Indirect Investment Research Articles

Literature Review on Economic Effects of the RCEP

Since the outbreak of the COVID-19 pandemic, there have been significant fluctuations in the global economy and trade, leading to a pivotal moment in the global economic system. In this context, the Regional Comprehensive Economic Partnership (RCEP) has been officially established, showing positive effects on trade activities and economic progress among its member nations. This study systematically reviews the relevant literature on RCEP and draws the following conclusions: First, RCEP was formed against the backdrop of global economic and trade turbulence and holds significant implications for fostering economic and trade growth in the East Asian region, as well as advancing the process of Asian integration. Second, upon reviewing the literature on RCEP, it was observed that the majority of current literature concentrates on the national level, with less emphasis on the firm level. At the national level, the literature primarily focuses on trade exchange and international investment. Last, most of the literature concerning the impact areas of the RCEP concentrates on international trade and direct investment, while there is still significant potential for research on the mechanisms and potential negative consequences of indirect investment and international trade, as well as sustainable development in emerging research areas.

Game theoretical analysis of incumbent platform investment and the supplier entry strategies in an e-supply chain

We investigate the interaction of platform investment strategy and a supplier entry strategy in an e-supply chain with a supplier and two e-commerce platforms. In addition to selling through the incumbent platform, the supplier may enter the entrant platform. The incumbent platform may prevent this by investing in the supplier to reduce production costs (indirect investment) or investing in its value-added service to enhance its own demand (direct investment). We analyze the incumbent platform's investment strategy with and without supplier entry to the entrant platform. Without entry, the incumbent platform prefers indirect investment only when the production cost is high and the indirect investment cost is low. With entry, however, the incumbent platform prefers indirect investment when the direct investment cost is high. We also explore the effect of the incumbent platform's investment strategy on the supplier's entry strategy. Counterintuitively, we find that direct investment by the incumbent platform increases the supplier's incentive to enter the entrant platform. Under certain conditions, the incumbent platform can effectively prevent this entrance through an indirect investment strategy. Even if the supplier enters the entrant platform, it is optimal for the incumbent platform to maintain investment. Furthermore, we further extend that the two platforms have the same commission rate to the case where the two platforms have different commission rates and show that the main results still hold. We have also expanded the situation where both platforms have investments. Interestingly, we find that when the production cost is high, the supplier's entry into the entrant platform and the entrant platform's indirect investment may benefit the incumbent platform.

The Impact of Foreign Indirect Investment in ASE on Foreign Reserves in Jordan: an Econometric Study during the Period (1995-2021)

The Impact of Foreign Indirect Investment in ASE on Foreign Reserves in Jordan: an Econometric Study during the Period (1995-2021)

리츠(REITs) 배당가능이익에 대한 세제의 문제점 및 개선방안

REITs are indirect real estate investment products that collect funds from investors, invest them in real estate-related securities, and return the profits to investors. In the case of domestically listed REITs, if dividendable profits are generated, more than 90% must be paid as dividends. Through this, corporate tax is exempted. The government has made great efforts to expand the size of the public REITs and public real estate fund markets. Nevertheless, REIT investment is less active in some areas than major overseas countries. Recently, under the Corporate Tax Act, the principle is not to include valuation gains and losses in the tax base. However, arguments have raised that an exception should be recognized for REIT valuation losses. This is because undistributed profits due to valuation losses of REITs, which are indirect investment vehicles, are included in the taxable list, and corporate tax is paid, causing the double taxation problem for REIT investors. Considering this situation, this study examined the problems and improvement measures of the current REIT-related tax system for the growth of Korea's REIT market. In addition, we sought to derive implications for tax support for the REITs market through examples from significant countries. If we want to revitalize the REITs market more than currently, support from government policies is essential. Among them, tax support occupies the most important position. In order to dramatically grow the REITs market, it is necessary to provide bold tax benefits as in other countries. This study raised the need to improve Korea's current REIT tax system, as in the cases of the United States and Japan, and attempted to establish a taxation plan for the REIT tax system suitable for Korea's circumstances. One of the most urgent tasks in revitalizing REIT investment is to quickly resolve the conflicting issues between commercial law and corporate tax law to prevent double taxation of REITs. In addition, the tax support plan presented in this study is expected to minimize tax problems occurring in the REIT market and promote a reasonable taxation plan for the REIT market that is consistent with Korea. The policy alternatives in this study are expected to help use them as primary data when establishing policy alternatives for tax authorities or related ministries in the future.

