Different Categories Of Investors Research Articles

Alternative investments: Motives and risks for investors on crowdfunding platforms

With the development of financial markets and digital technologies, private companies are starting to actively use alternative financing tools, which, in turn, are becoming an alternative for investors to put money in traditional financial assets. Among these instruments, equity crowdfunding (crowdinvesting) plays a special role, an innovative method of financing through which issuers raise funds on online portals — crowdfunding platforms, and investors make investments in exchange for company shares. The subject of many academic and practical studies is the motives and risks of investing in this instrument. Due to the information asymmetry that exists between issuers and investors, the high uncertainty of future cash flows, the dominance of nonprofessional investors in the market, and a short history of the equity crowdfunding market, currently the issues of investors’ motives and risks remain poorly studied and the results of research are mixed. The purpose of this study was to identify and analyze the motives for investing in shares of small and medium-sized businesses on crowdfunding platforms, the risks associated with them, and the relationship between investment motives and characteristics of investors and crowdfunding campaigns. The research methodology was based on a review of contemporary studies on the issues under consideration. Based on the academic concepts, the experience of experts in this field and the authors’ own expertise acquired in the field of alternative investments, the authors put forward their own view building on the existing ideas. The results of the study are valuable for all participants of the equity crowdfunding process: issuing companies, investors, crowdfunding platforms. The authors contribute to the existing research on equity crowdfunding by proposing new approaches to identification of the motives of different categories of investors in relation to the factors which were not previously studied.

Financial statement analysis as a tool for investment decisions and assessment of companies’ performance

Abstract: Purpose: Financial Statement Analysis (FSA) and Interpretation is a vital instruments for good management decision-making in business. The main objective of this study is therefore to determine how firms could use FSA and its interpretation to aid funding and investment decisions and to avert low profitability or low investment returns. Research methodology: Data from the annual report of Nestlé Nigeria Plc are utilized for the Analysis and Interpretation of the financial ratio using descriptive statistical analytical tools for presentations. Result: The study concludes that analysis of FSs is adequate for effective decision making and that firms should pay great attention to the use of FSA to properly equip themselves with this tool and also a combination of different ratios should be used in analyzing a firm's financial performance. Proper use of FSA should be made not only in investment but also in other areas of decision-making. Limitations: The study is limited to FSs published by Nestlé Nigeria plc between the years 2014 to 2019. Contribution: The paper serves as an aid to different categories of investors when making critical investment decisions. Keywords: 1. Decision 2. Financial statement 3. Financial reporting 4. Investment 5. Regulatory bodies

Disposition bias among Borsa Istanbul investors: What do we know about type, size and trading frequency?

This paper investigates the disposition bias for different categories of investors based on type (legal persons, female and male), size (large, medium and small) and trading frequency (frequently, occasionally and infrequently trading). Analyzing an exhaustive dataset consisting of 283,913 investors from Borsa Istanbul, we find that all types of investors exhibit disposition bias while legal persons, large investors and frequently trading investors do less. Trading frequency, rather than size, is the most relevant investor feature associated with disposition bias. A detailed analysis with combined features is needed for understanding the role of various factors in this investor behavior.

