Global Investment Strategies Research Articles

“The Sea Has Waves, The Fula Has Cows”: Moving Waters, Labour and Capital in Anthropocene Senegal

In times of climate crisis, water has become a crucial resource of environmental justice and geopolitics, but its scarcity is socially constructed. It depends on socio-economic structures, cultural politics, and the sciences that are mobilized to manage its fluid processes. This essay argues for the necessity of a hydrosociological approach that integrates the current Anthropocene debates on the technological transformation of planet Earth with more reflection on waterscapes, especially in the Global South. Drawing on a recent publication by Maura Benegiamo, Capitalist developments in the Senegal Delta are here considered as exemplary of global investment strategies that produce brutal forms of extractivism, while displacing money, water, land, and people. Waterscapes reengineering of the Senegal flows, for the monocrop production of agrofuel, is alienating the Fula people of the Sahel the grazing land for their cattle. Such case calls for a political reassessment of the hydrosocial question of the Anthropocene along complementary lines of inquiry: socio-economic, cultural-political, ideological, and epistemological.

Changes in China’s Global Investment Strategy During the Post-Epidemic Era

The emergence of COVID-19 has put the world into a state of tension. Now that the situation has finally been eased, this paper analyzes the various problems during the outbreak from the perspective of China. One part of the problem comes from domestic, a large number of small and medium-sized enterprises due to various policies of the epidemic led to contract default, and finally the capital chain was broken. The other part of the reason is the international market. The sanctions imposed by the United States and Europe and the outbreak of the Russia-Ukraine conflict have created a tense atmosphere around the world. Although China claims to remain neutral, it is clear that the United States and Europe will not let the world's third largest military power stay out of the way. A series of sanctions have forced China to respond. In this paper, the author will make an analysis based on the data available online, mainly focusing on the increase or decrease of China's outbound investment. Obviously, China's investment in Europe and the United States has dropped dramatically during the pandemic, but it is not expected to last long. As the epidemic ends and the international market enters a period of stability, a series of problems facing China will be gradually solved.

A comprehensive analysis of global foreign direct investment trends: insights into sectoral patterns and regional distribution

This article provides a concise analysis of global foreign direct investment trends from 1990 to 2021. Drawing from authoritative reports, the study highlights the general changes in FDI flows over the period and examines their distribution by region and industry. The findings offer valuable insights into investment behavior, aiding policymakers and businesses in enhancing global investment strategies for sustainable economic growth.

The Relationship between Corporate Social Responsibility, Global Investment, and Equity Incentives

Listed companies have long faced difficulties in both their global investment strategies and corporate governance improvement, while they are supposed to pay more attention to their sustainable development performance. The complex linkages between these three make the choice of corporate strategy a challenge for public companies. Given the economic downturn in the post-pandemic era, the challenges for listed companies are likely to be even more acute. How companies weigh the relationships between these three and how to ensure the implementation of a global investment strategy that effectively meets sustainable development are pressing challenges. Using a sample of Chinese listed companies during 2010–2018, this paper empirically examines the relationship between corporate sustainable development performance, global investment reflected by outward foreign direct investment (OFDI), and corporate governance reflected by equity incentives with econometric tools. We show the positive effects of OFDI on corporate sustainable development performance and discover the crowding-out effect of equity incentives, which challenges the view of equity motivation. These findings are robust. We further explore the heterogeneities in terms of industries and regions. We finally provide some useful implications on how to coordinate the global investment and internal equity incentives to improve corporate sustainable development performance.

International Coordination and National Institutional Facilitating Mechanisms for Financial Technology Development, for the Sustainable Development Support

The Fintech, as the progress in technology, transforms the financial and investment landscape, creating both opportunities and challenges for all participants, risks to the stability and integrity of the financial system. The dematerialization of payments introduces new participants and new products to the market, including non-financial entities. At the next stage of the Fintech development, the importance of artificial intelligence and neurotechnology increases. As the Fintech, the artificial intelligence and the neurotechnology cross national and international regulatory boundaries, the effective cross-sectoral and cross- domain coordination and the mixed financing for global financial investment strategies are critical both domestically and internationally. The particular importance gains the possibilities of resource-maneuvering in global investment strategies, and mechanisms - interoperability - coordination of various infrastructures, digital, financial, telecommunications, IT, government regulation, international cooperation. Due to the variety of such models, it is required to identify trends and promising areas of international coordination of fintech development [9]. What are the factors drawing the development back? What new models of national and international coordination of these technologies are most effective for achieving sustainable development goals?