Environmental effects of foreign indirect investment: The information channel

We investigate the environmental consequences of foreign indirect investment in China. By exploring the implementation of the Shanghai-Hong Kong Stock Connect program, which induced a positive shock to foreign indirect investment, we find that connected firms reduced their commitment to environmental responsibility more than unconnected firms. We document evidence that this can be attributed to the switch from accrual-based earnings management to real earnings management when the information environment improves after the shock. This effect is more pronounced for firms that face weak environmental regulation and low social norm costs, which amplify the unintended consequences of the information channel of stock market liberalization in developing countries.

CPTPP投资准入自由化条款研究

CPTPP Investment Access Liberalization Provisions mainly consist of the provisions of investment access treatment, the prohibition of performance requirements and the nationality requirements of senior managers. Compared with other FTAs, CPTPP can be called “comprehensive and progressive” high-standard investment access liberalization rules. The provisions feature wide application scope, detailed content and strict standards. Considering that China has formally applied to join the CPTPP, which will contribute to improving the overall level of investment access liberalization in China. These provisions are consistent with China's development goals of expanding the degree of opening up and deepening domestic reform and also provide new opportunities for China's domestic reform. But at the same time, it also brings new challenges for China to further open up the investment market, shorten the content of the negative list and upgrade the relevant domestic laws and regulations in the field of investment access liberalization. In order to meet the challenges brought by China's accession to the CPTPP, China shall make appropriate responses. First, improving domestic regulations and foreign investment negative list in the field of investment by increasing the transparency and legal certainty of the foreign investment security review system and drawing up the negative list for foreign investment access through referring to the negative lists of CPTPP members and subdividing the specific behaviours and activities of different industries and fields. Second, carrying out the pilot of high-standard opening up in the FTZs further by fully incorporating the high-standard provisions in the field of CPTPP investment access liberalization into the relevant rules of the FTZs and extending the scope of application of the negative list to indirect investment. Third, strengthening international cooperation in the field of investment access liberalization and actively promoting deeper cooperation with other countries. All those responses may minimize the resistance of China’s joining the CPTPP.
 
 CPTPP投资准入自由化条款主要包括投资准入待遇条款、禁止业绩要求条款和高管 人员国籍要求条款，和同类型的自由贸易协定相比较，CPTPP投资准入自由化条款呈 现出适用范围广、规则内容全、开放要求严的基本特征，属于新一代高标准的投资准 入自由化规则。鉴于中国已经正式提出申请加入CPTPP，此举有利于从整体上提升我 国的投资准入自由化水平，该条款与我国扩大对外开放程度并深化国内改革的发展目 标相契合，为中国国内改革提供新的机遇，但同时也给中国带来了进一步开放投资市 场、缩短负面清单内容和国内投资领域法律法规配套升级完善的新挑战。为应对加入 CPTPP在投资准入自由化领域给中国带来的挑战，中国应该做好相关应对，完善投资 领域的国内法规和外商投资负面清单，增加外商投资安全审查制度的透明度和法律确 定性，参考CPTPP成员负面清单进一步细分不同行业领域的具体行为和活动科学制定 外商投资准入负面清单，同时进一步开展自贸区高标准开放试点，将CPTPP投资准入 自由化领域的高标准条款完全纳入自贸区相关规则中，试点将负面清单的适用范围扩 展至适用于间接投资，此外加强投资准入自由化领域的国际合作，积极推动与其他国 家更深层次的合作，以尽量减少我国加入CPTPP的阻力。

PENGARUH INFLASI, SUKU BUNGA, ROA DAN EPS TERHADAP RETURN SAHAM PERUSAHAAN SUB SEKTOR BATU BARA

Investment is an activity to invest directly or indirectly with the aim of obtaining a return. One form of indirect investment that is popular and in great demand by investors today is stocks. The level of return obtained by investors is not fixed and can change at any time. The purpose of this study was to determine the effect of inflation, interest rates, ROA and EPS on stock returns. This research was conducted using the object of research, namely the coal sub-sector mining sector companies listed on the Indonesia Stock Exchange in the 2016-2020 period. This study uses secondary data from the company's financial statements as well as the official website of Bank Indonesia and the Central Statistics Agency (BPS). The analysis technique used is multiple linear regression. The results show that (1) inflation has no effect on stock returns, (2) interest rates have a negative effect on stock returns, (3) ROA has a positive effect on stock returns, and (4) EPS has a positive effect on stock returns.

