To see the other types of publications on this topic, follow the link: Passive Investments.
Journal articles on the topic 'Passive Investments'
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 'Passive Investments.'
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
Graham, Roger C., and Craig E. Lefanowicz. "Evidence of the Relation between Accounting for Equity Investments and Equity Valuation." Journal of Accounting, Auditing & Finance 11, no. 4 (October 1996): 587–605. http://dx.doi.org/10.1177/0148558x9601100404.
Full textAbstract:
Income recognition events for equity investments reflect an investor's ability to influence the activities of an investee and therefore the timing of income realization to the investor. Investor firms with passive equity investments recognize investment income when investee dividends are declared, whereas investors with nonpassive equity investments recognize investment income as investee income is earned. To determine whether market participants associate investor income realization with the income recognition events, investor and investee security return correlations are examined around investee dividend and earnings announcements. The correlations suggest an association between passive and nonpassive investor valuation and investee dividend and earnings announcements that corresponds to the accounting income recognition procedures for equity investments. Analysis of the relative timing of investor and investee announcements indicates that the results are not due to a naive fixation on accounting revenue recognition events. Rather, the results suggest differences in the substance of the investor-investee relation between passive and nonpassive investments. The results are robust to alternative specifications and controls for relative investment size and industry affiliation.
2
Alexander, Carol, and Anca Dimitriu. "Equity indexing: Optimize your passive investments." Quantitative Finance 4, no. 3 (June 2004): C30—C33. http://dx.doi.org/10.1088/1469-7688/4/3/f01.
Full text
3
Bankman, Joseph. "The Case against Passive Investments: A Critical Appraisal of the Passive Loss Restrictions." Stanford Law Review 42, no. 1 (November 1989): 15. http://dx.doi.org/10.2307/1228858.
Full text
4
Daniluk, Katarzyna. "Profitability and Risk of Selected Forms of Investment on the Polish Capital Market." Economic and Regional Studies / Studia Ekonomiczne i Regionalne 14, no. 2 (June 1, 2021): 209–19. http://dx.doi.org/10.2478/ers-2021-0014.
Full textAbstract:
Abstract Subject and purpose of work: The subject of this study concerns profitability and risk of selected forms of investment on the Polish capital market. The aim of the study was to compare profitability and risk of active and passive investment portfolios. Materials and methods: The research material consisted of the rates of return on investments in the undervalued shares and growth shares included in the WIG-20 index and the results of the Lyxor WIG 20 UCITS ETF fund in 2014-2019. The study compares the rates of the return and standard deviations of returns of the portfolios managed actively and passively. Results: The analysis of the rates of return of the created investment portfolios indicates a higher profitability and a lower risk of the passive form of investment consisting in the purchase of an ETF fund. Among active strategies the growth investing strategy showed a higher profitability and a lower risk. Conclusions: Passive forms of investment are an effective alternative to active portfolio management.
5
Venkataraman, R., and Thilak Venkatesan. "Evaluation of Growth of Mutual Funds and Exchange Traded Funds in India." SDMIMD Journal of Management 7, no. 1 (March 1, 2016): 41. http://dx.doi.org/10.18311/sdmimd/2016/8413.
Full textAbstract:
Investors are always baffled about the risk-return characteristics of their investments. There is often the challenge of the alternative between active&passive investments. In case of active mutual funds there are numerous categories of active funds each tracking a different benchmark. It often leads to confusion about how the performance can be compared between one fund to another. The growth of ETFs' has been phenomenal in the recent years due to various advantages of an exchange traded fund compared to the mutual fund as lower cost of management, lesser dependence on fund manager, ease of transaction to name a few. In this context the research analysedthe passive ETF's&prominent Mutual funds both active and passive to justify superior returns at lower risk. The research was based on secondary data, for a period of 5 years i.e. from 2010 to 2015.The various tools used were Sharpe Ratio, Jenson's Alpha, Treynor's Ratio and Tracking error. The study recommends fund houses to implement proactive strategies to reduce tracking error and make ETF's a better alternative for investment.
6
Pézier, Jacques, and Anthony White. "The Relative Merits of Alternative Investments in Passive Portfolios." Journal of Alternative Investments 10, no. 4 (March 31, 2008): 37–49. http://dx.doi.org/10.3905/jai.2008.705531.
Full text
7
Buser, Stephen A. "On the Optimal Mix of Active and Passive Investments." Journal of Portfolio Management 41, no. 4 (July 31, 2015): 91–96. http://dx.doi.org/10.3905/jpm.2015.41.4.091.
Full text
8
Elton, Edwin J., Martin J. Gruber, and Andre de Souza. "Are Passive Funds Really Superior Investments? An Investor Perspective." Financial Analysts Journal 75, no. 3 (June 18, 2019): 7–19. http://dx.doi.org/10.1080/0015198x.2019.1618097.
Full text
9
Cheng, Si, Massimo Massa, and Hong Zhang. "The Unexpected Activeness of Passive Investors: A Worldwide Analysis of ETFs." Review of Asset Pricing Studies 9, no. 2 (December 31, 2018): 296–355. http://dx.doi.org/10.1093/rapstu/ray011.
Full textAbstract:
Abstract The global ETF industry provides more complicated investment vehicles than low-cost index trackers. Instead, we find that the real investments of ETFs may deviate from their benchmarks to leverage informational advantages (which leads to a surprising stock-selection ability) and to help affiliated OEFs through cross-trading. These effects are more prevalent in ETFs domiciled in Europe. Moreover, ETF flows seem to respond to additional risk. These results have important normative implications for consumer protection and financial stability. Received March 18, 2017; Editorial decision October 14, 2018 by Editor Raman Uppal. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.
10
Guillén, Montserrat, Søren Fiig Jarner, Jens Perch Nielsen, and Ana M. Pérez-Marín. "Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment." Scientific World Journal 2014 (2014): 1–12. http://dx.doi.org/10.1155/2014/521074.
Full textAbstract:
The impact of administrative costs on the distribution of terminal wealth is approximated using a simple formula applicable to many investment situations. We show that the reduction in median returns attributable to administrative fees is usually at least twice the amount of the administrative costs charged for most investment funds, when considering a risk-adjustment correction over a reasonably long-term time horizon. The example we present covers a number of standard cases and can be applied to passive investments, mutual funds, and hedge funds. Our results show investors the potential losses they face in performance due to administrative costs.
11
Huang, Wei, and George J. Jiang. "Big Fish in a Small Pond: Institutional Trading of Penny Stocks." Quarterly Journal of Finance 10, no. 02 (March 6, 2020): 2050005. http://dx.doi.org/10.1142/s2010139220500056.
