A Review of Financial Performance Evaluation Models of Investment Companies

Document Type : Review Paper

Authors

1 Associate Professor of Accounting at Alzahra University

2 Ph.D. student of Alzahra University

Abstract

Economic growth and development, increased corporate and separating management from ownership, and subsequently agency issues, drew attention to the company's financial performance. Investment company as one of the premier companies of the capital market was introduced in the United States of America in the 1890s. Gradually investment company established in other countries. In Iran, they were entered the business world since1961. The importance of investment company is to the extent that is considered an important part of the capital markets and many investors use the services of these companies, because they don’t have enough time, financial resources, or necessary expertise to create a proper portfolio. So they depute it to investment company. As a result it is worthwhile and important for them to evaluate the company's financial performance. Many attempts have long been to achieve a model to evaluate the performance of the company in the world to provide investors a better assess of performance. This study is aimed to study these models and measures of performance evaluation in literature, in order to analyses the possibility of using them to evaluate performance of Iranian investment companies according to their circumstances and activities in Iran.

Keywords

Main Subjects

References

Abde Tabrizi, H. , and Sharifian, R. , (2008) , “The effect of downside risk on adjusted performance based on risk of investment companies in Tehran Stock Exchange ", Journal of Tehran Stock Exchange, pp. 70-35 (in Persian)
Alame Haeri, F. , and Hoseini, M. , (2012) , “Evaluation and comparison of the performance of investment companies and mutual funds ", Journal of Financial Accounting, Fourth Year, Pages 175-197 (in Persian)
Arshad, A. , (2012) , “Net Present Value is better than Internal Rate of Return”, Interdisciplinary journal of conemporary research in business, VOL 4, NO 8, pp 211-219
Chen Y, Chiu Y, Li M, (2011). “Mutual fund performance evaluation–application of system BCC model”, South Afr. J. Econ. , 79 (1): pp 1-16.
Galagedera, D. U. A. , and Silvapulle, P. , (2002) ,”Australian Mutual Funds Performance Appraisal Using Data Envelopment Analysis”, Managerial Finance, Vol. 28, No. 9, pp 60-73
Ghajar, M. , Hazer, M. , and Bendari, M. , (2013) , “principle of investment management” available on www. 2noor. ir/bookdownload. aspx?bookid... pdf(in Persian)
Hubner, G. , (2007) , "How Do Performance Measures Perform?", Journal of Portfolio Management; Vol. 33, No. 4 ; pp 64-74
Jabbari, R. , Salehi Sedghiani, J. , Amiri, A. , (2012) , “Performance appraisal and portfolio selection from stock investment funds", Journal of Operations Research and its Applications, Year 9, No. 1, pp. 19-1 (in Persian)
Jones, Ch. , (1998) , “Investment analysis and management”, 6th edition, John wiley and sons Inc, USA
Kao, Ch. , (2014) , “Network data envelopment analysis: A review”, European Journal of Operational Research 239, pp 1–16
Khodaei, M. , and Foladvandnia, E. , (2010) , “Performance evaluation of portfolio management with emphasis on downside risk framework in investment companies accepted in Tehran Stock Exchange", Journal of Financial Studies, No. 5, pp. 67-90 (in Persian)
Lali, M. , Valizadeh, A. , (2010) , “Investigating the role of financial intermediaries in investment”, available on http: //www. ensani. ir/storage/Files/20101213141011-97014. pdf  (in Persian)
Lin, Tzu-Yu, and Sheng-Hsiung Chiu, (2013) , “Using independent component analysis and network DEA to improve bank performance evaluation”, Economic Modelling 32, pp 608–616
