Financial Prospect Research Articles

NAVIGATING FINANCIAL DECISIONS: A COMPREHENSIVE REVIEW OF THEORIES, BEHAVIOURS, AND INNOVATIONS

This literature review synthesizes seminal and contemporary research on financial decision-making, emphasizing theoretical frameworks and empirical findings. Fama's (1970) Efficient Market Hypothesis sets the foundation for understanding market behavior, while Kahneman and Tversky's (1979) Prospect Theory introduces psychological influences, highlighting biases such as loss aversion (Tversky & Kahneman, 1991). Jensen and Meckling (1976) provide insights into agency theory, exploring the implications of managerial behavior on firm performance. The influence of gender on investment strategies is examined by Barber and Odean (2001), illustrating the role of overconfidence. Additionally, the impact of social interactions on financial choices is explored by Bursztyn et al. (2014). Financial literacy, addressed by Lusardi and Mitchell (2014), underscores the importance of informed decision-making in personal finance. The review also highlights the integration of behavioral insights in corporate finance, particularly in capital structure decisions (Myers, 1984) and risk management practices (Hull, 2012). Overall, the collected works illustrate a rich tapestry of factors influencing financial decisions, blending economic theory with behavioral insights, and emphasizing the necessity for ongoing research in this dynamic field. KEYWORDS: Financial Decision-Making, Behavioral Finance, Prospect Theory, Market Efficiency, Agency Theory, Overconfidence, Financial Literacy, Risk Management, Capital Structure and Social Interactions.

Financial Analysis on United Airlines Holdings, Inc.

This report provides a comprehensive financial analysis of United Airlines Holdings, Inc. (UAL) for the fiscal year 2022. In 2022, UAL demonstrated a robust financial performance, through notable improvements in liquidity, profitability, and solvency indicators. The analysis reveals that UAL sustained strong liquidity, benefiting from increased cash flow and enhanced current ratios. The company's profitability metrics exhibited substantial growth, driven by effective cost management and revenue optimization. Additionally, this study shows that UAL prudently managed its debt load, reinforcing solvency ratios, however, they should keep improving their debt management in the following years. In the recent dynamic aviation industry landscape, UAL exhibited adaptability and strategic acumen, with a focus on sustainable growth. This report also emphasizes UAL's competitive positioning and resilience in a challenging market environment in comparison with its four peers. This financial analysis offers valuable insights for investors and stakeholder, underscoring UAL's solid financial foundation, strategic adaptability, and a promising and positive financial prospect in the airline industry.

A comprehensive approach of evolving electric vehicles (EVs) to attribute “green self-generation” – a review

Abstract The population growing faster than before, and availability of transportation options is increasing. Automobiles require combustion engines, which require fuel obtained from underground storage. This underground fuel storage is limited and depleting day-by-day. Many nations have set deadlines up to 2040 to stop producing automobiles that run on underground fuels. Researchers have concentrated on alternative modes of fuel for transportation. The world’s largest Sedan marketplaces will transition to all-electric vehicles by 2035, providing a glimpse of greener future other than a significant financial prospect. Not only Sedan, the entire world is focussing on only green electric vehicles to maintain sustainability. However, electric vehicle charging stations are operated by using many conventional resources. Therefore, this paper aims to show how self-charging electric vehicles can help to reduce emissions caused by the direct use of conventional resources in charging stations along with the up-to-date status quo of the EV market. The key descriptions of electric vehicles on top of the battery’s type which is randomly used in EVs, how the batteries are proficient in preserving and supplying power continuity itself in vehicles are talked about. Finally, the paper is consulting about charging-discharging system of electric vehicles to make the environment cleaner.

