Investment Criteria Research Articles

A Study on the Criteria for Investment in the Bond Market

This paper uses relevant information to illustrate some of the factors that influence investors' choice of bonds: by analyzing a cross-section of firms to conclude that insurance companies with stronger regulatory capital constraints tend to seek higher yields; according to the findings of a study into the added value of inflation-linked bonds in a portfolio, inflation-linked bonds widen the mean-variance efficient frontier for investors holding nominal bonds and stocks by simulating credit spreads that are more like those actually seen in the market and modeling leverage as a mean-reversion; and the findings indicate that market liquidity is neutrally or favorably impacted by portfolio trading transparency. This was established by using a controlled experiment to investigate the impact of transparency on the liquidity of the BBB bond market. In addition, some suggestions are put forward for some related investors, and the future research direction is also proposed at the end of the article.

Application Analysis of Internal Rate of Return Capital Budgeting Method in Project Investment Decision-Making

Capital budgeting is crucial for a company to make the right investment decision. Among the typically used evaluation methods, the net present value and the internal rate of return are the mostly commonly used and preferred. This paper aims to focus on IRR, providing a comprehensive view of IRR that includes its basic characteristic, advantages and disadvantages when using it as the investment creation, as well as the improvements of its modified version MIRR, there will also be a comparison between the NPV and IRR to illustrate their difference. The study could enable the audience a comprehensive understanding of IRR in project appraisal, and whether to choose IRR or NPV as the investment criterion under different circumstances of the project or base on their own preferences. This research can provide more comprehensive and more realistic economic evaluation decision-making information, making the project economic evaluation more scientific.

ANALISIS STUDI KASUS KELAYAKAN USAHA PENANGKAPAN IKAN: MENGGUNAKAN PUKAT CINCIN DI LAMPULO BANDA ACEH

Analysis to the Fishing Business Feasibility Using Purse Seine in Lampulo Banda Aceh has been done from March to June 2020. The objective of this analysis is to know the fishing business feasibility using purse seine in Lampulo. Survey methods were used on 8 active purse seine boats and the data were collected by interviewing techniques. Data were analyzed by means investment criteria Net Present Value (NPV), Internal Rate Return (IRR), Net Benefit-Cost Ratio (B/C Ratio), Break Even Point (BEP),and Payback Period (PP). The results show that the value of Net Present Value (NPV) ranges between Rp 1.055.432.152 to Rp 1.857.087.678, Internal Rate Return (IRR) ranges between 20,20% to 20,30%, Net Benefit-Cost (B/C Ratio) ranges between 1,96to 2,42, Break Even Point (BEP) ranges betweenRp 474.737.261 to Rp 604.509.983 by the results fish sell 52.137 Kg to 73.077 Kg and Payback Period (PP) ranges between 1 year and 8 mounth to 2 year and 3 mounth. In other word, fishing business by using purse seine in Lampulo is deserve and reasonable and it has a good prospect to be developed.Keywords: Feasibility Analysis, Investment Criteria, Purse Seine

ANALISIS KELAYAKAN USAHA TERASI UDANG REBON DI KELOMPOK PENGOLAH DAN PEMASAR (POKLAHSAR) SETYA BAKTI DESA SIRNOBOYO KECAMATAN PACITAN KABUPATEN PACITAN

The processing of rebon shrimp paste has been widely carried out by people in the coastal area of Pacitan as a side activity in increasing family economic income and also participating in national development efforts in the fisheries sector. This study aims to measure the feasibility of rebon shrimp paste processing business based on financial (financial) aspects. This research was conducted during September 2022, in Sirnoboyo Village, Pacitan District, Pacitan Regency, East Java. This study uses a quantitative descriptive research method. Descriptive quantitative research method is a method that aims to make pictures or descriptive of a situation objectively using numbers, starting from data collection, interpretation of the data and appearance and results. Sampling of the research was carried out on rebon shrimp shrimp paste entrepreneurs, members of Poklahsar Setya Bakti in Sirnoboyo Village. The feasibility of a business from the financial aspect is measured using the analysis of discounted investment criteria, namely the net present value, the rate of return on investment capital (internal rate of return), the ratio of net benefits to costs (net benefit cost ratio), investment return period (payback period). The shrimp paste processing business carried out by members of Poklahsar Setya Bakti in Sirnoboyo Village has good prospects for development in the future. This business is financially feasible with NPV = Rp. 32,667,112,-. IRR = 21%, Net B/C = 2.1 and a payback period of 3.3 years.