Full textAbstract:
There has been a steady increase in institutional ownership of penny stocks over the past decades. Nevertheless, we show that penny stocks bought by institutional investors significantly underperform other penny stocks in subsequent four quarters. This poor performance is mainly driven by quasi-indexers, i.e., institutions with passive and widely diversified investment strategies. In comparison, dedicated institutions, i.e., those with low turnover but large average investments in portfolio firms and a commitment to “relationship investing”, have marginally significant ability in trading penny stocks.
12
Širůček, Martin, Jan Vystoupil, and Petr Strejček. "Profitability of Sector Mutual Funds and ETFs During Market Development and Length of Investment Horizon." Financial Assets and Investing 9, no. 2 (December 31, 2018): 42–60. http://dx.doi.org/10.5817/fai2018-2-3.
Full textAbstract:
This paper focuses on the profitability of investments into IT, finance, healthcare and consumer goods oriented active and passive mutual funds and ETFs and their profit/loss in different market situations (growing, stagnant and decreasing markets).The aim of the paper is to set recommendations for investors as regards which instrument (active or passive mutual fund or ETFs) brings higher return or lower loss over the time and market development and if investors can expect different results based on the sector orientation, which sector is more sensitive to bullish or bearish trends. Our results show that neither ETF nor passive mutual funds were able to beat the market, as the sector index brings better results than these investments in all situations. Within bearish trend, all sector ETFs and passive mutual funds bring the same results as sector index, only active managed mutual funds bring better results. The lowest loss during this period was achieved by active managed mutual funds focusing on healthcare. Bullish and stagnant markets bring quite the same results, but passive funds and ETF are more profitable than active mutual funds in growing markets.
13
Connett, Wendy. "Practical Applications of On the Optimal Mix of Active and Passive InvestmentsOn the Optimal Mix of Active and Passive Investments Stephen A. Buser." Practical Applications 3, no. 3 (November 2015): 1–3. http://dx.doi.org/10.3905/pa.2015.3.3.141.
Full text
14
Matveenko, Vladimir, Alexei Korolev, and Maria Zhdanova. "Game equilibria and unification dynamics in networks with heterogeneous agents." International Journal of Engineering Business Management 9 (January 1, 2017): 184797901773167. http://dx.doi.org/10.1177/1847979017731670.
Full textAbstract:
We study game equilibria in a model of production and externalities in network with two types of agents who possess different productivities. Each agent may invest a part of her endowment (it may be, for instance, time or money) in the first of two time periods; consumption in the second period depends on her own investment and productivity as well as on the investments of her neighbors in the network. Three ways of agent’s behavior are possible: passive (no investment), active (a part of endowment is invested), and hyperactive (the whole endowment is invested). For star network with different productivities of agents in the center and in the periphery, we obtain conditions for existence of inner equilibrium (with all active agents) and study comparative statics. We introduce adjustment dynamics and study consequences of junction of two complete networks with different productivities of agents. In particular, we study how the behavior of nonadopters (passive agents) changes when they connect to adopters (active or hyperactive) agents.
15
Ezrachi, A. "EC Competition Law and the Regulation of Passive Investments Among Competitors." Oxford Journal of Legal Studies 26, no. 2 (January 1, 2006): 327–49. http://dx.doi.org/10.1093/ojls/gql006.
Full text
16
Ming-Hsiang, Chen. "A Timing Strategy for Investments in U.S. Hospitality Stocks." Journal of Hospitality & Tourism Research 36, no. 3 (November 22, 2010): 283–311. http://dx.doi.org/10.1177/1096348010388654.
Full textAbstract:
Historical data for the period from January 2, 1973 to May 30, 2008 show that U.S. airline, hotel, restaurant, and travel and leisure sector indices underperformed the market portfolio (S&P 500) in terms of the Sharpe ratio. This result suggests that simply buying and holding hospitality sector stocks is a poor investment strategy. It is necessary for hospitality stock investors to find a method of improving their investments in U.S. hospitality sector stocks. This study offers a timing strategy for investing in U.S. hospitality sector stocks. Directional changes in the Fed discount rate signal when to buy or sell stocks of different hospitality sectors. Accordingly, a timing strategy is formulated and its performance relative to a passive buy-and-hold (market portfolio) strategy is examined with five risk-adjusted performance measures. Empirical evidence derived from the daily trading data over a 35-year period generally supports the superiority of the proposed timing strategy for investments in hotel, restaurant, and travel and leisure sector stocks over the buy-and-hold strategy based on various risk-adjusted performance evaluation methods.
17
Trippner, Paweł. "The effectiveness of capital management strategies used by the investment funds in Poland." Przedsiebiorczosc i Zarzadzanie 15, no. 2 (August 15, 2014): 119–29. http://dx.doi.org/10.2478/eam-2014-0021.
Full textAbstract:
Abstract Collective investors play an extremely important role in the financial system of the state and in the economy. They operate in the financial market as institutions that enable households and businesses to convert savings into investments. Investment funds are the most conventional institutions which are dealing with financial intermediation. The main purpose of the submitted paper is to characterise the essence of investment funds operation in the role as financial intermediaries, to present the investment strategies and to characterise the methodology for measuring the effectiveness of capital management entrusted by the clients. The author has formulated a research hypothesis, according to which, the strategies of capital location policy used by the investment funds have an impact on the level of their performance, while funds holding higher risk portfolios perform better compared to the funds using passive investment strategies
18
Connett, Wendy. "Practical Applications of On the Optimal Mix of Active and Passive Investments." Practical Applications 3, no. 3 (January 31, 2016): 1.7–3. http://dx.doi.org/10.3905/pa.2016.3.3.141.
Full text
19
Hua Fan, John, and Osei K. Wiafe. "The role of commodities investments in the decumulation phase of retirement." Investment Management and Financial Innovations 13, no. 3 (October 10, 2016): 322–27. http://dx.doi.org/10.21511/imfi.13(3-2).2016.04.
Full textAbstract:
This paper examines the role of commodity-related investments in the decumulation phase of retirement. Benchmarked against a balanced portfolio, the findings suggest that including commodities in a traditional portfolio improves the retirement outcomes at the lowest percentiles of wealth distribution. Furthermore, we demonstrate that downside protection is more pronounced by reducing allocation to equities (rather than bonds) to invest in alternatives. An equally weighted combination of passive and active commodity-related investments provides superior downside protection compared to a traditional portfolio at all levels of allocations used in the analysis. As a consequence, commodities may be employed as a portfolio diversification tool particularly in the decumulation phase of retirement. Keywords: alternatives, commodities, life cycle, superannuation, retirement. JEL Classification: G11, G23
20
Larkin, Patrick J. "To Iterate Or Not To Iterate? Using The WACC In Equity Valuation." Journal of Business & Economics Research (JBER) 9, no. 11 (October 28, 2011): 29. http://dx.doi.org/10.19030/jber.v9i11.6497.
