Good Investment Opportunities Research Articles

Factor Analysis of Office Rent in the Kuala Lumpur City Centre Area

The office rental market often relates to good investment opportunities since it draws a lot of capital but comes with a substantial return. It somehow possessed a complicated market structure, and the heterogeneity of office buildings has become a challenge for investors and real estate practitioners to analyse office rentals data. This research seeks to analyse an office rental factor analysis based on data evidence from the Kuala Lumpur city centre, using two different approaches: Manual SPSS and AutoModel RapidMiner. Quantitative data, obtained through secondary data of office rental transactions, consist of a data set that includes 542 office rental transactions from 2015 to 2021. The results from the two different approaches were significantly related by studying the correlation value achieved through the AutoModel and Spearman rank correlation. The three determinants, namely green certificates, building appearance and design, and amenities and in-house services, can be identified as strong determinants. The research findings also provide support for the use of both manual and automated approaches in factor analysis and suggest that they can be used interchangeably to achieve similar results. This research allowed for a more comprehensive understanding of the office rental market in Kuala Lumpur, and provided real estate practitioners with useful insights into factors that influence office rental prices.

A study on the co-movement and influencing factors of stock markets between India and the other Asia–Pacific countries

PurposeThe aim of this study is to examine the nature and determinants of stock market integration between India and other Asia–Pacific countries (Malaysia, Hong Kong, Singapore, South Korea, Japan, China, Indonesia, the Philippines, Thailand and Taiwan) over the period 1991–2021.Design/methodology/approachUnit root tests, the dynamic conditional correlation-Glosten Jagannathan and Runkle-generalized autoregressive conditional heteroscedasticity (DCC-GJR-GARCH), pooled ordinary least squares (OLS) regression and random effects models are employed for the analysis.FindingsThe empirical results show that the DCC between each pair of sample countries is less than 0.5, indicating weak ties between the pairs of sample countries. Also, the DCC between India and other Asia–Pacific stock markets is positive and low, implying low level of integration. The correlation between India and China stock markets is found to be the highest, implying significant level of integration. The main reason for it would be strong economic linkages and bilateral trade relationship between India and China. Moreover, gross domestic product (GDP), interest rate (IR), consumer price index (CPI)-inflation and money supply (MS) differentials are the major driver of stock market integration between India and other Asia–Pacific countries.Practical implicationsThe findings of the study have important implications for investors, portfolio managers and policymakers. It is found that the DCC between India and other Asia–Pacific countries (considered in the study) except China is low, which indicates weak ties between the pairs of sample countries. This implies that the Indian stock market provides good investment opportunities for foreign investors. Also, investors and portfolio managers can attain more diversified benefits and can minimize country risk by investing across Asia–Pacific countries. Further, knowledge about the factors that integrate the Indian stock market with the other Asia–Pacific stock markets will help policymakers frame suitable economic and financial stabilization policies.Originality/valueThis study contributes to the extant literature: first, by examining the linkages of Indian stock market with other Asia–Pacific countries; second, although previous studies confirmed the existence of linkages among the various stock markets, few researchers pay attention to the factors driving the process of stock market integration. This study provides additional evidence by examining the significant macroeconomic factors driving the process of such integration in the Asia–Pacific region considered under the study.

Perhitungan Sumberdaya Batugamping Di Dusun Gudang Garam Arso 4 Distrik Skanto Kabupaten Keerom

Keerom Regency is one of the areas that has the potential for Batugamping mineral resources which is quite potential, this is evidenced by the existence of several mining business actors who are carrying out mining activities in the area. Based on the geological map of the Jayapura sheet (Taritatu Sheet) the distribution of limestone potential is quite evenly distributed in the Keerom Regency area. The distribution of limestone potential in Keerom Regency is spread in the Arso 1, Arso 4, Arso 10, Arso 13 areas to Senggi. Based on the results of the initial survey, mining activities in Keerom Regency have not been managed properly, because some mining sites have carried out mining activities but do not yet have legality, namely a mining permit (SIP), do not have a good and correct mine processing plan based on the mining stages, there are still locations where limestone is not yet known distribution, volume and even the amount of resources and reserves. The potential for limestone is a good investment opportunity if it is developed into a community mine that can provide added value to the community. Therefore, it is necessary to have geological mapping activities and also the calculation of resource values. In this case, it concerns the quantity and quality of deposits to be able to provide information as a mineral database for the community as land owners and is also very useful for the Keerom Regency government. This research aims to determine the amount of limestone volume which can later be used as data base information during mining activities. The research also utilized the Surfer 11 application for the creation of topographic maps and to calculate the number of limestone volumes. The research method that will be carried out is the Cross Section Method which is a special method for types of rock minerals.