Analysis of the Feasibility of Business Idea Application Services Online Workshop "OT Repair" Specifically for Tire Repair and Oil Change in the Province of DKI Jakarta

Transportation vehicles are an important aspect for people in DKI Jakarta to support their daily activities by using private vehicles, both motorbikes and cars. While busy in activities, sometimes vehicle owners forget to check the condition of the vehicle, especially routine tire condition checks and oil changes which then have an impact on vehicle engine damage. The OT Repair business idea is a workshop service business innovation that is presented in the form of an application that focuses on tire and oil repair or replacement services. Through the OT Repair application, vehicle users can use repair services through the application, including booking schedules and choosing the nearest repair shop. This study aims to find out whether the OT Repair business idea is the answer to the needs of the people in DKI Jakarta. Qualitative analysis is used in analyzing non-financial feasibility such as marketing aspects, technical aspects as well as management and legal aspects. Quantitative analysis is used to analyze OT Repair business ideas that can meet community needs and feasibility based on investment criteria. The financial aspect shows the BEP is Rp. 410,636,079, the NPV is Rp. 80,767,898, the IRR is Rp. 13%, a PI of 1.16 and a payback period of 3 years and 3 months. The results of this feasibility analysis show that the OT Repair business is feasible based on market and marketing, technical, and management as well as financial aspects. However, it is not feasible based on legal aspects until the process of establishing the legal entity is carried out.

The Evolution of Canada's Carbon Markets and Their Role in Energy Transition

The tapestry of compliance and voluntary market mechanisms for carbon and other environmental attributes in Canada’s infrastructure capital markets reflects the almost 30-year history of carbon policy development in Canada and around the globe. This history of provincial and federal policy and regulatory changes has left some scars and stranded investments. As a result, energy market professionals and emission offset project developers have had to be resilient in their efforts to scale, integrate, and maximize opportunities for carbon credit products. Recently, we have witnessed increased efforts toward climate-focused investment criteria and technology-bolstered acceleration toward net-zero targets. Carbon credits are one of the key tools that will allow conventional businesses to continue operating as the economy decarbonizes, and they can also facilitate investment in new technologies and practices that will be critical to achieving material economy-wide emissions reductions. Both domestically and internationally, however, there are key barriers that are limiting carbon markets and that highlight the need for more carbon finance investment and policy certainty, as well as standardization and credibility in both compliance and voluntary environmental product markets. Following the Supreme Court of Canada’s ruling in March 2021 to uphold the constitutionality of the federal government’s Greenhouse Gas Pollution Pricing Act , market expectations were high (and perhaps still are) that the regulatory landscape supporting carbon finance in Canada would finally come into better focus. This article will explore the current snapshot of compliance and voluntary carbon finance tools available in Canada, and will highlight some of the challenges and opportunities in navigating the interplay between these products.

ANALISIS KELAYAKAN PENGEMBANGAN USAHA NATA DE COCO PADA CV AMARTA KECAMATAN KEMPAS KABUPATEN INDRAGIRI HILIR

Nata de coco is a food product made from coconut water. Nata de coco processing business has the potential to be developed because it can utilize coconut processing by-products. This research aims to analyze the feasibility of developing a nata de coco business at CV Amarta in terms of financial and nonfinancial aspects so that it can be declared a feasible or infeasible business. The research methods used were surveys to analyze nonfinancial aspects of the market, technical, management, legal, and environmental which are described descriptively and analyzed financial aspects based on investment criteria such as BEP, NPV, IRR, B/C ratio, payback period, and sensitivity analysis. The nata de coco business development at CV Amarta is feasible in terms of nonfinancial and financial aspects with the results of BEP 528,176 units, BEP acquisition Rp 1,056,352,623, the value of NPV is Rp 166,216,342, IRR 16%, payback period 4.7 years, and B/C ratio 1.10. The sensitivity analysis shows this business development is sensitive with 5% decrease in selling price and 5% increase in variable cost.