The Impacts of the Feds Interest Rate Hike on Canada: Financial Markets and Prospect of International Companies

Canada is not only a geographic neighbor of the United States, but also one of its most important trading partners. The Fed's interest rate hike has had many effects on Canada, not only in terms of its impact on financial markets, but also in terms of its impact on international trade. This paper will discuss the perspective of financial markets, the impacts of the Fed's interest rate hike on the exchange rate market, the stock market and the bond market. In terms of international trade, Cenovus Energy Inc. will be taken as an example to study the impacts on international trade between the two countries based on the existing background from 2020 to 2022 because during the past three years, there were the period that the Fed did not adjust interest rates and the period that the Fed raised interest rates suddenly. Finally, conclusions will be drawn from the above analysis, and some recommendations for Canadian monetary authority, multinational corporations, and investors will be given.

Fair Value Measurement and Financial Reporting Quality of Insurance Business in Lagos State

The financial reporting qualities provides objective information that is useful to analysts in evaluating the financial soundness and prospect of a company. This paper attempts to examine the concept of fair value measurement as well as determine its influence on the financial reporting quality of items in the financial statement of insurance companies. The study uses survey method and questionnaire as research instrument to elicit data from professional accountants in selected listed insurance companies in Lagos state, using conveniency sampling technique. The data collected were analyzed with the aid of SPSS. The study reveals that there is significant relationship between fair value measurement and the financial reporting quality and that the fair value measurement has significant influence on financial reporting quality at each level of the hierarchies. The study, therefore, concludes that the observance of the financial reporting qualities in the process of the fair value measurement would facilitate the production of corporate financial report useful to analysts in assessing a company’s performance and prospects. It, therefore, recommended that the professionals in the insurance industry should observe the qualities of financial reporting while preparing financial reports and during the process of fair value measurement. Also, it recommended that the management of insurance companies should engage valuation experts and professionals for objectivity and soundness in fair value measurement. This will lend credibility to the financial report.

Research on Financial Strategy and Prospect of Internet Company: Taking Tencent as Evidence

In the new economic era, business model innovations emerge endlessly, especially with the entry of the Internet, a variety of business models and companies associated with the Internet appear. By analyzing the overall situation of the industry, market, revenue and profit that Tencent has developed into finance, this paper discusses the comparability and effectiveness of Internet economy, and expounds the difficulties and deficiencies of Internet companies in the financial development strategy, and gives examples of Tencent's financial development strategy divided into several main fields or levels. Based on this analysis of the Internet economy for the company's development prospects and strategic basis. The data of Tencent were sorted out from five aspects of Tencent's development history, general situation, business categories, business models and valuation difficulties, and the background of the empirical study was introduced. As the Internet company with the highest market value in China, Tencent has abundant historical data from both financial and non-financial indexes. Empirical analysis is applicable to establish a good value evaluation system, which indicates that the valuation of Internet companies should pay more attention to non-financial indexes such as the size and business type of Internet companies.

Russian-Turkish relations: Economic and financial outlook

Subject. This article discusses the financial and economic prospects of Russian-Turkish relations. Objectives. The article aims to determine the level of significance of Russian-Turkish relations in the context of their financial and economic perspective. Methods. For the study, I used a systems approach based on the methods of statistical, neural network, and cluster analyses. Results. The article defines the levels of importance of certain financial and economic indicators for ensuring the growth of the Russian economy and Russian-Turkish relations as the potential of gross national savings of Turkey, mediated by a high level of GDP at purchasing power parity in Russia. Conclusions and Relevance. The described level of significance of Russian-Turkish relations, as well as the links between the Russian current account balance and the Turkish volume of exports and imports of goods (services) identified as a financial and economic prospect, will help the Government intensify Russia's cooperation with Turkey. The provisions of the study can help expand the competences of the Government to choose a way to maintain the stability of international economic relations.

