Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry

Objective – Even though the unit trust industry witnessed high growth in portfolios size, performances and regulations, however, there is still insufficient understanding of various aspects of the industry such as the lack of information on the funds’ unit price behavior and their trend in the long-...

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Main Authors:	Othman, Anwar Hasan Abdullah, Mydin Meera, Ahamed Kameel, Abd. Aziz, Hassanuddeen
Format:	Article
Language:	English
Published:	Global Academy of Training & Research (GATR) Enterprise 2013
Subjects:	HG4501 Stocks, investment, speculation
Online Access:	http://irep.iium.edu.my/67699/ http://irep.iium.edu.my/67699/ http://irep.iium.edu.my/67699/1/67699%20-%20Relationship%20between%20Macroeconomic%20Variables.pdf

id	iium-67699
recordtype	eprints
spelling	iium-676992018-12-06T08:41:42Z http://irep.iium.edu.my/67699/ Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry Othman, Anwar Hasan Abdullah Mydin Meera, Ahamed Kameel Abd. Aziz, Hassanuddeen HG4501 Stocks, investment, speculation Objective – Even though the unit trust industry witnessed high growth in portfolios size, performances and regulations, however, there is still insufficient understanding of various aspects of the industry such as the lack of information on the funds’ unit price behavior and their trend in the long-term investment. This study, therefore, aims to investigate the long- run relationship between the chosen macroeconomic factors and the NAV of the Islamic equity unit trust funds as well as the effect of the (2007-2008) global financial crisis on the performance of Islamic equity unit trust funds and their unit prices. Methodology/Technique – The study utilized Vector Autoregression (VAR) framework in order to analyze this relationship over the period January 2006 to December 2012 using monthly data. Findings – The findings of the investigations confirmed that the selected macro-economic variables do share long-run relationship with the NAV of the Islamic equity unit trust funds in the Malaysian capital market. Novelty – A successful innovation of the relationship between the funds NAV and the selected macroeconomic variables will assist the entire interested group, such as, investors, management of the funds, government agencies, industry players and policy makers to estimate the future trend direction of the NAV and accordingly decide on the operational, managerial, and sustainable growth decisions. Global Academy of Training & Research (GATR) Enterprise 2013-08-27 Article PeerReviewed application/pdf en http://irep.iium.edu.my/67699/1/67699%20-%20Relationship%20between%20Macroeconomic%20Variables.pdf Othman, Anwar Hasan Abdullah and Mydin Meera, Ahamed Kameel and Abd. Aziz, Hassanuddeen (2013) Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry. Global Journal of Business and Social Science Review, 1 – 16 (2013) ((3) 5). pp. 5-16. ISSN 2289-8506 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3000882
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4501 Stocks, investment, speculation
spellingShingle	HG4501 Stocks, investment, speculation Othman, Anwar Hasan Abdullah Mydin Meera, Ahamed Kameel Abd. Aziz, Hassanuddeen Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry
description	Objective – Even though the unit trust industry witnessed high growth in portfolios size, performances and regulations, however, there is still insufficient understanding of various aspects of the industry such as the lack of information on the funds’ unit price behavior and their trend in the long-term investment. This study, therefore, aims to investigate the long- run relationship between the chosen macroeconomic factors and the NAV of the Islamic equity unit trust funds as well as the effect of the (2007-2008) global financial crisis on the performance of Islamic equity unit trust funds and their unit prices. Methodology/Technique – The study utilized Vector Autoregression (VAR) framework in order to analyze this relationship over the period January 2006 to December 2012 using monthly data. Findings – The findings of the investigations confirmed that the selected macro-economic variables do share long-run relationship with the NAV of the Islamic equity unit trust funds in the Malaysian capital market. Novelty – A successful innovation of the relationship between the funds NAV and the selected macroeconomic variables will assist the entire interested group, such as, investors, management of the funds, government agencies, industry players and policy makers to estimate the future trend direction of the NAV and accordingly decide on the operational, managerial, and sustainable growth decisions.
format	Article
author	Othman, Anwar Hasan Abdullah Mydin Meera, Ahamed Kameel Abd. Aziz, Hassanuddeen
author_facet	Othman, Anwar Hasan Abdullah Mydin Meera, Ahamed Kameel Abd. Aziz, Hassanuddeen
author_sort	Othman, Anwar Hasan Abdullah
title	Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry
title_short	Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry
title_full	Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry
title_fullStr	Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry
title_full_unstemmed	Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry
title_sort	relationship between macroeconomic variables and net asset value (nav) of islamic equity unit trust funds: cointegration evidence from malaysian unit trust industry
publisher	Global Academy of Training & Research (GATR) Enterprise
publishDate	2013
url	http://irep.iium.edu.my/67699/ http://irep.iium.edu.my/67699/ http://irep.iium.edu.my/67699/1/67699%20-%20Relationship%20between%20Macroeconomic%20Variables.pdf
first_indexed	2023-09-18T21:36:05Z
last_indexed	2023-09-18T21:36:05Z
_version_	1777412830266392576

Relationship between macroeconomic variables and net asset value (NAV) of Islamic equity unit trust funds: cointegration evidence from Malaysian unit trust industry

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