Full textAbstract:
The textbook discounted cash flow (DCF) valuation method involves estimating a target debt ratio for the firm, discounting firm cash flows at the WACC to estimate firm value, then subtracting the current value of debt to get equity value. This method gives the correct equity value in situations in which the firm will move toward the target debt ratio after the transaction is complete, such as takeovers and capital budgeting projects. The textbook method does not work well for estimating equity value in passive investments in which leverage is unlikely to change as a result of the potential transaction. Estimating equity value in passive investments when leverage is unlikely to change requires a simple iterative procedure to correct for circularity, which is demonstrated here. This situation sows confusion among students and practitioners. Finance scholars and textbook authors are aware of the situation but the author has never seen it clearly explained in prior textbooks or articles.
21
Wilkins, Kim. "‘A crowd at your back’: fantasy fandom and small press." Media International Australia 170, no. 1 (November 30, 2017): 115–25. http://dx.doi.org/10.1177/1329878x17743524.
Full textAbstract:
This article presents a study of a model of textual production that situates genre fiction, specifically fantasy fiction, within its community and industry contexts. I argue that Australian fantasy ‘fandom’ operates in some ways like a research and development space for the literature it consumes, through allowing, enabling and enthusiastically supporting – both ethically and materially – a thriving small press culture. Fandom is known for its passionate investments in texts, and those investments are rarely passive. The fantasy genre community is already oriented towards prosumption, and small presses afford specific opportunities for writers to work in specific ways, enriching and developing their individual craft and the genre as a whole.
22
Zaremba, Adam. "Portfolio Diversification with Commodities in Times of Financialization." International Journal of Finance & Banking Studies (2147-4486) 4, no. 1 (January 21, 2015): 18–36. http://dx.doi.org/10.20525/ijfbs.v4i1.202.
Full textAbstract:
The study concentrates on the benefits of passive commodity investments in the context of the phenomenon of financialization. The research investigates the implications of increase in the correlation coefficients between equity and commodity investments for investors in financial markets. The paper is composed of several parts. First, the attributes of commodity investments and their benefits in the portfolio optimization are explored. Second, the phenomenon of the financialization is described and the research hypothesis is developed. Next, an empirical analysis is performed. I simulate the mean-variance spanning tests to examine the benefits of commodity investments before and after accounting for the impact of financialization. I proceed separate analysis for pre- and post-financialization period. The empirical research is based on asset classes’ returns and other related variables from years 1991-2012. The performed investigations indicate that the market financialization may have significant implications for commodity investors. Due to increase in correlation coefficients, the inclusion of the commodity futures in the traditional stock-bond portfolio appears to be no longer reasonable.
23
Zaremba, Adam. "Strategic Asset Allocation in the Times of Financialized Commodity Markets." Journal of International Business Research and Marketing 6, no. 4 (2021): 19–28. http://dx.doi.org/10.18775/jibrm.1849-8558.2015.64.3003.
Full textAbstract:
The paper concentrates on the benefits of passive commodity investments in the context of the phenomenon of financialization. I investigate the implications of increase in the correlation between equity and commodity investments for commodity investors. The paper is composed of several parts. First, I describe the attributes of commodity investments and their benefits in the portfolio optimization. Second, I define the phenomenon of the finanzialization and develop my research hypothesis. Third, the section includes a description of data sources, research methods employed. Next, I present the results of the empirical analysis. I simulate the mean-variance spanning tests to examine the benefits of commodity investments before and after accounting for the impact of financialization. I proceed separate analysis for pre- and post-financialization period. The empirical research is based on asset classes’ returns and other related variables from years 1991-2012. The performed research indicates that the market financialization may have significant implications for commodity investors. Because of the increase in correlations, the inclusion of the commodity futures in the traditional stock-bond portfolio appears to be no longer reasonable.
24
Chaudhuri, Shomesh E., and Andrew W. Lo. "Dynamic Alpha: A Spectral Decomposition of Investment Performance Across Time Horizons." Management Science 65, no. 9 (September 2019): 4440–50. http://dx.doi.org/10.1287/mnsc.2018.3102.
Full textAbstract:
The value added by an active investor is traditionally measured using alpha, tracking error, and the information ratio. However, these measures do not characterize the dynamic component of investor activity, nor do they consider the time horizons over which weights are changed. In this paper, we propose a technique to measure the value of active investment that captures both the static and dynamic contributions of an investment process. This dynamic alpha is based on the decomposition of a portfolio’s expected return into its frequency components using spectral analysis. The result is a static component that measures the portion of a portfolio’s expected return resulting from passive investments and security selection and a dynamic component that captures the manager’s timing ability across a range of time horizons. Our framework can be universally applied to any portfolio and is a useful method for comparing the forecast power of different investment processes. Several analytical and empirical examples are provided to illustrate the practical relevance of this decomposition. This paper was accepted by Gustavo Manso, finance.
25
Black, Keith H. "Factor Modeling and Benchmarking of Hedge Funds: Can Passive Investments in Hedge Fund Strategies Deliver?" CFA Digest 36, no. 3 (August 2006): 6–8. http://dx.doi.org/10.2469/dig.v36.n3.4209.
Full text
26
Orlova, Kristina Yu. "Formation of innovation and investment development directions of the Samara Region systemic enterprises." Vestnik of Samara University. Economics and Management 12, no. 2 (August 5, 2021): 67–77. http://dx.doi.org/10.18287/2542-0461-2021-12-2-67-77.
Full textAbstract:
The article discusses the directions of innovation and investment development of the strategic, system-forming, enterprises of the Samara Region, which were determined on the basis of an analysis of information about the real situation (20182020) and the planned future (from 2021), obtained as a result of a questionnaire survey of managers about the directions of investment, criteria for making investment decisions, as well as the strategic goals of investment plans. The analysis of investment directions was carried out, on the basis of which the types of investment activity of enterprises were identified as active, proactive and passive. Criteria for making investment decisions are considered, on the basis of which the types of investment behavior of enterprises were divided into leader behavior associated with the economic justification of investment decisions, and follower behavior characterized by an empirical decision rule. The average values of the investment projects characteristics the payback period of investments, the excess of the rate of return over the loan rate, and the discount rate required for making a decision on investment, as well as the volumes of investment projects in different periods are given. On the basis of the investment objectives considered, three types of strategies of system-forming enterprises are formulated: aggressive, moderate and conservative. Based on the analysis of the results of the survey, the features of innovative activity, as well as the directions and prerequisites for the innovative development of the Samara Region strategic enterprises are determined.
27
Stempler, Balázs. "ESG Investing: The Use of ESG Ratings in a Smart Beta Strategy." Financial and Economic Review 20, no. 2 (2021): 91–116. http://dx.doi.org/10.33893/fer.20.2.91116.
