Investment Decisions Of Companies Research Articles

Improving new energy subsidy efficiency considering learning effect: A case study on wind power

Subsidy policies are instrumental in driving the development of new energy. However, the effective allocation of new energy subsidies over time is challenging given fiscal constraints. This study addresses this challenge by considering the learning effect associated with the new energy industry. A two-stage dynamic programming model is proposed to capture the investment decision-making process of companies under new energy subsidy policies and government subsidy setups. Theoretical findings suggest that company investment decisions in new energy are influenced by a guiding principle: The subsidy rate should be negatively correlated with the variation rate of production scale increment (VRPSI). We calibrate this investment decision principle using wind power data from 14 countries. According to this principle, excessive subsidy rates may result in a low VRPSI, thereby diminishing future investment profitability in the new energy industry and leading to subsidy inefficiency. Upon investigating the efficiency of annual subsidy allocation, we find that the subsidy rates were potentially set too high in 2014, 2016, and 2017. Furthermore, the government should exercise caution regarding an inefficient subsidy pattern whereby companies invest in new energy only when the subsidy rate exceeds a certain threshold, neglecting traditional power sources. It is crucial to note that although this study uses wind power industry data for calibration and simulation, the theoretical model can be broadly applied to other new energy industries and emerging industries with increasing marginal net profit.

PREDIKSI HARGA SAHAM MENGGUNAKAN ALGORITMA NEURAL NETWORK

In recent years, the development of technology and artificial intelligence has brought forth new opportunities in analyzing and predicting stock prices. One of the approaches used is the Neural Network algorithm, which is a part of the branch of artificial intelligence known as Deep Learning. This algorithm can learn complex patterns and relationships among data by modeling inspired by the human neural network. This research utilizes the Neural Network for stock price prediction and aims to understand the application of Neural Network in predicting stock prices, which can benefit investors and market participants. Additionally, historical stock price data can be used as input for the Neural Network algorithm. The Neural Network is a frequently used algorithm for accurate predictions and is widely employed in prediction-based or forecasting research. The result of this research is the Root Mean Squared Error (RMSE) value of 19.734 +/- 0.000. The use of the Neural Network as an algorithm for stock price prediction provides investors with valuable information for making investment decisions for companies..

About Development of International ESG Disclosure Standards

Currently, sustainability factors have a significant impact on the economic and investment decisions of companies around the world. ESG data is included as part of the non-financial information, the disclosure of which poses a number of challenges in practice. The main being the lack of universal reporting rules. This article examines the most successful global initiatives aimed at developing and implementing international ESG disclosure standards. The provisions of the latest standards and guidelines governing the procedure, scope and principles for preparing reports on the company’s impact on environmental, social and governance aspects of responsible production are analyzed.

Profit Quality Analysis of Investment Opportunity Set, Leverage, and Good Corporate Governance

This research is motivated by the company's investment decisions during the pandemic to increase its business scale in the future which gives investor’s confidence in making financial decisions. The purpose of current study is to investigate how profit quality is impacted by good corporate governance, leverage as well as investment opportunity sets. The DER was used to measure the leverage, the market book value of asset ratio was used to measure the IOS, and the proportion and quantity of firms' ownership of the audit committee, independent commissioner board, managerial ownership, and institutional ownership were all used to measure GCG. It was a quantitative study. Food and beverage businesses that were listed on the IDX (Indonesia Stock Exchange) also made up the population. The method of gathering data employed purposive sampling. 13 businesses made up the sample in accordance with that. Moreover, the data was collected during a three-year period (2019–2021). 39 pieces of data in all were examined. The t-test, F-test, R2 test, and multiple linear regression were also employed in the data analysis technique. The outcome showed that there was a negative correlation between profit quality and the set of investment opportunities. On the other hand, managerial ownership improved the quality of profits. On the other hand, the quality of profits was unaffected by leverage, institutional ownership, the independent commissioner board, and the audit committee. These results imply the failure of all sample firms to achieve positive returns on their investment sets in assets during the pandemic. Not a single firm was able to show positive prospects for investment opportunities during the pandemic.