Mashayekh, Sh. , (2003) , “exess return on investment management”, PhD Thesis in accounting, Alame Tabatabaei University (in Persian)
Mohammadi, D. , (2007) , “Designing a model for evaluating supply chain performance and developing performance measurement techniques”, PhD Thesis in Management, Tehran University (in Persian)
Pourzamani, Z. , Roohi, A. , and Safari, A. M. , (2010) “Investigating the Impact of Some Management and Environmental Factors on the Return of Mutual Funds in Iran”, The mannagent research, No 86, pp 85-101 (in Persian)
Qamruzzaman, Md. , (2014) , “Comparative Study on Performance Evaluation of Mutual Fund Schemes in Bangladesh: An Analysis of Monthly Returns”, Journal of Business Studies Quarterly, Volume 5, No 4
Radfar, M. , (2005) , “Comparison of stock returns of investment companies' shares with the companies admitted to the stock exchange”, Master's Thesis, AlZahra University (in Persian)
Reid, B. , (2014) , “Investment Company Fact Book, A Review of Trends and Activities in the U. S. Investment Company Industry”, 54th edition, Available on: http: //www. icifactbook. org/
Rom, Brian M. , (2002) , “Using Downside Risk to Improve Performance Measurement”, Investment Technologies, Available on: www. investtech. com
Saedi, A. , and Moghadasian, I. , (2010) , "Evaluation of the performance of equity investment funds in Iran", Journal of the Stock Exchange, No. 9, Third Year, pp. 24-5 (in Persian)
Safarpoor, M. H. , and Sheikh, M. J. , (2007) , “the Effect of Investment Period on the Performance of Investment Companies in Tehran Stock Exchange ", Journal of Accounting and Auditing, No. 50, pp. 99-118 (in Persian)
Sharpe, W. , (1966). "Mutual Fund Performance", Journal of Business, No 1, Part 2 (January): pp 119-138.
Slami Bidgoli, Gh. , Tehrani, R. , and Shirazian, Z. , (2005) , “The relationship between firm performance with size, market value and liquidity based on sharp ratio, Traynor ratio and jenson alpha”, Journal of financial reaserch, No 19, pp 3-24 (in Persian)
Soleimani Amiri, Gh. , and Abed, A. , (2013) , "Evaluation of the Performance of Investment Funds in Iran", Experimental Accounting Research, Second Year, No. 8, pp. 21-41 (in Persian)
Swinkels, L. , and Rzezniczak, P. , (2009) , ”Performance Evaluation of Polish Mutual Funds Managers”, International Journal of Emerging Markets, Vol. 4, No. 1, pp 26-42
Tari Verdi, Y. , Ermeki, M. F. , Dagani, R. , and Haidarpour, F. , (2013) , "The Performance and Ranking of Companies and Investment Funds Based on the Merthen Henrickson Evaluation Model", Empirical Accounting Research, Second Year, No. 7, pp. 83- 99 (in Persian)
Tehrani, R. , Mehragan, M. R. , and Golkani, M. R. , (2012) , “A Model for Evaluating Financial Performance of Companies by Data Envelopment Analysis: A Case Study of 36 Corporations Affiliated with a Private Organization”, International Business Research; Vol. 5, No 8
Wen, W. , (2010) , “Business Performance Evaluation Model for theTaiwan Electronic Industry based on Factor Analysis and AHP Method”, Proceedings of the World Congress on Engineering, Vol III
Yahyazade, M. , Shams, Sh. , and Rezazade, M. , (2010) , “Performance evaluation of portfolio management of investment companies in Tehran Stock Exchange”, Executive Management Research Journal, Tue, 2010, No. 2, pp. 178-157 (in Persian)
Zohdi, M. , Marjani, A. , Montazeri Najafabadi, A. , Alvani, J. , Dalvand, M. R. , (2012) , “ Data envelopment analysis (DEA) based performance evaluation system for investment companies: Case study of Tehran Stock Exchange”, African Journal of Business Management, Vol. 6 (16) , pp 5573-5577
Zvi Bodie, Kane, A. , and Marcus, A. , (2009) , “Investments”, 8th Edition, the McGraw-Hill Companies, USA

Files

History

  • Receive Date: 23 January 2017
  • Revise Date: 05 November 2017
  • Accept Date: 06 November 2017

Share

How to cite

Statistics