms engaging in R&D activities have a negative while public firms have a positive correlation with their performance.

Understanding this linkage is imperative as it aids managers in making strategic decisions, the government in funding research-related schemes and investors in choosing R&D projects for investment.

In the build-up of an investment decision, the existence of both active and passive investment vehicles triggers a puzzle for investors. Indeed the confrontation between active and index replication equity funds in terms of risk-adjusted performance and alpha generation has been a bone of contention since the inception of these investment structures. Accordingly, the objective of this chapter is to distinctly underscore whether an investor should be concerned in choosing between active and diverse passive investment structures.

The survivorship bias-free dataset consists of 776 equity funds which are domiciled either in America or Europe, and are likewise exposed to the equity markets of the same regions. In addition to geographical segmentation, equity funds are also categorised by structure and management type, specifically actively managed mutual funds, index mutual funds and passive exchange traded funds (‘ETFs’). This classification leads to the analysis of monthly net asset values (‘NAV’) of 12 distinct equally weighted portfolios, with a time horizon ranging from January 2004 to December 2014. Accordingly, the risk-adjusted performance of the equally weighted equity funds’ portfolios is examined by the application of mainstream single-factor and multi-factor asset pricing models namely Capital Asset Pricing Model (Fama, 1968; Fama & Macbeth, 1973; Lintner, 1965; Mossin, 1966; Sharpe, 1964; Treynor, 1961), Fama French Three-Factor (1993) and Carhart Four-Factor (1997).

Solely examination of monthly NAVs for a 10-year horizon suggests that active management is equivalent to index replication in terms of risk-adjusted returns. This prompts investors to be neutral gross of fees, yet when considering all transaction costs it is a distinct story. The relatively heftier fees charged by active management, predominantly initial fees, appear to revoke any outperformance in excess of the market portfolio, ensuing in a Fool’s Errand Hypothesis. Moreover, both active and index mutual funds’ performance may indeed be lower if financial advisors or distributors of equity funds charge additional fees over and above the fund houses’ expense ratios, putting the latter investment vehicles at a significant handicap vis-à-vis passive low-cost ETFs. This chapter urges investors to concentrate on expense ratios and other transaction costs rather than solely past returns, by accessing the cheapest available vehicle for each investment objective. Put simply, the general investor should retreat from portfolio management and instead access the market portfolio using low-cost index replication structures via an execution-only approach.

The battle among actively managed and index replication equity funds in terms of risk-adjusted performance and alpha generation has been a grey area since the inception of mutual funds. The interest in the subject constantly lightens up as fresh instruments infiltrate financial markets. Indeed the mutual fund puzzle (Gruber, 1996) together with the enhanced growth of ETFs has again rejuvenated the active versus passive debate, making it worth a detailed analysis especially for the benefit of investors who confront a dilemma in choosing between the two management styles.

The uncertainty as to whether investments in riskier and less efficient markets allow managers to ‘beat the market’ remains a question to which answers are required. Accordingly, the purpose of this chapter is to offer new insights on portfolios of the US, European and Emerging Market (‘EM’) domiciled equity mutual funds whose objectives are the investment in emerging economies, and specifically analyses two main issues: alpha generation and the influence of the funds’ characteristics on their risk-adjusted performance.

The dataset is made up a survivorship-bias controlled sample of 137 equity funds over the period January 2004 to December 2014, which are then grouped into equally weighted portfolios according to the scheme’s origin. The Jensen’s (1968) Single-Factor model along with the Fama and French’s (1993) and Carhart’s (1997) multifactor models are employed to authenticate results and answer both research questions.

Research analysis reveals that EM exposed fund managers fail to collectively outperform the market. It thereby offers ground to believe that the emerging world is very close to being efficient, proving that the Efficient Market Hypothesis (‘EMH’) ideal exists in this scenario where market inefficiency might only be a perception of market participants as any apparent opportunity to achieve above-average returns is speedily snapped up by very active managers. Overall these managers take a conservative approach to portfolio construction, whereby they are more unperturbed investing in large cap equity funds so as to lessen somewhat the exposure towards risks associated with liquidity, stability and volatility.

Furthermore, the findings show that large-sized equity portfolios have the lead over the medium and small-sized competitors, whilst the high cost and mature collective investment vehicles enjoy an alpha which although is negative is superior to their peers. The riskiest funds generated the lowest alpha, and thereby produced doubts as to whether investors should accept a higher risk for the hope of earning higher returns, at least when aiming to gain an exposure into the emerging world.

Mutual fund performance is not an innovative topic so to speak. Nonetheless, researchers and academia have centred their efforts on appraising the behaviour of fund managers domiciled primarily in developed and more efficient economics, leaving the emerging region highly uncovered in this respect. This study, therefore aims at crafting meaningful contributions to the literature as well as to the practical perspective.