Фінансовий моніторинг на ринку цінних паперів України

The purpose of the article is to study the current status of financial monitoring carried out in the securities market of Ukraine. The article analyzes the activities of the entities of the State-based financial monitoring and primary financial monitoring in the stock market of Ukraine. Their main functions and tasks in the financial monitoring system are distinguished. Based on the carried out research, it is concluded that securities are often used in illegal schemes (withdrawal of assets outside Ukraine, minimization of tax liabilities, tax evasion, etc.) that precede the laundering of criminal income. One of the risky instruments of the financial market was also the purchase and sale of domestic government bonds. On the one hand, this type of securities can be considered one of the most reliable financial instruments due to its high liquidity and wide range of applications. At the same time, the high demand and peculiarities of execution of contracts concluded on the stock exchange for the purchase/sale of domestic government bonds make them attractive in schemes of legalization of illegal income, especially for public figures who must declare their wealth. Considering the nature of reports of violations of securities transactions, it can be concluded that there is a high proportion of possible schemes for legalizing dirty funds. Under martial law, there have been significant changes in the process of identification and verification of clients of the primary financial monitoring entities in order to simplify the purchase of government securities. Thus it is worth noting that the largest share of violations of financial legislation falls on government bonds, which have become available to various categories of investors (including individuals). This fact may contribute to the emergence of new schemes for laundering (legalization) of proceeds from crime. Therefore, the entities of the State-based financial monitoring should develop a system of hedging risks regarding the placement of government bonds among different categories of investors. This is especially true of the over-the-counter market. It is worth noting that this segment of the stock market is under the partial control of the national depository of the NBU. Therefore, it is proposed to create an entity in the securities market that would adopt the functions of controlling and preventing fraudulent and manipulative actions with securities.

Investors and dividend yields

This paper examines investor preferences for holding stocks with different dividend yields in a low market interest rate environment. Using a unique dataset reflecting the ultimate stock ownership in publicly traded Swedish firms, we examine if different categories of investors have specific preferences for dividends and the size of the dividend yield. We find that domestic institutional investors, unlike foreign investors, have higher holdings in stocks with a high dividend yield. Using multivariate analysis, we document that stock portfolios with dividend-paying stocks outperform those with non-dividend-paying stocks. After controlling for the size of the dividend yield, we obtain mixed results involving stock performance for dividend-paying stocks and the results indicate no strong difference in the period following cuts in market interest rates.

Tax Efficient Structures for Hedge Fund Investing

We discuss the major structures available for hedge fund investing, and how different categories of investors may use these to reduce the risk of double taxation, or benefit from the characteristics inherent in hedge fund investments rather than owning the same assets directly.

ПОРЯДОК ЗДІЙСНЕННЯ ТА ОРГАНІЗАЦІЯ АНАЛІЗУ ДЕПОЗИТНИХ ОПЕРАЦІЙ БАНКУ

The article examines the procedure and organization of the analysis of deposit operations of the bank. It is noted that the analysis of deposit operations plays an important role in the field of effective management, which is a sign of quality banking management, and an indisputable condition for competitiveness, stability, liquidity and profitable activities of the bank. The analysis of the bank's deposit operations should be understood as a set of methodological approaches, techniques and methods for assessing the volume, structure and dynamics of deposits of their value and efficiency in the mobilization and use of its deposit resources to improve the overall strategy of the bank. The purpose of the analysis of deposit operations of the bank is to assess and determine areas for optimization, the object of analysis are banks, their branches or divisions that carry out deposit operations, the subject - is the activities of a commercial bank related to deposit operations and the subjects of analysis are commercial banks and other credit institutions. The main objectives of the analysis of deposit operations of the bank are: assessment of the share of deposit operations in the structure of liabilities and liabilities of the bank; analysis of time deposits of their volume, structure, dynamics; analysis of deposits to the question of their volume, structure, dynamics; assessment of the bank's deposit policy by indicators: term of use and currency of deposits; the level of settlement of funds received on deposits; deposit utilization rate; value of deposits, etc.; analysis of the development of the customer base of banks; analysis of the effectiveness of the formation and use of bank deposits. To form an effective deposit policy, it is necessary to: focus on potential depositors; develop new competitive products targeted at different categories of investors; develop a separate deposit policy for VIP-clients; pursue an active advertising policy; improve and implement remote customer service systems. It is noted that the definition of theoretical and practical principles of the procedure for conducting and organizing the analysis of deposit operations of the bank, will provide management with the necessary and important information for making quality management decisions in the field of deposit policy of the bank.