A bi-level programming approach for global investment strategies with financial intermediation

Most mathematical programming models for investment selection and portfolio management rely on centralized decisions about both budget allocation in different (real and financial) investment options and portfolio composition within the different options. However, in more realistic market scenarios investors do not directly select the portfolio composition, but only provide guidelines and requirements for the investment procedure. Financial intermediaries are then responsible for the detailed portfolio management, resulting in a hierarchical investor-intermediary decision setting. In this work, a bi-level mixed-integer quadratic optimization problem is proposed for the decentralized selection of a portfolio of financial securities and real investments. Single-level reformulation techniques are presented, along with valid-inequalities which allow speeding-up their resolution procedure, when large-scale instances are taken into account. We conducted computational experiments on large historical stock market data from the Center for Research in Security Prices to validate and compare the proposed bi-level investment framework (and the resulting single-level reformulations), under different levels of investor’s and intermediary’s risk aversion and control. The empirical tests reveled the impact of decentralization on the investment performance, and provide a comparative analysis of the computational effort corresponding to the proposed solution approaches.

Capturing the value premium – global evidence from a fair value-based investment strategy

This paper examines the risk premium of value stocks within a global investment strategy framework. We test whether absolute or relative mispricing is better suited to capturing the global value premium by using fair value-based net asset values (NAVs) as our proxies for fundamental value. We find that investing in the most underpriced stocks relative to the average ratio of price to fundamental value in a country is the key to achieving superior risk-adjusted returns. The annualized excess return of the global value portfolio sorted according to relative mispricing is 10.0%, and remains significant after controlling for common risk factors.

Financial Press and Stock Markets in Times of Crisis

This paper investigates the relationship between negative news in financial newspapers and stock markets in times of global crisis, such as the 2008/2009 period. We analyzed one year of front page banner headlines of three financial newspapers, such as the Wall Street Journal, Financial Times, and Il Sole24ore and created an index of bad news at a daily base. We examined the influence of bad news both on market volatility and dynamic correlation of American, Britain and Italian stock markets to look at the impact of bad news on global investment strategies. Our results show that press and markets co-influenced each other in generating market volatility. The three newspapers showed significant differences in their stance on the crisis, with Financial Times more pessimistic. Our results also show that Wall Street Journal bad news had higher predictability value for the correlation between US and the foreign markets. This confirms the international influence of Wall Street Journal.

A New Taxonomy of Country Performance and Risk Based on Economic and Technological Indicators

This paper proposes a new taxonomy for countries based on principal component analysis. The paper investigates 51 countries using a set of 13 indicators of economic and technological performance for the period 2000–2002. The methodology reduces the variables and groups the countries that show similar strategic behaviour in the global market. The taxonomy facilitates the identification of country performance and risk, and provides relevant information both to international investors and to policy-makers, who must decide about global investment strategies and economic policies.

An application of the Black–Litterman model with EGARCH-M-derived views for international portfolio management

This paper provides an application of the Black–Litterman methodology to portfolio management in a global setting. The novel feature of this paper relative to the extant literature on Black–Litterman methodology is that we use GARCH-derived views as an input into the Black–Litterman model. The returns on our portfolio surpass those of portfolios that rely on market equilibrium weights or Markowitz-optimal allocations. We thereby illustrate how the Black–Litterman model can be put to work in designing global investment strategies.

