Benefits Of Investment Research Articles

The role of institutional quality in the nexus between green financing and sustainable development

This study investigates the moderating influence of institutional quality on the relationship between green finance and sustainable development goals. The study takes data from 46 countries, including 22 developed and 24 developing countries, from 2013 to 2022. We use feasible generalized least square method for analyzing the data. Findings direct that green financing and institutional quality significantly enhance sustainable development goals. Further, regression outcomes also prove the moderating effect of institutional quality in our analysis. The interactive role of institutional quality significantly improves the influence of green finance on sustainable development goals. The strong quality of institutions certifies that investment in green finance is effectively allocated, strengthening their favorable impacts on social and environmental outcomes. Understanding this relationship is vital for policymakers and management to exploit the benefits of green finance investment in attaining sustainable development goals.

The Impact Analysis of the Relationship Between Foreign Aid and Economic Development in Nigeria

This study examines the impacts of foreign direct investment (FDI) as a proxy for Foreign Aid, alongside other critical economic and political variables, on Nigeria's economic development. Utilizing an Ordinary Least Squares (OLS) regression model from 1981 to 2022, it explores the dynamics between FDI, trade openness, unemployment rate, corruption index, inflation rate, political stability, and population growth rate in shaping Nigeria's economic growth trajectory. The findings reveal that FDI significantly contributes to economic development, while trade openness highlights the importance of a conducive external economic environment. Conversely, the adverse effects of inflation and corruption highlight critical challenges that undermine the potential benefits of foreign aid and investment. This study highlights the complex relationship between foreign aid, economic policies, and institutional frameworks. It emphasizes Nigeria's need to bolster governance and macroeconomic stability to optimize the developmental impacts of foreign aid. Through empirical analysis, this research contributes to the discourse on development economics, offering professional insights into the conditions under which foreign aid can effectively foster sustainable economic growth in Nigeria.

Nilai dan Kualitas Emas Dinar pada Komunitas Magnet Rezeki Banda Aceh dalam Tinjauan Syarat Objek Jual Beli Menurut Fiqh Muamalah

Dinar Khoirur Roziqiin is a Magnet Rezeki community product. Although the quality standard of this dinar is in accordance with LBMA regulations, the existence of value and quality is still a concern among people outside Magnet Rezeki because people still doubt the quality standards. Therefore, empirical evidence is needed so that the standard and quality can be recognized by all circles and in accordance with the provisions of Fiqh Muamalah. Based on these problems, this research was conducted with the aim of examining the value and quality of dinars among Magnet Rezeki in reviewing the terms of the object of sale and purchase according to Fiqh Muamalah. This research uses qualitative methods with descriptive analysis type of research. The results of this study indicate that the value and quality of dinars Khoirur Roziqiin's are in accordance with the provisions of the terms of the object of sale and purchase in Fiqh Muamalah. The parties involved in production, certification and sale have ensured that the value and quality of this dinar is maintained. Therefore, the results of this study are expected to provide empirical information to all groups regarding the value and quality of this dinar. As a result, it’s expected to increase the trust and interest of Magnet Rezeki members and the public to invest in dinar Khoirur Roziqiin. The author suggests that the dinar Khoirur Roziqiin company carefully ensure the transparency of the value and quality of dinar. In addition, the company must conduct vigorous education to the wider community about the benefits of dinar investment.

Innovative foresight for water utilities asset management using PRISM software

Our analysis aims to better understand water losses by developing a specific methodology for estimating water leak flow rates and durations. Additionally, it aims to improve asset management practices for drinking water utilities by forecasting the costs and benefits of investment and operational decisions on the network. Current utility practices are compared to a "do nothing" policy and to the potential effective asset management policies proposed by an artificial neural network (ANN) based software, PRISM. Applied to four utilities in France, our methodology provides valuable insights for enhancing water loss estimates and finding trade-off asset management policies.

GDP-linked bonds as a new asset class

Using stochastic spanning tests without any distributional assumptions on returns, we show that the two classes of GDP-linked bonds, floaters and linkers, are not spanned by a broad benchmark set of stocks, bonds, and cash for a wide range of design specifications. Thus, they provide a new asset class with significant diversification benefits for investors, with proportional investments to these novel instruments estimated in the double digits and an increase in Sharpe ratios by up to 0.37 over the benchmark. The benefits depend on the market risk premium, but they persist for a wide range of premia estimates from existing literature and are robust to a randomized test. Using the generalized method of moments regressions, we document the finance and macro determinants of GDP-linked bond returns.