Full textAbstract:
ESG investing has recently been growing in popularity but the range of investment products available could still be widened. One possible approach is a combination of ESG ratings and the smart beta strategy that modifies index weighting based on a factor; thus, it contains elements from both active and passive fund management. The hypothetical funds created in this paper using this method achieved returns of over 50 per cent between 2015 and 2019, while the benchmark EURO STOXX 50 only provided a 19 per cent profit for investors during the five-year period. ESG ratings were found to be significant as a variable, suggesting that they can influence returns but other factors such as size or earnings growth have higher explanatory power. Also, while currently the possibilities for ESG investments are limited in Hungary, market players are starting to realise the potential of ESG, and with the suggested approach new investors could be attracted by funds
28
Sherrill, D. Eli, Sara E. Shirley, and Jeffrey R. Stark. "Actively managed mutual funds holding passive investments: What do ETF positions tell us about mutual fund ability?" Journal of Banking & Finance 76 (March 2017): 48–64. http://dx.doi.org/10.1016/j.jbankfin.2016.11.025.
Full text
29
Riordan, Diane A., and Michael P. Riordan. "Passive Rental Activity Issues Challenged in the Tax Court and on Appeal 2000–2006." ATA Journal of Legal Tax Research 6, no. 1 (January 1, 2008): 62–77. http://dx.doi.org/10.2308/jltr.2008.6.1.62.
Full textAbstract:
Section 469 of the Internal Revenue Code limiting the current deduction of passive losses was introduced by the Tax Reform Act of 1986 in response to concerns that rental properties and other investments were acting as tax shelters for the rich. Application of the provision has resulted in a dynamic regulatory environment which often has been challenging to administer. The regulations have been amended and reissued so frequently that taxpayers have actually used the authoritative turmoil in the construction of their defensive arguments in the courts. In this paper we review a window of activity in the Tax Court and courts of appeal during the period just prior to the provision's twentieth anniversary to identify the issues that continue to challenge taxpayers and administrators. We find that, with few exceptions stemming from two of the six rental exceptions challenged in the Tax Court, the Commissioner has been successful in defending the Service's position on passive rental activity issues despite the dynamic environment.
30
Dopierała, Łukasz, and Magdalena Mosionek-Schweda. "Pension Fund Management, Investment Performance, and Herding in the Context of Regulatory Changes: New Evidence from the Polish Pension System." Risks 9, no. 1 (December 29, 2020): 6. http://dx.doi.org/10.3390/risks9010006.
Full textAbstract:
The aim of this paper is to assess the impact of reforms introduced in the operation of Polish open pension funds on management style, risk exposure and related investment performance. The article analyzes the impact of the reformed regulations on the herd behavior of fund managers. In particular, we examined whether the elimination of the internal benchmark for fund evaluation impacts the elimination or reduction of herd behavior. We proposed a multi-factor market model to evaluate the performance of funds investing in various types of instruments. Moreover, we used panel estimation to directly take into account the impact of the internal benchmark on herd behavior. Our results indicate that highly regulated funds may slightly outperform passive benchmarks and their unregulated competitors. In the case of Polish open pension funds, limiting investments in Treasury debt instruments clearly resulted in increased risk and volatility of returns. However, it also raised competition between funds and decreased the herd behavior. Additionally, the withdrawal of the mechanism evaluating funds based on the internal benchmark was also important in reducing herd behavior.
31
Naffa, Helena, and Máté Fain. "Performance measurement of ESG-themed megatrend investments in global equity markets using pure factor portfolios methodology." PLOS ONE 15, no. 12 (December 22, 2020): e0244225. http://dx.doi.org/10.1371/journal.pone.0244225.
Full textAbstract:
ESG factors are becoming mainstream in portfolio investment strategies, attracting increasing fund inflows from investors who are aligning their investment values to Sustainable Development Goals (SDG) declared by the United Nations Principles for Responsible Investments. Do investors sacrifice return for pursuing ESG-aligned megatrend goals? The study analyses the risk-adjusted financial performance of ESG-themed megatrend investment strategies in global equity markets. The analysis covers nine themes for the period 2015–2019: environmental megatrends covering energy efficiency, food security, and water scarcity; social megatrends covering ageing, millennials, and urbanisation; governance megatrends covered by cybersecurity, disruptive technologies, and robotics. We construct megatrend factor portfolios based on signalling theory and formulate a novel measure for stock megatrend exposure (MTE), based on the relative fund flows into the corresponding thematic ETFs. We apply pure factor portfolios methodology based on constrained WLS cross-sectional regressions to calculate Fama-French factor returns. Time-series regression rests on the generalised method of moments estimator (GMM) that uses robust distance instruments. Our findings show that each environmental megatrend, as well as the disruptive technologies megatrend, yielded positive and significant alphas relative to the passive strategy, although this outperformance becomes statistically insignificant in the Fama-French 5-factor model context. The important result is that most of the megatrend factor portfolios yielded significant non-negative alphas; which supports our assumption that megatrend investing strategy promotes SDGs while not sacrificing returns, even when accounting for transaction costs up to 50bps/annum. Higher transaction costs, as is the case for some of these ETFs with expense ratios reaching 80-100bps, may be an indication of two things: ESG-themed megatrend investors were willing to sacrifice ca. 30-50bps of annual return to remain aligned with sustainability targets, or that expense ratio may well decline in the future.
32
Bellintani, Stefano, Gianandrea Ciaramella, and Alberto Celani. "A new frontier in construction investments: Data Centres and technical factors affecting risk profile." MATEC Web of Conferences 251 (2018): 06009. http://dx.doi.org/10.1051/matecconf/201825106009.
Full textAbstract:
The interest of Construction investors towards Data Centres is a novelty that however is not supported by an adequate level of knowledge of the technical characteristics that distinguish this particular building type. In fact, these are complex buildings, which are rarely dealt with in the literature (real estate and construction) and very different from the typical asset class of the real estate market, for which it requires a very high level of specialization. From an investor's point of view, although there are some reference standards that define some minimum quality standards, we need to widen our attention, focusing on all the technical / technological factors that influence the business model. The paper deals with this problem, trying to identify the different elements that influence the risk profile of the investment (thus omitting risk factors of another kind) and structuring them in clusters. Specifically, the paper focuses on the cost factors (passive cycle of the business model) that accompany the investment or the real estate asset “data centres” in its life cycle.
33
Foroughi, Pouyan, Namho Kang, Gideon Ozik, and Ronnie Sadka. "Investor Protection and the Long-Run Performance of Activism." Journal of Financial and Quantitative Analysis 54, no. 1 (August 24, 2018): 61–100. http://dx.doi.org/10.1017/s0022109018000674.
Full textAbstract:
Using a parsimonious measure of investor protection constructed from fund organizational characteristics, this paper documents that companies targeted by activists with better investor protection structures outperform those targeted by those with poor investor protection structures by roughly 10% per year. The outperformance is observed only for active targets for which Schedule 13Ds are filed, not for passive Schedule 13G investments, indicating that the effect is not explained by a superior target-selection ability. The evidence suggests that funds with better investor protection achieve increased profitability and valuation ratio of their targets by reducing agency costs, improving corporate governance, and collaborating with other large institutional investors.
