Effect Of Investment Decisions Research Articles

PENGARUH KEPUTUSAN INVESTASI TERHADAP NILAI PERUSAHAAN MELALUI KINERJA PERUSAHAAN SEKTOR PERTAMBANGAN DI BURSA EFEK INDONESIA (BEI)

The purpose of this research is to determine the effect of Investment Decision on Firm’s Value through Firm Performance. The object of this research was mining companies listed on Bursa Efek Indonesia (BEI) during 2016-2018. Firm’s value as dependent variable measured by PBV and EPS. The independent variable in this research is investment decision measured by PER and MBVA. Then, intervening variable is firm performance measured by ROA and ROE. Data analysis techniques use Partial Least Square (PLS) and from data processing and hypothesis testing, produced 3 accepted hypothesis and 1 hypothesis is rejected. The results of this study were (1) Investment decision has no effect on firm value, (2) Investment decision has positive effect on firm performance, (3) Firm performance has positive effect on firm’s value, (4) Firm performance has mediating effect on the relationship between investment decision and firm’s value.Kata Kunci : Investment Decision, Firm Performance, and Firm’s Value.

FINANCIAL PERFORMANCE AS MEDIATOR ON THE IMPACT OF INVESTMENT AND FINANCIAL DECISIONS ON STOCK PRICE AND FUTURE PROFIT: THE CASE OF THE JORDANIAN FINANCIAL SECTOR

The current study investigates the effect of investment and financial decisions on stock prices and future profits in the presence of financial performance as an intermediate variable. Thus, the case of the Jordanian banking and insurance sector is analysed. The sample includes 13 banks and 10 insurance companies from 2009 to 2018. A structural equation modeling analysis is conducted using the AMOS 23 software to test the hypotheses and validate the model. Financial decision exhibits no effect on future profits and stock prices, whereas investment decision affects future profits and stock prices. Financial performance is considered a mediator in the effect between financing decision and future profits. By contrast, financial performance fails to mediate the impact of financial decision and stock prices. In addition, it cannot mediate the effect of investment decision on future profits and stock prices.

The Effects of Competitive Environment and Strategic Factors on US Firm Performance Before and After the Global Financial Crisis

We developed a model that examines the effects of competitive environment, investment decisions, and competitive position on firm performance before and after the 2008 global financial crisis. As a result, we identified that, in the period before the crisis, firm performance was determined by both the competitive environment and as also by firm’s competitive position. Regarding the period after the crisis, firm performance was determined by both the competitive environment and firm competitive position, in combination with the effects of investment decisions.

Liquidity Moderating the Effect of Production Resources, Investment Decisions and Corporate Social Responsibility on Corporate Performance

The purpose of this study investigates the effect of simultaneous and partial production resources, investment decision, and corporate social responsibility on company performance and investigate liquidity as a moderating variable on the effect of production resources, investment decisions, corporate social responsibility on corporate performance.The population of this research is 148 manufacturing companies listed on the Indonesia Stock Exchange, the selection of research samples using purposive sampling method with criteria revealed the realization of CSR expenses in the 2016-2018 period so that 77 manufacturing companies were obtained with 3 years of observation and 231 years of corporate data were obtained, data analysis method used multiple regression analysis and moderate regression analysis (MRA).Research findings: 1) Production Resources, Investment Decisions, Corporate Social Responsibility simultaneously influence and significantly affect Corporate Performance. 2) Production Resources have a negative and significant effect on Corporate Performance. 3) Investment Decisions have a positive and significant effect on Corporate Performance. 4) Corporate Social Responsibility have a positive and significant effect to corporate performance. 5) Liquidity moderates the effect of production resources to corporate performance. 6) Liquidity does not moderate the effect of investment decisions to corporate performance. 7) Liquidity does not moderate the effect of corporate social responsibility on corporate performance. Keywords: Corporate Performance, Production Resources, Investment Decisions, Corporate Social Responsibility, Liquidity. DOI : 10.7176/RJFA/10-20-03 Publication date :October 31 st 2019

Strategic Investment Decisions: An Empirical Study of Power Sector in India

Organization culture, internal resources and tools, industry, eco–techno environment and socio-political environment factors are combined to build a model to evaluate their impact on the effectiveness of strategic investment decisions. Empirical data collected from decisions makers in the Indian power sector was used for the study, and it was observed that all latent factors have a positive effect on the effectiveness of investment decisions at 90% confidence level. Though the internal resources and tools and socio-political environment do not have a positive impact on the effectiveness of investment decisions at 95% confidence level based on interaction effects, it may be argued that the socio-political environment strengthens a positive relationship between internal resources and tools; and the effectiveness of strategic investment decisions. There is no significant difference except for the effect of socio-political environment factors and internal resources and tools.

