Journal articles on the topic 'Investor composition'
To see the other types of publications on this topic, follow the link: Investor composition.
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Investor composition.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Dickason-Koekemoer, Zandri, and Suné Ferreira. "Risk Tolerance: The Influence of Gender and Life Satisfaction." Journal of Economics and Behavioral Studies 11, no. 1(J) (March 10, 2019): 66–72. http://dx.doi.org/10.22610/jebs.v11i1(j).2749.
Full textAbstract:
Abstract: Financial managers base an investor’s risk profile on their demographics and level of risk investors are willing to tolerate. Risk tolerance is often influenced by the different levels of life satisfaction that an investor experience and may differ based on the demographic composition of that investor. Demographic variables such as gender can differentiate between investors level of life satisfaction, which can ultimately affect investment decisions. As a result, the degree of life satisfaction can affect investment decisions by manipulating the level of risk that investors are willing to tolerate. Male and female investors can be categorised into different risk tolerance levels based on their satisfaction with life status. The aim of this study is to determine the risk tolerance level of male and female investors considering their level of life satisfaction. The results of this study indicated that the more unsatisfied investors are with their lives the less likely they will be to take on high-risk investments. Therefore, low life satisfaction is accompanied by a low-risk tolerance level. Male investors had higher life satisfaction compared to female investors. Female investors were only willing to tolerate high risk when experiencing extremely low life satisfaction or extremely high life satisfaction stages.
2
Yu, Sifan. "The impact of investor sentiment for the U.S. stock market based on Fama-French 3-factor model." E3S Web of Conferences 275 (2021): 01055. http://dx.doi.org/10.1051/e3sconf/202127501055.
Full textAbstract:
Particularly, it is difficult to accurately measure investor sentiment due to the inherent complexity and dynamic change. This paper tests the impact of investors’ behavior in the U.S. equity market. By using monthly data from February 2014 to December 2018, the impacts of investor sentiment are examined. Besides, Fama-French risk factors are investigated in a new multiple factor asset pricing model. Specifically, the investor sentiment is measured by six-variable composite index. Empirical results indicate that the investor sentiment is a composition of systemic risk. In this case, the Fama-French three factor model with investor sentiment factor can fully explains the return of stocks in the USA stock market. By comparing the trend of investor sentiment and market index, investor sentiment will affect asset pricing and market volatility, i.e., verifies the effectiveness of investor sentiment index in the U.S, stock market.
3
Agustin, Pramita, and Imron Mawardi. "Perilaku Investor Muslim Dalam Bertransaksi Saham di Pasar Modal." Jurnal Ekonomi Syariah Teori dan Terapan 1, no. 12 (December 4, 2015): 874. http://dx.doi.org/10.20473/vol1iss201412pp874-892.
Full textAbstract:
This research aims to know the muslim investor behavior in a stock transaction in capital market. This research used the qualitative approach, using the case study method by basing on the theory of behavioral finance.Data collection using a purposive sampling technique to determine informants amounted to five muslim investors who at least has a two year stock transaction to be interviewed in depth, observed and evaluated the data by performing a triangulation.The results of this research have findings that muslim investor behavior in a stock transaction is divided into two point of view that is, investors who consider religion in their investment decisions and the invetor did not consider religion in their investment decisions. Investors who consider religion in their investment decisions preferring stock composition of the incoming Sharia index list and nature of investments tend to be long term. Investors who do not consider religion in choosing his investment decision stock blends well in the Shariahcompliantindex or not. The nature of investment investors who did not consider the shortterm nature of the religion.
4
Shin, Sang-Jun, and Keun-Tae Cho. "Human Resources, Investor Composition and Performance of Venture Funds: Focused on the Stakeholders of Venture Funds." Sustainability 14, no. 24 (December 14, 2022): 16773. http://dx.doi.org/10.3390/su142416773.
Full textAbstract:
This study aims to understand the effect of the human resources and investor composition of venture funds on fund performances in Korea. It was conducted on 235 venture funds and revealed that the fund manager retention period, retention rate and investors’ number affected fund performance. Blind funds showed the same results with overall funds, whereas project funds, performance was affected only by the fund manager retention period. Funds operated by general partners, which manpower is not major shareholders, showed the same result as the overall ones. This study provides the basis for government planning venture policies and investors establishing funds’ evaluation criteria.
5
Özogul, Sara, and Tuna Tasan-Kok. "One and the Same? A Systematic Literature Review of Residential Property Investor Types." Journal of Planning Literature 35, no. 4 (August 18, 2020): 475–94. http://dx.doi.org/10.1177/0885412220944919.
Full textAbstract:
This article presents a systematic literature review on residential property investor types in selected social science disciplines and critically evaluates the status quo of academic engagement within this diverse group of property market actors. A recurring critique in recent years has been the minimal acknowledgment of investor heterogeneity particularly in relation to urban development and the financialization of housing. Yet, to date, there is no systematic evidence supporting these contentions. Therefore, we conducted an exhaustive literature review of residential investment landscapes through the Web of Science citation database in the following fields: Urban and regional planning, geography, sociology, urban studies, public administration, and economics. Subsequently, we methodically searched for the types of investors addressed, and investor categories employed, in journal articles published between 2000 and 2019. Following a meta-categorization of the results, we demonstrate how existing literature differentiates investors in terms of their spatial scale of operation, size and social composition, investment object and finance, or investment and social behavior. Additionally, we highlight the key topics and issues addressed in the reviewed literature within each meta-category. We propose to turn the four meta-categories into a multidimensional analytical framework as a point of departure for a more nuanced and in-depth understanding of investor differentiations, a tool that is urgently needed in Planning Studies and related disciplines. Furthermore, we argue that mixed method approaches combining hard and quantifiable with soft behavioral investor characteristics, as well as institutional analyses combining structural considerations with actors’ agency, are indispensable to disentangle contemporary residential property market dynamics.
6
Biolek, Vojtěch, and Tomáš Hanák. "LCC Estimation Model: A Construction Material Perspective." Buildings 9, no. 8 (August 8, 2019): 182. http://dx.doi.org/10.3390/buildings9080182.
Full textAbstract:
The growing pressure to ensure sustainable construction is also associated with stricter demands on the cost-effectiveness of construction and operation of buildings and reduction of their environmental impact. This paper presents a methodology for building life cycle cost estimation that enables investors to identify the optimum material solution for their buildings on the level of functional parts. The functionality of a comprehensive model that takes into account investor requirements and links them to a construction cost estimation database and a facility management database is verified through a case study of a “façade composition” functional part, with sublevel “external thermal insulation composite system (ETICS) with thin plaster”. The results show that there is no generally applicable optimum ETICS material solution, which is caused by differing investor requirements, as well as the unique circumstances of each building and its user. The solution presented in this paper aims to aid investor decision-making regarding the choice of the building materials while taking the Life Cycle Cost (LCC) into account.
7
Gusliana, Shindi Adha, and Yasir Salih. "MEAN-VARIANCE INVESTMENT PORTFOLIO OPTIMIZATION MODEL WITHOUT RISK-FREE ASSETS IN JII70 SHARE." International Journal of Business, Economics, and Social Development 3, no. 4 (November 4, 2022): 168–73. http://dx.doi.org/10.46336/ijbesd.v3i4.352.
Full textAbstract:
In investing, investors will try to limit all the risks in managing their investments. Investor strategies to minimize investment risk are diversification by forming investment portfolios, one of which is the Mean-Variance without risk-free assets. The calculation results will show the composition of the optimum portfolio return for each stock that forms the portfolio. Optimum portfolio obtained with wT = (0.39853, 0.25519, 0.13644, 0.09788, 0.11196) sequential weight composition for TLKM, KLBF, INCO, HRUM, and FILM stocks. The composition of this optimal portfolio return is ???? 0.04 with a return of 0.00209 and a portfolio variance of 0.00015. The formation of this portfolio optimization model is expected to be additional literature in optimizing the investment portfolio with the Mean-Variance.
8
Blouin, Jennifer L., Jana S. Raedy, and Douglas A. Shackelford. "Dividends, Share Repurchases, and Tax Clienteles: Evidence from the 2003 Reductions in Shareholder Taxes." Accounting Review 86, no. 3 (May 1, 2011): 887–914. http://dx.doi.org/10.2308/accr.00000038.
Full textAbstract:
ABSTRACT: This study jointly evaluates firm-level changes in investor composition and shareholder distributions following a 2003 reduction in the dividend and capital gains tax rates for individuals. We find that directors and officers, but not other individual investors, rebalanced their portfolios to maximize after-tax returns in light of the new tax rules. We also find that firms adjusted their distribution policy (specifically, dividends versus share repurchases) in a manner consistent with the altered tax incentives for individual investors. To our knowledge, this is the first study to employ simultaneous equations to estimate both shareholder and managerial responses to the 2003 rate reductions. We find that the generalized method of moments (GMM) estimates are substantially stronger than OLS estimates, consistent with our expectation that investor and manager responses are simultaneously determined. Failure to estimate systems of equations may account for some of the weak and conflicting results from prior studies of the 2003 rate reductions.