Impact of the carbon market on investment benefits of power-grid enterprises in China: A system dynamics analysis

The power grid, as the hub connecting the power supply and consumption sides, plays an important role in achieving carbon neutrality in China. In emerging carbon markets, assessing the investment benefits of power-grid enterprises is essential. Thus, studying the impact of the carbon market on the investment and operation of power- grid enterprises is key to ensuring their efficient operation. Notably, few studies have examined the interaction between the carbon and electricity markets using system dynamics models, highlighting a research gap in this area. This study investigates the impact of the carbon market on the investment of power-grid enterprises using a novel evaluation system based on a system dynamics model that considers carbon-emissions from an established carbon-emission accounting model. First, an index system for benefit evaluation was constructed from six aspects: financing ability, economic benefit, reliability, social responsibility, user satisfaction, and carbon-emissions. A system dynamics model was then developed to reflect the causal feedback relationship between the impact of the carbon market on the investment and operation of power-grid enterprises. The simulation results of a provincial power-grid enterprise analyze comprehensive investment evaluation benefits over a 10-year period and the impact of carbon emissions on the investment and operation of power-grid enterprises. This study provides guidelines for the benign development of power-grid enterprises within the context of the carbon market.

Which discount rate for sustainability?

There is a long-standing controversy about determining the discount rate at which companies should discount the long-term benefits of sustainability investments (e.g. for climate change mitigation and adaptation). While financial capital is discounted at the standard financial discount rate, this paper argues that companies should discount social and natural capital at the social discount rate. We add a risk parameter to the social discount rate to deal with the macroeconomic risk of rare disasters. Social discount rates are typically lower than financial discount rates. So, if applied, they should lead to higher investments in social and natural capital.

Comprehensive Framework for Distribution Network Multi-Investment Expansion Planning: Emissions, Uncertainty, and Resource Remuneration Integration

Changes are currently unfolding within electric distribution networks as renewable energy integration grows. This paper introduces a novel stochastic approach for expansion planning in distribution networks with high renewable energy penetration. The model addresses uncertainties, daily and seasonal impacts, distributed generation remuneration, carbon emissions, and optimal energy storage deployment. Risk aversion techniques such as value-at-risk and conditional value-at-risk are employed to prepare networks for impactful events. Emphasizing multi-period investment over single-period, the analysis considers confidence levels and risk aversion’s effects on reliability indexes, energy storage placement, generation patterns, network topology, and costs. Using a realistic 180-bus distribution network in Portugal spanning 30 years, the method’s applicability and robustness are demonstrated. Results illustrate the benefits of multi-period investment, with cost increases of 6.09 % and 2.97 % for single- and multi-period investments at a 90 % confidence level, respectively, when both are compared to a situation with no risk aversion. Higher confidence levels amplify the trade-off between extreme scenario cost reduction and total cost increase, with a 99 % confidence level reducing scenario costs by 19.01 % while increasing total costs by 5.64 %.

Financing and Farm-Gate Pricing Strategies for Agricultural Cooperatives With Cash-Constrained Farmers

Equity investment in agricultural cooperatives (co-ops) is typically limited to farmer-members; yet farmers are usually cash-constrained. In addition to the common stock that is held by farmer-members, many co-ops are changing their financial structure by raising equity from external investors. This helps co-ops to collect capital, but also brings to the fore the conflicting benefits of farmers and external investors. In this paper, we develop a two-stage game-theoretic model to examine a start-up co-op’s farm-gate pricing and financing strategies, considering two types of external fund: preferred stock that bears a fixed return rate and outside stock that shares the net profit (in proportion to equity) with common stock. We characterize the co-op’s strategies in different scenarios and generate the following insights. First, while both types of external equity outperform the case with common stock only, the preferred stock generally outperforms outside stock due to its lower financial cost, higher tolerance for fund size limits, and flexibility in setting farm-gate prices. However, outside stock can outperform preferred stock if it allows a higher fund size limit. Second, the co-op’s financial strategy exhibits a similar structure in equilibrium regardless of whether it is preferred stock or outside stock, despite their distinct financial terms. Finally, farm-gate pricing has a unique role in co-ops affecting the returns to farmers and external investors, which also highlights the conflicting roles of farmers as both patrons and investors when external equity is used.

