Investment Choices Research Articles

Analyzing Alibaba's Stock Price Volatility Before and After COVID-19 with ARIMA

This study investigates how the COVID19 pandemic affected the stock value of Alibaba by examining fluctuations in its market performance to and following the outbreak using the ARIMA models. The research utilizes Alibabas closing stock prices from December 2019 to August 2024 to cover both pre-pandemic and post pandemic situations comprehensively. By employing the ARIMA model for analyzing stock performance patterns and projecting market trends the study aims to shed light on the impact of the pandemic, on Alibabas stock value over time. The research results show that Alibabas stock price went through ups and downs along with growth over time; However, the COVID-19 pandemic brought about a lot of unpredictability into the mix, highlighting the necessity for improved forecasting methods that can adapt to sudden market changes effectively. These findings hint at the idea that while the ARIMA model is good at identifying trends in data patterns; it should be combined with techniques to be more prepared for unexpected situations. The study emphasizes how having a diverse investment portfolio is crucial, during times and stresses the importance of keeping up with regulations and making strategic investment choices wisely.

Analysis of Investment Factors and Decisions among Generation Z and Generation X in Indian Capital Market

This study highlights the disparate behaviours, motives, and methods of these two unique generations as it investigates the investment fervour of Generation Z and Generation X in the Indian capital market. Due in large part to historical financial practices and economic volatility, Generation X favours conservative investment strategies, placing a higher value on stability and long-term growth through well-established asset classes like real estate and mutual funds. As a result of growing up in a digitally first world, Generation Z, on the other hand, has a more daring attitude when it comes to investing and is frequently drawn to high-risk chances like cryptocurrencies and Capitals that are influenced by social media trends. The study utilises a mixed-methods approach, integrating quantitative surveys and qualitative interviews to evaluate the investing choices and behaviours of 393 participants, split evenly between the two groups. The results show notable variations in financial literacy, risk tolerance, and how technology affects investment choices. The report also emphasises how crucial it is to match financial services to the distinct requirements and values of every generation, especially as Generation Z’s emphasis on ethical and sustainable investing is changing the industry. Financial institutions may build a more knowledgeable and empowered investor community by better engaging with their clients by taking into account these generational disparities.

Is It Worth Imitating Other Investors’ Determinants of Effective Investment Strategies Among Students

Purpose: This study examines the investment strategies of Generation Z, focusing on how they define and implement these strategies. It explores the factors influencing their decisionmaking, such as risk aversion and time horizon, and investigates the impact of social interactions on their investment choices. Design/ methodology/approach: The research involved a total of 626 participants across two academic years (218 in 2022 and 408 in 2023), who developed and executed virtual investment strategies over a seven-week period using GPWtrader, an educational platform by the Warsaw Stock Exchange Foundation. Weekly meetings were held where participants presented their strategies, market observations, and results. After the investment period, a quantitative study was conducted with 314 students from the total sample (106 in 2021/22 and 208 in 2022/23), collecting data on their investment goals, instrument selection, and strategy adaptation methods. Findings: The main finding is that any strategy turned out to bring a better return rate than a strategy that was constantly shifting. Also, different strategies were adopted and many students were imitating the strategies of their peers, suggesting that the social aspect of the investment decision-making process should not be underestimated. Research limitations/implications: The study’s main limitations are its focus on a single, homogeneous group and its sample size, which limited the use of advanced statistical analyses. The authors plan to extend the research to compare the students’ returns with market portfolio returns, analyze correlations between strategies and outcomes, and include other sub-populations of Generation Z. Originality/value: This paper extends the perspective on the investment behaviors of Generation Z, emphasizing the importance of consistency in strategy execution and the influence of social interactions. It makes a significant contribution to understanding generational differences in financial decision-making, offering practical implications for financial education and investment training.

