Investigations Upon the Correlations between the Efficiency of Investment Strategies and the Market Performances of the Romanian Financial Investment Companies

Defining, implementing and monitoring investment strategies are sensitive coordinates for solid corporate governance within investment entities and may significantly influence the investors’ perception regarding the financial performances. We based our research on the assumption that efficient investment strategies has major impact upon the net asset value (NAV) reported by Financial Investment Companies, and implicitly upon the stock price. The paper is focused on identifying a certain pattern in the portfolio structures of these entities and measuring some possible correlations with the market performance. For the purpose of this paper, we examine the trading discount or premium determined as price to net asset value per unit (NAVU) ratio in order to measure investors’ perception regarding the asset management performance, defined as market performance. Nevertheless, we consider that our research find its utility also for financial audit missions conducted for investment entities, whenever significant misstatement risk is assessed as part of planning the missions. Therefore, we consider that our correlation testing may be efficiently used as analytical procedures when gathering sufficient knowledge about the entities and the asset management industry.