ANALISIS KELAYAKAN USAHA BUDIDAYA IKAN NILA (Oreochromis niloticus) KERAMBA JARING APUNG DI KABUPATEN SERUYAN KALIMANTAN TENGAH

Seruyan Regency with the capital Kuala Pembuang is one of the regencies in Central Kalimantan Province, some of its people live in coastal areas and manage fishery resources so that the marine and fishery sector is the mainstay and is very interested in utilizing marine and fishery resources in a sustainable manner. The aim of the study was to analyze the feasibility of tilapia (Oreochromis niloticus) floating net cages cultivation in the Seriyan district of Central Kalimantan. The location of the sampling was done purposively. The feasibility of investing in tilapia cages in the Seriyan district is calculated using the investment criteria which include Net Present Value (NPV), Net Benefit Ratio (NBCR), and Internal Rate of Return (IRR). The results of the analysis of the financial feasibility of tilapia cage business from 3 (three) managers were declared to have met the business feasibility criteria in 3 (three) research periods. This can be seen from the Net Present Value which has a positive value and the Internal Rate of Return which is greater than the required interest rate. The results of the sensitivity analysis with the scenario if there is an increase in operational costs by 10%, 20% and 30%, it is stated that the tilapia fish cage business from the three managers does not meet the business feasibility criteria. The results of the sensitivity analysis with the scenario if there is an increase in operational costs and a decrease in income by 10%, 20% and 30% respectively, it is stated that the tilapia fish cage business from the three managers does not meet the business feasibility criteria.

Analisis Kelayakan Finansial Usaha Telur Asin Di Desa Tegal Kunir Lor Kecamatan Mauk Kabupaten Tangerang (Studi Kasus Home industry Telur Asin Bapak Rosid)

Eggs are one of the most commonly consumed foodstuffs. Processed eggs that people like to consume are salted eggs with relatively cheap prices and easy to obtain. With a lot of consumer demand, many salted egg businesses have sprung up. One of them is the salted egg business owned by Mr. Rosid in Tegal Kunir Lor Village, Mauk District, Tangerang Regency. This salted egg business is the main livelihood of Mr. Rosid. The purpose of this study was to analyze the eligibility of Mr. Rosid's salted egg business in Tegal Kunir Lor Village, Mauk District, Tangerang Banten Regency in terms of financial aspects. The results of the study showed that Mr. Rosid's salted egg business in Tegal Kunir Lor Village, Mauk District, Tangerang Regency was eligible to run from a financial aspect with an R/C value of more than 1, NPV has a positive value, B/C value more than 1, IRR is bigger than the interest rate, PP is faster than the economic life of the business Production BEP has a value less than the total production and the price BEP is less than the selling price. Based on the sensitivity analysis of the investment criteria results with the assumption that production costs will increase by 10% with fixed benefits and the assumption of benefits will decrease by 10% with fixed production costs, shows that the salted egg business is still feasible to run or do business even though production costs increase or benefits decrease.

Operationalising sustainability? Why sustainability fails as an investment criterion for safeguarding the future

AbstractPolicy instruments promoting sustainability, such as investment taxonomies, are playing an increasing role in guiding the allocation of financial resources internationally. But can policy instruments define sustainability in ways that are both operational (i.e. assessable via replicable procedures) and which specify practices that can reliably be expected to enhance future generations' welfare? This paper analyses candidate definitions of sustainability and identifies a dilemma: while various definitions identify a ‘capital’ variable whose value can indeed be determined empirically; we have no reason to assume that preservation of any specific capital variable will maximise expected future welfare. By contrast, sustainability can be defined ‘dynamically’ in terms of activities that will, on expectation, lead to future developmental trajectories with high welfare. But, as we show through discussion of concrete examples, ‘dynamic sustainability’ cannot readily be operationalised. We conclude that what qualifies as ‘sustainable’ will remain a subject of political dispute and that authoritative comprehensive assessments of ‘sustainability’ will remain chimeric. We suggest that selecting a narrow class of specific measures, such as of life‐cycle greenhouse gas emissions, might lead to more effective and less contentious approaches to resource allocation.