Fraudulent Reporting Perpetuated by CEO’s Team: Unveiling the Sayam ‘Modus Operandi’

Fraudulent reporting practices can have very significant consequences for organizations and all stakeholders, as well as, for public confidence in the capital and security markets. In fact, comprehensive, accurate and reliable financial reporting is the bedrock upon which our markets are based. Keen to project a ‘rosy’ picture of the Satyam Computer Services Limited to investors, employees and analysts, Mr. Raju (CEO & Chairman) and his team members ‘fudged’ the account books for 5 years so that it appeared to be a far bigger enterprise, with high profits and fast growth rate, than it actually was. The Satyam fraud has shattered the dreams of different categories of investors, shocked the government and regulators alike, and led to questioning of the accounting practices of statutory auditors and corporate governance norms in India. This is an exploratory and qualitative study based on secondary sources of information. An attempt has been made here to provide an explanation for various intriguing questions about Satyam scam. After thorough investigations by the CBI and SEBI, they have unveiled the methodology by which Satyam fraud was engineered. Finally, we recommend “Fraudulent reporting practices should be considered as a serious crime, and accounting bodies, law courts and other regulatory authorities in India need to adopt very strict punitive measures to stop such unethical practices.”

Fraudulent Reporting Practices by Satyam

Fraudulent financial reporting practices can have significant consequences for organizations and all stakeholders, as well as, for public confidence in the capital and security markets. In fact, comprehensive, accurate and reliable financial reporting is the bedrock upon which our markets are based. Keen to project a rosy picture of the Satyam to investors, employees and analysts, Mr. Raju (CEO and Chairman) fudged the account books so that it appeared to be a far bigger enterprise, with high profits and fast growth rate, than it actually was. The Satyam fraud has shattered the dreams of different categories of investors, shocked the government and regulators alike, and led to questioning of the accounting practices of statutory auditors and corporate governance norms in India. This is an exploratory study based on secondary sources of information. An attempt has been made to provide an explanation for various intriguing questions about Satyam scam. After thorough investigations by the CBI and SEBI, they have unveiled the methodology by which Satyam fraud was engineered. Finally, we recommend “Fraudulent reporting practices should be considered as a serious crime, and accounting bodies, courts and other regulatory authorities in India need to adopt very strict punitive measures to stop such unethical practices”.

Creative Accounting Scam at Satyam Computer Limited: How the Fraud Story Unfolded?

Keen to project a perpetually rosy picture of the Satyam to the investors, employees and analysts, Mr. Raju (CEO and Chairman) manipulated the account books so that it appeared to be a far bigger enterprise than it actually was. The Satyam fraud has shattered the dreams of different categories of investors, shocked the government and regulators alike, and led to questioning of the accounting practices of statutory auditors and CG norms in India. An attempt has been made to provide an explanation for various “intriguing” questions about Satyam scam, such as: What was the need to commit a fraud on such a large scale? How Raju managed to cook-up books? What was Raju’s real modus-operandi to manipulate the accounts for eight years? Why was Raju forced to blow his own whistle? Why was not there a stricter punitive action against the auditors of Satyam PwC?, etc.” Now, after thorough investigations done by the CBI and SEBI, they have unveiled the methodology by which Satyam fraud was engineered. Finally, we recommend that “CA practices should be considered as a serious crime, and as such, accounting bodies, law courts and other regulatory authorities in India need to adopt very strict punitive measures to stop such unethical CA practices”.

Investment Treaties and Shareholder Claims for Reflective Loss: Insights from Advanced Systems of Corporate Law

Corporate law in advanced domestic legal systems on the one hand, and typical treaties for the protection of foreign investment on the other hand, treat claims for damages by company shareholders differently. Advanced domestic systems generally bar shareholders from claiming for reflective loss – loss that arises from injury to their company (such as a decline in the value of shares). The claim for the loss belongs to the injured company and not to its shareholders. In contrast, shareholder claims for reflective loss have been widely permitted under typical investment treaties over the last 10 years. Ongoing OECD-hosted inter-governmental dialogue on investment law is considering whether there are policy reasons justifying the different approaches to shareholder claims for reflective loss. This paper examines shareholder claims for reflective loss under investment treaties in light of comparative analysis of advanced systems of corporate law. The paper considers the impact of allowing shareholder claims for reflective loss on key characteristics of the business corporation. The paper also explores possible responses by different categories of investors to the availability of shareholder claims for reflective loss under investment treaties.