9
Fauzi, Muhammad, Ewaldo Asirwadana, and Maharani Pratama Milasari. "ANALYSIS OF LEGAL PROTECTION FOR CAPITAL MARKET INVESTORS." Jurnal Hukum to-ra : Hukum Untuk Mengatur dan Melindungi Masyarakat 7, no. 2 (August 31, 2021): 215–26. http://dx.doi.org/10.55809/tora.v7i2.4.
Full textAbstract:
This reseach discusses the legal protection for capital market investors. The capital market industry in a country is urgently needed as a source of national development funds. In its activities, there are actors who fully support and support capital market activities in accordance with their respective duties and functions. The existence of investor funds has been able to move the capital market industry in particular. In general, investor funds can be a source of funds for national development. However, due to the unbalanced share composition between founders and public investors, this weakens the position of investors, so that investors often become victims of crimes and capital market violations. Law No. 8 of 1995 concerning the Capital Market which is The legal basis for the existence of the capital market in Indonesia has provided legal guarantees for the parties conducting activities in the capital market sector as well as protection for investors. Protection for investors is a requirement to establish the principle of full and fair disclosure or transparency. The writing method used by the writer in this research is the normative method. The results show how legal protection for capital market investors is based on Law Number 8 of 1995 concerning the Capital Market and Law Number 21 of 2011 concerning the Financial Services Authority.
10
De Cleyn, Sven H., and Johan Braet. "Do board composition and investor type influence innovativeness in SMEs?" International Entrepreneurship and Management Journal 8, no. 3 (January 8, 2011): 285–308. http://dx.doi.org/10.1007/s11365-010-0168-6.
Full text
11
Gusliana, Shindi Adha, and Yasir Salih. "Mean-Variance Investment Portfolio Optimization Model Without Risk-Free Assets in Jii70 Share." Operations Research: International Conference Series 3, no. 3 (September 4, 2022): 101–6. http://dx.doi.org/10.47194/orics.v3i3.185.
Full textAbstract:
In investing, investors will try to limit all the risks in managing their investments. Investor strategies to minimize investment risk are diversification by forming investment portfolios, one of which is the Mean-Variance without risk-free assets. The calculation results will show the composition of the optimum portfolio return for each stock that forms the portfolio. Optimum portfolio obtained with wT = (0.39853, 0.25519, 0.13644, 0.09788, 0.11196) sequential weight composition for TLKM, KLBF, INCO, HRUM, and FILM stocks. The composition of this optimal portfolio return is 𝜏 0.04 with a return of 0.00209 and a portfolio variance of 0.00015. The formation of this portfolio optimization model is expected to be additional literature in optimizing the investment portfolio with the Mean-Variance.
12
Prigge, Stefan, and Lars Tegtmeier. "Football stocks: a new asset class attractive to institutional investors? Empirical results and impulses for researching investor motivations beyond return." Sport, Business and Management: An International Journal 10, no. 4 (July 3, 2020): 471–94. http://dx.doi.org/10.1108/sbm-07-2019-0063.
Full textAbstract:
PurposeThe aims of the research are twofold: (1) exploring whether football club stocks can be considered an asset class of their own; (2) investigating whether football stocks enable well-diversified investors to achieve more efficient risk-return combinations.Design/methodology/approachUsing efficient frontier optimization, a base portfolio, with standard stocks and bonds, and a corresponding enhanced portfolio, which includes football stocks in the investment opportunity set, are defined. This procedure is applied to four portfolio composition rules. Pairwise comparisons of portfolio Sharpe ratios include a test for statistical significance.FindingsThe results indicate a low correlation of football stocks and standard stocks; thus, football stocks could be considered an asset class of their own. Nevertheless, the addition of football stocks to a well-diversified portfolio does not improve its risk-return efficiency because the weak performance of football stocks eliminates their advantage of low correlation.Research limitations/implicationsThis study contributes to the evidence that investments in football are different from ‘ordinary’ investments and need further research, particularly into market participants and their investment motives.Practical implicationsFootball stocks are not attractive to pure financial investors. Thus, football clubs need to know more about which side benefits are appreciated by which kind of investor and how much it costs to produce these side benefits.Originality/valueTo the best of authors’ knowledge, this is the first study to analyse the risk-return efficiency of football stocks from the perspective of a pure financial investor, i.e. an investor in football stocks who does not earn side benefits, such as strategic investors or fan investors.
13
Zhang, Annie Claire. "Financial advice and asset allocation of individual investors." Pacific Accounting Review 26, no. 3 (November 10, 2014): 226–47. http://dx.doi.org/10.1108/par-04-2013-0030.
Full textAbstract:
Purpose – The purpose of this paper is to explore the differences in KiwiSaver portfolio composition between investors who receive financial advice and those who do not. Design/methodology/approach – Using proprietary data which contain information of 405,107 individual KiwiSaver accounts, this paper examines who receives advice, compares the asset allocations of advised accounts with non-advised accounts, explores the relation of asset allocation with demographic characteristics and compares differences in returns between advised and non-advised investors. Findings – Three key findings are presented in this paper. First, female investors, relatively older investors and investors with higher levels of funds under management (invested wealth) are more likely to receive financial advice. Second, advised investors hold more equity assets. Third, differences in performance between advised and non-advised accounts are marginal. Research limitations/implications – Panel data are not used, which prohibit investigating asset allocation choices overtime. The time series for returns is short, as KiwiSaver has only been operating since 2007. The total portfolio that people own is not known; thus, the values on investment fund information do not represent the total wealth of each person, as other accounts elsewhere may exist. Practical implications – There are broad implications for the New Zealand capital market, retirement policy, financial advice industry and development of financial literacy programmes. Originality/value – The paper examines individual investor behaviour on a nationwide sample and explores how receiving financial advice relates to asset allocation.
14
Wei, Xu, Xiao Xiao, and Yi Zhou. "Investor Heterogeneity, Auditor Choice, and Information Signaling." AUDITING: A Journal of Practice & Theory 34, no. 3 (September 1, 2014): 113–38. http://dx.doi.org/10.2308/ajpt-50933.
Full textAbstract:
SUMMARY We develop a model of firms' auditor choices when presented with a heterogeneous group of investors. We show that firms' auditor choices in equilibrium depend on the composition of investors in the market. The signaling effect of choosing a high-quality auditor exists only when there is at least a certain proportion of sophisticated investors. If there is a sufficiently high proportion of sophisticated investors, then all firms will choose high-quality auditors. We also show that the overall audit quality in the market increases with an increasing proportion of sophisticated investors. When the audit market is differentiated and investors are heterogeneous, an increase in the penalty for firms that receive a qualified opinion will lead to a decrease in the overall audit quality in the market. Our conclusions remain valid even after taking audit fees, auditor quality change, and firm heterogeneity into consideration.
15
Maknickiene, Nijole, Indre Lapinskaite, and Algirdas Maknickas. "Application of ensemble of recurrent neural networks for forecasting of stock market sentiments." Equilibrium 13, no. 1 (March 31, 2018): 7–27. http://dx.doi.org/10.24136/eq.2018.001.
Full textAbstract:
Research background: Research and measurement of sentiments, and the integration of methods for sentiment analysis in forecasting models or trading strategies for financial markets are gaining increasing attention at present. The theories that claim it is difficult to predict the individual investor’s decision also claim that individual investors cause market instability due to their irrationality. The existing instability increases the need for scientific research.
Purpose of the article: This paper is dedicated to establishing a link between the individual investors’ behavior, which is expressed as sentiments, and the market dynamic, and is evaluated in the stock market. This article hypothesizes that the dynamics in the market is unequivocally related to the individual investor’s sentiments, and that this relationship occurs when the sentiments are expressed strongly and are unlimited.
Methods: The research was carried out invoking the method of Evolino RNN-based prediction model. The data for the research from AAII (American Association of Individual Investors), an investor sentiment survey, were used. Stock indices and sentiments are forecasted separately before being combined as a single composition of distributions.
Findings & Value added: The novelty of this paper is the prediction of sentiments of individual investors using an Evolino RNN-based prediction model. The results of this paper should be seen not only as the prediction of the connection and composition of investors’ sentiments and stock indices, but also as the research of the dynamic of individual investors’ sentiments and indices.
16
Sun, Yen. "Optimization Stock Portfolio With Mean-Variance and Linear Programming: Case In Indonesia Stock Market." Binus Business Review 1, no. 1 (May 26, 2010): 15. http://dx.doi.org/10.21512/bbr.v1i1.1018.
