Financial Investment Decisions Research Articles

Impact of Indian Accounting Standards (IND AS) on Financial Statements

The adoption and implementation of accounting standards play a pivotal role in shaping the financial reporting landscape of a country, influencing how businesses communicate their financial performance and position to stakeholders. In the case of India, the transition from Generally Accepted Accounting Principles (GAAP) to Indian Accounting Standards (Ind-AS) marked a significant paradigm shift in the accounting framework. The move was aimed at aligning Indian accounting practices with global standards, fostering transparency, comparability, and international investment. Historically, India had been following its own set of accounting standards, which sometimes diverged from international norms, leading to challenges in cross-border financial analysis and investment decisions. Recognizing the need for convergence with International Financial Reporting Standards (IFRS), the Ministry of Corporate Affairs (MCA) in India mandated the adoption of Ind-AS for certain classes of companies, primarily listed entities and large unlisted companies. The adoption of Ind-AS was a phased process, with the first set of companies transitioning in the financial year 2016-17. The primary objective was to enhance the quality and reliability of financial reporting, making it more comparable and relevant on a global scale. Ind-AS aimed to bring about consistency in accounting treatments, disclosures, and presentation of financial statements, fostering a more transparent and investor-friendly environment. One of the key motivations behind the shift to Ind-AS was to facilitate easier access to global capital markets for Indian companies. By adhering to internationally recognized accounting standards, Indian businesses sought to attract foreign investment and broaden their investor base. This move was particularly crucial as India aimed to position itself as a global economic player, attracting multinational corporations and fostering cross-border investments. The implementation of Ind-AS introduced changes in various aspects of financial reporting, affecting balance sheets, income statements, and disclosure practices. Companies faced the challenge of adapting to new measurement criteria, recognition principles, and disclosure requirements. The impact of these changes extended beyond mere compliance; it influenced how companies assessed their assets, liabilities, and overall financial performance. Additionally, the adoption of Ind-AS prompted companies to reevaluate their internal control mechanisms, financial policies, and governance structures. The transition required a robust framework for training and educating financial professionals, auditors, and other stakeholders to ensure a smooth and accurate implementation of the new standards.

THE INFLUENCE OF FINANCIAL LITERACY AND FINANCIAL TECHNOLOGY ON GENERATION Z INVESTMENT DECISIONS (CASE STUDY OF MANAGEMENT STUDENTS OF BANDAR LAMPUNG UNIVERSITY CLASS OF 2020)

With an asset value of IDR 144.07 trillion at the end of the first semester of 2022, stock investors under 40 years old, namely gen Z and millennials by 81.64 percent. Most investors, 60.45%, work as private employees, civil servants, teachers, and students, with an asset value of Rp358.53 trillion. Demographic data shows that the majority of stock investors live on the island of Java, including 13.97% of those living in DKI Jakarta, with an asset value of Rp3,772.32 trillion. While the island of Sumatra is only 16.62%. From the explanation above, we can conclude that there is still low investment interest in several regions, especially Sumatra. The research problems are: Can financial literacy affect investment decisions in generation z in Bandar Lampung city, whether there is an influence between financial technology on investment decisions in generation z in Bandar Lampung city, whether financial literacy and financial technology can affect investment decisions in generation z in Bandar Lampung city.The purpose of this study is to determine the influence of financial literacy and financial technology towards investment decisions in generation z in Bandar Lampung city. Based on the results of the t test, it shows that the value of t calculated for Financial Literacy is greater than t table (3.687 > 1.998), and the value of sig = 0.006 < 0.05. In multiple regression analysis, financial literacy has a positive value for investment decisions. Financial technology has a positive and significant influence on the investment decisions of students or generation Z in the city of Bandar Lampung, meaning that the hypothesis is accepted. The results of the t test show that the value of t calculated by Financial Technology is greater than t table (2.515 > 1.998). In multiple regression analysis, financial technology has a positive value for investment decisions. The results of processing and analysis show that financial literacy and financial technology have a positive and significant impact on the investment decisions of generation Z in Bandar Lampung.