How news affects the trading behaviour of different categories of investors in a financial market

We investigate the trading behaviour of a large set of single investors trading the highly liquid Nokia stock over the period 2003–2008 with the aim of determining the relative role of endogenous and exogenous factors that may affect their behaviour. As endogenous factors, we consider returns and volatility, whereas the exogenous factors are the total daily number of news articles and a semantic variable based on a sentiment analysis of the news. Linear regression and partial correlation analysis of the data show that different categories of investors are differently correlated to these factors. Governmental and non-profit organizations are weakly sensitive to news and returns or volatility, and, typically, they are more correlated with the former than with the latter. Households and companies, on the contrary, are very sensitive to both endogenous and exogenous factors, and volatility and returns are, on average, much more relevant than the number of news articles and sentiment, respectively. Financial institutions and foreign organizations are intermediate between these two cases, in terms of both the total explanatory power of these factors and their relative importance. We explicitly consider the role of overnight news and overnight returns on the successive trading activity and trading balance of the different categories of investors. We observe the role of the overnight news, which is weaker than the ones observed between synchronous variables. By performing a vector autoregression (VAR) analysis, we show that the flux of news of the previous day affects the trading activity of companies, households and foreign investors and the dynamics of volatility. VAR is not detecting any role of the lagged sentiment in the successive values of the difference between the number of buying and selling investors for each category of investors.

Institutional investors and ownership engagement

This article provides a framework for analysing the character and degree of ownership by investors.It argues that the general term institutional investor in itself doesn’t say very much about the quality or degree of ownership It is therefore an evasive shorthand for policy discussions about ownership The reason is that there are large differences in ownership between different categories of investors. There are also differences in ownership within the same category of investors such as hedge funds, investment funds,etc. These differences arise from the fact that the degree of ownership is determined by a number of different features and choices that together make up the investor’s When ownership is not a central part of the business model,public policies and voluntary standards aiming to improve the quality of ownership among investors are likely to have limited effect. Based on an empirical overview of the relative sise of different categories of investors, the article identifies a set of 7 features and 19 choices that in different combinations define the investor’s business model. These features and choices are then used to establish a taxonomy for identifying different degrees of ownership ranging from no engagement to inside engagement.

English

The pricing of initial public offering (IPO) plays a vital role for both the issuers and the investors. Therefore they also have a profound impact on the activities of primary and secondary capital markets. Extensive literature on pricing of IPOs has reported a significant mis-pricing across countries during different time periods. The present study analyzes the pricing of 207 book built IPOs listed on Bombay Stock Exchange (BSE) during the period from April 2004 to August 2009.The issuers provide rich information regarding their company and the issue pertaining to IPO before it gets listed. Therefore the study aims to find out how far the publicly available information about an IPO is affecting its pricing on the listing day. Furthermore the study identified the determinants of subscription pattern and opening returns on the listing day. It was found that different categories of investors do not subscribe independently. They instead look to the more informed investors to base their decisions. The results suggest that the issuers need to consider the impact of publicly available information before they decide the issue price. Key words: IPO, Underpricing, overpricing, book building, subscription, market return, opening return.

The intraday behavior of information misreaction across various categories of investors in the Taiwan options market

This study adopts a unique dataset that includes the complete history of transactions in the Taiwan options market to investigate the misreaction patterns for marketwise observations and the transactions of four different categories of investors in the high-frequency framework. Using the results from model-free tests as benchmarks, we find that model-based tests incorrectly indicate the existence of investor misreaction and show the differences of misreaction degree among investor categories. Our findings are robust to alternative observation frequencies and duration definitions.

The Intraday Behavior of Information Misreaction Across Various Categories of Investors in the Taiwan Options Market

This study adopts a unique dataset that includes the complete history of transactions in the Taiwan options market to investigate the misreaction patterns for marketwise observations and the transactions of four different categories of investors in the high-frequency framework. Using the results from model-free tests as benchmarks, we find that model-based tests incorrectly indicate the existence of investor misreaction and show the differences of misreaction degree among investor categories. Our findings are robust to alternative observation frequencies and duration definitions.