Full textAbstract:
It is observed that the number of Indonesia’s domestic investor who involved in the stock exchange is very less compare to its total number of population (only about 0.1%). As a result, Indonesia Stock Exchange (IDX) is highly affected by foreign investor that can threat the economy. Domestic investor tends to invest in risk-free asset such as deposit in the bank since they are not familiar yet with the stock market and anxious about the risk (risk-averse type of investor). Therefore, it is important to educate domestic investor to involve in the stock exchange. Investing in portfolio of stock is one of the best choices for risk-averse investor (such as Indonesia domestic investor) since it offers lower risk for a given level of return. This paper studies the optimization of Indonesian stock portfolio. The data is the historical return of 10 stocks of LQ 45 for 5 time series (January 2004 – December 2008). It will be focus on selecting stocks into a portfolio, setting 10 of stock portfolios using mean variance method combining with the linear programming (solver). Furthermore, based on Efficient Frontier concept and Sharpe measurement, there will be one stock portfolio picked as an optimum Portfolio (Namely Portfolio G). Then, Performance of portfolio G will be evaluated by using Sharpe, Treynor and Jensen Measurement to show whether the return of Portfolio G exceeds the market return. This paper also illustrates how the stock composition of the Optimum Portfolio (G) succeeds to predict the portfolio return in the future (5th January – 3rd April 2009). The result of the study observed that optimization portfolio using Mean-Variance (consistent with Markowitz theory) combine with linear programming can be applied into Indonesia stock’s portfolio. All the measurements (Sharpe, Jensen, and Treynor) show that the portfolio G is a superior portfolio. It is also been found that the composition (weights) stocks of optimum portfolio (G) can be used to predict the forward return (5th January – 3rd April 2009). It is shown that the stock portfolio return of 5th January – 3rd April 2009) has exceeded the market return for the same period of time based on Sharpe and Treynor measurement.
17
K., Febina, and Thomas Paul Kattookaran. "Interstate Distribution and Sectoral Composition of FDI Inflows in India." Foreign Trade Review 53, no. 4 (September 19, 2018): 271–82. http://dx.doi.org/10.1177/0015732518797026.
Full textAbstract:
Foreign direct investment (FDI) refers to obtaining the ownership in a foreign business entity. It can also be attributed that FDI circulates capital across national boundaries. It can be defined as an investor based in one country (home country), acquires an asset in another country (host country), with the intention to manage it. It is this dimension of management that distinguishes FDI from portfolio investment in foreign stocks and other financial instruments. For a terribly populated country like India, a good quantum of resource is needed to fund its various developmental needs, which the country does not have. To strengthen its infrastructure, expertise and knowledge base, FDI is inevitable. Realizing these facts, the government is now moulding a robust business environment to smoothen the flow of FDI. An interstate comparison of FDI in India makes it quite apparent that there exists huge variations in the inflow of FDI to different states. While some regions like Delhi, Bombay, etc. receive soaring flow of FDI, it is very stumpy in regions like Patna, Guwahati, etc. An overview on the sectoral distribution of foreign investment discloses the wide disparity in the distribution of foreign capital among various sectors. While some sectors like service, construction, etc. receive elevated flow of foreign capital, others lie fully ignored by the foreign investors. JEL Classification: F21, F23, F63, O10
18
Giglio, Stefano, Matteo Maggiori, Johannes Stroebel, and Stephen Utkus. "Five Facts about Beliefs and Portfolios." American Economic Review 111, no. 5 (May 1, 2021): 1481–522. http://dx.doi.org/10.1257/aer.20200243.
Full textAbstract:
We study a newly designed survey administered to a large panel of wealthy retail investors. The survey elicits beliefs that are important for macroeconomics and finance, and matches respondents with administrative data on their portfolio composition, their trading activity, and their login behavior. We establish five facts inthese data. (i) Beliefs are reflected in portfolio allocations. The sensitivity of portfolios to beliefs is small on average, but varies significantly with investor wealth, attention, trading frequency, and confidence. (ii) Belief changes do not predict when investors trade, but conditional on trading, they affect both the direction and the magnitude of trades. (iii) Beliefs are mostly characterized by large and persistent individual heterogeneity. Demographic characteristics explain only asmall part of why some individuals are optimistic and some are pessimistic. (iv) Expected cash flow growth and expected returns are positively related, both within and across investors. (v) Expected returns and the subjective probability of rare disasters are negatively related, both within and across investors. These five facts provide useful guidance for the design of macro-finance models. (JEL D83, E23, G11, G12, G41, G51)
19
Pramono, Erry Sigit, Dudi Rudianto, Fernando Siboro, Muhamad Puad Abdul Baqi, and Dwi Julianingsih. "Analysis Investor Index Indonesia with Capital Asset Pricing Model (CAPM)." Aptisi Transactions on Technopreneurship (ATT) 4, no. 1 (January 11, 2022): 38–49. http://dx.doi.org/10.34306/att.v4i1.218.
Full textAbstract:
This study aimed to compare composition of the optimal portfolio of stocks, the proportion of funds in each of these stocks and calculate risk and return portfolio from Investor33 (INV33) Index and Jakarta Islamic Index (JII) in research period January 2016-December 2018. The method used in this research is a quantitative descriptive method. Sample in this study using purposive sampling were 24 stock from INV33 Index and 17 stock from JII Index. The results of the study were as follows : (1) The optimal portfolio of stocks by using capital asset pricing model from INV33 Index are CPIN (Charoen Pokphand Indonesia Tbk), ITMG (Indo Tambangraya Megah Tbk), BBCA (Bank Central Asia Tbk), UNTR (United Tractor Tbk), (TLKM) Telekomunikasi Indonesia (Persero) Tbk, ICBP (Indofood CBP Sukses Makmur Tbk), BBTN (Bank Tabungan Negara Persero Tbk and from JII Index are ADRO (Adaro Energy Tbk), ICBP (Indofood CBP Sukses Makmur Tbk), INCO (Vale Indonesia Tbk), INDF (Indofood Sukses Makmur Tbk), TLKM (Telekomunikasi Indonesia Persero Tbk), UNTR (United Tractor Tbk). (2) The composition of the proportion of funds in optimal portfolio formed by INV33 Index are BBCA (46,49%), CPIN (20,11%), ICBP (12,78%), ITMG (8,59%), UNTR (6,95%), TLKM (4,11%) and BBTN (0,97%) and from JII Index are ICBP (34,96%), ADRO (19,47%), UNTR (16,26%), INCO (10,88%), TLKM (10,43%) and INDF (8,00%). (3) The optimal portfolio of stocks return from INV33 Index was greater than stock portfolio return from JII Index and the optimal portfolio of stocks risk from INV33 Index was lower than stock portfolio risk from JII Index.
20
Ghosh, Sutap Kumar. "Demographic Aspects and Investors’ Decision Making Process: A Study." Journal of Asian Business Strategy 12, no. 2 (December 2, 2022): 150–62. http://dx.doi.org/10.55493/5006.v12i2.4684.
Full textAbstract:
By illustrating the demographic composition of individual investors in the DSE of Bangladesh, examining the relationship between demographic factors and investment amount, exploring the relationship between demographic factors and investors' investment periods, highlighting the relationship between demographic factors and investors' emotional state, identifying the relationship between demographic factors and the impact of internal feeling on investors’ investment decision and establishing the relationship between demographic factors and investors’ correct investment decision-making, the current study seeks to fill the knowledge gap regarding the influence of demographic aspects on investors’ decision making process. Primary data are utilized to establish and explain concepts, while secondary data are also employed to support this empirical inquiry. Here, causal-comparative and descriptive study designs have both been applied. The study sample was chosen using the judgmental sampling technique. The characteristics of each investor are described by tabulation and percentage analysis. To depict the connection between demographic factors and individual investors' investment behaviour, various hypotheses are developed. For testing the hypotheses, ANOVA and the Chi-square test are utilized. In the DSE of Bangladesh, investors' decisions about investment quantity, investment time, emotional level, internal feeling, and appropriate investment decisions are strongly correlated with respondents' gender, age, education, occupation, and income.
21
Kim, Oksana. "Market Efficiency and Arbitrage Opportunities for Russian Depositary Receipts Cross-Listed on the London Stock Exchange." Review of Pacific Basin Financial Markets and Policies 19, no. 02 (June 2016): 1650007. http://dx.doi.org/10.1142/s0219091516500077.
Full textAbstract:
This study examines the Russian stock market efficiency from two perspectives. First, we document that for the sample of Russian firms cross-listed on the Main Market of the London Stock Exchange (LSE) as Global Depositary Receipts (GDRs), the return series obtained from both the local market and the LSE are time-invariant and hence, predictable. This suggests that the market is inefficient with respect to pricing Russian GDRs and that investors are likely to make systematic nonzero profits. Second, we document profitable arbitrage opportunity surrounding the announcement to adopt IFRS, which is an additional evidence of market inefficiency. The significant pricing spread observed on this key date was due to the differential market reaction to IFRS adoption — neutral on the local MICEX exchange dominated by individual traders and significantly negative on the LSE dominated by institutional investors. This finding can be explained by (i) informational advantages of the local investors due to geographic proximity, (ii) differential expectations with respect to governance norms and listing requirements, and (iii) difference in portfolio composition of the two investor groups.