Climate change and seaports: analysing the coalescence on causal nexus and adaptation strategy through science mapping procedures

ABSTRACT Climate change (CC) and seaports share a cyclical relationship, where climate impacts disrupt seaport operations, while seaport activities contribute to CC. This research explores the contributing factors from seaport activities, the impacts of CC on seaports and strategies for mitigating these factors. A bibliometric analysis was employed to present the findings statistically and numerically. The results were summarised into themes, identifying the main contributing factors, impacts and mitigation strategies. The analysis reveals that the primary contributor to seaports is the emission of Greenhouse Gases (GHG) from ships. The most significant impacts of CC on seaports include increased exposure to extreme weather events, changes in coastal dynamics, delays and disruptions in seaport activities and damages to the infrastructure. Mitigation strategies include adaptation measures, investment choices and fostering collaboration and partnerships. Seaport dependency on fossil fuels, coupled with increasing global trade, exacerbates their contribution to CC. In alignment with the Sustainable Development Goal of achieving net-zero carbon emissions by 2050, the findings offer valuable managerial insights for seaport operators seeking to adopt sustainable practices.

Introducing conditional expected loss: A novel metric for risk investment analysis

Risk analysis is crucial in real asset investment projects. However, existing risk measures like VaR (value at risk) and CVaR (conditional value at risk) may not fully capture potential losses in such scenarios. Consequently, the current literature lacks an indicator that accurately estimates the expected value in the event of financial insufficiency. To fill this gap, this article introduces the conditional expected loss (CEL) metric, a novel approach that estimates the average loss expected in the event of financial deficits within an investment project and provides extensive numerical modeling and a detailed real-world example. This novel metric enhances risk analysis and decision making, particularly evaluating financial insufficiency within projects with limited managerial flexibility and a higher likelihood of financial deficits. By incorporating CEL alongside other risk and return metrics, practitioners gain a more comprehensive understanding of project risks, ultimately leading to better investment choices.

Green Technology Investment and Production Decisions Considering Stochastic Demand and Firms' Decision Preferences Under Cap‐and‐Trade Regulation

ABSTRACTThis paper investigates how finite rational firms optimally respond to market potential under cap‐and‐trade regulation, considering stochastic demand. Using the mean–variance model framework, we develop an optimization model for green technology investment and production by finite rational firms with different decision‐making preferences. The main results indicate: (1) Under stable demand, firms investing in green technology gain more profits and consumer surplus, however, the effectiveness of carbon emission reduction depends on the market potential size. (2) Under stochastic demand, optimal decisions resulting from firms' varying decision preferences systematically deviate from those of risk‐neutral firms and often demonstrate firms' risk‐averse tendencies that lean towards conservatism. As external factors change, there can even be a reversal in technology investment with an increase in demand uncertainty that amplifies this systematic deviation. (3) Taking firms with different decision‐making preferences as the starting point, this study further analyses the distortion effect of the firm's risk attitude on the optimal technology investment and production decisions, enriching the related research on the joint decision‐making risk model of clean production. And it is more pertinent to the complex situation firms face in the real situation with decision‐making. (4) This study provides a theoretical basis and practical reference for the finite rational firms facing green technology investment choices. Considering the risk‐averse characteristics of firms, this study suggests that the government should establish a risk‐sharing mechanism to weaken the deviation of stochastic demand from the optimal decision‐making of firms or implement certain subsidy policies to protect the profit level of firms.

How to catch the investor’s eye when going green in the Spanish hospitality industry

The growing integration of environmental sustainability within the hospitality industry, driven by both ethical and financial motivations, underscores the need to understand the investment criteria valued by stakeholders. However, limited research exists on how investors specifically evaluate sustainable investments in this sector. Drawing on existing literature that highlights the positive financial and operational impacts of sustainability initiatives, this study investigates factors influencing sustainable investment decisions in the Spanish hospitality sector. Grounded in focus group interviews conducted with a representative sample of investors aligned with the current structure of investment practices in the Spanish hospitality industry, this study employs an adapted concept mapping methodology enhanced by consensus analysis using the global index of consensus indicator. This approach enables the quantitative measurement of consensus among investors, providing a structured view of the criteria shaping sustainable investment choices. Findings reveal that while financial motivations continue to dominate investment decisions, environmental considerations are becoming increasingly significant, particularly those aligning with consumer expectations and stakeholder engagement in sustainable practices. Results suggest that environmentally friendly initiatives must demonstrate clear economic benefits to attract investment; sustainability must be financially viable. By aligning environmental goals with profitability, sustainable investments can appeal to a broader range of investors, promoting responsible practices in the hospitality sector while ensuring long-term returns.