분산투자를 결정하는 요인

Purpose - In this study, we examine the factors related to the asset allocation decisions of individual investors who 1) directly invest in stocks or bonds, 2) indirectly invest in various fund products (excluding CMA and MMF), and 3) invest in both products.
 Design/methodology/approach - We collect a sample of 3,000 individual investors and investigate the factors influencing investment behavior, especially the diversification tendency in asset allocation, with the “Investor Behavior Survey” that is conducted jointly by the Korea Financial Investment Association and the Korea Gallup Research Institute in 2011 and 2012.
 Findings - Our regression analyses estimate the marginal effects of various factors such as the amount of total financial assets, monthly income, occupation, age, and gender. The results reveal that male investors with manual labor occupations were less inclined to diversify their investments compared to female investors in office jobs. Additionally, higher monthly income is associated with a greater inclination toward diversification. Therefore, if a positive relationship exists between income and educational level, we may suggest that higher educational levels lead to a greater tendency for diversification.
 Research implications or Originality - Interestingly, investors who engage in direct investments tend to exhibit a weaker diversification tendency as the amount of their direct investment increases. On the other hand, investors who engage in both direct and indirect investments show a weaker diversification tendency as the amount of total financial assets increases. This suggests that the investment style of investors is closely related to their diversification behavior.

Alternative Measurement of The Rate of Return on Investment Portfolio in Insurance Company

The main part of this paper is to analyze the measurement of the rate of return on a realized investment portfolio. In this section, this study will simulate calculations on existing rate of return measurements with the same investment portfolio data over a period of one year. The investment portfolio contains indirect investment instruments in the form of securities in the money market and capital market. Then an analysis is carried out, and it is concluded that one measurement is more ideal and reflects the actual performance of the investment portfolio. The measurement of the net investment income ratio is a realistic measurement, acceptable and reflects actual performance. This is because the measurement considers the investment placement period with a weighted average of the rate of return on investment. This study provides alternative decision-making for insurance industries and investment managers in determining the rate of return on the investment portfolio, whereas other researchers have never conducted this study.

Social and Financial Sustainability of Real Estate Investment: Evaluating Public Perceptions towards Blockchain Technology

Real estate markets play a crucial role in the economy, providing opportunities for investment and housing. However, there are several challenges in both direct and indirect investment mechanisms affecting its social and financial sustainability. These challenges include high costs, lengthy processes, limited transparency, and restricted investor control. Additionally, the dominance of large investors in the market intensifies these issues, creating barriers to smaller investors. This raises concerns around social inequality and sustainability among small investors, that represent, in number, the largest share of investors. Blockchain technology has emerged as a possible solution to address these issues in the real estate sector, with the potential to improve its long term social and financial sustainability. Features such as smart contracts and tokenization can enhance efficiency, transparency, security, and accessibility in property transactions. In the case of smart contracts, these enable self-executing and automated agreements, and tokenization allows for fractional ownership and increased liquidity. To assess the knowledge and perceptions of professionals in the real estate sector and evaluate the possible impact of the technology in the market, a survey-based methodology was followed. It targeted individuals actively involved in the industry, including professionals from real estate investment companies and real estate agencies. The data revealed that most professionals in the Portuguese real estate market have little to no knowledge about blockchain technology. Yet, those who possess knowledge recognize the potential benefits it can bring to the industry. This lack of awareness can be attributed to the relatively recent emergence of blockchain and its limited discussion within the real estate sector.

The Role of Risk Tolerance in Mediating the Effect of Overconfidence Bias, Representativeness Bias and Herding on Investment Decisions

This study aims to analyze the impact of Overconfidence Bias, Representativeness Bias, and Herding towards investment decision making through Risk Tolerance, where psychological and social factors could have effect on the investors' decision making process. The sample was gathered using Snowball Sampling technique on 200 stock investors who have made transactions in the Indonesian Stock Exchange. The data was analyzed using SEM PLS with Smart PLS 3.2.9 application. The result shows that Overconfidence Bias and Representativeness Bias have significant impact on both direct and indirect investment decision making process through Risk Tolerance. On the other hand, Herding shows no effect on direct and indirect investment decision making process through Risk Tolerance.

Direct or Indirect? Implications of the retailer’s investment choices on the manufacturer’s encroachment strategy

Nowadays, retailer investment is becoming increasingly prevalent in real life. This paper focuses on a retailer’s optimal investment strategy selection problem in a game model consisting of a manufacturer and a retailer. The manufacturer may establish a direct selling channel. For the same amount of money, the retailer has two investment choices: indirect investment through investing in upstream manufacturer’s equity or direct investment through investing directly in its retail channel marketing. We compare the equity investment case and the channel investment case to identify the optimal investment decisions and investigate the behavior patterns of the manufacturer and the retailer in both cases. The following results are obtained. First, instead of the frequently researched investment approach — channel investment, which is always an effective anti-encroachment measure for the retailer, the equity investment may promote the establishment of the manufacturer’s direct selling channel. Second, the retailer may benefit from manufacturer encroachment in the case of equity investment. In contrast, the retailer will get hurt once encroachment occurs under the channel investment case. Finally, the retailer’s optimal investment strategy critically depends on the difficulty between equity investment and channel investment. Particularly, the investment approach with a higher investment difficulty will be the best choice for the retailer.