The football world upside down: Traditional equities as an alternative for the new fan tokens? A portfolio optimization study

This study provides a comprehensive analysis of the relationship between fan tokens and equities as investment vehicles in football clubs. Using the GO-GARCH methodology to account for time-varying higher-order co-moments, we examine the risk-return characteristics of these assets in different portfolio contexts over the period November 2021-March 2023. Our results show high diversification opportunities between fan tokens and equities, especially with investments in different leagues. Portfolio analysis shows that equities generally outperform fan tokens as an investment vehicle, highlighting the importance of active portfolio management. The study also shows that equities have broader diversification potential than fan tokens when added to a portfolio. Furthermore, Turkish fan tokens have better characteristics than Italian fan tokens, possibly due to the nonfinancial benefits for investors. The results are relevant for both retail and institutional investors, regardless of their risk tolerance profiles.

Which productivity can promote clean energy transition —total factor productivity or green total factor productivity?

Developing clean energy is a key pathway and an inevitable choice for achieving the goals of carbon peak and carbon neutrality. From a global perspective, technology is increasingly affecting the trajectory of energy transition, driving clean energy into a stage of rapid development. Therefore, this paper focuses on exploring the dynamic evolutionary characteristics of clean energy transitions driven by different productivity. Using panel data from 171 economies from 1990 to 2019, this paper systematically examines the impact of Total Factor Productivity (TFP) and Green Total Factor Productivity (GTFP) on clean energy transitions. The empirical results indicate that both TFP and GTFP positively impact clean energy transition. Specifically, clean energy consumption increases by 3.35% and 6.03%with a one standard deviation change in TFP and GTFP respectively. Upon decomposing TFP and GTFP, it was found that Green Efficiency Change (GECH) and Green Technical Change (GHCH), especially GECH, are the main factors driving the clean energy transition. Heterogeneity analysis shows that, in developed economies, GTFP has a larger positive impact on clean energy transition than TFP. Furthermore, GTFP demonstrates a significant positive impact on the clean energy transition both before and after the 2008 financial crisis, whereas TFP's positive impact is only evident before the crisis. Our findings emphasize the social benefits of further investments in GTFP.

Do clean energy stocks diversify the risk of FinTech stocks? Connectedness and portfolio implications

The FinTech sector is growing rapidly, prompting a need to explore effective investment diversification strategies for stocks in this sector. The existing literature has identified the benefits of using clean energy stocks to diversify stock portfolios and the purpose of this research is to estimate how useful clean energy stocks are for diversifying an investment in FinTech stocks. This study uses a QVAR model to estimate the dynamic return connectedness between FinTech stocks and clean energy stocks for the period September 2016 to April 2024. Total connectedness is time varying and is higher in the tails than at the median. The onset of the COVID-19 pandemic had a large but short-term impact on connectedness. Under normal market conditions, systemic risk increases by 3.5% per year. FinTech is a net transmitter of shocks to nuclear energy but is mostly unaffected by shocks from wind, solar, and nuclear energy stocks illustrating the diversification benefits of these sub-sectors. Portfolio analysis shows that adding solar, wind, and nuclear energy to a portfolio with FinTech can produce higher risk adjusted returns and lower drawdown than an investment solely in FinTech stocks. These results are robust across various portfolio rebalancing frequencies (daily, weekly, monthly). For example, a minimum connectedness portfolio rebalanced daily has an average annual return of 11% and a Sharpe ratio of 0.37. These values are higher than their respective values for an investment solely in FinTech stocks (5.4%, 0.11). Thus, clean energy stocks do provide diversification benefits for investments in FinTech stocks.

The Importance Of Knowledge, Investment And Motivation For Gen-Z Interested In Investing

This study aims to empirically prove investment knowledge, investment benefits and investment motivation on Gen-Z's investment interest in the capital market. This study is quantitative research. The population of this research is Gen-Z who are studying at universities in the city of Semarang. Primary data by distributing questionnaires to Gen-Z who are studying at universities in the city of Semarang, Indonesia using accidental sampling is the data source for this study. So there were 199 respondents obtained. Data processing using WarpPLS. The findings of this study show that investment knowledge, investment benefits, and investment motivation have an influence on the investment interest of Gen-Z who are studying at universities in the city of Semarang, Indonesia in the capital market. The implications of this study show that understanding and motivation is important for Gen-Z to invest in the capital market to gain additional income and investment experience.