A Theoretical Review of Capital Structure of Quoted Companies in Nigeria

Capital structure is a significant managerial decision because it influences the shareholders’ returns and risk as the market value of the share and may be affected by the capital structure decisions. The theory maintained that financing adapts to mitigate problems created by differences in information between insiders (managers) and outside investors. The company turns first to the financing sources where differences in information matter least. A company’s capital structure shows all the sources of finance a company is utilizing to finance its operations. The study was undertaken to review capital structure of quoted companies in Nigeria. So many theories of capital structure have been developed over the years. These theories have directly and indirectly affected the ways companies in Nigeria raise their capital. From the review obtained, it was revealed that capital structure of quoted companies in Nigeria is a significant measure of their performance. In view of the findings, it was concluded that capital structure of quoted companies in Nigeria is a significant measure of their performance and should be effectively and efficiently managed at all time. The study recommended that quoted companies in Nigeria should invest their profits when there are good investment opportunities and pay cash dividend as soon as enough income is generated.

THE IMPLEMENTATION OF VIRTUAL REALITY (VR) TECHNOLOGY IN REAL ESTATE INDUSTRY

COVID-19 pandemic impact has accelerated the real estate industry to adopt technology evolution quickly. Due to the normalisation changes from the pandemic, all the physical real estate selling processes, including housing tours, sales, and purchase agreements, could not be effectively done as before. In this situation, Virtual Reality (VR) has become a prominent approach for real estate agents to improve their marketing strategies. This prospective study was designed to investigate the potential activities needed in VR implementation and to explore the importance of VR in influencing real estate marketing. Primary data was gathered from 60 real estate respondents using purposive sampling and descriptively analysed using SPSS software. The findings indicate that VR tours of the property, 360-degree visualisations, and visualisations of room furniture are the most potential activities needed in VR implementation. While VR is important because it indicates detailed information about the property, provides high-quality photos, and is a good investment opportunity. Overall, this study provides insights into how VR technology can help realtors survive in the evolving real estate industry.

Perhitungan Sumberdaya Batugamping Di Dusun Gudang Garam Arso 4 Distrik Skanto Kabupaten Keerom

Keerom Regency is one of the areas that has the potential for Batugamping mineral resources which is quite potential, this is evidenced by the existence of several mining business actors who are carrying out mining activities in the area. Based on the geological map of the Jayapura sheet (Taritatu Sheet) the distribution of limestone potential is quite evenly distributed in the Keerom Regency area. The distribution of limestone potential in Keerom Regency is spread in the Arso 1, Arso 4, Arso 10, Arso 13 areas to Senggi. Based on the results of the initial survey, mining activities in Keerom Regency have not been managed properly, because some mining sites have carried out mining activities but do not yet have legality, namely a mining permit (SIP), do not have a good and correct mine processing plan based on the mining stages, there are still locations where limestone is not yet known distribution, volume and even the amount of resources and reserves. The potential for limestone is a good investment opportunity if it is developed into a community mine that can provide added value to the community. Therefore, it is necessary to have geological mapping activities and also the calculation of resource values. In this case, it concerns the quantity and quality of deposits to be able to provide information as a mineral database for the community as land owners and is also very useful for the Keerom Regency government. This research aims to determine the amount of limestone volume which can later be used as data base information during mining activities. The research also utilized the Surfer 11 application for the creation of topographic maps and to calculate the number of limestone volumes. The research method that will be carried out is the Cross Section Method which is a special Method for types of rock minerals

Dynamic time-frequency connectedness between European emissions trading system and sustainability markets

This paper examines the time-frequency spillovers and connectedness network between European ETS and the sustainability markets. Empirically, we rely on the Baruník and Křehlík (2018) Diebold and Yilmaz (2012) spillover index to measure the time-varying spillovers, directional spillover, net directional spillover and connectedness network in the short-term and long-term investment horizons. Our findings suggest higher overall interconnectedness between the carbon price returns and sustainability indices, with a total spillover index of 69.75%. More specifically, the magnitude of spillovers is substantially higher in the short term than in the long terms. Moreover, European, France, and Germany sustainability indices exhibit the properties of the largest transmitter of spillover of returns towards the system whereas carbon prices are the lowest contributor to transmitting the spillovers towards the system. In the connectedness network, ETS offers a good investment opportunity with Belgium and Finland sustainability indices due to the lower level of returns connectedness. Finally, ETS provides the portfolio risk reduction in the short-term and long-term investment horizons.