An Experimental Test of Some Economic Theories of Optimism

Economic theories of optimism provide different rationales for the phenomenon of motivated reasoning, and a recent empirical literature has tested some of them, with mixed results. We contribute to this literature with a novel experimental test of two mechanisms, according to which optimism is respectively predicted when (1) the potential material losses due to the bias are relatively small or (2) the cognitive costs of the bias are small enough. In our design, these two accounts predict inflated expectations regarding some future payoff. Contrary to that, the average subject tends to (slightly) underestimate that financial prospect. Although a minority of the subjects overestimate systematically, the size of their errors is rather reduced, and they hardly differ in their personal characteristics from the rest of the subjects. In fact, optimism in our experiment is correlated with the sample observed, in that it is more likely when a subject observes relatively few good signals. This is again at odds with (1) and (2). These mechanisms, we conclude, do not appear to fully capture under which circumstances people fail into a positivity bias. Yet (1) seems to be empirically less relevant, in that we observe a similarly limited level of bias irrespectively of its monetary cost.

Practical mobile network planning and optimization for Thai smart cities: Towards a more inclusive globalization

Globalization has facilitated productivity gains and economic growth and for decades. It has helped integrate emerging economies, spread technology, knowledge, culture, and created an interconnected global community. Smart cities depend on a robust and flexible mobile network foundation, and yet, Thailand is leading the way in the ASEAN. Using Thailand as a case study, this paper presents a practical mobile network planning and optimization framework (PMNPO) that’s workable for the fourth-generation up to sixth-generation networks in smart cities, especially in an industrial estate. While theoretical frameworks play a vital role in optimizing network performance, such frameworks may not be practical enough. This study applies a mixed quantitative research method on actual applications (case studies) and qualitative research. The PMNPO is a management function of pseudo-codes. A workable cost-sharing model for mobile networks consists of CAPEX, OPEX, feasibility study, and site value management (mobile network operators). The fair factor (0.2), the payback (5 years), the NPV ($0.5 million), and the IRR (20%) reveal a promising financial prospect. The PMNPO is practical for Thailand, with a mean acceptance rate of 4.83. Therefore, the findings support stakeholders, policymakers, and decision-makers, in setting telecommunication policies. The results can apply to other developing countries or catalyze a similar research type.

Blockchain Implementation Method for Interoperability between CBDCs

Central Bank Digital Currency (CBDC) is a digital currency issued by a central bank. Motivated by the financial crisis and prospect of a cashless society, countries are researching CBDC. Recently, global consideration has been given to paying basic income to avoid consumer sentiment shrinkage and recession due to epidemics. CBDC is coming into the spotlight as the way to manage the public finance policy of nations comprehensively. CBDC is studied by many countries. The bank of the Bahamas released Sand Dollar. Each country’s central bank should consider the situation in which CBDCs are exchanged. The transaction of the CDDB is open data. Transaction registers CBDC exchange information of the central bank in the blockchain. Open data on currency exchange between countries will provide information on the flow of money between countries. This paper proposes a blockchain system and management method based on the ISO/IEC 11179 metadata registry for exchange between CBDCs that records transactions between registered CBDCs. Each country’s CBDC will have a different implementation and time of publication. We implement the blockchain system and experiment with the operation method, measuring the block generation time of blockchains using the proposed method.

Consistency of Pecking Order Theory: Evidence from Indonesia Capital Market

Financial crisis in some developing country have affected Indonesia as a developing country as well. It changes business climate that force firms finds additional funding sources. Improper capital structure policy will give negative signal to investors about firm’s financial performance and future prospect, which in turn affects stock price of the firm. Pecking Order Theory states that firms has defined yet the target debt ratio and that companies prefer to use internal financing first, then debt, and finally new equity. This research aims to test consistency of pecking order theory in term of flexibility of capital structure policy of listed companies in Indonesian Capital Market in the crisis circumstances. And analyze testing the influence on the value of the firm. Research population is taken from public listed company in Indonesia capital market since 2015-2018 with assets worth 1 thousand million. Data analyzing technique to answer the research question and analyze the research hypothesis uses factor analysis and simple linear regression. The result shows that is proved that there is consistency of influence POT/pecking order theory policy on the value of the firm in Indonesian Capital Market since 2015 to 2018.