Clean innovation ecosystems: Lifting distressed communities in Appalachia with clean energy

The U.S. government has invested in distressed communities in the 21st century but with minimal effect. Regarding income, poverty, joblessness, and vacancy rates, the average distressed zip code in 2018 showed no improvement compared to its standing relative to the average prosperous zip code in 2000. We have discovered the formation of unique business clusters funded by public-private partnerships have the potential to make a difference in lifting distressed communities. Our research of literature and artifacts (photographs, videos, documents, digital media - websites or social media posts) suggests the discovery of a Clean Innovation Ecosystem (CIE). CIE refers to the network of social entrepreneurs, organizations, institutions, and individuals that work together to promote sustainable technologies and practices. As of the 4th quarter of 2023, manufacturing annual run rate construction spending has skyrocketed to over $200 billion. There are another $600 billion of Voltage Valley projects announced that have not yet been built. Over the past two decades, private investment has been between $20 billion and $100 billion annually in U.S. manufacturing infrastructure. Governments are making unprecedented investments in clean energy - which include approximately $400 billion in funding from the Inflation Reduction Act (IRA), $8 billion to establish 6–10 regional Hydrogen Hubs in the U.S., investments in carbon capture, renewable energy technologies, and other investments in clean energy sectors and technologies. All these investments come with the condition that the investment lifts distressed communities. This article explains why investing in Appalachia and geographic regions with similar characteristics will maximize the social benefit of public investment in a Clean Innovation Ecosystem. Our case study covers the Greater Central Appalachian Voltage Valley (GCAVV) – the states of Kentucky, West Virginia, Ohio, Upstate New York, and Michigan, as well as the Central Appalachian region as defined by 56 of the 85 distressed communities of Appalachia.

Eye morphology contributes to the ecology and evolution of the aquatic avifauna.

Aquatic birds are notable among the global avifauna for living in environments exposed to large amounts of light. Despite growing evidence that visual adaptations to light underly the ecology and evolution of the avian tree of life, no comprehensive comparative analysis of visual acuity as approximated by eyes size exists for the global aquatic avifauna. Here, I use Stanley Ritland's unpublished dataset of measurements for axial length collected from museum specimens to explore the ecology and evolution of eye size variation for half of the aquatic avifauna (N = 464 species). After correcting for body mass allometry and incorporating phylogenetic relationships, aquatic species had significantly smaller eyes compared to terrestrial species. Furthermore, species using hyperopic foraging manoeuvres, exhibiting carnivorous and insectivorous diets, and displaying nocturnal behaviour had larger eyes. Plunge-divers (e.g. boobies and tropic birds) and stalkers (e.g. herons) had the largest relative eye sizes, especially species identifying prey at higher altitudes or longer distances. Underwater pursuit-divers foraging at greater depths had larger eyes, likely due to the dramatic attenuation of light in the deep ocean. Overall, residual eye size was phylogenetically conserved (l = 0.94), with phylogeny alone explaining 62% of residual eye size variation. Collectively, these results suggest that the relatively bright environments found in aquatic ecosystems negate the adaptive benefits of costly metabolic investments associated with developing and maintaining larger eyes, while also reducing the potential occurrence of disability glare. Strong correlations between eye size and foraging ecology in different aquatic environments corroborate similar comparative studies of terrestrial birds and underscore the central role that vision has played in driving the ecology and evolution of the global avifauna.

Do investors benefit from investing in stocks of green bond issuers?

We investigate the environmental and financial performance of portfolios comprising stocks from worldwide green bond issuers compared to matched non-green but otherwise similar portfolios. Portfolios formed by stocks of green bond issuing companies show superior environmental performance, notably reflected in reduced CO2 emissions over the medium to long term. Furthermore, these portfolios exhibit financial performance, as measured by the five-factor model of Fama and French (2015), at least comparable to their non-green counterparts, even outperforming them over a 12-month investment horizon. Overall, investing in stocks of green bond issuers seemingly offers competitive risk-adjusted returns.

