The importance of information technologies in the ability of fund managers to time the market

  • Authors:

  • Luis Ferruz;Maria Vargas

  • Affiliations:

  • Faculty of Economics and Business Studies, Department of Accountancy and Finance, University of Zaragoza, C&#/#/47/ Gran Via, 2 –/ 50.005, Zaragoza, Spain.;Faculty of Economics and Business Studies, Department of Accountancy and Finance, University of Zaragoza, C&#/#/47/ Gran Via, 2 –/ 50.005, Zaragoza, Spain

  • Venue:
  • International Journal of Electronic Finance
  • Year:
  • 2008

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Abstract

This paper compares the performance results of Spanish mutual fund managers and the market timing results obtained using traditional measures and those obtained using measures that consider time variations in returns and risks by incorporating macroeconomic variables representative of Spanish business cycle. We demonstrate that the incorporation of such variables improves the explanatory power of the different models analysed, thus confirming the existence of a relationship between said variables and expected investment fund returns. We, therefore, emphasise and analyse the importance of using information systems, such as the balanced scorecard, which permit a management in real time of that relationship.