22
Wahyono, Wahyono, Chasandra Puspitasari, Muhammad Dzulfikar Fauzi, Kasliono Kasliono, Wahyu Sri Mulyani, and Laksono Kurnianggoro. "An Optimal Stock Market Portfolio Proportion Model Using Genetic Algorithm." IJCCS (Indonesian Journal of Computing and Cybernetics Systems) 12, no. 2 (July 31, 2018): 171. http://dx.doi.org/10.22146/ijccs.36154.
Full textAbstract:
To reduce the amount of loss due to investment risk, an investor or stockbroker usually forms an optimal stock portfolio. This technique is done to get the maximum return of investment on shares to be purchased. However, in forming a stock portfolio required a fairly complex calculations and certain skills. This work aims to provide an alternative solution in the problem of forming the optimal and efficient stock portfolio composition by designing a system that can help decision making of investors or stockbrokers in preparing stock portfolio in accordance with the policy and risk investment. In this work, determination of optimal stock portfolio composition is constructed by using Genetic Algorithm. The data used in this work are the 4 selected stocks listed on the LQ45 index in 2017. Meanwhile, the calculation of profit and loss rate utilizes a single index model theory. The efficiency of the algorithm has been examined against the population size and crossover and mutation probabilities. The experimental results show that the proposed algorithm can be used as one of solutions to select the optimal stock portfolio.
23
Calvet, Laurent, Martín Gonzalez-Eiras, and Paolo Sodini. "Financial Innovation, Market Participation, and Asset Prices." Journal of Financial and Quantitative Analysis 39, no. 3 (September 2004): 431–59. http://dx.doi.org/10.1017/s0022109000003975.
Full textAbstract:
AbstractThis paper investigates the pricing effects of financial innovation in an economy with endogenous participation and heterogeneous income risks. The introduction of non-redundant assets endogenously modifies the participation set, reduces the covariance between dividends and participants' consumption and thus leads to lower risk premia. In multisector economies, financial innovation spreads across markets through the diversified portfolio of new entrants, and has rich effects on the cross-section of expected returns. The price changes can also lead some investors to leave the markets and give rise to non-degenerate forms of participation turnover. The model is consistent with several features of financial markets over the past few decades: substantial innovation, higher participation, significant turnover in investor composition, improved risk management practices, a slight increase in real interest rates, and a reduction in risk premia.
24
Švábová, Lucia. "ESTIMATING THE PARAMETER DELTA IN THE BLACK MODEL USING THE FINITE DIFFERENCE METHOD FOR FUTURES OPTIONS." CBU International Conference Proceedings 3 (September 19, 2015): 109–14. http://dx.doi.org/10.12955/cbup.v3.591.
Full textAbstract:
Financial derivatives are a widely used tool for investors to hedge against the risk caused by changes in asset prices in the financial markets. A usual type of hedging derivative is an asset option. In case of unexpected changes in asset prices, in the investment portfolio, the investor will exercise the option to eliminate losses resulting from these changes. Therefore, it is necessary to include the options in the investor´s portfolio in such a ratio that the losses caused by decreasing of assets prices will be covered by profits from those options. Futures option is a type of call or put option to buy or to sell an option contract at a designated strike price. The change in price of the underlying assets or underlying futures contract causes a change in the prices of options themselves. For investor exercising option as a tool for risk insurance, it is important to quantify these changes. The dependence of option price changes, on the underlying asset or futures option price changes, can be expressed by the parameter delta. The value of delta determines the composition of the portfolio to be risk-neutral. The parameter delta is calculated as a derivation of the option price with respect to the price of the underlying asset, if the option price formula exists. But for some types of more complex options, the analytical formula does not exist, so calculation of delta by derivation is not possible. However, it is possible to estimate the value of delta numerically using the principles of the numerical method called “Finite Difference Method.” In the paper the parameter delta for a Futures call option calculated from the analytical formula and estimated from the Finite difference method are compared.
25
Lightner, Teresa A., Michaele Morrow, Robert C. Ricketts, and Mark E. Riley. "Investor Response to a Reduction in the Dividend Tax Rate: Evidence from the Jobs and Growth Tax Relief Reconciliation Act of 2003." Journal of the American Taxation Association 30, no. 2 (September 1, 2008): 21–46. http://dx.doi.org/10.2308/jata.2008.30.2.21.
Full textAbstract:
ABSTRACT: This study examines investor reaction to the reduction in federal income tax rates on dividends resulting from passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA or the Tax Act). We investigate the existence of a clientele shift associated with the JGTRRA by examining trading volume in dividend-paying stocks surrounding passage of the Tax Act. Also, we examine changes in shareholder composition of firms over the period between announcement in the press and final passage of the plan. We find dividend yield to be a significant predictor of abnormal trading volume around key dates, including the date the plan to reduce dividend taxes was first covered in the press. Furthermore, we find a large and statistically significant negative relationship between dividend yield and the change in institutional ownership. Taken as a whole, our results are consistent with expectations that investor clienteles form around tax characteristics associated with particular firms and the ways that those firms structure investor returns. In particular, our results suggest that passage of the JGTRRA resulted in observable shifts in shareholder clienteles for dividend-paying firms.
26
Chen, Zhihong, Bin Ke, and Zhifeng Yang. "Minority Shareholders' Control Rights and the Quality of Corporate Decisions in Weak Investor Protection Countries: A Natural Experiment from China." Accounting Review 88, no. 4 (February 1, 2013): 1211–38. http://dx.doi.org/10.2308/accr-50424.
Full textAbstract:
ABSTRACT Using a 2004 Chinese securities regulation that requires equity offering proposals to obtain the separate approval of voting minority shareholders, we examine whether giving minority shareholders increased control over corporate decisions helps to reduce value-decreasing corporate decisions for firms domiciled in weak investor protection countries. We find that the regulation deters management from submitting value-decreasing equity offering proposals in firms with higher mutual fund ownership. There is also weak evidence that minority shareholders are more likely to veto value-decreasing equity offering proposals in firms with higher mutual fund ownership in the post-regulation period. Overall, our evidence suggests that in weak investor protection countries, the effect of granting minority shareholders increased control over corporate decisions on the quality of corporate decisions depends on the composition of minority shareholders. JEL Classifications: G32; G34; G38
27
Liao, Zhenni, Qing Huang, Qiming Cheng, Sardar Khan, and Xiaoying Yu. "Seasonal Variation in Chemical Compositions of Essential Oils Extracted from Lavandin Flowers in the Yun-Gui Plateau of China." Molecules 26, no. 18 (September 17, 2021): 5639. http://dx.doi.org/10.3390/molecules26185639.
Full textAbstract:
Lavandin, as an important cash crop, is cultivated in Kunming, Yun-Gui Plateau of China. For the special growing environment, Lavandin was grown here and used to investigate the changes in the yield and chemical compositions of essential oils extracted from the flowers in different seasons. The essential oils were extracted by hydro-distillation and analysis by gas chromatography-mass spectrometry (GC-MS). Results indicated great changes in chemical composition depending on the season of harvesting. The yields of essential oils ranged from 2.0% to 3.8% among the seasons, and the highest yield was in the summer. Chemical composition data showed that the extracted oils were rich in oxygenated monoterpenes (55.4–81.4%), eucalyptol (38.7–49.8%), camphor (8.41–14.26%), α-bisabolol (6.6–25.5%), and linalool (4.6–12.5%). The contents of eucalyptol and α-bisabolol changed in a contrary trend with seasonal variations. The results provided new insight for Chinese Lavandin germplasm to be used in application and development, and reference to the researcher, the farmer, and investor for sustainable industrialization of the plant grown in the Yun-Gui Plateau of China, but also the similar plateau area of the sustainable developments.
28
Petrakov, A. Y. "ATTRACTION OF INVESTMENTS USING THE OFFSET AGREEMENT." Courier of Kutafin Moscow State Law University (MSAL)), no. 7 (September 16, 2020): 98–104. http://dx.doi.org/10.17803/2311-5998.2020.71.7.098-104.