PERENCANAAN DAN KELAYAKAN INVESTASI PERKEBUNAN DURIAN DI KECAMATAN LEMBANG, KABUPATEN PINRANG

The goals of this research are as follows: 1. to assess the potential for durian commodity development in Lembang District, Pinrang Regency based on the base commodity 2. to conduct a comparative advantage analysis of the durian commodity in Lembang District, Pinrang Regency 3. to assess the financial and non-financial feasibility of establishing durian plantations in Lembang District, Pinrang Regency. This study was carried out in Lembang District, Pinrang Regency. This study lasted approximately four months, from January to April 2020. The data was analyzed using the investment feasibility method after primary data collection from informants. According to the findings of this study, the yield (LQ) of plant commodities that are the base commodities in Lembang District, Pinrang Regency are durian, orange, and banana. T Based on the results (RDC) of the leading plant commodities in Lembang District, Pinrang Regency, namely durian and banana plants. The financial feasibility of investing in durian plantation planning demonstrates that the investment in planning and the feasibility of durian plantation investment are both feasible. This is demonstrated by the investment criteria's Net Present Value (NPV) of Rp 524,992,410,848, -, the resulting Internal Rate of Return (IRR) of 42.64 percent, Net B/C of 4,65, and Payback Period of 8 years 5 months.

Analisis Finansial Usaha Pembesaran Udang Vaname (Litopenaeus vannamei) pada Tambak Intensif di PT. Mitra Raya Cemerlang, Kabupaten Probolinggo

This pacific whiteleg shrimp (Litopenaeus vannamei) enlargement business has the name PT. Mitra Raya Cemerlang was established in 2017 in Koloran Hamlet, Klaseman Village, Gending District, Probolinggo Regency, East Java. This study aims to describe the marketing mix and analyze the business’s financial feasibility. Types of quantitative and qualitative research used a purposive sampling technique. The data analysis method used is marketing mix analysis and business feasibility by calculating short-term and long-term investment criteria. The results of the study indicate that in terms of the marketing mix, it is relatively simple to carry out directly at the place of business. Then in terms of business feasibility, in the short term, it is profitably seen from the R/C Ratio value of 3,785, BEP unit 31,533 kg, and BEP sales Rp. 2,459,591,932.98, and RTC 62.44% while in the long term it is feasible to see from the NPV value of Rp. 36,230,109,107, Net B/C Ratio 4.02, IRR 109%, and PP 1 where the sensitivity level is said to be not too sensitive.

Strategic prospects for implementing ESG principles into the practice of management of the Russian industry with the consideration of the tasks of healthcare development

The article contains analysis of the relationship between ESG ideology and the tasks of the industry and the healthcare sector. The study is aimed at formation of the principle of strategizing of the development of the Russian healthcare industry, on the one hand; and, on the other hand, at updating approaches to the implementation of ESG principles into the practice of management in Russia. On the basis of identification and clarification of cross-country patterns of mutual influence of per capita energy consumption, ecological situation and the expected lifetime (the value of which reflects the integral performance of the healthcare system) the authors discover that the latter indicator is the most relevant for Russia as the strategic indicator for evaluating the effectiveness of the action taken on the development of the economics. The authors consider it advisable to update the ESG-ideology and directly include the assessment of the influence of the economic entity on the quality of life of the employees, customers, partners and the whole society. In addition to the activities of medical and preventive organizations, production of medicines and equipment for treatment and health promotion the healthcare industry may indirectly involve a wide range of economic activities. Moreover, global healthcare is one of the most significant and profitable economic industries. Addition of the evident component of Health to the investment criteria of Ecology, Social politics, and Government (ESG) and development of the ESG+H initiative may become a catalyzer for including the Health criteria in the basic methods of business management and investment objectives of financial entities. The measurements carried out in the study indicate that the effectiveness of investment projects for healthcare in the Russian practice of the ESGideology implementation should be regarded as the key parameter with the consideration of the relevance and timeliness of establishing the National Development Goals.

PKM PADA PERENCANAAN USAHA CAFÉ KULINER DI KOTA BAU BAU

Feasibility study is the tool that is able to be consideration materials in making the decisions to receive or reject the investment proposed in developing or establishing the project/business planning. The research about analysis of business feasibility, instead of to know whether it is feasible or not of the value of investment criteria, it is also to know the amount of investment funds that needed, the existing market share, and any constraints that will be possible to occurs in the process of establishing that type of business. As for the objectives that will be obtained from this research is to conduct the analysis of business feasibility as viewed from several aspects, that are financial aspect, and social aspect.