An Intelligent Financial Investment Decision Model Based on Multi-agent Reinforcement Learning

An Intelligent Financial Investment Decision Model Based on Multi-agent Reinforcement Learning

A Review Study on ‘Financial Investment Decision of Individual Investor’ based on their Behavioral Biases and other aspects.

Investment in a wide range of securities and financial instruments has resulted from the growth of the financial markets. Thus, behavioural finance has illuminated how the characteristics and thought processes of investors impact their intents and decisions while making investments. We did a thorough analysis of the most recent studies on the major variables influencing people's behaviour and investing decisions. By using bibliometric analysis, this study seeks to provide a thorough method for assessing qualitative elements that affect investors' intentions and behaviours when making financial investments. By examining the causes and methods of individual investors' decision-making, especially in emerging markets, the study advances the discipline of behavioural finance.

Wealth as a moderating effect on gender differences in portfolio holdings

Using a unique data set of 6556 investment advisory clients at a large European wealth management institution we reveal how wealth trumps gender in determining the investment risk taking behaviour of women. While overall the advisory portfolios held by women contain less equity exposure and therefore have lower risk and return profiles than those held by men, this effect is attenuated when controlling for portfolio size. The portfolios of women with less than EUR200,000 invested contain higher equity allocations, i.e., more risk, and achieve greater returns, but they do not incur higher advisory fees compared to women with larger portfolios. These results confirm the moderating effect of wealth on gender. Furthermore, across both genders these smaller investors absorb more risk and have higher returning portfolios than investors with larger portfolios. Contributing to research on the role of gender in financial advice and investment decision making, our results are relevant to financial advisors and their clients.

Unsystematic Risk Management Based on Financial Literacy as a Supporting Factor in Investment Decisions

This research examines financial literacy's influence on investment decisions through unsystematic risk management. The data source used in this research is primary data obtained through a questionnaire. The sampling technique used was purposive sampling, using sample criteria to enter as a research sample. This research involved 88 respondents as research samples. The analytical tool used to carry out statistical tests is SmartPLS. This study found that financial literacy and unsystematic risk management simultaneously had a significant positive effect on investment decisions. Unsystematic risk management has a significant positive effect on investment decisions. Furthermore, unsystematic risk management can mediate the relationship between financial literacy and investment decisions. This study highlights investor behavior in making investment decisions using the theory of planned behavior approach.

Environmental finance under ESG: A literature review and synthesis

<p>This paper aims to review the literature on ESG (environment, social, and governance) Finance based on the Scopus database and to synthesize the review. Three advantages of embracing ESG into corporate finance are identified based on the literature reviewed. First, this positively influences financial investment decisions; second, it can leverage advancements in technology and innovations; and third, it can create proactive risk management. Overall, it is still believed and conceptually accepted that integrating ESG criteria within the investment decision-making process brings a consolidated approach to the investment strategy, aligning social and environmental benefits with financial returns and driving positive performance and shareholder value in the long run.<strong></strong></p>

The Impact of Financial Literacy, Investment Knowledge, and Investment Motivation on Investment Decisions

This study investigates the relationship between management students' investment decisions and their financial literacy, knowledge, and motivation at Dr. Soetomo University in Surabaya. A total of 308 students from this academic program were chosen for the study using purposive sampling techniques, guaranteeing that the study's population is representative of the student body. We distributed carefully crafted questionnaires for data collection through Google Forms as part of the methodology used in this study. Purposive sampling methods are used to ensure the student body is well represented. We meticulously examined the gathered data using a variety of statistical methods. Among these were evaluations of reliability and validity, analyses of multiple linear regression, tests of classical assumptions, evaluations of correlation coefficients, and F and t-tests. This study uncovered insightful relationships between students' financial literacy, investment knowledge, motivation, and investment decisions. The study found no statistically significant impact of financial literacy on investment decisions, contrary to expectations. The results of the study, however, highlighted the importance of respondents' unique investment knowledge and motivation in molding their investment choices. Students' level of financial literacy, investment knowledge, and investment motivation significantly impacted their investment decisions as a whole. By considering these factors in context, we can better understand the complex dynamics at work when management students at Dr. Soetomo University make investment decisions.

