Determinants of Mutual Fund Growth in ASEAN CIS

Main Article Content

Buncha Seehavong Pariyada Sukcharoensin

Abstract

This study aims to investigate the factors determining growth of mutual fund industries under the ASEAN Collective Investment Scheme (ASEAN CIS) which are Thailand, Singapore, and Malaysia. The time-series data between 2011 and 2015 are employed to analyze both full and individual samples through regression analysis. From the empirical results of full sample consisting of three countries, inflation rate, stock market capitalization, and money supply are positively significant with mutual fund growth while opposite direction has been found with exchange rate. Further investigation of individual country, GDP is significant variable in Singapore mutual fund industry. When GDP increases, Singapore mutual funds grows. On the other hand, gold price is negatively related to mutual fund growth in Singapore and Malaysia while crude oil price is negatively related to Thai mutual fund growth but shows positive effect in Malaysia.

Keywords

Article Details

How to Cite
Seehavong, B., & Sukcharoensin, P. (2019). Determinants of Mutual Fund Growth in ASEAN CIS. WMS Journal of Management, 8(3), 12-21. Retrieved from https://www.tci-thaijo.org/index.php/wms/article/view/206331
Section
Research Articles-Academic Articles
Author Biographies

Buncha Seehavong

School of Development Economics, National Institute of Development Administration (NIDA)

118 Moo 3, Seri Thai Road, Klonngchan, Bangkapi, Bangkok 10240 Thailand

Pariyada Sukcharoensin

School of Development Economics, National Institute of Development Administration (NIDA)

118 Moo 3, Seri Thai Road, Klonngchan, Bangkapi, Bangkok 10240 Thailand

References

Chaisrisawatsuk, W., & Chaisrisawatsuk, S. (2013). botbāt khō̜ngkō̜ng thun rūam tō̜ kānphatthanā sētthakit Thai. [Roles of mutual fund on economic development in Thailand]. NIDA Economic Review, 7(2), 73–100.

Fernando, D., Klapper, L., Sulla, V., & Vittas, D. (2003). Global growth of mutual funds. World Bank Policy Research Working Paper, 3. 3055.

Garcia, V. F., & Liu, L. (1999). Macroeconomic determinants of stock market development. Journal of Applied Economics, 2(1), 29–59.

Klapper, L., Sulla, V. & Vittas, D. (2004). The development of mutual funds around the world. Emerging Market Review, 5(1), 1–38.

Kopsch, F., Song, H.-S. & Wilhelmsson, M. (2013). Determinants of mutual fund flows. Managerial Finance, 41(1), 10–15.

Korpela, M. & Puttonen, V. (2005). Mutual fund expenses: Evidence on the effect of distribution channels. Journal of Financial Services Marketing, 11(1), 17-29.

Kumar, G. D. & Dash, M. (2008). A study on the effect of macroeconomic variable on Indian mutual funds. Retrieved from https://ssrn.com/abstract=1316442.

Lemeshko, O. & Rejnuš, O. (2014). Determinants of mutual fund industry development in countries of Central and Eastern Europe. European Financial System 2014 Proceeding of the 11th International Scientific Conference, Brno: Masaryk University, 372–378.

Rahman, A. A., Sidek, N. Z. M. & Tafri, F. H. (2009). Macroeconomic Determinants of Malaysian stock market. African Journal of Business Management, 3(3), 95–106.

Sethapramote, Y. (2013). nǣonōm sētthakit mahaphāk læ talāt kō̜ngthun rūam Thai. [Macroeconomic trend and the mutual fund market in Thailand]. NIDA Economic Review, 7(2), 43–72.

Sukcharoensin, P. (2017). khrōngkān wikhro̜ tūa chī wat phư̄a kānphatthanā ʻutsāhakam kō̜ngthun rūam khō̜ng Thai phāilang kān rūam klum prachākhom sētthakit phūmiphāk ʻĒchīa tawanʻō̜k chīang tai ( AEC). [The analysis of Thai mutual fund industry development indicators after ASEAN Economic Community (AEC) liberalization], Bangkok: National Institute of Development Administration.

Varga, G. & Wengert, M. (2010). The growth and size of the Brazilian mutual fund industry. Retrieved from https://ssrn.com/abstract=1575510.

Yartey, C. A. (2008). The determinants of stock market development in emerging economies: Is South Africa different? IMF Working Paper 08/32.