INVESTMENT DECISION , CAPITAL DECISION , INDUSTRY PERFORMANCE , ECONIMIC MACROS AS ANTECEDENT VARIABLES OF FINANCIAL RISK MANAGEMENT AND FINANCIAL DISTRESS AGAINST VALUE OF THE FIRM WITH GCG AS A VARIABLE MODERATING FOR MANUFACTURING COMPANIES REGISTERED ON THE INDONESIAN STOCK EXCHANGE

The purpose of this study is to analyze and prove the effect of Investment Decision, Capital Decision, Industry Performance, Macro Economic As Antecedent Variables of Financial Risk Management And Financial Distress To Value Of The Firm With GCG As Moderating Variables. The population of this study is manufacturing companies listed on the BEI from 2014 to 2016 . Using the method of purposive sampling it was found 40 manufacturing companies as research samples. The result of this research shows that Investment Decision, Capital Decision , Industry Performance , Macro Economic, Financial Distress and GCG have significant influence to the company value of the firm , but Financial Risk Management has no significant influence to company value of the firm . GCG moderates significantly the influence of Financial Distress and Financial Risk Management on Value of the firm

Dividend and Agency Conflict in Indonesian Manufacturing Firms

Companies in Indonesia have shareholders who are not dispersed or in other words theownership is only held by one majority shareholder. This study examined the effects ofinvestment decision on the firm value and the debt moderation on the effects of investmentdecisions on firm value. Debt moderation was used to test the agency conflict of debtuse on investment decision. The company samples in this research were 90 companies.This research was conducted by using panel data regression with moderation. This studyfound that investment decision had a positive effect on firm value and the use of higherdebt could lower the positive effect of investment decision on firm value.

PENGARUH KEPUTUSAN INVESTASI, KEPUTUSAN PENDANAAN DAN KEBIJAKAN DIVIDEN TERHADAP NILAI PERUSAHAAN FOOD AND BEVERAGES

Companies that want to maximize the value of the company, will take some decisions such as investment decisions, dividend policies, and funding decisions. The purpose of this study is to explain the effect of investment decisions, funding decisions, and dividend policy on the value of food and beverages companies listed on the Indonesia Stock Exchange. The samples used in this study were selected in saturation sampling. Secondary data obtained then selected based on predetermined criteria, then obtained as many as 13 sample during period of year 2013-2016. Data analysis technique used is multiple linear regression analysis. The results showed that investment decisions, funding decisions, and dividend policies have a positive and significant impact on the value of food and beverages companies. The suggestion that can be given is to pay more attention to internal factors of the company. These variables can be used as a reference to establish a strategy in increasing the value of the company. Good corporate value shows the level of good corporate financial health so as to make the value of the company will be increased and in demand by investors.
 Keywords: Investment Decision, Fund Decision, Dividend Policy, Corporate Value

Effect of Investment Decisions, Capital Structure, Profit Management, Cash Flow of Corporate Social Resposibility Reporting, Financial Performance and Value of Manufacturing Companies Listed in Indonesia Stock Exchange

The manufacturing company is a company of processing raw materials into products sold into the market. Managers as managers of the company more knowing internal information and prospects of the company in the future than the owners (shareholders). As a Manager, the manager shall be obliged to provide a signal about the condition of the company to the owner. The given signal can be done through the disclosure of accounting information such as financial statements. Basic financial statements provide a lot of information required users to make economic decisions. This research was conducted using a sample of annual reports on the Indonesia stock exchange from the year 2014 to 2016, because the company was pretty much done regression techniques cross section by meeting some of the criteria which may be taken as sample. Sample from a population of 30 companies that meet the criteria of a sample with the limitations of Partial Least Square (PLS). Partial Least Squares is a factor indeterminacy analysis method which is powerful because it doesn't assume the data is to be with a certain scale and the measurement of the amount of the sample is small. Research results can be concluded that Investment decision, capital structure, free cash flow and earning management effect significantly to Corporate Social Responsibility (CSR) Disclosure on companies listed in Indonesia Stock Exchange (IDX). Investment decision and capital structure no effect on financial performance significantly to companies listed in IDX. Free cash flow and earning management effect significantly to financial performance in company listed in IDX. Investment decision do not affect significantly to the value of the firm at companies listed in IDX. Capital structure, free cash flow and earning management effect significantly to the value of companies listed in IDX. CSR Disclosure effect significantly to financial performance and value of the firm listed in IDX. CSR Disclosure and financial performance effect significantly to the value of the firm at companies listed in IDX.

