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Author Schultes, Amita K
Title The Relationship Between Investment Performance and Organizational Ownership Structure in U.S. Small Cap Value Equity Managers
book jacket
Descript 135 p
Note Source: Dissertation Abstracts International, Volume: 72-03, Section: A, page:
Adviser: Robert Aubey
Thesis (Ph.D.)--Walden University, 2011
Investors often have difficulty choosing an investment manager, and a single erroneous investment decision can have dire consequences for lifelong financial security. There is lack of academic research on choosing the right investment manager. The primary research question was to determine the suitability of organizational structure for investment management firms with the goal of generating strong investment performance. This research is based on the fall of the efficient market theory, which indicates that investment managers can exploit market inefficiencies to generate profits. In this quantitative study, annual data of investment performance, assets under management, and employee ownership for 94 small cap value equity managers was analyzed from 2003 to 2008 to determine predictors of annual investment return. The statistical investigation included tests for variance inflation factors, homoscedasticity, multicollinearity, autocorrelation, and ordinary least squares multiple regressions. The results of this study are that 2005 calendar year data supported the hypothesis that managers with higher levels of employee ownership have higher investment performance than managers with lower levels of employee ownership. However, the variables had mixed predictive value in other years, calling into question the practice of using organizational structure to select investment managers in all market environments. Therefore, it is recommended that investors and practitioners incorporate additional variables when selecting investment managers. The implications for social change are that investors and practitioners now have more information that they can use to make good investment decisions and gain financial security
School code: 0543
Host Item Dissertation Abstracts International 72-03A
Subject Business Administration, General
Economics, Finance
Alt Author Walden University. Applied Management and Decision Sciences
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