The Financial Behavior of Investment Decision Making Between Real and Financial Assets Sectors

This research was conducted to achieve several objectives and focus research was based on financial behavior theory and prospect theory as grounded theory e.g., investigate the financial decision-making behavior between financial and real assets investment, and confirm the relationship existing between herding behavior and overconfidence factors to the level of loss and regret aversion, and financial literacy into real assets investment decisions. The study used 220 real estate auction respondents as investor samples at the State Assets and Auction Service Office Makassar, South Sulawesi, Indonesia. Data was collected through the use of a questionnaire consisting of 23 questions to measure the variables. Moreover, the research data passed through several feasibility tests like the inner and outer modeling by Partial Least Square - Structural equation model (PLS-SEM) while the hypotheses formulated were also tested to determine the magnitude of the variable relationship. Through the use of the direct and intervening test, loss and regret aversion variables have a positive and significant effect while financial literacy variables have no significant effect. There is a slight difference in the decision-making process for real assets and financial assets investors. Investment decision making behavior in the financial assets sector requires less complicated decisions compared to the decisions related to real assets investments.

Gazelle Infotech-optimizing humanitarian supply chain for disaster management

Learning outcomes The learning outcomes of this paper are follows: students should be able to understand the complexity related to the provision of safe drinking water for disaster-hit areas and effective solutions to overcome this problem. Also, students should be able to evaluate the need for awareness about post traumas mental health especially in case of disasters and identify how technology can provide answers to such critical issues. Case overview/synopsis The case represents a unique scenario where the head of an organization has moved away from the financial prospect and invested time and efforts for the provision of safe drinking water to the inaccessible areas and devise strategies for the improvement of disaster relief operations. Complexity academic level Undergraduate and post graduate students. Supplementary materials Teaching notes are available for educators only. Subject code CSS 4: Environmental Management.

Father absence and sexual partner preference amongst women in Masvingo urban, Zimbabwe

Father absence is a trend that has been on the surge globally and locally, and its effects can be felt in children’s lives up to adulthood. This study sought to explore how father absence mediates sexual partner preference amongst women who would have grown without their biological fathers. This was achieved by comparing the sexual partner preferences of women who grew up without fathers against those who grew up with their fathers. A quantitative approach was taken, particularly employing an ex post facto research design. A one-stage cluster sampling strategy was used to select 392 women, who participated in this study. Of the 392 participants, 168 were women who had grown up in father-absent homes, whereas the remaining 224 had grown up with a resident father. A standardised instrument, the mate preference questionnaire, was used to collect data. This study revealed that father absence influences the preference of a sexual partner, particularly the age gap with the preferred romantic partner, physical aspects of the sexual partner and values about chastity. Women who grew up in fatherless homes showed a preference for good looks and masculinity in a romantic over issues such as good financial prospect and ambitiousness and industriousness. The most preferred characteristic expressed by women who emerged from father-absent homes was that the romantic partner should be a father figure. This study recommends that voluntary organisations that promote fatherhood programs should be set up to raise awareness on the importance of fathering. Moreover, future research should explore the impact of father absence amongst married women so as to ascertain if father absence affects relationships within a marriage. Keywords: Partner preference, father absence, romantic partner, women, relationship.

We'll All Float On: Global Climate Change-Induced Migration and Financial Flow Estimates

