Business Review


Interviews conducted with the major KSE (Karachi Stock Exchange) Fund Managers revealed that they all faced problem of ignorance and uncertainty in stock selection and in asset allocation decision. The problems were due, in part, to the limitations of finance theory and the limitations of corporate disclosures and other public domain information sources. These problems increased fund manager’s incentives to directly contact senior management teams to discuss these sources of value and to observe management qualities and understanding of these issues. Fund managers sought to identify links between these qualitative factors in a corporate value creation process. This paper explores how this information was used by fund managers to acquire a knowledge advantage. This activity of fund managers has important implications for regulatory policy issues on insider information, on corporate disclosure, on the corporate governance role of financial institutions, and for the governance of the institutions.


Corporate value creation, Regulatory policy, Financial institutions



Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Published Online

February 22, 2021

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Business Commons



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