Fisher's Separation Theorem and its Limitations

When businesses make investment decisions, they often evaluate the Net Present Value (NPV) of investment projects. For investors, a project is deemed worthwhile if its NPV is greater than zero. This phenomenon can be attributed to the Fisher Separation Theorem, which asserts that in perfectly efficient capital markets without transaction costs, a single interest rate prevails. In this context, investors' production choices adhere strictly to objective market regulations aimed at maximizing attainable wealth, entirely detached from individual subjective preferences. This, in turn, enables both borrowers and lenders to base their consumption and investment decisions on the prevailing market interest rate, thereby encouraging a clear distinction between investment and financing choices. Therefore, a company's investment decisions can be discussed separately from its financing decisions. So, the enterprise's investment decision and financing decision can be discussed separately. When enterprises invest, enterprises do not have to consider the subjective consumption preferences of different investors, because investors' consumption preferences can be satisfied accordingly through perfect capital market operation. Because of Fisher's Separation Theorem, which requires the market to be transaction cost-free, it also has some limitations.

Change in company leadership, subordinate executive team restructuring, and investment efficiency

AbstractUnder the Chinese corporate governance model, the change of “leader” is one of the most significant occurrences for a company, and there is a strong relationship between “leaders”(chairman and CEO) and the executive team under them. Using data from listed A‐share businesses in China from 2007 to 2018, this study evaluates the effects of leaders' changes on investment efficiency and the effects of subordinate executive team restructuring caused by “leadership” change on investment efficiency. The findings reveal that the change of “leaders” significantly reduces company's investment efficiency, and the greater the degree of restructuring of subordinate executives caused by the change of “leaders”, the greater the negative impact on the company's investment efficiency. Nevertheless, the successor leader with a financial background can well mitigate the negative impact of the subordinate executive team restructuring on investment efficiency. In further analysis, we discover that the subordinate executive reorganization results in both overinvestment and underinvestment. However, state‐owned enterprises are more resilient to the damaging impacts of organizational shocks. Additionally, a good internal and external regulatory mechanism can mitigate the negative impact of the subordinate executive teams restructuring on investment efficiency. In conclusion, this study provides scientific support for improving executive team management and optimizing investment decisions for companies.

Moderating Environmental, Social, and Governance (ESG) risk in the relationship between investment decisions and firm value

Investment decisions of companies and investors consider aspects of the company's financial performance and relate to the company's environmental responsibility from company activities. Corporate environmental responsibility can be implemented in its attention to the Environment, Social, and Governance (ESG). This study aims to analyze the role of ESG risk in moderating the relationship between investment decisions and firm value in the ESG Leader Index (IDXESGL) group of companies on the Indonesia Stock Exchange (IDX). Sample selection was based on a purposive sampling of 30 companies for the 2020-2022 period with 4 IDXESGL index evaluation periods, so 20 companies were selected, and the total observation data was 80 observations. Analysis of the research data used the structural equation model (SEM) method with the Partial Least Square (PLS) analysis technique. The analysis results show that ESG risk moderates the relationship between investment decisions and firm value. Therefore, the smaller the company's ESG risk will increase the influence of investment decisions on company value, and in the future, the company will continue to grow sustainably.

The Impact of Capital Investments on Firm Financial Performance – Empirical Evidence from the Listed Food and Agriculture Companies in Vietnam

Capital investment is one of the most important financial decisions of a firm, which effects the business survival. This paper investigates the impact of capital investments on firm performance to provide an insight for future capital investment decisions of companies. The study uses unbalance panel data gathered from 62 companies which covered 688 observations of listed food and agriculture sector in Vietnam stock exchange during the period 2009 – 2020. To control for unobserved individual effects, the random effect estimator was employed. Profit margin (PM) is used as a proxy for firm performance, while independent variables are capital investment rate in both short-term and long-term effect, equity to total assets ratio, firm size and tangible to fixed assets ratio. The results indicate that capital investments have statistically significant positive impact on long-term performance of the analyzed enterprises. This outcome is in accordant with many previous studies. Especially in the context of Vietnam listed food and agriculture companies have high level of capital investment, a portion increase in capital investment rate will increase the company profit margin. Other variables also have statistically significant relationship with profit margin, in details, equity ratio and size have positive effect while tangible assets ratio has negative effect on firm performance. Therefore, the research suggest firm managers should choose the appropriate capital investment strategies in long-term perspective, within the consideration of equity ratio, economics of scale and tangible assets investment ratio to get the most efficient performance.