A warming global earth was recently revealed to hold advantages. Based on state-of-the-art welfare function measurements and economic productivity parameters, the economic gains and productivity-efficiency benefits from a warming earth were captured (Puaschunder, 2017a, b). Contemporary Gross Domestic Product (GDP) measurements served as basis for estimations about the productivity of the agriculture, industry and service sectors around the warming globe. Based on the optimal temperatures for the agriculture, industry and service sectors productivity as well as climate projections of the year 2100 under the business as usual path for each country, climate winners and losers were retrieved around the world from now on until the year 2100 (Puaschunder, 2017b) in order to argue for fair climate change benefits distribution around the globe (Puaschunder, 2017a). The climatorial imperative was defined as ethical obligation to avert climate change concertedly (Puaschunder, 2017c). Even if being in a part of the world that is still gaining from a warming climate, people should be striving to avert actions that cause the earth to warm. Based on the categorical imperative, no one should participate in actions with harmful consequences to others. One should only engage in those activities, which consequences one wishes to incur to oneself. The climatorial imperative serves as basis for climate change benefits transfers around the globe (Puaschunder, 2017a). Climate change gains transfer are meant to compensate for losses in global warming losing territories but also to finance incentives for a transition to renewable energy (Puaschunder, 2017a). In order to manifest the established facts that some parts of the world will be gaining from a warming earth and some are vanishingly melting, the following paper investigates climate-induced migration streams and financial flows. Based on a 187 country-strong dataset and under the implicit assumption of an open economy, a significantly positive inflow of migrants was found into the climate change winner countries. A statistically significant correlation holds that there is a positive Foreign Direct Investment (FDI) remaining financial inflow into the winning countries. As a cross validation of the finding of financial inflows into climate change winner countries, a non-significant correlation and independent t-test reveal that there are no significant financial returns in form of remittances to the climate change loser countries. The results target at underlining the importance of climate change benefits transfers to offset the losses incurred in the global warming-burdened areas of the world. Migration and monetary flows are argued to vividly outline the competitive advantages of the climate change winner countries. The paper innovatively integrates two contemporary societal world-wide crises: climate change and migration in order to retrieve future migrant and financial flow prospect predictions but also global governance recommendations. The paper offers the first introduction of climate-induced financial flows, which serve as unique justification for climate benefits transfers around the globe and recognition of climate refugees under the Geneva Convention in order to ensure climate equality in the 21st century.

Bi-Directional Causality between Working Capital Management and Profitability: Empirical Study of Indian Listed Firms

Management of short term funds and their disbursement plays a vital role in deciding fate of entity’s financial soundness and future prospect. Thus efficient working capital management is prerequisite for business success so has not only remained orbit of many theoretical and empirical studies but also great concern for management and academic experts. Empirical literature in Indian context on this topic not only presents ambiguous results, but is centered mainly on the possible impact efficient working capital management levels on profitability of the companies, disregarding the possibility of reverse causality running from profitability to effective liquidity and working capital management efficiency, except few recent studies from developed nations. Olarewaju M.O & Adeyemi K.O (2013); Awad, I & Jayyar F (2013). Current study is an attempt to shed light on bidirectional causal relationship between working capital management components like liquidity and cash conversion cycle proxies efficiency of the management in formulating and executing growth and sustainability oriented policies and profitability in the Indian listed firms for the period last one decade through use of econometric model of granger causality and other related methods according to need of study. The results failed to support theoretical assumption and strengthened the prior works and revealed that there is no causal relationship but while taking lag of one year results favored the casual relationship between efficiency liquidity and profitability. The study addressing the current issues may frame consciousness among managers and academicians and help to rule out myths and touch the modern horizons of managing daily financial requirements.

Population Projection by Adjusting Fertility and Mortality and its Effect on National Pension Financial Prospect