From Entrepreneur to Investor: China’s Semiconductor Industrial Policies

This study explores the nature and evolution of China’s developmental state through a detailed case study of the country’s semiconductor industrial policy. China, since the 1980s, can be described as an entrepreneurial developmental state due to its prioritizing of economic growth and use of direct investment in its industries. The country’s semiconductor industrial policy during the 1980s and 1990s fits neatly into this model due to the government’s focus on developing national champions. With the failure of these projects, however, the government was forced to adopt the policies of a general developmental state and use indirect incentives to promote the growth of its IC (integrated circuit) industry. Several hybrid and foreign firms began to develop as a result of these policies. The Chinese government launched a new industrial policy in 2014 to revitalize its IC industry, indicating a return to the entrepreneurial state model. China established National IC Funds which amassed huge sums of money from the state budget and state-owned enterprises (SOEs). Close scrutiny of the investments of these funds reveals that 54% was risked on two national champions while the rest was diversified among more than 300 firms when accounting for indirect investment through investment companies. This diversification is representative of the investor state model. The recent bankruptcy and ensuing scandals suggest that China’s entrepreneurial state suffers from serious deficiencies in its governance. This study concludes that the Chinese government should reconsider its development model and consider transforming itself into that of a more cautious investor state while improving its governance mechanisms.

Factors affecting the quality of human capital in industrial cities of Russia

The study tests the hypothesis that in order to develop industrial enterprises in the modern realities of the BANI-world (brittle, anxious, nonlinear, incomprehensible: fragile, disturbing, nonlinear, incomprehensible) it is of high importance to understand the influence of the social context and assess it in the correct manner. To reach new heights of development, not only direct investments in people’s education are needed, but also indirect ones, i.e., in creating favourable living conditions. The purpose of this work is to identify the factors that are the target of indirect investments affecting the quality of human capital in industrial cities of Russia.

The Impact of Political Stability on Foreign Reserves

This study aims to investigate the impact of political stability on foreign reserves in Jordan during the period of 1996 to 2017. To achieve the aim of the study, the researchers used two research methods; descriptive and econometric. The Autoregressive Distribution Lag (ARDL) has been applied. The results show that political stability has a positive impact on foreign reserves in Jordan in the long-run, where if political stability increases by (1) unit, the foreign reserves increase by 1.148 as a percentage. However, in the short-run, there is a positive impact of political stability on foreign reserves, where if foreign indirect investment increases by 1 unit, the foreign reserves increase by 0.498 as a percentage.

우리나라 부동산 간접투자상품을 활용한 퇴직연금 포트폴리오에 관한 연구

Purpose: This study empirically analyzed the portfolio of retirement pension using real estate indirect investments,after identifying the problems through interviews with experts related to retirement pension, improvements wereproposed. Increasing the proportion of real estate indirect investment will be a way to solve the problem of lowreturns on retirement pensions in Korea. Research design, data, and methodology: In order to conduct the study, first of all, based on Markowitz’s portfoliotheory, the correlation between representative index (benchmark index) by asset and indirect investment products ofreal estate that can be selected in domestic retirement pension was analyzed. After that, Optimal portfolio wasderived by simulating and analyzing the portfolio consisting of representative indices and products. Results: The correlation analysis was conducted by selecting the representative index of investment assets and theindirect investments of real estate as variables showed that REITs and real estate ETFs distributed the risk ofretirement pension portfolio. And as a result of analyzing the optimal portfolio including K-Top REITs andShinhan-Alpha REITs, the standard deviation was lower and the yield was higher than that of the traditional portfoliothat does not include real estate indirect investments, so both stability and profitability were derived in positiveresults in portfolio that includes real estate indirect investments. Implications: The proportion of real estate indirect investments in the portfolio of retirement pensions should beincreased. As examined in previous studies at home and abroad and pension fund management, it was found thatthe portfolio including real estate assets has reduced risk and increased profits, and as a result of the analysis ofoptimal portfolio, high-achieving were derived from profitability and stability in the portfolio in which real estateindirect investments were incorporated. Increasing the proportion of real estate indirect investments will be a way tosolve the problem of low returns on retirement pensions in Korea.