Chinese Private Equity

Benefiting from sustained economic reform and a vast, talented, and cost-effective labor pool, China is growing at a breathtaking pace. Many economists project China will account for 25% of world GDP within 25 years. Private equity funds have recognized this paradigm shift and are deploying dramatically higher sums to China. Private equity funds raised almost $16 billion for Chinese investments in 2005, compared to only $2.5 billion in 2004. Despite this dramatic surge in investment, barriers to Western investment remain. Chinese government pronouncements can complicate the investment horizon. While the more benign SAFE Circular 75 supplanted rather unsettling Circulars 11 and 29 before the end of 2005, foreign investors should expect periodic regulatory surprises. For example, taking effect in early 2006, Measure 39 provides subsidies and incentives only to domestic venture capital funds. Despite the challenges of a continually evolving investment landscape, leading Western venture and buyout funds will continue to make China an increasing part of their global investment strategy. <b>TOPICS:</b>Private equity, emerging, legal/regulatory/public policy

Improving Portfolio Performance with Option Strategies: Evidence from Switzerland

This paper investigates the performance of a global investment strategy that combines diversification and option strategies, in particular the covered call strategy, on the Swiss Exchange over the period 1989-1996. As the return distributions of portfolios including options are possibly non-normal, the mean-variance framework may not be appropriate to assess the relative performance of such portfolios. Stochastic dominance and modified betas are the alternative approaches, robust to departure from normality, used in this paper to compare the performance of portfolios. The results show that the use of option strategies consistently improves the performance of stock portfolios, even in the presence of transaction costs.

Empirical Regularities in the Intra-Week Trading Patterns of Foreign Institutional Investors in India

In developed markets, particularly in US, it has been found that the individual investors use the Monday morning to frame their investment strategies for the coming week. Therefore, their investment activities remain sluggish on this day of the week. This, together with increased selling pressure from the individual investors on Monday, is thought to be partially responsible for the so called 'week-end effect'. Foreign Institutional Investors (FIIs) have occupied an important role in Indian stock market and their behaviour may have significant implication for market dynamics. This paper analyses the trading pattern of FIIs during different days of the week for six calendar years from 2000 to 2005. We find that both the buying and the selling volume of FIIs remain significantly low on Tuesday. The average level of buying volume (adjusted for trend) on Tuesday is about 83 percent of their average daily buying volume for all the days of the week taken together. Similarly, the average level of selling volume on Tuesday is only about 87 percent of the all days' average selling volume. This Tuesday-effect on the volume of FII trading is found robust in the sub-sample-wise analysis. However, no such regularity is observed in the trading patterns of local mutual funds. The FIIs, who follow the global investment strategies, possibly use Mondays at their headquarters for strategy formation. Since, it happens after the trading hours in India, their Indian arms may get the instructions only on Tuesday morning and use Tuesdays to frame their local investment strategies. This hypothesis provides a plausible explanation for observed sluggish investment activities of FIIs on Tuesday. This may also explain the significant negative stock returns observed in some countries outside US on Tuesday. We observe that the Tuesday-effect has become weak in the sub-sample period of later three years, which is seems to be a result of gaining more autonomy by agencies managing FII-funds in India.

Terrorism and the international business environment: the security-business nexus

Contents: Preface 1. Introduction Part I: The Geopolitical and Geo-economic Environment 2. The Legacy of September 11 3. Historical Forces in International Affairs and Commerce: Prospects for the International Economy 4. Terrorism and International Business: Conceptual Foundations 5. The Complexity of the Geopolitics Dimension in Risk Assessment for International Business Part II: The Trade and Investment Environment 6. The Impact of Geopolitical Turmoil on Country Risk and Global Investment Strategy 7. The Digital Divide 8. Global Investment and Trade Flows: A Framework for Understanding Part III: Business Operation Studies 9. The Tourism Sector 10. The Bank Sector 11. The Evolution of Contingency Planning: From Disaster Recovery to Operational Resilience Part IV: Implications of Crisis in a Synergetic World 12. Disaster Management after September 11: A 'Normal Accident' or a 'Man-made Disaster?' What Did We Know, What Have We Learned? 13. A New Challenge for Security Policy 14. Conclusions Index

An Economic Geography of Global Finance: Ownership Concentration and Stock-Price Volatility in German Firms and Regions