저출산율과 기대수명연장에 따른 인구고령화는 국민연금과 국민건강보험 등과 같은 사회복지비용을 높이고 노동력부족과 소비 및 투자축소에 의해 경제성장 동력을 잃게 하여 사회복지시스템의 안정성을 위협하게 된다. 인구구조 변화에 의한 비용과 위험을 감소시키기 위해서는 출산율을 높이고 고령사회에 대비하기 위한 효육적인 정책이 요구되며 이러한 정책은 정확하고 신뢰성 있는 인구추계에 기인한다. 국민연금 제3차 재정추계에 사용된 출산율과 사망률이 높게 추정되어있다는 논란이 있다. 출산율과 사망률이 높게 추정되어 있을 경우 연금과 노후대책 등에 대한 정부의 비용이 예상보다 늘어날 수 있고 국민연금의 재정전망에 대한 신뢰도 떨어질 수 있다. 본 연구에서는 기존 방법과 다른 모형을 사용하고 시점을 최근으로 옮긴 후의 인구추계를 수행하여 2010년 통계청 인구추계 결과와 비교한다. 새로운 모형과 방법을 적용한 결과 출산율과 사망률이 통계청보다 낮게 설정되었다. 이에 따라 인구추계 결과도 통계청보다 더 낮아지는 것으로 나타났다. 우리나라는 고령화 속도가 유래 없이 빠르게 진행되고 있으므로 정책수립의 기초가 되는 인구추계의 정확성과 신뢰가 중요하며 기금 소진 시점을 늦추기 위한 정책방안도 필요할 것이다.Population ageing caused by low fertility rates and increasing life expectancies would raise social welfare expenses, and slow down economic growth caused by labor shortage and consumption and investment shrinkage, leading to risk the stability of social welfare system. To reduce the expenses and risks came from the change of population structure, effective policy making to recover fertility rates and prepare for old age is required and it should be based on accurate and reliable population projections. There are some disputes on national population projections regarding high fertility and mortality assumptions. In that case, the expected spendings of the government s expenditure would rise and the reliability of the national pension financial projection would be weakened. In this paper fertility and mortality assumptions are adjusted to be lower and cohort component population projections are carried out based on the new assumptions. The results show that populations are lower than those of the Statistics Korea and the fund-exhaustion time of the National Pension is reduced by two years.

Asymmetric Effects of Favorable and Unfavorable Information on Decision Making Under Ambiguity

Most daily decisions involve uncertainty about outcome probabilities arising from incomplete knowledge, i.e., ambiguity. We explore how the addition of partial information affects these types of choices using theoretical and empirical methods. Our experiments in both gain and loss domains demonstrate that when such information supports a favorable outcome, it strongly increases valuation of an ambiguous financial prospect. However, when information supports an unfavorable outcome, it has significantly less impact. We find that two mechanisms drive this asymmetry. First, unfavorable information decreases estimates of a good outcome occurring but also reduces aversive uncertainty. These factors act in opposition, minimizing the effects of unfavorable information. Second, when information can be subjectively interpreted, unfavorable information is less likely to be integrated into evaluations. Our findings reveal mechanisms not captured by traditional models of decision making under uncertainty and highlight the importance of increasing the salience of unfavorable information in uncertain contexts to promote unbiased decision making.Data, as supplemental material, are available at http://dx.doi.org/10.1287/mnsc.2015.2233 .This paper was accepted by Teck-Hua Ho, behavioral economics.

A Decision Support Framework for Optimal Pricing and Advertising of Digital Music as Durable Goods

With the recent rising popularity of music streaming platforms, consumers are now able to enjoy music as a service, playing music for free without paying to obtain the ownership, the threat to the record labels’ financial prospect is eminent. We propose a novel decision support framework to assist the record label in making better informed decisions in the postrelease management timeframe to maximise the expected profit. By identifying the musical product as a durable goods, we model the consumers’ consumption rule with forward-looking behaviour, viewing music streaming as the consumers’ option of delayed consumption, making purchase only when the expected discounted lifetime utility exceeds the expected utility from streaming. Our proposed decision support framework has the record label use both the price and advertising as instrument of control in achieving maximised expected discounted profit, playing strategically in anticipating to the consumers’ decisions using an interactive Markov chain. We show in our illustrative example the proposed decision support framework is able to make decisions dynamically and performs substantially better than other single control variable decision tools.

PROSPEK PENGEMBANGAN USAHA PEMBENIHAN IKAN MAS (Cyprinus carpio L) DALAM KOLAM DI DESA PONORAGAN KECAMATAN LOA KULU KABUPATEN KUTAI KARTANEGARA

This research aims to find out the financial prospect of goldfish (Cyprinus carpio L) hatchery business development in the future. Results of research showed that goldfish (Cyprinus carpio L) hatchery business development in the pond is able to give financial benefits for the farmers in the future so that this development is financially feasible to continue. The hatchery business development is in the economic scale. The marketing areas of goldfish breeding include Loa Kulu, Sanga-sanga, Samarinda City, Balikpapan, Bontang and Sangatta.