34
Loyalka, Prashant, Anna Popova, Guirong Li, and Zhaolei Shi. "Does Teacher Training Actually Work? Evidence from a Large-Scale Randomized Evaluation of a National Teacher Training Program." American Economic Journal: Applied Economics 11, no. 3 (July 1, 2019): 128–54. http://dx.doi.org/10.1257/app.20170226.
Full textAbstract:
Despite massive investments in teacher professional development (PD) programs in developing countries, there is little evidence on their effectiveness. We present results of a large-scale, randomized evaluation of a national PD program in China in which teachers were randomized to receive PD; PD plus follow-up; PD plus evaluation of the command of PD content; or no PD. Precise estimates indicate PD and associated interventions failed to improve teacher and student outcomes after one year. A detailed analysis of the causal chain shows teachers find PD content to be overly theoretical, and PD delivery too rote and passive, to be useful. (JEL I21, I28, J24, J45, O15, P36)
35
Intarakumnerd, Patarapong, and Nathasit Gerdsri. "Implications of Technology Management and Policy on the Development of a Sectoral Innovation System: Lessons Learned Through the Evolution of Thai Automotive Sector." International Journal of Innovation and Technology Management 11, no. 03 (May 29, 2014): 1440009. http://dx.doi.org/10.1142/s0219877014400094.
Full textAbstract:
This paper examines how a sectoral innovation system evolves over time and what the underlying factors derive from the development of automotive industry in Thailand which is presented as a case example. Since 1960's, the government policies and the development of liberal investment climate have been a push for the influx of large-scale foreign direct investments (FDI) in Thailand. Automotive industry has also been targeted as a major assembly base of foreign carmakers while the local suppliers were mostly slow and passive learners. In the late- 1990's, foreign carmakers began acting as "lead" firms to invest in R&D and related activities. This induced positive coevolution in other actors, especially the first-tier foreign suppliers and some local suppliers, in the sectoral innovation systems which, in turn, became stronger, more coherent and product-specific. According to Thailand Automotive Institute (TAI), the production volume is expected to grow to two million units by 2015 which would bring Thailand to be on the top-ten list of the largest auto-producers in the world. This research paper has implications on the concept of sectoral innovation system, corporate technology strategies and government technology and innovation policies.
36
El Khatib, Ahmed Sameer, and Nahor Plácido Lisboa. "RELIGION AND FINANCE." REUNIR Revista de Administração Contabilidade e Sustentabilidade 9, no. 1 (July 16, 2019): 73–84. http://dx.doi.org/10.18696/reunir.v9i1.900.
Full textAbstract:
Despite the increasing attention to ethical investments, the empirical studies on Islamic indices are scarce. The principles of Islamic indices are similar to those of other ethical indices in terms of the screening process; both of them are also characterized by their short histories. So, after Islamic indices were introduced in the late nineties, many financial markets and index providers launched their own Islamic indices for investors looking for investment opportunities without compromising their beliefs. Analysing the financial performance of Islamic equity indices from all relevant providers, we document these indices to outperform their conventional benchmarks on a global and developed market level after controlling for investment styles and a potential back-testing bias. To explain this outperformance puzzle, we investigate fundamental (i.e., risk factors), behavioural (i.e., Ramadan) and research design (i.e., sample length) related explanations but the overall results persist. When eliminating the effect of the financial services industry from conventional benchmarks, however, the outperformance of all indices except the Dow Jones Islamic Market (DJIM) world index disappears. This implies that Islamic equity indices have outperformed due to their critical position towards risk-free interest and the financial services industry. We conclude that they represent a viable alternative for risk-averse passive investors, especially during periods of high uncertainty around financial services. Further research is needed to fully understand the abnormally good performance of the DJIM.
37
Bahlous, Mejda, and Rosylin Mohd. Yusof. "International diversification among Islamic investments: is there any benefit." Managerial Finance 40, no. 6 (June 3, 2014): 613–33. http://dx.doi.org/10.1108/mf-08-2013-0225.
Full textAbstract:
Purpose – The purpose of this paper is to assess the benefits to investors of international diversification among only Islamic funds. Compared to conventional investors who are not restricted in their choice of funds, Islamic investors are restricted to investing in shari’a-compliant funds, thus giving up some diversification benefits. The possibility of international diversification among only Islamic funds may thus help Islamic investors to invest in accordance to their religious beliefs and still benefit from diversification. Design/methodology/approach – The paper assesses the benefits of diversification by analyzing the extent of co-integration among four regional Islamic funds and by estimating the short-term and long-term structural dynamics of and among these funds. The paper uses an Autoregressive-Distributed Lag (ARDL) approach to testing the long-run relationships among these funds and use variance decomposition and impulse response functions to examine the structural dynamics of the relationship between these funds. These methods can also be used for predictive purposes and represent, in authors opinion, a useful approach that complements the traditional methodology of static covariance matrix to find the efficient frontier at a given moment in time. Findings – The results indicate that international diversification can help reduce risk if Asia Pacific Islamic funds and MENA region Islamic funds are invested contemporaneously and/or Asia Pacific Islamic funds and North America Islamic funds, and/or Europe funds and MENA funds. The paper also finds that investors would benefit from investing in North American funds and MENA funds both in the long run and in the short run. Conversely, the paper finds that Europe funds and North American funds are co-integrated in the long-run precluding the opportunity for substantial diversification benefits from these particular portfolio mixes. Research limitations/implications – The long-run analysis helps passive fund managers and investors in composing their portfolio by providing evidence that some portfolio mixes of different regional Islamic funds lead to better risk return performance than one regional Islamic fund portfolios. The short-run analysis however helps the active fund managers and investors as it suggests that diversifying in the short run and reviewing their portfolio on a regular basis would be beneficial as well. Originality/value – This analysis justifies the promotion of Islamic finance as the negative correlation between several Islamic funds across the regions studied suggests better opportunities of investments via international diversification making Islamic funds more desirable.
38
Bennett, J. "Investing in river health." Water Science and Technology 45, no. 11 (June 1, 2002): 85–90. http://dx.doi.org/10.2166/wst.2002.0383.