For some, global finance is ubiquitous. The growth of advanced electronic communications combined with computer-driven, top-down investment strategies has provided institutional investors access to the most sheltered capital markets, including those of continental Europe. By contrast, many economic geographers find this view of the world both simplistic with respect to the persistence of different nation-state regulatory traditions and highly misleading as to the most effective way of generating long-term value for investors and communities. In this article, we provide evidence to support these claims, concentrating upon the relationship between systems of corporate governance and stock-price volatility. The geography of market information is our point of departure, illustrated by reference to the informational content of stock market prices for two German companies, Mannesmann (now Vodafone) and Bayerische Motorenwerke (BMW), representatives of rather different regional models of capital accumulation. More systematically, we report the results of statistical analyses of the volatility of daily stock-market prices for German DAX30 and DAX100 firms, arguing that their apparent characteristics have important lessons for the value and significance of bottom-up portfolio investment strategies. These results, combined with case studies of the two German firms, are used to suggest that the geography of finance remains a vital component of global investment strategies, an argument that has important implications for academic analysis inside and outside of geography.

Constructive Pressures And Incentives To Reform: Globalization and its impact on public sector performance and governance in developing countries

Contrary to widespread pessimism regarding the effects of globalization on nation states and the quality of governance in developing countries, this contribution stresses that several of its features can be made instrumental, and be beneficial, in terms of public policy making and state capability. Four ‘constructive pressures’ stemming from globalization could be seized constructively by citizens and governments in the developing world: First, better informed and better connected citizens, and an emerging global civil society, demand improvements in service delivery, transparency, and participation. Second, subnational governments, often backed by local NGOs and businesses, and keen to attract foreign investment, increasingly exert pressure vis-à-vis central governments. Third, global investment strategies by private businesses increase the demand for appropriate institutional arrangements within developing countries as well as credible government policies. Although with mixed results, forth, International Organizations, in particular IFIs, have been addressing public sector modernization in developing countries, also sponsoring global public policy networks in critical areas. Moreover, policy coordination and cooperation among states increases significantly, constraining arbitrary action by governments. Globalization, thus, advances the discussion about, and the demand for, new institutional arrangements, clearly with new opportunities for improvements in state capability and governance.

Improving Portfolio Performance with Option Strategies: Evidence from Switzerland

This paper investigates the performance of a global investment strategy that combines diversification and option strategies, in particular the covered call strategy, on the Swiss Exchange over the period 1989–96. As the return distributions of portfolios including options are possibly non‐normal, the mean‐variance framework may not be appropriate to assess the relative performance of such portfolios. Stochastic dominance and modified betas are the alternative approaches, robust to departure from normality, used in this paper to compare the performance of portfolios. The results show that the use of option strategies consistently improves the performance of stock portfolios, even in the presence of transaction costs.

Asset Allocation for Private Investors

The authors examine whether taxable investors can use a portfolio of mutual funds to implement a balanced global investment strategy. Additionally, they investigate whether tax-aware investment strategies and tactical investment insights can add value to a portfolio. They conclude that inclusion of practical tax considerations into an integrated investment process improves after-tax investment performance.

Massaging Mean-Variance Inputs: Returns from Alternative Global Investment Strategies in the 1980s

This paper explores the impact of adjustments to the inputs on total returns, terminal wealth, and portfolio turnover in an unconstrained monthly mean-variance (MV) asset allocation over time. It is well known that MV allocations are very sensitive to small forecast errors in the means and covariances. This sensitivity is especially pronounced for errors in means. One way to control this sensitivity to forecast errors is to use Stein estimation. We examined three naive applications of Stein estimation for six individual country stock indexes, five country bond indexes and five cash indexes. This study has two major conclusions. First, any of the suggested adjustments to inputs dominate the results of an unadjusted-input MV optimization. Adjusted-input portfolios have higher mean return, less variance and greater terminal wealth than unadjusted-input portfolios. Second, these improvements become even greater with transaction costs.

Recent trends in foreign direct investment

Global investment strategies have become a central issue in international business and in international economics. The worldwide stock of foreign direct investment (FDI) can be estimated at over US $ 1500 billion in 1990—three times the value of the 1980 stock. The following article discusses the driving forces behind this trend and identifies some recent changes in the pattern of FDI.