Full textAbstract:
The article is devoted to an offset agreement (a state agreement which is providing for counter-investment obligations of a supplier-investor to create or modernize and (or) develop production of goods in the territory of a subject of the Russian Federation to provide the state needs of a subject of the Russian Federation). In addition to the legal regulation of offset agreements, their subject composition is also determined, and the features of their conclusion are highlighted. The study analyzed all 4 offset contracts currently signed in Moscow and the Moscow region. According to the author, the offset agreement is an investment agreement, and the interaction of the subject of the Russian Federation and the supplier-investor in the implementation of the offset agreement can be qualified as a public-private partnership that is beneficial to both the state and business: the benefits that are received by the subject of the Russian Federation and the supplier-investor are given. As an improvement of the legal regulation of offset agreements, the author suggests providing for the possibility of concluding them at the federal level, as well as differentiating the minimum investment volume depending on the level of socio-economic development of the subject of the Russian Federation. The conclusion is made that public-private partnership, carried out in the analyzed form of agreement, is a promising mechanism for attracting investment in the constituent entities of the Russian Federation.
29
Kucherkova, S. "Improvement of the reporting composition as the way to increase the enterprise investment attractiveness." Galic'kij ekonomičnij visnik 69, no. 2 (2021): 69–75. http://dx.doi.org/10.33108/galicianvisnyk_tntu2021.02.069.
Full textAbstract:
The importance of information resources through the prism of reporting, which is an indispensable tool for summarizing the results of financial and economic activities of economic entities, as well as the main source of information in attracting investment is investigated in this paper. Any users of financial reporting of enterprises – investors, creditors, government officials, management staff – are anxious to obtain maximum reliable information about the company guided by its reporting. A high level of awareness of the financial and property status in market conditions is essential, if not the main means of competition. Transparency and disclosure is the essence of effective corporate governance. At present, in most developed countries, annual reports actually serve as the only source of information about the company's activities. This paper is devoted to the substantiation of the need to expand reporting information to make strategic management decisions and increase the investment attractiveness of the enterprise. In Ukraine, most enterprises have imbalance in reporting and information policy of enterprises at the level of public administration: the Ministry of Finance, the State Commission on Securities and Stock Market, the State Tax Service. Reporting forms, as a rule, are located in different structural units of the enterprise, systematized by different features, so they do not provide and prevent their effective use to assess the financial and property status of the enterprise not only by the investor but by its management staff as well. In order to attract investment and increase the level of corporate governance, it is proposed to compile the Annual Report-Brochure (presentation) on the basis of reporting and information resources of enterprises. It will be in the form of presentation materials selection characterizing the company's position in the market, its business reputation and achievements in the field of production. Such annual report will be based not only on financial statements, but also on management, statistical, personnel reporting and documentation, audits and tax audits, information from the media, social networks etc.
30
Soeryana Hasbullah, Endang, Nurfadhlina Bt Abdul Halim, Sukono ., Adam Sukma Putra, and Abdul Talib Bon. "Mean-Variance Portfolio Optimization on Islamic Stocks by Using Non Constant Mean and Volatility Models and Genetic Algorithm." International Journal of Engineering & Technology 7, no. 3.20 (September 1, 2018): 366. http://dx.doi.org/10.14419/ijet.v7i3.20.19274.
Full textAbstract:
The risk in stock market has taken an sinificant issue in investment of stock market, including Investment in some Islamic stocks. In order to minimize the level of risk, investors usually forming an investment portfolio. Establishment of a portfolio consisting of several Islamic stocks are intended to get the optimal composition of the investment portfolio. This paper discussed about optimizing investment portfolio of Mean-Variance to Islamic stocks by using mean and volatility is not constant approaches. Non constant mean analyzed using models Autoregressive Moving Average (ARMA), while non constant volatility models are analyzed using the Generalized Autoregressive Conditional heteroscedastic (GARCH). Optimization process is performed by using the Lagrangian multiplier technique followed by the Genetic Algorithm (GA). The expected result is to get the proportion of investment in each Islamic stock analyzed. Based on the result, we got that GA give a proportion of portfolio optimum selection with the best expected return. However, The GA has more potential candidate of solution that give the investor an alternative of their optimum portfolio selection. in this paper, we only present the best solution which has the highest fitness to the model.
31
Borodin, Alex, Manuela Tvaronavičienė, Irina Vygodchikova, Andrey Kulikov, Marina Skuratova, and Natalia Shchegolevatykh. "Improving the Development Technology of an Oil and Gas Company Using the Minimax Optimality Criterion." Energies 14, no. 11 (May 28, 2021): 3177. http://dx.doi.org/10.3390/en14113177.
Full textAbstract:
The article deals with the problem of adaptation of the Russian oil and gas company (Novatek, Russia) to the rapidly changing external environment, the avalanche of data from competitors, and the need to filter important information for business development and the prosperity of the industry as a whole. The approach is based on the system of integrated software monitoring of key business processes at the enterprise developed by the authors—from the formation of the idea of a new product to its implementation to paying customers. The scientific novelty lies in the use of an optimization model that allows for minimizing the maximum losses of the investor at all levels of decision-making, from the distribution of capital between companies, to the optimization of internal reserves to increase the competitiveness of the company. The toolkit is a minimax model that allows you to redistribute the shares of investor influence at the portfolio level, and then within the business processes of each company selected by investors, in order to achieve the optimal solution in accordance with the selected estimated indicators. Application of the well-known portfolio investment models of Markowitz, Tobin, Sharp, etc. is not possible due to the lack of necessary data on the basis of which the probabilistic parameters involved in the model are estimated. Even if we get them, it is necessary to take into account the level of correlation influence of the technological process in the composition of each subsystem, which is unacceptable for the data used, as it leads to a strong increase in errors. Using minimax and a systematic approach allows you to minimize such errors by choosing a balanced concentration of distributed assets for both the investor and the buyer. To this end, a three-way analysis of the company’s development was carried out and a technology for comprehensive improvement of the company’s activities was developed in the following areas: the company’s rating in the industry, financial condition, and interaction with counterparties using merchandising technologies. Tools for optimal image zoning at the Novatek site using the minimax approximation criterion have been developed. The technology provides a procedure for creating a comfortable mode of image perception based on high-tech visualization of merchandising, zoning of the screen area, and a mathematical approach that allows you to develop a calculation algorithm.
32
Chakrabarty, Bidisha, Sang Bong Lee, and Nitish Singh. "Doing good while making money." Management Decision 55, no. 8 (September 18, 2017): 1645–59. http://dx.doi.org/10.1108/md-01-2017-0005.
Full textAbstract:
Purpose The purpose of this paper is to examine the performance of exchange traded funds (ETFs) that hold corporate social responsibility (CSR) stocks and compare their risk-return characteristics with the market. Design/methodology/approach The authors use the Sharpe ratio and Jensen’s α from multivariate regressions to perform a multi-country study to examine how CSR-oriented ETFs perform against global, national, and regional market indexes. The authors examine paired groupings of each CSR-oriented ETF with its corresponding index after appropriate risk adjustments. Findings The authors find that CSR-oriented ETFs’ perform similar to their market indexes. Thus, individual investors can earn comparable returns while investing in CSR-oriented ETF, indicating that they can indeed do “good” while not missing out on returns. However, the authors also find that unlike the previously documented buffer effects that CSR-oriented firms enjoy, CSR-oriented ETFs do not outperform their market indexes during economic downturns. Thus, CSR-oriented ETFs are not safe havens for individual investors during times of economy-wide slumps. Research limitations/implications The main limitation of this study is its limited sample size. Because the authors use novel hand-collected data, the authors have 11 CSR-focused ETFs with their corresponding indexes. Originality/value To the authors’ knowledge, this is the first study that examines individual investor participation using CSR-oriented ETFs. The study is made possible by hand-collected data on CSR-related ETFs which identify in detail the composition of each of these ETFs, and the findings highlight how individual investors can promote CSR while also making sound investments.
33
Damayanti, Elba, Hendri Maulana, Maria Lusiana Yulianti, and Deden Komar Priatna. "Pengaruh Struktur Modal Terhadap Nilai Perusahaan (Studi Kasus Pada Perusahaan Sub Sektor Barang Konsumen Non-Primer (Consumer Cyclicals) Yang Terdaftar Di Bursa Efek Indonesia Tahun 2020)." Jurnal Humaniora, Ekonomi Syariah dan Muamalah 1, no. 1 (January 1, 2023): 25–43. http://dx.doi.org/10.38035/jhesm.v1i1.4.
Full textAbstract:
Abstract: Every company in running its business needs funds to finance the company's operational activities. Several sources of funds can be selected or used by companies to meet the company's capital needs. Management as the manager of the company in determining funding sources must analyze how the composition of debt and own capital is used in exploring sources of funds. Optimal funding composition can be obtained by using capital structure analysis tools. Firm value has a major influence on investors' investment decisions, because firm value can reflect the financial stability and level of risk faced by the company. Investors tend to choose companies that have high corporate value because these companies have good prospects in the future. The purpose of this study is to find out how the capital structure and company value are and how much influence the capital structure has on company value in the non-primary consumer goods sector (consumer cyclicals) which are listed on the Indonesia Stock Exchange in 2020. The method used in this research is the descriptive and verification with a quantitative approach. The data used is secondary data from the 2020 financial statements using a simple linear regression analysis technique. The sampling technique in this study used purposive sampling. The results of the study show that capital structure has a positive and significant effect on firm value. The difference between this research and previous research is in the object, population and research sample, research period, measuring instruments and research results.