Valuation Standards and Estimation Accuracy in the Appraisal of a Building Housing Vertical Farming

The possibility of carrying out the cultivation of numerous plant species in vertical farming highlights the need for policy makers to determine the cadastral value of the buildings in which these production activities are carried out. In this regard, estimates of buildings intended to host vertical farming are illustrated according to the procedure established by Italian cadastral legislation, which establishes that the fiscal value of buildings intended for vertical farming must be estimated through their market value. Appraisals is carried out using the direct capitalization method but follow two different approaches. One approach is based on the expertise of the appraiser, who acts by making assessments through subjective and arbitrary choices. The other approach is based on the use of best practices, as indicated by international evaluation standards that follow appropriate methodologies. Our comparison between the two approaches focuses on determining the capitalization rate, which determines the estimated value. The market value estimated using the procedures recognized by the valuation standards appears to be more valid methodologically and more reliable. This is demonstrated by applying yield capitalization to the same income cash flow in both formulations. Additionally, through the identification of the conversion cash flow, useful details on financial flow can be obtained and used to determine the value. The obtained results may be useful for public operators for the purposes of determining the value of assets for tax purposes. More generally, they are also useful from a methodological and application point of view in real estate valuation and support the development of tools for making efficient investment choices.

Nonlinear effects of board size and board independence on corporate sustainability performance: international evidence

Purpose This study aims to examine the nonlinear effects of board size and board independence on the corporate sustainability performance of listed firms worldwide. Design/methodology/approach This study uses the global environmental, social and governance (ESG) dataset from the Thomson Reuters database, which includes a sample of 23,766 firm-year observations from 33 countries from 2011 to 2022. Findings The results indicate that board size and independence have positive impacts on corporate sustainability performance; however, these relationships are nonlinear. The authors find an inverted U-shaped relationship for board size. After the optimal point, the positive relationship between board size and corporate sustainability performance becomes negative. Board independence, however, has a positive exponential relationship in which the positive effect increases exponentially after the optimal point. The results are robust to a battery of tests, including alternative measures for corporate sustainability performance, board independence and different estimation procedures. Research limitations/implications This study illustrates empirical evidence on the nonlinear effect of board size and board independence on corporate sustainability performance, which explains the mixed evidence involving board size and independence in corporate sustainability literature and offers a complementary research approach in the literature on board dynamics. Practical implications This study has practical implications for investors aiming for sustainable and ethical investment choices, as they should be mindful of matters relating to board composition, particularly the appointment of independent directors and ideal board size. Originality/value Extensive empirical evidence has examined the relationship between corporate governance variables and corporate sustainability performance. This study introduces the effect of the nonlinear relationship between board size and board independence on corporate sustainability performance using international evidence.

Investment Decision Behavior of Indian Retail Investors with Respect to IPOs

Retail investors consider time horizon, liquidity, risk, and return while making investing decisions in IPOs in order to achieve their financial goals. But limited financial literacy, information overload, emotional decision- making, lack of diversification, high transaction costs, and regulatory complexity are some of the difficulties Indian ordinary investors face while investing in IPO. Examining the variables influencing Indian retail investors' investment choices and decision-making procedures in IPOs is the primary purpose of this research. The researcher collected data from primary sources. The data was collected from 92 investors using a random sample method. The stated hypotheses were assessed at the 0.05 level of significance using the ANOVA test. Various aspects of IPOs, such as brand, profitability, financial standing, product offerings, size, industry track record, price bands, promoter track record, and risks, play an important role in forming investor perceptions on the basis of occupation. The result also states that there are significant differences in means of various groups of respondents on the basis of annual savings observed for the brand and reputation of the IPO-issuing company, while for other factors, there are no significant differences in means. Key Words: Investment Decision, Initial Public Offerings, Indian Retail Investors, Investment behaviour