Developing Islamic sustainable and responsible investment criteria: an overview

PurposeThe purpose of this study is to explore the necessity for developing Islamic sustainable and responsible investment (i-SRI) criteria based on environmental, social and governance issues.Design/methodology/approachTo address the above objective, this study adopted a qualitative method via content document analysis and interviews with experts.FindingsBased on the analysis, this study discovered five primary aspects that lead to the necessity for developing i-SRI criteria. First, Malaysia has yet to develop i-SRI criteria. Second, the absence of i-SRI criteria will eventually lead to Shariah issues. Third, any Islamic financial instrument is bound to encounter numerous issues and challenges, thereby making it difficult to be marketed globally if it does not have a proper and standardized framework. Fourth, the establishment of i-SRI criteria can serve as a key reference point for the players in the industry, including investors, policymakers and other parties. Finally, the development of i-SRI criteria can play a vital role in enhancing the current Islamic capital market products offering in Malaysia.Practical implicationsThere are several implications identified in this study. First, continuous research on the i-SRI criteria can offer numerous benefits to the regulatory bodies and policymakers who can use the findings in their decision-making process. Second, in terms of investors, the results can help them to make better investment choices by referring to the i-SRI criteria. Third, this study will be valuable to the academicians in terms of opportunity to explore a new research area, i.e. the i-SRI criteria, besides adding to the extant literature on this topic which is still scant currently.Originality/valueThis study discovered five primary aspects that lead to the necessity for developing i-SRI criteria.

Assessment and Analysis of Stock Market Integration Among the Countries of the D8 Group

The D8 group pursues different goals, and one of the most important ones is in the field of economy and economic development of the member countries. The present study thoroughly assesses financial integration and its effective variants. Due to the relatively low physical capital interruption and the more intrinsic consumption fluctuations, developing economies benefit from financial integration. Four criteria have been used to assess the financial integration among the D8 group: foreign assets, foreign debts, volume criteria, and investment criteria. The data is based on Eviews software, and the least-squares method (EGLS) for 2000-2019 has been analyzed. The present study results confirm the effect of financial development and international trade integration on financial integration, and between the two, based on the estimated model coefficients, the impact of international trade integration on financial integration is more significant. Also, among the three criteria of financial development, the development of the banking sector is not a good measure of the financial development in countries and has less of an impact on D8 Group's financial integration.

Building back better through feminist entrepreneurship policy

PurposeMost feminists policies are aspirational. Deficiencies include vague terms of what constitutes ‘feminist’ within policy, ambiguous investment criteria, lack of consultation and the use of the binary definition of gender negating gender-diverse people (Tiessen, 2019). The purpose of this study is to identify parameters that characterize feminist entrepreneurship policies and to advance recommendations to operationalize these policies.Design/methodology/approachThe COVID-19 pandemic has unveiled fragilities in the socio-economic gains that women entrepreneurs have achieved. Gender-regression is, in part, the product of entrepreneurship policies that fail to recognize the nature and needs of women entrepreneurs. To inform recovery measures, this article considers two research questions: what are the parameters of feminist entrepreneurship policies? and how can parameters of feminist entrepreneurship policy be operationalized in pandemic recovery measures? To inform the questions, the study draws on the academic literature and thematic analysis of three collective feminist action plans to operationalize ten parameters that characterize feminist entrepreneurship policy.FindingsSupplanting ‘feminist’ for women in the construction of entrepreneurship policies, without specifications of how parameters differ dilutes government's efforts to achieve gender quality and women's economic empowerment. To inform policy, recommendations of three feminist recovery policies clustered under seven themes: importance of addressing root causes of inequality; need to invest in social and economic outcomes; economic security; enhancing access to economic resources; investment in infrastructure; inclusive decision-making; and need for gender disaggregated data to inform policy. Differences in policy priorities between collective feminist recovery plans and the academic literature are reported.Research limitations/implicationsThe parameters of feminist entrepreneurial policy require further interpretation and adaptation in different policy, cultural and geo-political contexts. Scholarly attention might focus on advisory processes that inform feminist policies, such as measures to address gender-regressive impacts of the COVID-19 pandemic. Research is also needed to understand the impacts of feminist policies on the lived experiences of diverse women entrepreneurs. Limitations: The study design did not incorporate viewpoints of policymakers or capture bureaucratic boundary patrolling practices that stymie feminist policies. Thematic analysis was limited to three feminist recovery plans from two countries.Practical implicationsRecommendations to operationalize feminist entrepreneurship policies in the context of pandemic recovery are described.Originality/valueTen parameters of feminist entrepreneurship policy are explored. The conceptual study also advances a framework of feminist entrepreneurship policy and considers boundary conditions for when and how the parameters are applicable.