COLLECTIVE INVESTMENT SCHEME AS A TOOL FOR ECONOMIC INCLUSION AND DEVELOPMENT IN NIGERIA

There are two major challenges to doing business in Nigeria: lack of capital and managerial expertise. With the large population of Nigeria, and by implication, the size of her market, Collective Investment Scheme (CIS), as regulated under the Investment and Securities Act (ISA) 2007, provides the necessary platform to overcome the two challenges above. Where the two challenges are overcome, the CIS can be a tool for economic inclusion and development in Nigeria. This study, therefore, examines the Collective Investment Scheme (CIS) in Nigeria, a business package aimed at economic inclusion and development. CIS, regulated by the Securities and Exchange Commission, offers three types of schemes with potential benefits for investors and addressing housing deficits. The CIS is a vital tool for economic inclusion and development of Nigeria. Its domicile in the Nigerian Capital Market (NCM) is to ensure its success as the funds are only invested in securities of choice for profits. The regulatory expertise and wide powers of the Securities and Exchange Commission (SEC) in the regulation of CIS are for the success and sustenance of the scheme via systemic scrutiny of the CIS managers and their operations. However, a comparison with Mauritius reveals some shortcomings. The doctrinal research method is adopted in this study. This doctrinal research adopts a comparative analysis to identify areas for improvement. The study finds that while CIS has advantages, it also has demerits. Recommendations are proffered to enhance the Nigerian CIS scheme, including addressing regulatory gaps and improving investor benefits.

Maize migration mitigates the negative impact of climate change on China’s maize yield

Crop migration as an adaptation to modulate climate change’s impact on crop yields presents both benefits and risks. We explored how maize migration in China modulates yield responses to climate change and quantified the potential economic benefits of maize migration as an adaptation strategy. We employed a panel data model to identify and measure the factors driving the relocation of maize area, linear regression to quantify the effects of maize migration on climate exposure and irrigated area, and an econometric model to estimate the effects of maize migration on yield. The results show that rise in temperature has a significant negative effect on maize area and that precipitation has a significant positive effect. The migration of maize area is driven by socio-economic factors including agricultural gross domestic product, power of farming machines, and fertilizer input. Moreover, expanded irrigation reduces the adverse effects of high temperatures on maize yield, thereby influencing adaptive crop migrations. The beneficial effects of maize migration are primarily achieved by reducing the adverse effects of extreme heat and strengthening the positive effects of irrigation. However, the extent of this adaptation is jointly affected by agricultural policies, irrigation infrastructure, and economic factors. Current market-oriented agricultural policies may be effective in guiding spatial shifts in maize distribution to align with climate-driven changes, potentially decreasing the vulnerability of China’s maize yield to the impact of climate change. China’s food security policies need to consider climate-driven spatial shifts in crop cultivation and enhance food subsidy policies to highlight the benefits of investment in climate change adaptation, such as adjusting cropping acreage and irrigation to farmers in North China.

Islamic Perspective of Gold-Based Investment: The Case of Indonesia

Currently, there are many gold-based investment products, and investors are interested because some of them use sharia labels. Therefore, this study aims to identify and investigate gold-based investments from an Islamic perspective. It is hoped that this research can contribute new findings and enrich existing literature regarding gold investment in Indonesia, providing benefits for Muslim investors and the Muslim community in general. This study used qualitative research methods. Semi-structured interviews were conducted with parties who offer gold-based investment products on a large scale. Additional data sources include documents and manuscripts from the National Sharia Council (DSN-MUI) as well as author analysis. These findings show that not all gold-based investments in Indonesia comply with sharia principles. Only gold murabahah conducted by Islamic banking institutions meets sharia compliance.

Applying Expectancy-Value Theory to Understand Investment Interest in the Young Generation

This study aims to explore the investment interest of students at Universitas Negeri Makassar (UNM) through the lens of Expectancy-Value Theory (EVT). The research examines how students' expectations and perceived value influence their interest in investing. Data were collected from a sample of UNM students, and the findings indicate that both expectancy and value have a positive and significant impact on their investment interest. This suggests that enhancing students' expectations and perceptions of the value of investment could lead to a greater interest in investing. The study employed a quantitative approach using SPSS for data analysis. The results reveal that students' investment decisions are strongly influenced by their perceptions of task difficulty, effort, behavioral attitudes, and subjective norms. Additionally, motivation and self-confidence play crucial roles in shaping their investment interest. These findings have important implications for educational strategies, highlighting the need to foster a supportive environment that builds students' confidence and enhances their understanding of the benefits of investing. By doing so, educators can encourage students to develop a stronger interest in and commitment to investment activities.