Investigation of Investor-State Arbitration Problems in Afghanistan

The main purpose of this research is to explain and identify the major Investor-State Arbitration (ISA) problems in Afghanistan. Afghanistan's government is committed to providing legal security for the resolution of foreign investment disputes. The dispute resolution system's assessment is very important for foreign investors because they pay special attention to the dispute resolution system and consider it a criterion for their investments. This research will be the first comprehensive study about the Investor-State Arbitration problems in Afghanistan. In the writing of this research, the library method has been used. To extract reasons, laws, books, articles, and reliable scientific sources have been used. Afghanistan is a good market for foreign investment because it has good investment opportunities in different sectors. Foreign investors can choose the easiest and best mechanisms, such as arbitration in their contracts to deal with disputes. But the resolution of foreign investment through arbitration has some problems, and sometimes foreign investors are facing challenges with the settlement of their disputes through arbitration internationally and domestically in Afghanistan.

Take it with a pinch of salt—ESG rating of stocks and stock indices

This paper investigates the environmental, social, and governance (ESG) ratings of 20 leading stock exchange indices by analyzing and aggregating ratings of underlying stocks. ESG ratings are increasingly important inputs to sustainable investments in the European Union and United States with the phasing-in disclosure regulations. We find that ratings from two different rating providers (Sustainalytics and Refinitiv) for the same listed stocks are only weakly correlated, even if the scaling differences of the ratings are adjusted. Monte Carlo simulations are conducted to estimate how the choice of major ESG rating inputs (i) aggregation formula, (ii) weighting scheme and (iii) data provider influence the uncertainty of ratings and thus indirectly the sustainable investment process. The simulations reveal that the uncertainty is primarily related to choice of the ESG rating provider. We found that the popular best-in-class portfolio selection could be built on ESG scores. In lower segments of the ESG asset universe, investment selection becomes more challenging due to the increasing uncertainty of ratings. Finally, the paper shows that exchanges in the European Union provide relatively good ESG investment opportunities in international comparison.

Performance Evaluation, Factor Models, and Portfolio Strategies: Evidence from Chinese Mutual Funds

Actively managed stock mutual funds in the Chinese A-share market offer good investment opportunities. In aggregate, they outperform stock market indexes. Individual funds show a wide cross-sectional dispersion in performance, with the best funds offering economically large risk-adjusted returns that persist over time. Performance persistence observed at the individual fund level is robust to various factor-model specifications. A portfolio of the top-performing funds offers an improved investment opportunity compared with a portfolio of all funds. Hedging out market risk in this portfolio increases the Sharpe ratio, lowers volatility, and reduces tail risk. These results suggest that, in the young and still-developing Chinese A-share market, mutual funds can add value for investors.

Firms' innovation strategy under the shadow of corporate social responsibility disclosure: Evidence from China

This paper examines how corporate social responsibility (CSR) disclosure impacts innovation using a sample of Chinese firms. We find that an increase in CSR disclosure leads firms to invest more in R&D investments and generate more patents. Additionally, our findings reveal that firms with high CSR disclosure nurture innovation by engaging less in short‐termism activities that crowd resources for innovation. Furthermore, we uncover that CSR disclosure promotes the optimum allocation of R&D expenditure by allocating risky capital towards good investment opportunities and away from poor investment opportunity sets. In addition, we show that CSR disclosure promotes innovation through information and human capital channels.

Toward Firm Performance in Indonesia: The Role of Good Corporate Governance and Investment Opportunity Set

