MANAGERIAL DECISIONS AND FUND PERFORMANCE: INSIGHTS INTO THE ROLE OF FINANCIAL TECHNOLOGY

Abstract

Mutual fund managers operate under substantial pressure to enhance fund returns, and their strategic choices are assumed to align with determinants of persistent superior performance. This research investigates the determinants influencing managerial decision processes and evaluates their effects on fund outcomes, with a specific focus on the role of financial technology utilisation and market uncertainty. Data were collected through a structured survey administered to 141 equity fund managers in Tunisia, while fund performance metrics were derived from historical records covering January 2020 to September 2023. The methodological approach integrates principal component analysis to extract behavioural and technological decision dimensions, followed by regression analysis employing adjusted Sharpe and LPM Treynor ratios to assess performance dynamics before and after the COVID-19 period. The empirical findings demonstrate that herding tendencies exert a negative and statistically significant impact on fund outcomes, with more pronounced detrimental effects under turbulent market conditions. Conversely, managerial experience and professional training exhibit a positive contribution to performance, with their influence strengthening during crisis periods. Furthermore, the implementation of FinTech solutions, such as artificial intelligence, machine learning applications, robo-advisory systems, and digital investment platforms, significantly enhances fund performance during and after the crisis, highlighting their importance in facilitating real time financial assessment, risk control, and informed strategic decision making. In contrast, financial incentive structures do not display a statistically meaningful association with performance indicators. Overall, the results emphasise the importance of managerial human capital and FinTech integration in strengthening fund outcomes and provide practical implications for fund management organisations, investors, and regulatory authorities within emerging market contexts.