Abstrak: Setiap perusahaan dalam menjalan usahanya membutuhkan dana untuk membiayai kegiaan operasioanl perusahaan. Beberapa sumber dana dapat dipilih atau digunakan perusahaan dalam memenuhi kebutuhan modal perusahaan. Manajemen sebagai pengelola perusahaan dalam menentukan sumber-sumber pendanaan harus menganalisis seberapa komposisi hutang dan modal sendiri yang digunakan dalam menggali sumber dana. Komposisi pendanaan yang optimal dapat diperoleh dengan menggunakan alat analisis struktur modal. Nilai perusahaan memiliki pengaruh besar terhadap keputusan investasi para investor, karena nilai perusahaan dapat mencerminkan kestabilan keuangan dan tingkat resiko yang dihadapi perusahaan. Investor cenderung memilih perusahaan yang memiliki nilai perusahaan yang tinggi karena perusahaan tersebut memiliki prospek yang baik dimasa yang akan datang. Tujuan dari penelitian ini adalah untuk mengetahui bagaimana strukur modal dan nilai perusahaan serta seberapa besar pengaruh struktur modal terhadap nilai perusahaan pada sektor barang konsumen non-primer (consumer cyclicals) yang terdaftar di Bursa Efek Indonesia tahun 2020. Metode yang digunakan dalam penelitian ini adalah metode deskriptif dan verifikatif dengan pendekatan kuantitatif. Data yang digunakan adalah data sekunder dari laporan keuangan tahun 2020 dengan teknik analisis regresi linear sederhana. Teknik pengambilan sampel dalam penelitian ini menggunakan purposive sampling. Hasil penelitian menunjukkan bahwa struktur modal memiliki pengaruh positif dan signifikan terhadap nilai perusahaan. Perbedaan penelitian dengan penelitian sebelumnya adalah pada objek, populasi dan sampel penelitian, periode penelitian, alat ukur dan hasil penelitian.
34
Miller, Marc D., Lonnie Jackson, and Nathan Campbell. "Breathometer: Shut Down by the Federal Trade Commission." Entrepreneurship Education and Pedagogy 3, no. 4 (April 10, 2020): 364–70. http://dx.doi.org/10.1177/2515127420916739.
Full textAbstract:
Breathometer was the first Shark Tank pitch where all five sharks invested in one deal. This case examines how Charles Yim created a product that tests blood alcohol levels that is connected to an iPhone or Android smartphone. The product was reported to be innovative in its design and functionality. In the early stages of the company, Yim was able to raise over 2 million dollars from Silicon Valley VC’s, Shark Tank, and Indiegogo. Ultimately, the product’s advertising claims were found to be dubious by the Federal Trade Commission, and they were ordered to provide refunds to all customers. The case examines the processes of value proposition development and investor due diligence. In addition, the case explores the issues related to board composition and the value that board members with extensive industry experience bring to the success of the company. Ultimately, the company underwent a major pivot, transforming its product into one that measures bad breath and oral health. The case and instructor materials provide the vehicle for class discussion and analysis of the early-stage venture success and failure and how industry experience is essential to long-term survivability.
35
Kohli, Bindya, and Deepa Pillai. "Influence of Board Reformation on the Stock Returns: an Event Study." International Journal of Engineering & Technology 7, no. 3.16 (July 26, 2018): 71. http://dx.doi.org/10.14419/ijet.v7i3.4.16186.
Full textAbstract:
Investor sentiments pertaining to stocks are propelled by the contentions of financial sector reforms, fiscal policy and management change. Any uncertainty has a significant impact on the stock prices and returns accruing to the company. The paper examines the effect of change in management on the stock returns of a corporate entity. Organizational performance is dependent on the realization of the numerous roles the board of directors are entrusted with. Any change in the composition of the board through the resignation, retirement or ouster can thus have a significant impact on the stock prices and returns accruing to the company. It is anticipated that voluntary resignations, age related turnovers have small or negative impact on the stock price reactions. The paper investigates the impact of the ouster of the Chairman of the Tata group on the volatility of the daily prices and returns of four companies under the Tata umbrella. Event study methodology has been adopted following the market model of return generating process. Investors react to the market information thereby affecting the security prices positively or negatively during the event window. The findings disclose market sentiments are affected on the occurrence of the event though the acceptance of the event may be unforeseen.
36
Bernardes, Diego Guerreiro, and Oswaldo Luiz do Valle Costa. "Carteiras de Black Litterman com Análises Baseadas em Redes Neurais." Learning and Nonlinear Models 18, no. 1 (December 31, 2020): 60–75. http://dx.doi.org/10.21528/lnlm-vol18-no1-art5.
Full textAbstract:
This paper presents an autonomous portfolio management system. Autonomous investment systems consist of a series of buy and sell rules on financial markets, which can be executed by machines, oriented to maximizing investor gains. The system uses a Neural Network approach for monitoring the market and the Black-Litterman model for portfolio composition. The ten most traded assets from the Bovespa Index are analyzed, with dedicated neural networks, which suggests future return estimates using technical indicators as input. Those estimates are inserted in the Black-Litterman model which proposes daily portfolio composition using long and short positions. The results are compared to a second autonomous trading system without the Black-Litterman approach, referred to as Benchmark. The numerical results show a great performance compared to the Benchmark, especially the risk-return ratio, captured by the Sharpe Index. Such results suggest that the use of Bayesian inference models combined with neural networks may be a good alternative in portfolio management.
37
Ravi, Rahul, and Youna Hong. "Information asymmetry around S&P 500 index changes." Review of Accounting and Finance 14, no. 2 (May 11, 2015): 106–27. http://dx.doi.org/10.1108/raf-04-2014-0046.
Full textAbstract:
Purpose – This study aims to explore information asymmetry (IA) (as measured by the adverse selection component of the bid-ask spread) around S&P 500 revisions. Design/methodology/approach – The authors use adverse selection cost of trading measures to examine the effects of S&P 500 index composition changes on the trading environment from 2001 to 2010. Findings – The authors find that the adverse selection cost of trading significantly decreases post-addition and increases post-deletion. However, the intraday price dynamics of additions to the index seem to be distinct from those of deletions from the index. The event period cumulative abnormal returns (CARs) for additions are significantly associated with the change in the adverse selection cost of trading. However, this association is non-significant for deletions. The CARs for deletion events are found to be significantly associated with the change in realized spreads. Realized spreads are a measure of revenue earned by liquidity providers in the market. Originality/value – This study helps better understand the dynamics of two types of IA – one from a firm to investor and the other between investors – and presents evidence of the role of adverse selection in index changes. By doing so, it helps better understand the mechanism driving price formation post-addition to and deletion from an index.
38
M. Fadel Variza, Dini Wahjoe Hapsari, Willy Sri Yuliandhari,. "Do Financial Performance And Firm Value Can Improve Corporate Responsibility Disclosure?" Jurnal Manajemen 23, no. 1 (March 25, 2019): 150. http://dx.doi.org/10.24912/jm.v23i1.456.
Full textAbstract:
The aims of this research are to find out how the effect of financial performance is proxied by ROA and ROE on the firm value which is proxied by Tobin's Q with CSR that is proxied by cost allocation as moderating the plantation sub-sector listed on the Indonesia Stock Exchange for the period of 2013-2016. This research will seek the causes of whether CSR data allocation is able to strengthen or weaken the influence of financial performance on firm value. The sampling technique used was purposive sampling, and eight companies were selected as samples of plantations with a four-year research period to obtain 32 sample units. The analytical method used is descriptive statistical testing, panel data regression analysis and moderated regression analysis (MRA) using e-views software 9.0 versions. Based on the result of the test, the financial performance variables that are proxied by ROA and ROE partially and simultaneously have a significant positive effect on firm value. While the MRA showed that CSR weakens the relationship between financial performance and company value. Based on the result that the companies and investors need to pay attention to the composition of financial performance and disclosure of corporate social responsibility, hence the investor is able to minimize the risks that will be borne when investing their capital.
39
Ammer, Mohammed Abdullah, and Nurwati A. Ahmad-Zaluki. "The role of the gender diversity of audit committees in modelling the quality of management earnings forecasts of initial public offers in Malaysia." Gender in Management: An International Journal 32, no. 6 (August 7, 2017): 420–40. http://dx.doi.org/10.1108/gm-09-2016-0157.