PENGARUH OPERATING CASH FLOW DAN PROFITABILITAS DENGAN FINANCIAL CONSTRAINT SEBAGAI MODERASI TERHADAP KEPUTUSAN INVESTASI PERUSAHAAN DALAM SUBSEKTOR ANEKA INDUSTRI 2017-2019

This study aims to determine the role of operating cash flow and profitability with the moderation of financial constraint on investment decisions in various industry sub-sector companies in the period 2017 – 2019. This test uses the panel data analysis method. The results of this study indicate that operating cash flow and profitability have a significant negative effect on the company's investment decisions, while the moderating role of financial constraint strengthens the negative effect of operating cash flow on investment, while for profitability the moderating role of financial constraint weakens the negative effect of profitability on investment.

Prediksi Kebangkrutan Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia

This study aims to examine the potential for bankruptcy of companies with three analytical models, namely Altman Z-Score, Springate S-Score, and Zmijewski X-Score, and assess the level of accuracy of the three models. Each model uses ratio analysis with the elements of assets, debt, capital, and company profits. This study uses a sample of coal mining companies listed on the Indonesia Stock Exchange (IDX) during the 2014-2018 period. The sampling technique in this study used purposive sampling and obtained 24 sample companies. This study uses secondary data, namely the company's financial statements obtained from IDX's official website. This study calculates financial ratios, compares the scores of the three bankruptcy prediction models, and tests the model's accuracy. The results of this study show that of the three models, the Springate S-Score model is the most accurate in predicting bankruptcy, with an accuracy rate of 83.33%, as evidenced by two companies that were delisted from the IDX. This study can be used as a reference and as material for consideration in making investment decisions for companies and investors.

Bahasa IndonesiaManajemen Laba dan Perilaku Investasi: Apakah Framing Effect Diperhitungkan?

This study aims to obtain empirical evidence on the effect of earnings management on company's investment decision making, as well as to see indications of the framing effect caused by earnings management on the company's investment behavior. The sample of this study includes all manufacturing companies listed on the stock exchanges of countries in Southeast Asian region with an observation period from 2009 to 2019. The results indicate a positive and significant effect of earnings management on management investment decisions. Meanwhile, the framing effect is believed to arise as a result of earnings management practices and also influences managers in viewing further as a consideration for making company investment decisions.
 Keywords: Earnings Management; Investment Decision; Framing Effect.

Financial Implications of Capital Controls Enforcement on Large-Cap Companies Listed on the Athens Stock Exchange

The aim of this study is to examine the effects of the capital controls on the process and financial performance of large-cap companies operating in Greece listed on the Athens Stock Exchange. More specifically, the markets’ behavior is studied, as well as the reactions of the investors after the announcement of the implementation of the measure. The mixed method (quantitative research with questionnaires and qualitative research with interviews with financial managers and senior executives) was used. The main findings of the research are that the measure of capital controls: was deemed necessary and effective based on its aims, which were (a) the protection of the mass withdrawal of deposits and (b) the stabilization and security of the financial system had a significant effect on increasing the use of electronic banking. But also had significant negative effects: on the investment decisions of companies, on their competitiveness and reputation abroad, on the ability to raise new capital, on their liquidity and therefore on their ability to cope with key functions, as well as on their imports and exports. Keywords: Capital controls, listed large-cap companies, crisis, Athens Stock Exchange, Greece.