Full textAbstract:
Rivers provide society with numerous returns. These relate to both the passive and extractive uses of the resources embodied in river environments. Some returns are manifest in the form of financial gains whilst others are non-monetary. For instance, rivers are a source of monetary income for those who harvest their fish. The water flowing in rivers is extracted for drinking and to water crops and livestock that in turn yield monetary profits. However, rivers are also the source of non-monetary values arising from biological diversity. People who use them for recreation (picnicking, swimming, boating) also receive non-monetary returns. The use of rivers to yield these returns has had negative consequences. With extraction for financial return has come diminished water quantity and quality. The result has been a diminished capacity of rivers to yield (non-extractive) environmental returns and to continue to provide extractive values. A river is like any other asset. With use, the value of an asset depreciates because its productivity declines. In order to maintain the productive capacity of their assets, managers put aside from their profits depreciation reserves that can be invested in the repair or replacement of those assets. Society now faces a situation in which its river assets have depreciated in terms of their capacity to provide monetary and non-monetary returns. An investment in river “repair” is required. But, investment means that society gives up something now in order to achieve some benefit in the future. Society thus has to grapple with the choice between investing in river health and other investments - such as in hospitals, schools, defence etc. - as well as between investing in river health and current consumption - such as on clothes, food, cars etc. A commonly used aid for investment decision making in the public sector is benefit cost analysis. However, its usefulness in tackling the river investment problem is restricted because it requires all benefits and costs to be measured in dollar terms, and many of the benefits arising from investments in river health are non-monetary. In this paper, techniques that enable non-monetary values to be estimated in dollar terms are described. Applications of the techniques to the estimation of the environmental values of rivers are demonstrated. The values estimated are used to demonstrate the extent of returns that are possible from investing in river health.
39
Abramov, Alexander, Alexander Radygin, and Maria Chernova. "Determinants of Private Investors’ Behavior on Russian Stock Market." Economic Policy 15, no. 3 (June 2020): 8–43. http://dx.doi.org/10.18288/1994-5124-2020-3-8-43.
Full textAbstract:
The article explores behavior features of different group of private investors on the Moscow and Saint Petersburg stock exchanges. It was found that the change in the size of the biggest group of registered broker clients on Moscow Exchange depended heavily on growth of real income and key characteristics of passive forms of income, such as deposit rates, government bond returns and stock dividend yield. Active broker clients on the Moscow stock exchange mainly focused on more speculative factors, such as equity premium, equity volatility, foreign stocks’ returns and exchange rate. The growth of individual investment accounts depended on factors of both active and speculative forms of income. The quantity of broker clients on Saint-Petersburg Exchange relied on an even wider set of factors, which included not only risk and returns on national markets, but also characteristics of foreign assets and exchange rates. The two Russian exchanges are interrelated. The bond and equity premium growth makes the national market more attractive than foreign assets. The expansion of private investors on the stock market in Russia, which began in 2018, is explained not only by a search for other investment instruments apart from deposits, especially under the ongoing decline in interest rates, but also by a growing interest in individual investment accounts. The latter represent a positive example of state influence on people’s savings through tax policy. Another factor of the raise of private investments was the implementation of modern investment platforms and active promotion of broker services by major banks. The financial crisis which begun in March 2020 can become a serious challenge for millions of private investors who had opened accounts in the previous two years.
40
Liuhto, Kari. "A Lesson from two Failed Foreign Investments: the Foreign (Ad)Venture of two Finnish State-Owned Enterprises." Outlines of global transformations: politics, economics, law 11, no. 1 (April 4, 2018): 185–200. http://dx.doi.org/10.23932/2542-0240-2018-11-1-185-200.
Full textAbstract:
As an organisational failure may teach more than an organisational success, this article describes the failed foreign investments of two Finnish stateowned enterprises (SOEs), namely Sonera and Stora Enso. In 2000, Sonera acquired a mobile phone licence in Germany and Italy for USD 4,000 million. Two years later, it turned out that the licence was worthless. In turn, Stora Enso acquired an American paper firm for USD 5,000 million in 2000, but seven years later Stora Enso sold this US unit at a loss of USD 2,000–3,000 million. These two cases reveal that the major reason for these failures was the inability of SOE management to predict business development. Other major reasons for failure were the conflicting motives of the management and the company (the main shareholder), and inadequate state control. Passive control of the state may encourage SOE management to exercise adventurous investment policies and take major risks. In Sonera’s case, unrealistic risk taking led to serious financial difficulties, and finally, to a forced sale of the entire group to Telia, the Swedish telecom company. Stora Enso’s stronger financial position saved it from an organisational failure. A lesson to policy-makers: a responsible minister and the minister’s subordinates should exercise a more active ownership policy and keep the political interests of his/her party subordinate to the strategic interests of the state. Recent public discussion on SOE governance in Finland reveals that the Finnish Government still experiences difficulties in fully digesting the wisdom of the OECD Guidelines of Corporate Governance of StateOwned Enterprises.
41
Paduszyńska, Marta. "The Essence and Significance of Financial Instruments for Enterprises in Poland in 2010-2018." Finanse i Prawo Finansowe 3, no. 27 (September 30, 2020): 109–24. http://dx.doi.org/10.18778/2391-6478.3.27.06.
Full textAbstract:
The purpose of the article/hypothesis: The aim of the study is an attempt to show the degree of use of financial instruments by non-financial enterprises operating on the Polish market and to determine whether their application translates into the financial results achieved by these enterprises. The hypothesis was adopted that the importance and use of financial instruments by enterprises on the Polish market is not significant, however, as a result of global transformations and the growing importance of financial markets, the activity of entities in this respect will increase.
Methodology: In order to determine the degree of use of financial instruments among enterprises, the data published by the Central Statistical Office (GUS) for the years 2010–2018 were used and the key indicators illustrating the involvement of enterprises in the instruments available on the financial market were calculated. The literature on the subject was also reviewed and analyzed.
Results of the research: The conducted considerations that non-financial enterprises in the polish market showed an increase in involvement in financial activities, as evidenced by the growing share of financial instruments, both on the active and passive side. On the passive side, the use of credits and loans in financing the activities of entities increased. This increase, however, did not translate into the use of the effects of financial leverage in the surveyed enterprises and an increase in the profitability of equity. In the case of assets, in the analyzed period there was an increase in the involvement of free funds in investments, mainly due to an increase in equity financial instruments. However, the analysis of financial revenues in total revenues may suggest that greater involvement in the financial sphere does not translate into profitability of assets and the results of the surveyed entities. It should be emphasized, however, that the development of the financial market and the increasing availability and variety of financial instruments strengthen the interest of enterprises in capital investments.
42
Gijrath, Serge J. H. "Telecommunications networks." Competition and Regulation in Network Industries 18, no. 3-4 (September 2017): 175–97. http://dx.doi.org/10.1177/1783591718782305.
Full textAbstract:
This article assesses the innovation policy objectives underlying the proposed European Union (EU) Telecom Single Market regulation considering disruptive technological developments. The article explores the network operator’s dilemma how to deal with investments in a time where fundamental innovation comes from outside and the regulator’s dilemma how to improve the conditions for access to the operators’ networks and how to safeguard a level playing field. The EU measures with respect to two technological issues are discussed considering the EU’s policy objectives with respect to the deployment of 5G and the goal to ensure very high-speed broadband access in the EU. Thought is given to the effectiveness of imposing active and passive infrastructure arrangements. A mix of regulatory measures is considered in moving towards smarter electronic communications networks regulation.