Abstract: This study examined the role of good corporate governance and investment opportunity set in maintaining firm performance. This study's sample population comprised 240 manufacturing companies listed on the Indonesia Stock Exchange from 2016 to 2019. The research sample was selected using a purposive sampling method. The data were analyzed by using structural equation modeling analysis (SEM). The results showed that good corporate governance in terms of board size had a negative effect on firm performance. Meanwhile, good corporate governance in terms of board independence and investment opportunity set had a positive effect on firm performance.Keywords: good corporate governance, investment opportunity set, firm performance Menuju Kinerja Perusahaan di Indonesia: Peran Good Corporate Governance dan Investment Opportunity Set Abstrak: Studi ini menguji peran good corporate governance dan investment opportunity set dalam menjaga kinerja perusahaan. Populasi sampel penelitian terdiri dari 240 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia dari tahun 2016 hingga 2019. Sampel penelitian dipilih dengan menggunakan metode purposive sampling. Analisis data menggunakan analisis structural equation modeling (SEM). Hasil penelitian menunjukkan bahwa good corporate governance ditinjau dari ukuran dewan komisaris berpengaruh negatif terhadap kinerja perusahaan. Sedangkan good corporate governance ditinjau dari independensi dewan komisaris dan investment opportunity set berpengaruh positif terhadap kinerja perusahaan.Kata kunci: good corporate governance, investment opportunity set, kinerja perusahaan

Explaining the Growth Potential of a Market Leader and Challenger: Evidence from Japan’s Telecommunications Services Industry

This study examines the growth potential of the market leader and market challenger in Japan’s telecommunications services industry. We focus on Nippon Telegraph and Telephone Corporation (NTT) and KDDI, the market leader and challenger (respectively) in terms of sales revenue, total assets, and market share. Following finance literatures, we use higher values of price–earnings ratio (P/E) and market-to-book-value-of-equity ratio (MV/BV) as the indicators of growth potential. High growth firms have the potential to outperform the overall market over a significant period of time providing a good investment opportunity for retail and institutional investors. This study uses financial data of the NTT and KDDI from the period between 2001 and 2016 and applies several regression models to examine the growth potential of the market leader and market challenger in Japan’s telecommunications services industry. Using the P/E and MV/BV as indicators of growth potential, we show that the market challenger’s growth potential is significantly higher than that of the market leader, even after controlling for firm size, liquidity, profitability, leverage, cash flow, and age.

Optimal Book-Value Debt Ratio

When a firm has a target capital structure, it is usually in a book-value term rather than a market-value one as normally assumed in standard finance textbooks. This article provides a systematic approach to determine the optimal book-value debt ratio. The proposed method balances both the tax benefit of debt and its associated bankruptcy cost and more importantly incorporates the aims to maintain a good credit rating, financial robustness in times of adverse shocks, and financial flexibility to seize good investment opportunities. In terms of methodology, our model incorporates the tax benefit of debt in the form of lower cost of capital, whereas the expected bankruptcy cost is reflected in a higher credit spread. We adjust the Hamada equation to take default risk into account by applying the method suggested by Cohen when adjusting the cost of equity as a debt ratio changes. The model is calibrated to data from the U.S. non-financial firms. It provides predictions concerning the effects of key variables such as profitability and growth. Our model reveals a negative relationship between growth opportunities and market debt ratios but no clear directional relationship with book debt ratios. In addition, our model points to the negative (positive) relationship between profitability and market (book) debt ratio. Interestingly, the two debt ratios move in the opposite directions. These predictions have support from existing empirical literature.

Poverty—A Challenge for Economic Development? Evidences from Western Balkan Countries and the European Union

During the last few decades, economists have tried to find a solution to eradicate poverty, especially since the United Nations’ Sustainable Development Goals were launched. The target of Goal 1 is to end poverty in all its forms everywhere. While income inequality and unemployment have played a major part in contributing to poor wellbeing in the world, other factors such as political instability, a lack of good investment opportunities, and living conditions have contributed to it as well. Thus, in this work, the authors analyze the factors that impact poverty and compare these results between countries within the European Union and post-communist countries that include the Western Balkan (WB) countries: Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia. The method used consists of both descriptive statistics and multiple regression analysis using the fixed effect model where poverty is taken as the dependent variable. The data used in this study are gathered from the World Bank and Legatum Prosperity, during the period between 2009 and 2018. The results show that income inequality does indeed impact the further progress of poverty for both the EU and WB, while economic development in terms of GDP is shown to have a more significant impact on EU than in WB, where the most significant impact was through income per capita. Other factors such as education, investment environment, and especially unemployment also significantly impacted on decreasing the poverty rate in both economic zones.