The Impact of Intellectual Capital on the Performance and Investment Attractiveness of Russian Companies

Recent studies show that intellectual resources, such as highly qualified workforce, well-functioning business processes within the organization and strategic relationships with all stakeholders together give a synergistic effect and are key factors in creating a sustainable competitive advantage. This notion is true for both high-tech companies that are focused on knowledge management and mainly work in the service sector, as well as for traditional industrial-type firms that are focused on creating products using value chain models. The historical growth of intellectual capital is traditionally associated with the trend of increasing market capitalization of firms, which is most clearly observed for companies that use knowledge resources as core competitive advantage. However, in practice the consequences of investing in intellectual capital intensive firms are often not always clear, in particular, there is unambiguous relationship between intellectual capital and the ability of companies to perform sustainably.In this study proposes models to investigate the impact of the components of intellectual capital on investment attractiveness and therefore potential positive investment decisions for companies using financial indicators such as revenue and market share. The results show a moderate positive relationship between revenue, market share, reflecting the investment attractiveness of the company and qualitative indicators of static and dynamic intellectual capital.

Approach-oriented and avoidance-oriented measures under complex Pythagorean fuzzy information and an area-based model to multiple criteria decision-aiding systems

The purpose of this paper is to evolve a novel area-based Pythagorean fuzzy decision model via an approach-oriented measure and an avoidance-oriented measure in support of multiple criteria decision analysis involving intricate uncertainty of Pythagorean fuzziness. Pythagorean membership grades embedded in a Pythagorean fuzzy set is featured by tensible functions of membership, non-membership, indeterminacy, strength, and direction, which delivers flexibility and adaptability in manipulating higher-order uncertainties. However, a well-defined ordered structure is never popular in real-life issues, seldom seen in Pythagorean fuzzy circumstances. Consider that point operators can make a systematic allocation of the indeterminacy composition contained in Pythagorean fuzzy information. This paper exploits the codomains of the point operations (i.e., the quantities that express the extents of point operators) to launch new measurements of approach orientation and avoidance orientation for performance ratings. This paper employs such measurements to develop an area-based performance index and an area-based comprehensive index for conducting a decision analysis. The applications and comparative analyses of the advanced area-based approach to some decision-making problems concerning sustainable recycling partner selection, company investment decisions, stock investment decisions, and working capital financing decisions give support to methodological advantages and practical effectiveness.

Review and analysis of investment decision making algorithms in long-term agent-based electric power system simulation models

Long-term electric power system planning models are frequently used to provide policy support in the context of the ongoing transition towards a low-carbon electric power system. In a liberalized market, this transition relies on generation company investment decisions. These decisions are shaped by both economic and behavioral factors. Agent-based modeling allows the incorporation of both these factors in the description of the investment decision making process. Nevertheless, there are several challenges associated with the design of agent-based models such as the definition of the model structure and its lack of transparency. In this study, we aim to increase the transparency of investment decision making algorithms by shedding light on how implicit assumptions of the price projection methods used in these algorithms impact model results. To achieve this goal, we developed a core long-term agent-based model to assess different investment decision making algorithms from the literature and we introduced a novel price projection method based on optimization modeling. Our results show that investment decisions vary enormously depending on the assumptions and parameters used in investment decision making algorithms. We also found that our proposed price projection method is robust to parametric deviations. Thus, the proposed investment decision making algorithm enables agent-based modelers to mitigate the potential impacts of hidden implicit assumptions.

Is the Value of The Company Affected by Company Investment Decisions and Financing Decisions?

This study aims to examine and analyze whether investment and financing decisions have a significant effect on the firm value of manufacturing companies listed on the Indonesia Stock Exchange. This study uses data from food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange during the period 2013 to 2017. The analyzed companies are 13 companies based on sample criteria. The analysis method used is panel data analysis by using Microsoft Excel and Eviews 10 software. The results of this study found that investment decisions have a positive effect but not significant on firm value and financing decisions have a significant and positive effect on firm value in the food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange.