43
Ewen, Martin. "Where is the Risk Reward? The Impact of Volatility-Based Fund Classification on Performance." Risks 6, no. 3 (August 13, 2018): 80. http://dx.doi.org/10.3390/risks6030080.
Full textAbstract:
This paper examines the impact of volatility-based fund classification on portfolio performance. Using historical data on equity indices, we find that a strategy based on long-term portfolio volatility, as is imposed by the Synthetic Risk Reward Indicator (SRRI), yields better Sharpe Ratios (SR) and Buy and Hold Returns (BHR) than passive investments. However, accounting for the Fama–French factors in the historical data reveals no significant alphas for the vast majority of the strategies. Further analyses conducted by running a simulation study based on a GJR(1,1)-model show no significant difference in mean returns, but significantly lower SRs for the volatility-based strategies. This evidence suggests that neither the higher leverage induced by the SRRI, nor the potential protection in downside markets pay off on a risk adjusted basis.
44
Shevchenko, A., R. Zadorozhna, and M. Tkachenko. "The development of forms of institutional investment and their role in the mechanism of raising capital for the domestic economy." Ekonomìka ta upravlìnnâ APK, no. 2 (143) (December 27, 2018): 78–85. http://dx.doi.org/10.33245/2310-9262-2018-143-2-78-85.
Full textAbstract:
One of the important contemporary problems is to provide sustainable economic growth by attracting investment capital to all sectors of the national economy. According to world experience, the main role in this process belongs to the securities market. It is an important tool for the development of the national economy, as it promotes the redistribution of capital between its spheres and industries. Institutional investors as professional financial intermediaries play a decisive role in the mechanism of capital flows allocation. Collective investment institutes are large-scale financial institutions that accumulate significant amounts and manage them. The article investigates the role and importance of institutional investors as a special type of financial intermediaries in the Ukrainian financial market. Institutional investors are professional participants of the stock market and financial intermediaries between citizen’s savings and the investment needs of the domestic economy. Their mission is to promote the more effective realization of the function of transforming savings into investments. Significant amounts of free cash owned by small investors and the large needs of a real sector of the economy in free investment resources require the search for effective means of fundraising from small owners to collective investment institutions. The importance of institutional investors activity is great since they are the leading suppliers of investment resources in the country’s economy and determine the level of its economic development. The trends and results of Ukrainian institutional investors activity over the last five years is investigated in the article. From the quantitative side, the collective investment institutions are the dominant kind of institutional investors in Ukraine, and their number is constantly increasing. For the beginning of 2018, 292 asset management companies, 235 collective investment institutions, 58 non-state pension funds and 3 insurance companies with assets in AMC management were registered in Ukraine. We can see the largest increase in the value of assets in non-diversified investment funds – 146.3%. At the same time, mutual funds increased on 23.8%. However, this is not enough for the Ukrainian stock market. A small number of derivatives in circulation and low liquidity of securities restrict the activity of domestic collective investment institutes. The critical analysis of the long-term working practices of Private joint stock company «KINTO» is performed. PJSC «KINTO» is one of the most successful asset management companies on the domestic securities market. Currently, PJSC «KINTO» is an investment manager of twelve investment funds and one non-state pension fund. Asshown by analysis, the final financial results of the collective investment institutes (CII) depend on the choice of investment strategies. The features of the use of various investment strategies by CII at the stock market are investigated. It is proved that the passive-active strategy using is the most effective because of maximizing income while minimizing risks in the medium and long-term. To achieve this aim, the majority of investment funds of AMC «KINTO» forms a diversified investment portfolio based on the securities of the most investment-attractive companies of the real sector of the economy, belong to the «blue chips» of the domestic stock market. Also, the company «KINTO» uses all advantages of collective investments by applying both different trading platforms and investment instruments (instruments of stock, bond and money markets). Key words: institutional investors, net asset value, closed-end non-diversified corporate investment fund, interval diversified unit investment fund.
45
Nguyen, Ha D., and Huong T. H. Dang. "Bond liquidity, risk taking and corporate innovation." International Journal of Managerial Finance 16, no. 1 (September 23, 2019): 101–19. http://dx.doi.org/10.1108/ijmf-02-2019-0060.
Full textAbstract:
Purpose The purpose of this paper is to investigate how market liquidity condition of corporate bonds can affect firm investment policy, specifically its risk taking, via the disciplinary function of trading. Design/methodology/approach The paper uses fixed-effects OLS and Poisson regression for the baseline specifications. It also employs the introduction of TRACE in 2002 as an exogenous shock to bond trading infrastructure in a difference-to-difference framework to address endogeneity concerns and establish causality. Findings The paper documents a positive relationship between bond illiquidity and firms’ risk taking, specifically a one standard deviation increase in Amihud illiquidity measure is associated with nearly 20 percent increase in exploratory investments compared to CAPEX. The shift in risk taking in turn increases firms’ innovation output to some extent. Research limitations/implications The findings have important implications on firm’s risk taking and growth. The paper identifies a new channel through which firm’s choice of risk can be influenced, namely, bondholder disciplining. The study also has implications about externalities of trading beyond liquidity cost for regulators in designing market microstructure. Originality/value This is the first to study the disciplinary role of bond trading. Conventional wisdom holds that bondholders are passive creditors who do not engage in costly monitoring such as banks. The findings in this paper imply that this may not be the case.
46
Rajevska, Feliciana, and Katrine Reima. "INVESTING IN PRESCHOOL AGE CHILDREN – A CASE STUDY OF VIDZEME REGION (LATVIA)." SOCIETY. INTEGRATION. EDUCATION. Proceedings of the International Scientific Conference 4 (May 26, 2017): 353. http://dx.doi.org/10.17770/sie2017vol4.2247.
Full textAbstract:
Social investments are important for a child’s development and future success. Parental leaves and Early Childhood Education and Care services (ECEC) are among main forms of social investment, contributing to child poverty reduction and increasing equality, as well as underpinning the potential for skilled workers in the future. The aim of the paper is to analyse availability of the main forms of social investment in preschool age children - early childhood education services and parental leaves, in Vidzeme region (Latvia) for a case study. An analysis of policy documents, parents’ surveys at pre-school institutions, interviews with education institution representatives and local authorities regarding education and social matters were conducted in the research. The support system for parents is still dominated by the “passive” form of support system. However, social investment policies are becoming increasingly more important. This is achieved by supporting parents' access to social investment services and by increasing the amount of parental leave benefits. In 2013-2015 funding for child-care and family policy has increased. Expenditure growth was mostly affected by an increase in the allowance for childcare and the minimum parental allowance. The availability of ECEC is moderate, but since 2009 private institutions and since 2013 babysitting services have been co-funded at the national level till May 31, 2016 to improve it. Since September 2015 a 3-year innovative project “Vouchers for the provision of child minder services to workers with nonstandard work schedules” has been introduced too, to promote parental employment and work and family balance. In Vidzeme region, for example, service availability is additionally stimulated by free transport services, ECEC fee discounts for poor, low-income and large families, etc. Results show that the availability of ECEC has been improved and there has been signs of positive changes in children’s development. Nevertheless, the availability of ECEC is moderate, and in some poorer municipalities in Latvia Matthew effects can be spotted – the middle and highest strata of society use services to a higher extend then the low-income society.