Full textAbstract:
Purpose Presently, one of the major governance issues faced by management and shareholders of organizations is the gender composition of the boards of directors and audit committees. This study aims to examine the impact of gender diversity in audit committees on the accuracy of management earnings forecasts disclosure in initial public offering (IPO) prospectuses. Design/methodology/approach The study sample comprises 190 Malaysian companies issuing IPOs that transformed into public companies during the period 2002-2012. Earnings forecasts accuracy (quality) is proxied by absolute forecast error and the study model is developed based on the frameworks of the signalling theory, the agency theory and the resource-dependence theory. Findings The study proposes that female directors introduce a set of specific features in the boardroom that serve to improve investor protection and efficient monitoring of management. However, findings reveal an insignificantly positive relationship between gender diversity in audit committees and absolute forecast error, which shows that more female directors in audit committees could translate into more errors and less accuracy in earnings forecasts. Practical implications Considering the recent regulatory developments that encourage the number of women on the board of directors, the findings obtained have significant implications for policymakers. The study findings can also be invaluable to investors, investment analysts, market players and researchers. Originality/value The composition of the board of directors and audit committees in terms of gender plays a significant role in the promotion of effective corporate governance practices. This study is one of the pioneering studies that examines the advantages of gender diversity in the board of directors. It is also the first study to extend IPO literature by investigating the role of gender diversity in audit committees in the enhancement of accurate management earnings forecasts included in the IPO prospectuses.
40
Geetha, T. "A STUDY ON THE CHANGES IN THE COMPOSITION OF PORTFOLIO OF SELECT MUTUAL FUND SCHEMES DUE TO COVID-19 PANDEMIC." INDIAN JOURNAL OF APPLIED ECONOMICS AND BUSINESS 4, no. 2 (2022): 139–50. http://dx.doi.org/10.47509/ijaeb.2022.v04i02.01.
Full textAbstract:
Investment Decisions keep changing as per the economic, political and social environments and continuous monitoring and rebalancing of portfolio becomes important for any investor so as to minimise the risk and maximise the returns. Covid-19 pandemic is not an exception to the many changing environment, which has significantly changed the outlook and the performance of the economy and the financial markets. In view of this, it was of interest to study the investment decisions of Asset Management Companies (AMCs). The study aims to compare the changes in the composition of portfolio by industry classification of select Mutual Fund Schemes of sample AMCs due to the pandemic. March 2020 has been taken as the event month as the lockdown was announced during this month. The study aims to compare the changes in the composition of portfolio by industry allocation in select MF Schemes of sample AMCs in the months of January and February 2020 (pre lockdown) and April and May 2020 (post lockdown) and to analyse the impact of lockdown on the performance of the select MF Schemes of the sample AMCs
41
Giemza, Dawid. "Ranking of optimal stock portfolios determined on the basis of expected utility maximization criterion." Journal of Economics and Management 43 (2021): 154–78. http://dx.doi.org/10.22367/jem.2021.43.08.
Full textAbstract:
Aim/purpose – The aim of the paper is to rank the optimal portfolios of shares of com- panies listed on the Warsaw Stock Exchange, taking into account the investor’s propen- sity to risk. Design/methodology/approach – Investment portfolios consisting of varied number of companies selected from WIG 20 index were built. Next, the weights of equity holdings of these companies in the entire portfolio were determined, maximizing portfolio’s expected (square) utility function, and then the obtained structures were compared between investors with various levels of risk propensity. Using Hellwig’s taxonomic development measure, a ranking of optimum stock portfolios depending on the inves- tor’s risk propensity was prepared. The research analyzed quotations from 248 trading sessions. Findings – The findings indicated that whilst there are differences in the weight struc- tures of equity holdings in the entire portfolio between the investor characterized by aversion to risk at the level of γ = 10 and the investor characterized by aversion to risk at the level of γ = 100, the rankings of the constructed optimum portfolios demonstrate strong similarity. The study validated, in conformity with the literature, that with the increase in the number of equity holdings in the portfolio, the portfolio risk initially decreases and then becomes stable at a certain level. Research implications/limitations – The study used data from the past as for which there is no guarantee that they will be adequate for the future. There is sensitivity to the selection of the period from which the historic data come. When changing the period of the analyzed historic data by a small time unit it may prove that the portfolio composi- tion will become totally different. Originality/value/contribution – The paper compares the composition of optimum stock portfolios depending on the investor’s propensity to risk. Their ranking was cre- ated using the taxonomic method for this purpose. Taking advantage of this method also additional variables can be taken into account, which describe and differentiate the port- folio and they can be assigned relevant significance depending on the investor’s prefer- ences. Keywords: optimal portfolio, expected rate of return on the portfolio, portfolio standard deviation, expected utility theory, multidimensional comparative analysis. JEL Classification: G10, G11.
42
Abbad Nofal Kassouha, Raeed Solyman Muhammad, Moustafa Hussi, Abbad Nofal Kassouha, Raeed Solyman Muhammad, Moustafa Hussi. "STUDY OF THE THERMAL EXPANSION COEFFICIENT OF SEVERAL SAND MIXTURES USED IN THE CASTING TECHNOLOGY: دراسة معامل التمدد الحراري لعدة خلائط من الرمال المستخدمة في تقنية الصب." Journal of engineering sciences and information technology 5, no. 4 (December 30, 2021): 127–08. http://dx.doi.org/10.26389/ajsrp.k100521.
Full textAbstract:
The casting technology is one of the most important production processes, because of its special characteristics and features such as the ability to produce complex shapes and a wide range of compositions. This work aims to study several mixtures of sand with different structures in terms of permeability, strength, thermal expansion coefficient, comparing them, study the effect of the elements involved in the composition of these mixtures on those parameters, and create a database that can be used both in modeling processes or mold design, as when designing the sand mold The value of the sand expansion of the mold must be taken into account, otherwise the designer will face the problem of the possibility of exit some dimensions of the final product from the permissible range and thus rejecting the product, Or the product is undergone to deformations resulting from the expansion of mold sands, which must be avoided when designing the mold Knowing the characteristics of those sand mixtures helps the investor in choosing the most appropriate mixture for the required casting process in terms of engineering specifications or quantity, with the aim of less costly production by saving in choosing the most appropriate and least expensive sand mixture that serves the desired purpose.
43
Demos, Guilherme, Thomas Pires, and Guilherme Valle Moura. "Rebalanceamento Endógeno para Portfólios de Variância Mínima." Brazilian Review of Finance 13, no. 4 (October 25, 2015): 544. http://dx.doi.org/10.12660/rbfin.v13n4.2015.49112.
Full textAbstract:
Investment managers often rebalance portfolios using it ad-hoc criteria due the trade-off between gains from updating optimal weight and costs incurred from changing the portfolio composition. A common solution for this stalemate is rebalancing the portfolio based on some exogenous criteria. By monitoring the optimal weights of the portfolio through control charts, the authors propose a portfolio rebalance strategy based solely on endogenous information. The optimal portfolio weights are thus monitored daily and if statistical significant changes are detected we either rebalance or not the portfolio thus avoiding transaction costs. The performance of the rebalancing strategy is then compared with different periodical strategies based on indicators such as Turnover and Sharpe-Ratio. Our results suggest that rebalancing strategies based on signals from control charts outperform those based solely on exogenous criteria, thus yielding economical gains to the investor.
44
Baryshnikova, N., and L. Ryazantseva. "Exploiting the volatility potential on the stock market." Siberian Financial School, no. 3 (September 10, 2021): 88–91. http://dx.doi.org/10.34020/1993-4386-2021-3-88-91.
Full textAbstract:
An overview of the ideas about the tools and indicators for measuring the variability, instability, fluctuation in time of stock market prices and their profitability is given (on the example of five socially significant banks), the need for their assessment is justified. It is concluded that in the conditions of the economic crisis, the assessment of the probability of income loss is highly relevant. Risk is the most important factor that should be taken into account when forming a securities portfolio. When selecting assets for a portfolio, an investor is faced with a choice: to what extent is an increase in the risk measure acceptable with an increase in profitability? There is a need for a comparative characteristic of the investment portfolio. One of the ways to reduce the volatility of the portfolio is to change its composition by replacing an asset with high volatility with an asset with low volatility, or better - with a risk-free asset. It is concluded that the β-coefficients are the simplest indicator of the degree of sensitivity of the yield of a stock or a portfolio of shares selected for purchase to the yield of a market portfolio of shares or the yield of a stock selected as a comparison base. The assessment obtained as a result of the application of financial analysis indicators allows the company's management and the investor to solve the problems of strategic choice, allows them to compare alternatives to the investment strategy and make a judgment on the appropriateness of the choice.
45
Seong Kuan, Jason See Toh, Chin Fei Goh, Owee Kowang Tan, and Norliza Mohd Salleh. "Principal-Principal Conflicts and Socioemotional Wealth in Family Firms." International Journal of Economics and Finance 9, no. 10 (September 10, 2017): 128. http://dx.doi.org/10.5539/ijef.v9n10p128.