Effect of Investment Decisions on Financial Performance of Retail Investors in Kisii Town

Effect of Investment Decisions on Financial Performance of Retail Investors in Kisii Town

Analysis on the Imitation Effect of Investment Decisions in Internet Lending Market

Nowadays, internet lending has become an important model that cannot be ignored in China financial lending market. Based on the individual transaction data of Chinese Paipaidai website, this paper examines the existence, rationality, decline and heterogeneity of the imitation effect of lenders’ investment decisions in China internet lending market. It is found that the potential lenders’ investment decisions imitation effect in the internet lending market is influenced by the previous cumulative bid times and the previous cumulative fundraising amount. With the decrease of information transmitted by the characteristics of imitation effect, the follow-up imitation effect of potential lenders will become more and more rational, and the imitative effect will gradually decrease and eventually disappear after reaching a certain peak value, furthermore, the lenders’ investment decision imitation effect of loan orders with poor information disclosure is more prominent than that of orders with perfect information disclosure. The research shows that the imitation effect of lenders’ investment decisions is mainly related to incomplete information disclosure in the internet loan market, and the paper’s outcome is important for us to exhaustively understand the risk accumulation caused by lenders’ investment decisions imitation effect and how to solve the information disclosure mechanism problem effectively.

Intellectual Capital and Agency Conflict

The present research discussed the effect of intellectual capital on agency conflict through investment decision, financing decision, and dividend policy. The research used panel data with a sample of 90 manufacturing firms listed on the Indonesia Stock Exchange (IDX) between 2004-2013. The research used three stages least squares estimation technique to test simultaneous model and z-clogg to compare coefficient between the two models. Simultaneous model showed that the negative effect of investment decision, financing decision, and dividend policy on value of a firm reduced with the existence of higher intellectual capital. Based on the analysis, it can be concluded that investment decision, financing decision, and dividend policy showed agency conflict. Higher intellectual capital in a firm helps in reducing the agency conflict in a firm ; so, it can be concluded that intellectual capital can direct management behavior leading to decisions that increase the value of the firm.

KEPUTUSAN INVESTASI, KEPUTUSAN PENDANAAN, DAN KEBIJAKAN DIVIDEN TERHADAP NILAI PERUSAHAAN MANUFAKTUR

The purpose of this study was toexamine the effect of investment decisions, financing decisions and dividend policy on firm value. The sample in this study is a manufacturing company established on criteria. Data were obtained from the Indonesian Capital Market Directory (ICMB) and the manufacturing company's financial statement since the period 2008-2011. Based on purposive sampling method, samples obtained by 158 observations. Regression analysis done based on the results of the data analysis. The hypothesis in this study were tested using multiple regression analysis. This study concludes some of the following: (1) variable dividend policy was not shown to affect the value of the company, (2) variable funding decisions variable shown to affect tthe value of the company,(3) investment decision variables was not shown to affect tthe value of the company. Keywords: investment decisions, financingdecisions, dividend policy, the value ofthe company

Risk management using index-linked catastrophic loss instruments

One way for insurance companies to ensure against high losses due to catastrophic events is the purchase of index-based catastrophic loss instruments. The payoff of these instruments is strongly related to the development of an index, which implies that the degree and type of dependence between the insurer’s losses and the index is crucial for their hedging effectiveness. In addition, management strategies on the asset side play an important role for risk management. In this paper, effects of investment decisions and index-based risk transfer instruments on an insurer’s solvency capital requirements are investigated with special focus on the impact of the degree and type of dependence between relevant processes.

A Note on Wealth Effect under CARA Utility

There is a simple method to account for the wealth effect of investment decisions that works under CARA utility via making the absolute risk aversion parameter wealth-dependent. Focusing on the setting of Verrecchia (1982), we compare our approach with that of Peress (2004) who instead changes preferences. We demonstrate that implementing our approach leads to a straightforward, tractable analysis, while Peress has to resort to approximate methods. Importantly, our closed-form solution reveals that the relation between wealth and wealth share invested in a risky asset can be negative, while Peress's main result is that this relation is uniquely positive.

