Fund managers’ investment considerations for K-IFRS-adopted corporates: impact on investment and reinvestment intentions

Abstract

ABSTRACT This study aims to empirically analyze the effects of fund managers’ investment considerations about K-IFRS-adopted corporates on investment and reinvestment intentions. We perform an evaluation of 576 fund managers working across 53 asset management companies in Korea over a six-month period. We then conduct a statistical analysis of 149 (25.8%) valid questionnaires and obtain the following results. First, the financial and management factors have a statistically significant and positive effect on investment intentions, whereas the reliability and social responsibility factors show no such effect. Second, among fund managers’ investment considerations regarding K-IFRS-adopted corporates, the reliability, social responsibility, and management factors have a statistically significant positive effect on reinvestment intentions; but, we find no such effect for the financial factor. Third, conservative investment propensity demonstrates positive moderation in the relationship between social responsibility and investment intentions and aggressive investment propensity does so for the relationship between the financial factor and reinvestment intentions.