Full textAbstract:
Corporate governance is the concern of all the parties throughout the world regarding their viability in order to ensure the sustainability of the firm. As the family firms are listed in the public exchange, there are different kind of the investors in the corporation produce the resolution that are opposing to each other. Moreover, the large capital that is injected by the institutional investor complicates the role played in the corporation that shapes the culture and philanthropy. The phenomenon leads to the complex relationship in one corporation due to the different types of interest. Board composition and board independence are stretched by numerous scholars regarding the core importance in the corporation. Executive compensation is another area of corporate governance that is widely discussed by the scholars regarding the relationship with the long-term firm performance. Therefore, this review paper will focus on the application of the Principal-principal Conflicts theory and Socio-Emotional Wealth theory to narrate the whole scenario of the governance practice in the family firm. Throughout the paper, current rigorous practice of the family firms will be deeply investigated to cover the deep insights of the current phenomenon. The meticulous review of this paper is able to synthesize the significance of these theories towards the general governance setting in the family firms. Eventually, the working paradigm of the family firm can be clearly justified with the rationale that is justified. At the end of the review, the two main theories are concluded to be equally essential to illustrate the corporate governance practice in family firms across the globe.
46
Alexander, John C., and Thomas M. Springer. "Valuation effects of REIT mergers and the role of diversification." Managerial Finance 44, no. 4 (April 9, 2018): 424–38. http://dx.doi.org/10.1108/mf-10-2017-0412.
Full textAbstract:
Purpose Merging two real estate investment trusts (REITs) consolidates two real estate portfolios. The purpose of this paper is to provide further evidence on the market’s valuation of property type and geographic diversification of REITs by looking at the diversification impact of mergers involving domestic REITs in the Modern REIT era (post 1992). Design/methodology/approach The authors classify equity REIT mergers according to whether they maintain portfolio focus or alter their focus with respect to the geography and property type distribution of the underlying real estate. Then, using a domestic REIT index, the authors examine abnormal returns around the merger announcement to ascertain how portfolio changes affect value. Findings Although the results show no abnormal returns to the combined REIT for the 126 mergers in the sample, mergers that maintain geographic focus and alter the property focus contribute positively to the abnormal returns. Acquiring REITs show negative abnormal returns for mergers that either diversify geography or maintain property focus. Target REITs earn positive abnormal returns no matter the diversification impact of the merger. Research limitations/implications The results suggest that changes to the composition of the REIT’s property portfolio have valuation implications. The results suggest that during the modern REIT Era, property diversification created positive wealth effects for the acquirer. Originality/value This research adds to the evidence on how REIT investors value changes in the diversification of the underlying properties, and implies that the investor perception of portfolio effects from mergers may vary over time as the REIT industry expands and consolidates.
47
Hulse, Kath, and Margaret Reynolds. "Investification: Financialisation of housing markets and persistence of suburban socio-economic disadvantage." Urban Studies 55, no. 8 (November 9, 2017): 1655–71. http://dx.doi.org/10.1177/0042098017734995.
Full textAbstract:
The relationship between urban housing markets and spatial patterns of socio-economic disadvantage has fascinated urban scholars for decades. The gentrification and subsequently suburbanisation of disadvantage literatures have explained how housing markets are both a driver, and outcome, of changes in the socio-economic composition of urban areas, albeit focusing mainly on owner occupation and social housing. In the 2000s, research into the financialisation of housing finds increased household-level investment in private rented housing as an important contemporary driver of housing markets. Based on a detailed study of Melbourne (Australia) in 2001–2011, the article identifies established suburbs of persistent population socio-economic disadvantage, which were characterised by sale prices and rents increasing above citywide rates in 2001–2011 and a disproportionate increase in private rented housing. The article offers a new concept of investification to explain a process whereby disproportionately high levels of household investor purchases in disadvantaged suburbs contribute to higher prices/rents and to the persistence of socio-economic disadvantage, as properties are rented on the private market to low socio-economic households, indicating replacement rather than displacement. Connecting with research on the financialisation of housing through the concept of ‘investification’ can provide a more nuanced understanding of the relationship between contemporary housing market change and the geography of suburban disadvantage in the Australian context. The concept is likely to be of broader significance given the recent increase in Buy-to-Let activity in countries such as the UK, opening up new research questions on the interrelationship between households as investors and consumers and the geography of urban disadvantage.
48
Fedorovich, Oleg, Oleg Uruskiy, Yurii Pronchakov, and Mikhail Lukhanin. "Method and information technology to research the component architecture of products to justify investments of high-tech enterprise." RADIOELECTRONIC AND COMPUTER SYSTEMS, no. 1 (February 27, 2021): 150–57. http://dx.doi.org/10.32620/reks.2021.1.13.
Full textAbstract:
The development of enterprises in strategic industries depends on funding made innovative products that are in demand in the markets for high-tech products. The interest of investors depends on the innovation and competitiveness of the products that the enterprise can produce. The enterprise should make a new, diversified portfolio of orders to attract funding from potential investors. The innovativeness of the product is determined by the novelty of the components in its composition. Therefore, the pressing challenge is to study the innovation of high-tech products based on their component architecture. It makes it possible for investors to assess the possibility of enterprise financing while making a promising diversified portfolio of orders. The study develops a method to justify investments into the new orders that are based on the research of the component architecture of the complex product. The tasks analyzed the product component architecture innovation and investment attractiveness, justify and select the diversified portfolio of orders, simulate and assess orders portfolio feasibility are stated and solved. The paper proposes the component method that makes it possible to evaluate the architecture of the new product in terms of innovation and investment attractiveness. The research of innovation is conducted depending on the composition of the components in the architecture of the whole product. These components can be either new that require a new cycle of creation, or “old” ones, taken from previous experience with the possible adaptation to the technical requirements of the new product. By using the proposed multifactor planning of the experiment, the possible options are considered and the main indicators of the new product are assessed: investment attractiveness, costs, timelines, and risks of order fulfillment. Using lexicographic ordering of alternatives the compromised selection of the optimal option in terms of limited capabilities of the enterprise is conducted. To optimize the diversified portfolio of orders the method of integer (Boolean) programming is used. Investment attractiveness is used as a target function. The restrictions consider allowable costs, timelines, and risks of the orders portfolio fulfillment. In the last part of the paper, the method of simulation agent modeling in a form of applied information technology is used to assess the timeline for order fulfillment and the impact of risks on the feasibility of the diversified portfolio of orders. The novelty of the results is related to the justification of the choice of a diversified portfolio of orders, which in contrast to the already existing approaches, is based on the advanced component architecture of complex products and the simulation of orders portfolio selection considering innovation and investor interests. The proposed method and information technology are planned for the future development of an enterprise that makes it possible to assess the competitiveness of products, as well as the possibility to attract funding.
49
Bielickas, Linas, and Izolda Ona Bražukienė. "Foreign Direct Investment in Vilnius and Kaunas Counties in 2000–2013 Year." Geografija ir edukacija mokslo almanachas / Geography and Education Science Almanac 4 (October 11, 2016): 64–76. http://dx.doi.org/10.15823/ge.2016.5.
Full textAbstract:
The aim of this paper is to analyse and evaluate a territorial dispersion of foreign direct investment in Vilnius and Kaunas counties in 2000–2013 year and to identify the main reasons, which had an impact for changes. Foreign direct investment (FDI) makes a long-term economical and monetary interests and connection between foreign direct investor and investing company. It is one of the sources of finances and inovations which improves competitiveness in global market and supports the growth of economy. There are established the causes (social and economical) of foreign direct investment in Vilnius and Kaunas counties in 2000-2013 year territorial dispersion, factors of their attraction, indicated economical sectors and investing countries in this paper. There are used the analysis of statistical data, scientific literature, counting of quantitative and qualitative indicators, comparative analysis by qualitative indicators, composition of sketches by quantitative and qualitative indicators and identification of territorial structures from sketches.
50
Chen, Shimin, Sunny Y. J. Sun, and Donghui Wu. "Client Importance, Institutional Improvements, and Audit Quality in China: An Office and Individual Auditor Level Analysis." Accounting Review 85, no. 1 (January 1, 2010): 127–58. http://dx.doi.org/10.2308/accr.2010.85.1.127.
Full textAbstract:
ABSTRACT: This study examines how the legal and regulatory changes in China affect the relationship between client economic importance and audit quality. At the individual auditor level, we find that the propensity to issue modified audit opinions (MAOs) is negatively correlated with client importance from 1995 to 2000. However, from 2001 to 2004, when the institutional environment became more investor-friendly, the propensity to issue MAOs is positively associated with client importance. These findings are corroborated by an analysis of regulatory sanctions. Although client importance measured at the office level is also negatively related to the propensity for MAOs from 1995 to 2000 without controlling for the auditor-level client importance, this result is sensitive to model specification and sample composition. Our results suggest that (1) institutional improvements prompt auditors to prioritize the costs of compromising quality over the economic benefits gained from important clients; and (2) the impact of client importance on audit decisions appears to be different at the individual auditor and office levels.