Endogenous mergers and endogenous efficiency gains: The efficiency defence revisited

We analyse the effects of investment decisions and firms' internal organisation on the efficiency and stability of horizontal mergers. In our framework efficiency gains are endogenous and there might be internal conflict within merged firms. We show that, both with and without conflict, stable mergers often do not generate efficiency gains. In the case of internal conflict, mergers may even lead to efficiency losses. Our welfare results suggest that antitrust authorities may approve welfare-reducing mergers (type II error) and block welfare-enhancing mergers (type I error) if they assume that potential efficiency gains will always be realised. In addition, the paper offers a possible explanation for merger failures.

Saver Behavior and 401(k) Retirement Wealth

Contributions to 401(k) plans are now the most important form of retirement saving. Since 401(k) plans were introduced in the early 1980’s, they have expanded rapidly and continuously. By 1998, roughly half of all households were eligible to participate in 401(k) plans, and more than 36 million workers made contributions to these employer-provided saving plans. In 1995, the last year for which the U.S. Department of Labor has released definitive data, 401(k) contributions amounted to $87.4 billion, or 55 percent of all contributions to employer-sponsored pension plans. The level of contributions, and their share of all pension contributions, is probably significantly higher today. The spread of 401(k) plans is the most important indicator of the move to personal retirement saving. In 1980, almost 92 percent of pension-plan contributions were to traditional employer-provided plans, and about 64 percent of these contributions were to conventional defined-benefit plans. Today, almost 60 percent of contributions are to personal retirement accounts, including 401(k), IRA, and Keogh plans. Including employerprovided, non-401(k) defined-contribution plans, over 76 percent of contributions are to plans that are controlled in large measure by individuals. These individuals make participation, contribution, asset-allocation, and withdrawal decisions. In this paper, we describe the likely importance of 401(k) assets for future older Americans and the effect of investment decisions on asset accumulation. We also examine the extent to which retirement assets may be affected by several decisions: preretirement withdrawals, management fees and expenses, contribution rates, and early retirement. Our analysis focuses on 401(k) saving, but applies more broadly to other forms of individual retirement saving.

The Economic Significance of Some Simple Models of Time Series Stock Return Predictability

In this paper we study the economic significance of simple time series models of stock return predictability. We investigate the practical usefulness of recent findings on time series return predictability of stock returns and their volatility for dynamic tactical asset allocation decisions. We introduce a mean variance investor with an investment horizon of one year who takes investment decisions daily. When stock returns follow a random walk this investor holds constant proportions of a stock market index and a risk free asset. Using past data and knowledge of some well known return predictability results (i.e. predictability based on calendar anomalies and predictability from economic variables like dividend yields and short term interest rates), we evaluate whether, how and to what extent these predictability results might affect his investment decisions. For this investor we also investigate the practical usefulness of knowledge about the predictability over time of market volatility. The design we choose is as follows. We give the predictability results the benefit of the doubt and assume that all the estimates and models are correct and indeed accurately describe the true return generating process. We then analyze analytically, numerically and by Monte Carlo simulation the effect of investment decisions--conditional on these predictability results--on the return distribution of his portfolio. We also introduce transactions costs in this setting; these influence investment choices. Our main findings are that small transactions costs substantially reduce potential benefits of trading on calendar anomalies. Generally, however trading remains profitable under the assumption that stock market returns are partially predictable from economic variables like dividend yields and interest rates. This holds for relatively large transactions costs. Trading on volatility predictability is not profitable, except in the case of negligible transactions costs.

STRUCTURAL PLANNING UNDER CONTROLLABLE BUSINESS RISK

IN HIS FUNDAMENTAL WORKS [15] and [16] Douglas Vickers integrates the production, investment and financing decisions of the firm into a useful and illuminating model. He deals with uncertainty using riskadjusted capitalization and interest rates, assumes constant business risk and treats financial risk as a function of leverage. This paper extends Vickers' analysis by allowing business risk to depend on production and investment decisions.' In particular, it derives a criterion for investment decisions under general uncertainty and market organization conditions when business risk is subject to control. The effect of investment decisions on business risk has been studied by several authors (Hamada [4], Mossin [9], and Tuttle and Litzenberger [13]) under the conditions of idealized uncertainty assumed in the Sharpe-Lintner capital market theory. The investment criterion derived in this paper is shown to be generalization of theirs, and of the one obtained