EVALUASI KONDISI SAHAM MELALUI ANALISIS FUNDAMENTAL DENGAN METODE DIVIDEND DISCOUNT MODEL (DDM) TERHADAP KEPUTUSAN INVESTASI PADA PERUSAHAAN SUB SEKTOR PULP AND PAPER YANG TERDAFTAR DI BEI PERIODE 2011-2015

The purpose of this study was to: (1) determine the condition of stocks through fundamental analysis by the DDM on the company's pulp and paper subsectors period 2011-2015; (2) determine the company's investment decisions pulp and paper subsectors period 2011-2015. The results of this study indicate that (1) the highest intrinsic value is at PT Fajar Surya Wisesa Tbk which is equal to 924.7226 and the lowest intrinsic value is at Paper Factory PT Tjiwi Kimia Tbk, which amounted -1,787,541; (2) The company PT kedawung Setia Industrial Tbk in the period 2011-2015 has a condition undervalued stocks. Meanwhile, other companies namely PT Alkindo Naratama Tbk, PT Fajar Surya Wisesa Tbk, PT Indah Kiat Pulp & Paper Tbk, PT Suparma Tbk, and PT Pabrik Kertas Tjiwi Kimia Tbk experienced overvalued.

INVESTMENT DECISION IN THE AGENCY THEORY FRAMEWORK

Abstract. This studies aims to observe the development of literature on companyinvestment decisions and to decide what research should be conducted further oncompany investment decisions in the theoretical framework of agency theory. Themethods used were bibliometric network analysis and literature review. This study hasmapped out the literature on company investment decisions based on agency theory.This study shows that the topics on competition research, corporate governance, andcapital structure are closely related to the company investment decisions in the theory ofagency, and it is worth investigating. Therefore, it is necessary to develop furtherempirical research related to company investment decisions in the framework related toagency theory by analyzing the influences of competition, corporate governance, andcapital structure comprehensively on invesment decision.

Wypłata dywidend a zdolność przedsiębiorstwa do rozwoju – analiza na przykładzie spółek giełdowych

The relationship between dividend decisions and investment decisions of companies has been the subject of scientific analyses and inquiry for decades. They show that the tendency of companies to pay dividends and their amount are determined among other things by their stage of development. According to the theory of dividends based on the life cycle, most income dividend is spent on dividends by companies in the phase of maturity, because their investment capabilities are limited and the demand for external capital is little. The aim of the article is to check whether the assumptions of this theory are true in Polish conditions. The analysis included 75 companies, which in the years from 2014 to 2016 each year shared the profits with their shareholders. With regard to the regularity of paying dividends these companies have been defined as dividend companies. By studying the relationship between the amount of dividends, net financial results and the value of equity and assets of the companies, it was demonstrated to what extent the payment of dividends determines the change as far as their material and capital resources are concerned. The negative correlation between the amount paid dividends and an increase in assets and equity was confirmed, which is consistent with the theory of dividends based on the life cycle of a company.

Risk profiles and corporate social responsibility for socially disadvantaged groups

Abstract Developing a suitable mechanism to stimulate the effective redeployment of capital to social activities can be designed using the corporate social responsibility (CSR) concept. Informational asymmetry about the real state of social risks influences the effectiveness of allocations in social protection. Reducing information asymmetries can be achieved by providing the corporations with socially determined risk profiles based on predetermined patterns. Offering concrete lines of action following the risk profiles approach which to base investment decisions of companies in CSR can maximize the results of such a mechanism. In a previous study the authors have developed a theoretical model for determining the poverty risk profile. This study aims to present the practical application of the theoretical model and to provide comments on some errors. Hence, the authors analyzed Buzau county municipalities in presenting the highest risk level determined by the theoretical model and related causes and performed an impact assessment of an investment in CSR based on a model. Specifically, the authors evaluated the impact of reducing the risk of poverty for a suitable investment in CSR. In the second part of the study, the authors analyzed the types of errors that can be found in the municipalities risk profile model due to the granularity of the data. Thus, for the error of over-inclusion, the authors assessed social allocative efficiency at the community level using benchmarking analysis, Data Envelopment respectively and analyzed the data of the under-inclusion error in Buzau county villages. The paper aims to analyze the relative limits on quantitative models and risk of poverty and the practical implementation of these types of models in the development of corporate social responsibility. The study provides also a useful tool which can be made available to companies in order to increase the vulnerable groups’ life quality and the satisfaction of shareholders, stakeholders and related parties following redeployments according to specific CSR mechanisms.