47
Takács, Ján, Zuzana Straková, and Lukáš Rácz. "Costs Analysis of Circulation Pumps for Heating of Residential Building." Periodica Polytechnica Mechanical Engineering 62, no. 1 (December 21, 2017): 10. http://dx.doi.org/10.3311/ppme.10606.
Full textAbstract:
Circulation pumps are mechanical devices, which are used to create the overpressure required for the transportation of a heat-transfer medium in heating technology as well as in other related technologies. In a circulation pump the mechanical energy generated by the drive machine – an electric motor - is transformed to hydraulic energy, which consists of kinetic and static energy. In the pipeline of a heating system circulation pumps represent a source of hydraulic energy (positive differential pressure), which is consumed to transport the heat-transfer medium. During the flow, the heat-transfer medium puts up resistance to the so-called passive resistors, which consist of pressure losses from friction in the pipes and pressure losses due to local resistance.In this article the authors describe the research, which is based on a case study. They analyze the effect of a circulation pumps on the investments and operating costs in a residential building. Different types of circulation pumps, ranging from the most unfavorable to the optimal, were selected.
48
Braniš, Martin. "Environment in the Czech Republic: State of the Art and Recent Development Under Economic and Political Transition." Geografie 101, no. 2 (1996): 169–79. http://dx.doi.org/10.37040/geografie1996101020169.
Full textAbstract:
Environmental protection in the Czech Republic has undergone crucial changes since 1989. The initial improvement of environmental quality, however, should be viewed to a great extent as a passive consequence of the inevitable economic restructuring. It is especially the case of chief airborne pollutants that were much reduced since coal mining and the use of fertilizers has been restricted. On the other hand the lower production and use of ozone-destructive chemicals as well as investments into desulphurization of plants are examples of environmental improvements by purpose. The transition towards market economy brings also some negative effects. The amount of municipal waste has risen and public transportation has lost its previous importance. In spite of current positive trends in the environmental protection this branch will require a lot of money. The share of environmental expenses on GDP in the Czech Republic is at the moment two to four times higher than in many EU countries.
49
Andros, Svitlana, Svitlana Andros, and Shichao CHANG. "An innovative approach to managing the interest margin: economic and statistical analysis of the resource base of a commercial bank." VUZF Review 6, no. 1 (March 25, 2021): 26–37. http://dx.doi.org/10.38188/2534-9228.21.6.03.
Full textAbstract:
The dynamics of interest income, that is, the difference between the average rates on active and passive operations of the bank, has been analyzed. It was found that the increase in the share of term deposits in the total amount of the bank's mobilized resources is positive, despite a temporary decrease in net income from bank interest. It has been substantiated that the deposits of legal entities are a stable part of the attracted resources. Long-term deposits allow lending for long periods and at high interest rates. The purpose of the article is to improve an innovative approach to managing the interest margin based on the economic and statistical analysis of the bank's resource base. Literature processing shows that banks pay insufficient attention to the methodology for assessing interest income. The relevance of the article is determined by the value of interest income as one of the main factors that determine the profitability of the bank's lending operations. The methods of comparison, grouping, detailing of final indicators, calculation of relative and average values are used. The scheme of the bank interest margin management process is proposed. Calculated the average size of credit investments, the total amount of assets. The average price of credit resources was calculated based on the price of a particular type of resource and its share in the total amount of funds mobilized by the bank. The average level of interest on active and passive operations of the bank was determined based on the received interest income. The size of interest income, trends and factors of its change have been determined. The indicator of the minimum interest income was calculated on the basis of which the bank covers expenses, but does not ensure profit. The level of profitability of bank loan operations has been determined. It has been established that a change in interest income can be caused by an increase or decrease in rates on active operations of the bank, interest on attracted resources and the share of the latter in the total volume of credit investments. The average real price of demand deposits and time deposits attracted by the bank was determined on the basis of the market price of these resources and adjustments for the rate of the required reserve deposited with the NBU. A mechanism for the formation of bank interest income is proposed. The expected size of the minimum profit margin and the level of profitability of the bank's lending operations are presented. The approximate minimum price of credit investments was determined based on the level of costs and the pledged amount of profitability of the bank's lending operations for the coming period. The possibility of reducing the spread of rates of attraction and rates of placement of resources in the bank through the use of the proposed funding mechanism has been scientifically substantiated.
50
Simnitt, Skyler, Tatiana Borisova, Dario Chavez, and Mercy Olmstead. "Frost Protection for Georgia Peach Varieties: Current Practices and Information Needs." HortTechnology 27, no. 3 (June 2017): 344–53. http://dx.doi.org/10.21273/horttech03590-16.
Full textAbstract:
The study focuses on frost protection for early-season (early-ripening) peach (Prunus persica) varieties, which are an important crop for producers in the southeastern United States. Using in-depth interviews with four major Georgia peach producers, we explore their frost protection management strategies. This information is the first step in developing a comprehensive research agenda to advise cost-effective frost protection methods for peach cultivation. We found that peach producers are concerned about frost impacts on their crops. Although early-season peach varieties are particularly susceptible to frost impacts, producers still dedicate significant acreage to these varieties, aiming to extend the market window, satisfy sales contracts, and meet obligations for hired labor. However, early-season varieties do not result in high profits, so producers prefer to concentrate on frost protection for mid- and late-season varieties. Producers employ a variety of frost protection methods, including passive methods (such as planting sensitive varieties in areas less susceptible to frost and adjusting pruning/thinning schedules) and active methods (such as frost protection irrigation and wind machines). The choice among active frost protection methods is based on factors such as the planning horizon, initial investment needs, frequency of frost events, and the effectiveness of the frost protection method. Problem areas that producers identified included improving the effectiveness of frost protection methods; reducing initial investments required to install frost protection systems; and employing better spatial targeting and configuration of frost protection strategies (to reduce investment costs while maintaining or improving the effectiveness of frost protection). Although the initial investment costs of enhanced protection systems may limit producers from actually adopting such methods, the operating costs of such systems are relatively low and have a limited effect on the decision to employ frost protection during a particular frost event. However, producers use information about critical temperatures for different bud stages, and hence, improving the quality of information regarding frost susceptibility can help producers make better frost protection decisions (and potentially reduce electricity costs and water use for frost protection).