Contextualised Capital: Policy Reforms and Inward Flows in Germany

Policy-makers in Germany have implemented, from the early 1990s to the mid 2000s, an impressive set of reforms designed to provide greater legal protection to minority shareholders. These reforms are linked with circumscribed changes: medium and long-term UK/US-based institutional investors have become major shareholders of large German firms; the incursions of short-term institutional investors, in contrast, have been more limited. This outcome highlights the interaction between firm-level institutional arrangements of German companies and the characteristics of different categories of shareholder value oriented funds. Institutional arrangements act as constraints that reduce the range of the strategic options of German firms. However, institutions are not specific enough to translate into predictions about the investment behaviour of different categories of investors who are themselves governed by internally defined rules that affect how they operate within an institutional framework.

How News Affect the Trading Behavior of Different Categories of Investors in a Financial Market

We investigate the trading behavior of a large set of single investors trading the highly liquid Nokia stock over the period 2003-2008 with the aim of determining the relative role of endogenous and exogenous factors that may affect their behavior. As endogenous factors we consider returns and volatility, whereas the exogenous factors we use are the total daily number of news and a semantic variable based on a sentiment analysis of news. Linear regression and partial correlation analysis of data show that different categories of investors are differently correlated to these factors. Governmental and non profit organizations are weakly sensitive to news and returns or volatility, and, typically, they are more correlated with the former than with the latter. Households and companies, on the contrary, are very sensitive to both endogenous and exogenous factors, and volatility and returns are, on average, much more relevant than the number of news and sentiment, respectively. Finally, financial institutions and foreign organizations are intermediate between these two cases, in terms of both the total explanatory power of these factors and their relative importance.

New Thinking in Financial Market Regulation: Dismantling the “Split Share Structure” of Chinese Listed Companies

China’s distinctive set of stock market institutions was introduced in 1990. Among the characteristics of China’s stock markets was a strict separation between different categories of investors. Listed companies issued different categories of shares to state shareholders, domestic corporate investors, domestic individual investors, and foreign investors. By 2005, the barriers segmenting China’s stock market had been significantly relaxed. Domestic investors were allowed to purchase shares previously reserved for foreign investors, and approved foreign investors were allowed to purchase shares previously earmarked for domestic individuals. Nevertheless, a crucial barrier remained. An ongoing debate among Chinese academics, investors, and policy makers focused on how to resolve the “split share structure” (guquan fen zhi) in which a minority of shares were tradable while the majority of shares (namely those reserved for domestic corporate and state shareholders) were excluded from the market. The split share structure was blamed for distorting prices and inhibiting development of the stock market. This paper analyzes the policy adopted to address the split share structure. To what extent does this policy change reflect new thinking on the part of China’s market regulators? This paper argues that analysis of policy making in China’s capital markets can help to distinguish between two competing assessments of China’s political economy. One account sees China pursuing a gradualist strategy, slowly but steadily expanding the role of markets. Another account sees China trapped in a semi-marketized and increasingly corrupt development pattern. The implementation of the split share structure reform program provides evidence to support the gradualist account of incremental, but persistent, reform.

A History of Scandinavian Socially Responsible Investing

This article contributes to the literature on national varieties of socially responsible investment (SRI) by demonstrating how Scandinavian SRI developed from the 60s and onwards. Combining findings on Scandinavian SRI with insights from previous research and institutional theory, the article accounts for the role of changes in societal values and norms, the mechanisms by which SRI practices spread, and how investors adopt and transform practices to suit their surrounding institutional contexts. Especially, the article draws attention to how different categories of investors act as institutional entrepreneurs during specific historical periods, and how these roles come to shift as institutional rule systems of varying societal levels change. Thus, the insights gained are useful in the future research agenda concerned with advancing knowledge on idiosyncrasies and commonalities of national SRI manifestations, and to understand the reasons underlying such characteristics.