Optimizing Mutual Fund Selection with Fuzzy Logic: A Case Study of Nasdaq Exchange

This study examines mutual fund performance through advanced methodologies, emphasizing fuzzy logic and the Fuzzy Sharpe Ratio. A thorough literature review highlights recent developments, such as the integration of machine learning techniques with fuzzy logic models. The research utilizes data from the Bombay Stock Exchange spanning January 1, 2024, to October 31, 2024, applying the Fuzzy Risk-Adjusted Return method. Moreover, an analysis of major technology companies reveals Alphabet Inc as the top-ranked firm, demonstrating its robust performance metrics and establishing it as a premier investment choice. Conversely, Tesla Inc ranked lowest, reflecting comparatively weaker performance. These results illustrate the competitive dynamics and varied performance levels among leading tech companies, influenced by market strategy, innovation, and financial stability. This analysis underscores the value of fuzzy logic in enhancing mutual fund evaluations and positions Alphabet Inc as a strong candidate for investor consideration.

How does Environmental Protection Tax Law affect corporate investment preferences?

This study examines the influence of implementing the Environmental Protection Tax Law on the investment choices of multinational corporations by analyzing data from China's A-share listed companies spanning the years 2006 to 2022. The enforcement of the Environmental Protection Tax Law can stimulate company investment in tangible business operations while curbing corporate financialization. The mechanism test illustrates that implementing the Environmental Protection Tax can impede business financialization by significantly increasing environmental and research and development spending. This article presents policy suggestions for effectively implementing environmental legislation, aggressively reducing firm financial risks, and promoting genuine economic growth.

Navigating Capital Budgeting Dilemmas: Theory Versus Practice at Clarence Infra Projects Ltd

The case study explores the capital budgeting challenges faced by Clarence Infra Projects Ltd, a company deeply committed to maximising shareholder value while navigating the complex world of capital investments. Despite their dedication to value maximisation, the company sometimes made decisions that contradicted this principle due to practical considerations. These contradictions highlight the real-world complexities of decision-making and the need to balance theory with pragmatism. The study presents three investment choices: solar power expansion, wind farm development, and hydroelectric power plant, each with distinct cash flow patterns. The managers traditionally used the payback period method, but they also employed the discounted cash flow methods, including net present value and internal rate of return, to evaluate the projects. Sensitivity analysis under various reduction scenarios is conducted to assess the resilience of the projects. Ultimately, the case highlights the importance of aligning financial theory with real-world complexities to make informed investment decisions.

Theoretical Frameworks for Integrating Sustainability Factors into Institutional Investment Decision-Making

This paper explores key theoretical frameworks instrumental in understanding the relationship between sustainability and institutional investment decisions. The study identifies and analyzes various theories, including Behavioral Finance Theory, Modern Portfolio Theory, Risk Management Theory, and others, to explain how sustainability considerations increasingly influence investment choices. By examining these frameworks, the paper highlights how investors integrate Environmental, Social, and Governance (ESG) factors to optimize financial outcomes and align with broader societal goals.

Factor Analysis of Investors' Impulse for using Investment and Trading Apps

The study focuses on investors’ preference reasons for using investment and trading apps about online trading in the Indian stock market. Furthermore, the study focuses on what are the privileges and conveniences they have to get benefit from using the trading apps. In additionally to knows the reasons and information regarding the preferences and choice of the different investors who invest in online trading using through Trading Apps. In this study Descriptive research design and convenience sampling technique are applied.

Transforming Aviation's Impact on the Climate: Rethinking the Research Strategy.