Money as a Store of Value

The common narrative about Jean-Baptiste Say’s treatment of money holdings is that he denied the possibility of hoarding. I show that this interpretation of Say’s thinking is erroneous. Drawing upon the various editions of Traité and Cours and other lesser-known texts, I provide substantial evidence to refute the widespread but mistaken view that, for Say, money was only a medium of exchange. In reality, not only did Say analyze long-term and short-term hoarding, but more generally, Say did envisage that money could serve as a store of value. In particular, three motives could lead individuals to keep idle balances in times of uncertainty: a precautionary motive, the lack of good investment opportunities, and the lack of information. For Say, the demand for money for precautionary motive rose during depressions, indicating that hoarding was a symptom rather than a cause of disturbance. Hoarding was an integral part of Say’s economic system that did not invalidate his law of outlets.

Internal Migration and Poverty Reduction in Ghana

Nowadays, policymakers and researchers are discussing the relationship between internal migrations on poverty reduction. The uneven economic developments in Ghana these days, among others, have made the essential towns a des tination for internal migrants from other areas of the country. This study examines internal migration that acts as a way o ut of area poverty where conservative strategies on poverty reduction have failed to draw on empirical evidence on Ghana's civil movement. It is also examining how internal migration leads to economic development in rural areas. For the migrants a proportionate sample size of 680 used. Snowball sampling utilized for population selection (migrants) Gathered data from six regions and 38 districts in Ghana.It was analysed using questionnaires and interviews using versi on 22 of the Social Sciences Statistical Package (SPSS). The research also used statistical methods such as multinomial re gression, Spearman rank analysis of correlation, and ordinal model regression. Internal migration has a positive effect on poverty alleviation in Ghana bringing good drinking water supplies, electricity expansion, sanitation facilities, improved incomes, better healthcare, better nutrition, savings and investment opportunities to migrants, their families and communities among others. In order to maximize the effect of internal migration, the study recommended policy, theoretical and practical interventions on poverty reduction in Ghana

INVESTMENT OPPORTUNITY SET AND GOOD CORPORATE GOVERNANCE TO EARNINGS QUALITY

This study aims to examine the effect of good corporate governance mechanisms (consisting of institutional ownership and managerial ownership) and investment opportunity set (IOS) on earnings quality. The population in this study are companies with types of manufacturing industries listed on the Indonesia Stock Exchange in the period 2013 to 2017. The sample was obtained using a purposive random sampling method. Data analysis uses multiple linear regression. The results showed that the mechanism of good corporate governance did not affect earnings quality, and investment opportunity set (IOS) affected earnings quality. KEYWORDS: Good Corporate Governance, Investment Opportunity Set and Earnings Quality

Firms’ Innovation Strategy Under the Shadow of Corporate Social Disclosure: Evidence from China.

This paper examines how CSR disclosure impacts innovation using a sample of Chinese firms. We find that an increase in CSR disclosure leads firms to invest more in R&D investments and generate more patents. Additionally, our findings reveal that firms with high CSR disclosure nurture innovation by engaging less in short-termism activities that crowd resources for innovation. Furthermore, we uncover that CSR disclosure promotes the optimum allocation of R&D expenditure by allocating risky capital toward good investment opportunities and away from poor investment opportunity sets. In addition, we show that CSR disclosure promotes innovation through information and human capital channels.

Status and process analysis of koche, a traditional pastoral meat product in Kenya

Meat is an important dietary component of the pastoral communities living in marginalized regions of Kenya. Indigenous meat processing, in particular koche processing, plays a significant role in the economic and social life of the Borana community. It contributes to animal-source protein as well as income generation as a livelihood activity by the Borana community. However, traditional processors face a number of challenges hindering further conventional development. The study was designed to assess the status and process analysis of koche, costs and returns of koche production and constraints limiting koche processors. A cross-sectional survey was therefore carried out in Isiolo and Marsabit towns to assess and analyse processing of koche product. Purposive sampling of all koche processors was used to identify study cohorts. Qualitative data were collected using key informant interviews and focus group discussions. Results revealed that all processors were women who largely relied on traditional techniques, often with low competitiveness and poor efficiency. The major constraints facing processors were lack of equipment to ease processing (100%), lack of credit facilities (100%), insufficient capital (90%) and high costs of inputs (90%). The return to labour and variable costs were Kshs 12.1 (0.121 USD) and Kshs 0.92 (0.0092 USD), respectively, while the marketing margin was estimated as 20.8%. Based on the findings on the gross margin and analysis of returns, processing of koche product is a profitable business, thus a good investment opportunity. However, there is a need to overcome the challenges to enable the expansion of koche processing for better commercialization. Besides, addressing the challenges will help reduce post-production losses and remove market barriers of the koche product. This will expand the market access of koche products and thereby increase incomes of pastoral communities.