The Long Term Comovement Between Sukuk And Conventional Fixed Income Markets

Sukuk markets have made significant progress both in terms of market volumes and international awareness in recent years. These financial products are specially designed for investors who avoid interest gain. On the other hand, it is an ongoing issue in the literature whether these markets are a useful alternative for conventional fixed income investors as well. Our main purpose is to explore sukuk market as an investment alternative for conventional fixed income market investors' points of view. Since the integration of assets is one of the key criteria for portfolio investments, this study investigated the long-term comovements between sukuk and other fixed-income indexes via Johansen and Engle-Granger cointegration technique. To proxy international fixed income portfolio, international bond indexes which are prepared by FTSE (Financial Times Stock Exchange Group) are employed. Besides, the vector error correction model is also applied to deepen the results. According to the findings, there is a limited causality in the long run between sukuk markets and conventional bond markets. This can make international sukuk assets highly beneficial diversification alternative to conventional bond portfolios. The study aims to contribute to the literature by examining the benefits of sukuk markets as an investment alternative to conventional, wide-range fixed income markets.

Process Simulation and Design Considerations for Biodiesel Production from Rubber Seed Oil

Indonesia is one of the largest rubber producers worldwide. However, rubber seeds still garner less attention due to their low economic value. In fact, the rubber seeds contain 40–50% (w/w) of rubber seed oil (RSO), which is a potential candidate to be used as a feedstock in biodiesel production. In this regard, this study aims to model and simulate the production process of biodiesel from RSO via transesterification reaction, employing methanol and heterogeneous catalyst. The simulation was performed using ASPEN Hysys v11. Acid-based catalyzed esterification was implemented to eliminate soap formation, which may significantly lower biodiesel yield. The results showed that an RSO inlet rate of 1100 L/h with a methanol to oil molar ratio of 1:6 could generate around 1146 L/h biodiesel. Methanol recovery was conducted, an approximately 95% of excess methanol could be regenerated. Simulation results indicated that the properties of the biodiesel produced are compatible with modern diesel engines. Economic analysis also shows that this technology is promising, with excellent investment criteria.

A framework for social business models analyses

Social entrepreneurial initiatives (SEI) answer problems and needs that otherwise would remain unattended. Therefore, they provide high collective interest social value achieved by a stable, reliable, and sustainable operation. Because the economic goal is a means to accomplish the social aim, it is hard to overcome resource constraints. SEIs must prove innovation and efficiency to access funding. However, the investment criteria are usually circumstantial or abstract. Additionally, the theory lacks the recommendation to enlighten how to increase the chances to be funded. The literature does not offer consensual, consistent, empirically tested criteria to compare business models. To help address these issues, this paper provides a Delphi analysis of a social business model taxonomy. The following criteria selected interviews from a broad study: 1) have qualitative and quantitative data recorded; 2) represent different SEIs’ types in the taxonomy. Then, four invited scholars blindly reviewed the data. They are experts in social innovation, entrepreneurship, sustainability, and social psychology. Online meetings helped to solve doubts and build synthesis. All Delphi participants described their opinion about the taxonomy fit by e-mail. Results were also compared by previous statistical classification. The Delphi process happened from December 2020 to June 2021. The similarity between statistical and analytical results indicated that the taxonomy is an efficient tool to identify and compare elements of the social business model. The study made the taxonomy easier and more replicable, providing an analytical framework. Evidence can help social agents and investors to frame information and achieve better decision-making.