Malaysian Islamic unit trust rating : perceptions of unit trust managers

Mohd Shamlie Salisi (2017) Malaysian Islamic unit trust rating : perceptions of unit trust managers. Doctoral thesis, Universiti Malaysia Sabah.

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Abstract

The current research explored the current progress of the perceived Islamic Unit Trust (IUT) rating development within unit trust managers of unit trust management companies operating in Malaysia. It was motivated by the scarcity of empirical attention given to the subject on its perceived elements of performance information. The current research sought to substantiate its propositions through two research objectives. First, was to investigate the perceived level of importance of unit trust managers' on IUT Rating elements. Second objective was to identify the relationship between perceived importance of information characteristics for fund rating system (i.e. aspects of ratings) and perceived IUT Rating elements from the perspectives of unit trust managers. The interest on the perceived importance of information characteristics for fund rating system (i.e. aspects of ratings) was posited as the predictor and perceived IUT rating elements as the outcomes. A variety of elements were taken into account in the analysis including risk-adjusted return, fund size, fund age, fund fees, transaction costs, management structure, management tenure, managerial incentives, selection and market timing, level of diversification, investment style and Islamic values disclosure. A combination of mail and in-person survey was used to collect the data. 108 usable questionnaires were returned out of 340 questionnaires were sent yielding a 29.47 percent response rate. The results of the data revealed that risk-adjusted return, transaction costs, managerial incentives and Islamic values disclosure perceived to be important elements of perceived IUT Rating. The unit trust managers' emphasis on perceived importance of the aspects of ratings was significantly influenced by positive result on their perception towards perceived IUT Rating elements. Furthermore, the current research found that Islamic values disclosure, risk-adjusted return and managerial incentives are highly regarded to be the most important elements while transaction costs are regarded to be less important element of the perceived IUT Rating. The result infers that the level of importance among the perceived IUT Rating elements are statistically significant, thus the alternative hypothesis could be accepted. Indeed, sufficient knowledge in Shari'ah based-IUT among unit trust managers eventually may have influenced and led their perception into choosing Islamic values disclosure to be the most important element among the perceived elements of IUT Rating while the risk-adjusted return, transaction costs and managerial incentives elements are perceived to be important due to their compatibility with the Shari'ah principle of profit and loss sharing concept. Consequently, these findings may capture the true reflections of elements of IUT Rating performance information that unit trust managers themselves respect and believe in.

Item Type:	Thesis (Doctoral)
Keyword:	Islamic Unit Trust, IUT, Malaysia,
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	DG MASNIAH AHMAD -
Date Deposited:	23 Apr 2024 14:52
Last Modified:	23 Apr 2024 14:52
URI:	https://eprints.ums.edu.my/id/eprint/38513

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