The Influence of Islamic Financial Literacy, Islamic Financial Inclusion, and Financial Behavior on the Investment Decisions of Generation Z in West Java

The largest number of Generation Z in Indonesia has potential for economic development. This is because the younger generation possesses high levels of technological skills, making them promising investors and key drivers in advancing investment growth in Indonesia. This research aims to analyze the levels of Islamic financial literacy and inclusion and their influence on financial behavior and investment decisions using descriptive analysis and the SEM-PLS method. The research results indicate that the average level of Islamic financial literacy was 77.9% (well-literate) and the level of Islamic inclusion was 80.5% (high). Islamic financial literacy and Islamic financial inclusion significantly affect investment decisions while financial behavior does not significantly affect investment decisions. This study contribute to enhance the index of literacy and financial inclusion in sharia finance for the younger generation, as well as promoting participation in sustainable investments oriented towards sharia principles.

THE INFLUENCE OF FINANCIAL PERFORMANCE AND INVESTMENT DECISIONS ON COMPANY VALUE WITH DIVIDEND POLICY AS A VARIABLE INTERVENING

The aim of this research is to analyze the influence of financial performance and decisions investment towards dividend policy with company value as an intervening variable. The research method uses a quantitative approach in banking sector companies listed on the IDX for the 2018-2022 period. The analysis method for this research uses SPSS (Statistical Product and Service Solution). The results of the research show that the influence of financial performance has a positive and significant effect on company value, financial performance has a positive and significant effect on dividend policy, investment decisions have a positive and significant effect on dividend policy, investment decisions have a positive and significant effect on company value. Results of the influence of dividend policy mediating financial performance variables and investment decisions on company value. KEYWORDS: dividend policy, investment decisions, financial performance, company value

Fluctuation and forecasting of gold prices in Saudi Arabia’s market

PurposeThe purpose of this study is to analyze the fluctuations in gold prices within the Saudi Arabian market and to develop a reliable forecasting model to aid market participants and policymakers in making informed decisions.Design/methodology/approachIn this study, we employ a rigorous time series analysis methodology, including the ARIMA (Auto Regressive Integrated Moving Average) model, to analyze historical gold price data in the Saudi Arabian market. The approach involves identifying optimal model parameters and assessing forecast accuracy to provide actionable insights for market participants.FindingsThe study showcases that the autoregressive properties of past gold prices play a pivotal role in capturing the inherent serial correlation within the market, enabling the ARIMA model to effectively forecast future gold price movements with accuracy.Research limitations/implicationsOur study primarily focuses on quantitative analysis, whereas few qualitative parameters are not included. Future studies may benefit from incorporating qualitative factors and expert opinions to enhance the robustness of gold price predictions and capture the full spectrum of market dynamics.Social implicationsParticipants and policymakers may find this study helpful in navigating the complicated Saudi Arabian gold market. By understanding financial stability and investment decisions more thoroughly, individuals and institutions may be able to manage their portfolios more effectively.Originality/valueBy combining historical insights with advanced ARIMA modeling techniques, this research provides valuable insight into gold price dynamics in the Saudi Arabian market.

The Evolution of FinTech and its Effects on Financial Decision Making: A Systematic Literature Review

The development of FinTech technology has changed the financial landscape, having a significant impact on individual and corporate financial decision-making. Through a systematic literature review, this research investigates the evolution of FinTech and its effects on financial management behavior, product preferences, investment decisions, and consumer confidence. FinTech has improved accessibility, product innovation, data analysis, competition in the market, and security, while also raising challenges such as data security issues and the risk of bias in decision making. With a deeper understanding of this relationship, steps can be taken to maximize the benefits of FinTech while minimizing the risks.