딥 러닝을 이용한 서울시 프라임 오피스가격 예측에 관한 연구

1. CONTENTS (1) RESEARCH OBJECTIVES The purpose of this study is to establish an office price prediction model in a situation where Seoul prime office is preferred as an investment product for real estate funds and REITs in the domestic real estate indirect investment market. (2) RESEARCH METHOD The methodology of this study analyzed the VAR model, SimpleRNN model, and LSTM model using macroeconomic indicators and market condition indicators to compare office price prediction power. (3) RESEARCH FINDINGS As a result of the analysis, the RMSE of the VAR model was lower than that of the LSTM model and the RNN model, so it was analyzed that the predictive power was high. These analysis results empirically show that the VAR model, a multivariate time series eep learning model, an artificial neural network algorithm. 2. RESULTS As a result, this study confirmed that the Seoul prime office market operates in a linear relationship rather than a non-linear one between variables. In other words, compared to other real estate markets, the Seoul prime office market can be seen as a market in which prices are formed while exhibiting a stable relationship with interrelationships between variables rather than rapidly changing environmental factors such as macroeconomic variables in terms of price prediction through time series methodology.

Carbon Dioxide Emissions Reduction through Technological Innovation: Empirical Evidence from Chinese Provinces.

Energy consumption and industrial activities are the primary sources of carbon emissions. As the “world’s factory” and the largest carbon emitter, China has been emphasizing the core role of technological innovation in promoting industrial structure upgrades (ISU) and energy efficiency (EE) to reduce carbon emissions from industrial production and energy consumption. This study investigated the mechanism (through ISU and EE) and spillover effect of technological innovation on carbon emission reduction using the panel dataset of 30 Chinese provinces from 2008 to 2019 and spatial econometrics models. The study concluded that (1) technological innovation had a negative direct effect on provincial carbon emissions, while it also showed a spatial spillover effect on neighboring provinces; (2) technological innovation had an indirect effect on provincial carbon emissions reduction through the mediation of energy efficiency improvement, while the mediation effect of industrial structure upgrading is not yet significant; and (3) the effect of technological innovation on carbon emission reduction showed heterogeneity in the eastern, central, and western regions of China. This study provided empirical and theoretical references to decision-makers in China and other developing countries in promoting technological and carbon control policies. More specifically, direct technology investment and indirect investment in industrial structure upgrades and energy efficiency could help with regional carbon emissions reduction.

A Modeling Framework for Assessing the Value of Learning in Dynamic Adaptive Planning: Application to Green Infrastructure Investment Evaluation

AbstractTo cope with the uncertainty of green infrastructure planning, many cities take an adaptive approach and use learning‐by‐doing to improve estimates of the cost and efficacy of stormwater management practices (SMPs) and use that information to improve stormwater plans. However, deciding whether that learning is worth its expense has been a challenge for practitioners. We propose a modeling framework to assess the economic value of learning. Methodologically, we present a generalized adaptive planning method that includes learning from direct and indirect investments and multiple degrees of learning. The formulation enables users to specify possible knowledge gains from near‐term actions and quantify its value by assessing its impacts on subsequent decisions and their performance. Further, we quantify the values of both learning and adaptability by calculating differences in expected system performance between three types of decision making: non‐adaptive (no learning between decisions), passive adaptive (adaptive planning that passively accepts incidental learning), and active adaptive (adaptive planning that considers potential learning opportunities when choosing investments). For illustration, we apply the framework to an example inspired by a real stormwater management setting in Philadelphia, PA. In the example, the ability of SMPs to reduce runoff is evaluated by hydrological simulation. The literature and expert opinions inform estimates of costs, SMP performance deterioration over time, and predictions of possible knowledge gains. The results show that active adaptive planning supported by stochastic optimization can achieve substantial cost savings.

리츠 투자자의 재투자 및 타인 추천에 영향을 미치는 요인에 관한 연구

Since the introduction of REITs in Korea, the size of the REITs market has gradually expanded, and it has formed an indirect investment market as an alternative investment asset for institutional and individual investors. This study conducted a survey of real estate finance and non-financial industry experts with experience in REITs investment, and analyzed using structural equation modeling. According to the analysis results, securing the stability of investment products is important, and creating a stable investment environment leads to investment performance, contributing to the scalability of investment. This is because REITs can be sensitive to changes in the capital market, and the investment environment through a stable base can be further emphasized in a situation where the economy is unstable. It can also be seen that investors are demanding a 6-8% return as an appropriate return.