Aviation is under tremendous pressure to mitigate its impacts on the climate, but the best response strategies are unknown today due to deep uncertainties. How low-emission fuels will scale to levels relevant for the industry, along with the best strategies for managing contrails and other non-CO2 effects, are unknowable today with unknown cost and disruption. A conventional risk-based approach that involves investment across a known set of options is unworkable; instead, we argue that an experimentalist approach is needed that addresses deep uncertainties head on. This hinges on four key factors: a critical mass of actors facing strong incentives to identify solutions, a wide search for alternatives through experiments, periodic assessments, and adjustment of goals and strategies. Present strategies do not give enough attention to higher-risk alternatives with disruptive potential, because those approaches have few political and organizational supporters. Small groups of highly motivated actors─such as the nascent coalition of first movers on clean aviation already forming in Europe and the U.S.─could initiate an experimentalist program. The challenges of the aviation sector mirror other hard-to-abate sectors, making this framework potentially applicable to a wider set of sectors where technological, business, and investment choices are shrouded in deep uncertainty.

The Role of AI in the Stock Market; Enhance Trends Predictability & Investment Strategies for Better Financial Outcome.

The integration of Artificial Intelligence (AI) into the stock market represents a transformative shift in how financial trends are analyzed and predictions are made. To provide more precise investing methods and enhance investors' financial results, this paper investigates the use of AI technology to improve stock market trend forecasting. Artificial intelligence (AI) technologies, in particular machine learning models, show great promise in digesting vast amounts of financial data and spotting patterns that are frequently invisible to human analysts. By leveraging historical data, real-time market information, and various economic indicators, AI systems can generate forecasts with remarkable precision. The research looks at the methods used by AI to analyse stock market data, assesses how AI-driven tactics affect the success of investments, and discusses the limitations and ethical conundrums of using AI to financial decision-making. The findings suggest that the use of AI in the stock market not only enhances trend predictability but also empowers investors with data-driven insights, ultimately leading to more informed and strategic investment choices.

Navigating the green shift with innovative techniques in petrochemical emission control

This analysis delves into the profound influence of the petrochemical sector on carbon emissions, highlighting the insufficient data that impedes the formulation of effective emission reduction strategies. By concentrating on the unique challenges within this industry, the study employs a sophisticated decision-making model to explore the complex interconnections between carbon emissions, mitigation approaches, and investment choices. The primary objectives include boosting energy efficiency, refining CO2 reduction initiatives, and cutting associated costs. To navigate the intricacies of carbon footprint assessment, the research introduces a novel hybrid framework that merges scientific modeling with a code-based prototype to aid in strategic planning. The efficacy of this approach is validated by experts, demonstrating its versatility and adaptability through CNHS mapping, which enables the customization of emission reduction strategies across different scenarios.

Impact of trust-building strategies on investment decisions: Mediating role of the financial advisor-client relationship

Trust is a fundamental element in financial interactions, particularly in the advisory sector, influencing investment decisions and overall client satisfaction. This study aims to explore the impact of trust-building strategies on investment decisions through the financial advisor-client relationship. The research employs a structured questionnaire to gather data on trust-building strategies, the advisor-client relationship, and investment decisions. The study found that trust-building strategies, such as transparency and competence demonstration, positively influenced investor decisions. Specifically, 78% of investors reported increased confidence in their investment choices after engaging with advisors who prioritized transparency and expertise. Moreover, 85% of investors indicated a preference for advisors who demonstrated reliability and ethical conduct, leading to a stronger advisor-client relationship. The findings underscore the importance of trust in financial advisory services and suggest that enhancing trust through transparent practices can lead to more informed and collaborative decision-making processes. The study emphasizes the evolving nature of investment decision-making and proposes integrating technological innovations like AI and robo-advisors. The study provides valuable insights for financial institutions to invest in advisor training and guidance, benefiting all stakeholders involved.

Commitment and investment distortions under limited liability

We study how frictions originating from limited liability distort firms' investment and financing choices. By financing new investments with debt, firms can use limited liability to credibly commit to defaulting earlier—allowing both firm owners and new creditors to benefit from diluting existing creditors. In a dynamic setup, this leads to time-inconsistency, increasing the cost of external funds and discouraging investment. We show that the interaction of these two forces leads to heterogeneous investment distortions, where highly-indebted firms overinvest and those with low levels of debt underinvest. Allowing firm owners to pay themselves directly from new debt issuance can mitigate overinvestment but, in the presence of repeated investment opportunities, tends to exacerbate underinvestment among low-leverage firms.