Analysis of Financial Literacy and Financial Behavior Toward Investment Decisions on Millennial: Technological Advancement as A Moderating Variable

Technology is increasingly rapid in people's lives, including in the fields of economics and business. Economic and business development cannot be separated from the role of technology. The increasingly rapid development of technology currently also spurs the irrational consumption behavior of some people, this situation has an impact on life. Therefore, a person's financial literacy is needed in responding to these challenges, especially in financial management. It is hoped that technological advances can strengthen people's financial literacy and financial behavior. The aims of this research is to examine the effect of financial literacy and financial behavior on investment decisions; examines the moderating role of technological advance on the influence of financial literacy and financial behavior on investment decisions. This research uses a quantitative approach, with convenience sampling techniques. This research uses primary data through a survey distributed online. The data analysis technique uses the Structural Equation Modeling (SEM) test. The research results show that financial literacy has no effect on investment decisions, while financial behavior has a positive effect on investment decisions. Then, technological advances can strengthen the influence of financial intelligence on investment decisions, while technological advances do not moderate the influence of financial behavior on investment decisions.

ANALISIS PERILAKU KEUANGAN DAN LITERASI KEUANGAN TERHADAP KEPUTUSAN INVESTASI MAHASISWA DI BATAM

According to the results of the 2020 population census, of the 2.06 million population in the Riau Islands, 71% of the population or around 1.45 million people are in the productive age range (15-64 years). The 2020 population census also shows that the population of the Riau Islands is still concentrated in Batam City, where around 57.95% of the population of the Riau Islands live in Batam City. Capital market investors in the Riau Islands are still very small compared to the number of productive age population, which indicates that the level of public awareness in investing is still low. This research aims to analyze the level of willingness of the millennial generation (in this case students) to invest. It is hoped that the results of this research will provide an overview of how financial behavior influences investment decisions; How does Financial Literacy influence Investment Decisions? The research method uses descriptive analysis with a quantitative approach. The population in this study consisted of students in the city of Batam. The sample for this research were students from the Accounting study program at Putera Batam University. The results of the research using the t test to test partial effects showed that: Financial Behavior influences Student Investment Decisions with a Sig value of 0.000<0.05; Financial Literacy influences student investment decisions with a Sig value of 0.000 <0.05. Meanwhile, by testing the influence simultaneously using the F test, it was found that Financial Behavior Financial Literacy jointly influences student investment decisions in Batam City with a Sig value of 0.000<0.05, where R Square shows 70.6%.

Generation Z Investment Decisions Influenced by Financial Behavior: Mediated by Financial Literacy

Generation Z, born between the mid-1990s and early 2010s, has become a desirable demographic for the financial industry due to their unique upbringing in the digital age. This generation is proficient with technology, cellphones, and online platforms. Generation Z is well-suited for digital banking services, online investing platforms, and other fintech advances. This study investigates the impact of financial literacy on investment decisions, using financial behaviour as a mediator, based on the Theory of Planned Behaviour. Employing a quantitative methodology, a study was conducted on a group of 110 Generation Z individuals that engage in stock market investments in Malang City. Through the application of Structural Equation Modelling (SEM) research, it is demonstrated that financial literacy exerts an impact on both financial behaviour and investment decisions. Furthermore, financial behaviour acts as a mediator in the relationship between financial literacy and investment decisions. Research findings suggest that Generation Z in Malang City should enhance their ability to forecast investment risks in order to make more informed investment choices. Generation Z is anticipated to consistently seek knowledge pertaining to strong investment portfolios from fellow investors in order to enhance their investment choices.

A study on the Impact of Financial Literacy on Financial Investment Decisions among women: A review of selected literature

Introduction: Investment constitutes an important decision for effective personal financial planning. A good Investment provides a base for a sound financial situation in near future. The recent time period has seen a revolutionary growth in the situation of women. This growth has become more important for the women living in India because India is a developing country. Recently, Indian women have faced tremendous growth in their position across different parts of the country. Women take various important decisions in their life and for their family including financial decisions. It can be savings, Expenditure, investment, decision about loans and advances, retirement planning. Purpose: This study focuses on the awareness of Financial Investments in Women. The purpose of this paper is to study the financial literacy in women about Financial Investment by using literature based analysis.
 Data collection: Secondary data is collected from various sources such as journals, research papers, websites and articles.
 Findings: The study of various papers reveals that majority of women do not prefer equity as investment. Majority of the women prefer investments which carry less risk such as Fixed Deposits, Post Office Investments and so on. Government can form new policies and schemes to attract more investments which are underrated.

Pengaruh Financial Literacy, Religiusitas, Investment Knowledge terhadap Pengambilan Keputusan Investasi melalui Investment Intention sebagai Variabel Intervening

Investment decisions are a person's actions to determine and allocate capital to certain assets or companies with the aim of obtaining profits in the future. In making investment decisions one must have financial knowledge to plan investments properly. This is important so that the investment decisions taken have clear and directed objectives. This research aims to find out how financial literacy, religiosity and investment knowledge influence investment decision making through investment intention as an intervening variable. This study uses a quantitative approach, namely by distributing questionnaires as a means of collecting data. The number of respondents was 160 people who were investors in Padang City, and the selection of respondents was carried out using a saturated sampling method (census). Structural Equation Modeling (SEM) was chosen as the data analysis method using the SmartPLS 4 application as an analysis tool. In the research, the results showed that financial literacy, religiosity, investment knowledge and investment intention had a positive effect on investment decisions. Likewise, financial literacy and investment knowledge have a positive effect on investment decisions through investment intention. However, religiosity does not have a positive effect on investment decisions through investment intention.

Assessing the Influence of Financial Literacy and Economic Independence on Investment Decisions

This study examines the variables influencing individual investors' decisions to make investments in the fast-paced financial landscape of Nepal. Two main goals were investigated: first, the relationship between financial literacy, investment decisions, and economic independence was explored; second, the effects of these aspects were examined in detail. The results show a robust positive association between financial literacy and wise decision-making, as well as between investment decisions and economic independence. Its importance was highlighted when it was found that economic independence strongly predicted investment decisions. Furthermore, financial literacy was shown to be an essential aspect impacting investing preferences. These findings underscore the significance of financial education and empowerment for individual investors in Nepal. Prospective avenues for investigation comprise delving into cultural impacts, evaluating the effectiveness of financial literacy initiatives, and examining the effects of nascent FinTech platforms on investing choices. This research adds to our understanding of the dynamics of investments in Nepal's changing financial system and provides valuable information for policymakers and investors.

Analysis of the Situation of Corporate Financial Behaviors in the Context of Digital Economy - Based on Chinese Non-financial A-share Listed Companies

The digital economy is rapidly advancing, penetrating enterprises and influencing their behavior. To investigate how digital finance affects the financial investment decisions of enterprises, based on the panel data of Chinese A-share listed companies between 2011 and 2020, this paper uses a robust two-way fixed-effects econometric model to explore the impact of digital finance on corporate financialization and the heterogeneity of the impact within corporates of different natures and sizes. The findings reveal that digital finance significantly inhibits corporate financialization, with a more pronounced effect observed in nationalized and large-scale enterprises. Therefore, it is imperative for the government to enhance supervision and management of enterprises, as well as encourage and guide them to strengthen their digital finance capabilities to fully harness its potential.

Deciding Financial Problem Solution for a Construction Company using Fault Tree Analysis (FTA) and Fuzzy Analytic Hierarchy Process (Fuzzy AHP)

PT X is a construction company with clients spread among Central Java, West Java, Papua, Kalimantan, and Sulawesi. This company experienced financial problem and with the absence of financial bookkeeping, the financial issue was difficult to trace and each manager and also the owner had different perceptions toward the financial problem. One said that it was caused by bad financial investment decision, many said that it is because client late payment, while the other said that it is due to lack of orders and competition. In other word, this problem is still a perceived financial problem. This research was conducted to find the root cause of perceived financial problem in PT X as well as to find the best solution to solve it. By establishing 2 methods that consisted of fault tree analysis (FTA) and fuzzy analytical hierarchy process (fuzzy AHP), employing the thinking framework of value-focused thinking (VFT), the best solution was decided. FTA was used to identify the root cause of the problem which was bad investment decision. After that, reverse brainstorming was conducted to find all possible solutions. Before jumping into alternative solutions, VFT, a thinking framework, identified that control and simplicity was the value that the owner considered. 3 alternative solutions which were asking to financial consultant, hiring financial analyst, and training current financial manager, then analysed using fuzzy AHP with context suitability, sustainability, time needed, and cost as the criterion, and found out that training current financial manager is the best alternative to be chosen.