Fund Investment Research Articles

Heterogeneity of foreign investors and Knightian uncertainty: Evidence from the Chinese capital market

Foreign investors are playing an increasingly important role in China's capital market, and the impact of northbound funds on Knightian uncertainty has attracted much academic attention. Based on the characteristics of northbound funds' trading behavior and investors' shareholding stability, this study divides them into long-term investors and short-term opportunists. It also examines the effect of long- and short-term foreign investors on individual stock Knightian uncertainty. The study finds that higher stability of northbound fund shareholding lowers the Knightian uncertainty of individual stocks, and long-term foreign institutional investors contribute to market stability. Furthermore, long-term investments in northbound funds can reduce Knightian uncertainty by improving the information environment, influencing the trading behavior of institutional investors, boosting investor confidence, and helping investors form consistent expectations. In conclusion, short-term foreign investors aggravate market volatility, whereas long-term foreign institutional investors help stabilize the market.

Do Funding Decisions, Dividend Policy, and Investment Decisions effect on Islamic Firm's Value?

This research aims to examine the influence of Funding Decisions, Dividend Policy and Investment Decisions on Company Value in Companies listed on the Jakarta Islamic Index (JII) for the 2017-2020 period. This research uses quantitative research with a descriptive research strategy. The population of this research is 30 companies listed on the JII for the 2017-2020 period. The sample selection in this study used purposive sampling with a total sample of 22 companies, so the number of observations was 88. The data used is secondary data. Data collection techniques through the company's official website. The research results prove that Funding Decisions have a significant positive effect on Company Value, Dividend Policy has a significant and negative effect on Company Value, and Investment Decisions have a significant and positive effect on Company Value. The managerial implication in this research is that the capital structure chosen can influence the company's cost of capital. Dividend decisions can also affect a company's share price. It is important to conduct careful analysis and consider the various factors that influence these decisions to ensure that the company operates efficiently and can increase value for shareholders

Impact of Herding Behavior on Mutual Fund Performance

n this study, we look at how herd mentality affects the efficiency of mutual funds. It is well-documented that investors often engage in herding behaviour in the financial markets, when they blindly follow the actions of others rather than evaluating information independently. Yet, there has been a dearth of empirical research into its particular consequences for mutual funds. To analyse the impact of herding behaviour on fund performance, this research uses a thorough dataset of mutual fund returns and investor flows. The first step of the research is to use literature-established metrics to determine whether mutual fund investors herd. After that, we use risk-adjusted returns, volatility, and alpha to evaluate the herding behaviour vs. fund performance connection. The research further delves into the ways in which herding affects the performance of funds by looking at things like trading fees, liquidity restrictions, and market circumstances. Herding behaviour has a substantial impact on mutual fund performance, according to preliminary data. However, the exact nature of this impact varies across fund kinds and market conditions. Although herding may provide short-term gains in price momentum and liquidity-driven returns, it eventually causes mispricing and reversals if it continues. In addition, less liquid asset classes may have their long-term performance eroded by herding-induced trading costs and portfolio churn. These results have consequences for fund managers and investors alike. By learning the ins and outs of herd mentality, investors may make better investing choices that stay true to their long-term value drivers and avoid the traps of herd mentality. To lessen the impact of market emotion on fund performance, fund managers should be aware of investors' herding tendencies so they can create portfolios and use risk management methods. Keywords – Herding Behavior, Mutual Funds, Investor Behavior, Market Sentiment, Performance Measurement

Information and analytical aspects of financial investment management of a medical organization

For Russian companies, solving problems related to the management of financial assets and instruments has become much more complicated under the influence of global changes over the past few years related to external negative political and financial and economic processes. The increase in the scale of activities of commercial medical organizations in recent years, one of the main reasons for which are the negative effects of the recent pandemic on public health, is accompanied by an increase in the volume of services provided, income and income of additional funds that need to be invested in various assets, one of which is financial investments. Restrictions on access to Western financial trading platforms to achieve the necessary efficiency of the organization’s financial portfolio, difficulties in the operation of the system of external financial settlements and payment obligations, and many other risky events led to the need to search for alternative transactions with financial resources of companies, new directions and forms of investments of available funds. The issues discussed in the article are devoted to the creation of an optimal policy for managing investments in financial assets of an organization, which should be based on high-quality information, analytical and methodological support.

Risk Attitudes and Personality Traits Among Investors in Funds

How do an investor’s thoughts and feelings influence their behavior? Financial institutions must assess the risk attitudes of investors to ensure investors are being recommended appropriate financial products. This study is a further examination into whether risk attitudes are correlated with personality traits and to determine the risk attitudes of investors from different backgrounds. The risk attitudes of investors were examined according to the Big Five personality traits. Investor personality traits were linked to their investment decisions and risk attitudes. Differences in risk attitudes between investors from different backgrounds were also explored. A questionnaire survey was administered. Investors with fund investment experience were recruited. Correlations were observed between the Big Five personality traits and risk attitudes. Extroversion, agreeableness, conscientiousness, and openness to new experiences were positively correlated with risk attitudes, and neuroticism was inversely correlated with risk attitudes. These results indicated direct relationships between the Big Five personality traits and risk attitudes. This study also revealed significant differences in risk preferences between gender, marital status, discretionary budget, fund investment experience, and risk profile. The study results provide a broader reference for establishing investment risk profile charts that integrate personality traits into behavioral finance models in financial practices.

Application of Catholic Social Teaching in Finance and Management

In dominating narratives, economics has been portrayed as hard science, based on complex mathematical equations and rigid statistical models. It seems to be overlooked that it belongs to the domain of social sciences and that its roots stem from philosophy and ethics. After all, many classical economists were either ethicists (A. Smith) or clergymen (T. Bayes). Today’s managers also seem to be motivated mainly by the desire to increase their company’s profits. However, if managers wish to become both effective and respected leaders for their teams, they should build their power on ethical principles deeply rooted in Catholic Social Teaching. The purpose of the present paper is to attract attention to the relation of economics, management and religion. Behavioral economics and management come to our aid here by emphasizing that, when making decisions related not only to financial markets but also to managerial tasks, what matters is not only factors that are strictly financial, but also those are related to psychology or ethics. Using the example of ethical investing and faith-based funds or stock indexes the Authors show that Christian values and the social teaching of the Catholic Church are still important to some participants in the financial markets.

Optimizing Hajj Fund Investments Through Valuation Analysis Of Sharia-Compliant Stocks

This investigation endeavors to dissect stock valuation methodologies within the consumer goods sector listed on the Jakarta Islamic Index (JII70), aiming to establish a foundational basis for investment decision-making aligned with Sharia principles, particularly for the Hajj Financial Management Agency (BPKH), which administers the Hajj fund. The empirical data underpinning this analysis comprise the financial statements of the companies under scrutiny. Secondary data, essential for this study, are sourced from publications disclosed on the official websites of the respective companies. The selection of sample companies employs a purposive sampling technique, focusing on entities characterized by robust market liquidity and a consistent history of dividend distribution. The valuation techniques applied in this study include the price multiple (P/E and P/B ratios) and the dividend discount model. The findings of this research reveal that PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO) is undervalued, exhibiting a potential discrepancy of 15% between its market price and intrinsic value. This study aspires to serve as a seminal reference for subsequent inquiries into stock valuation within the domain of Islamic finance, enriching the academic and practical understanding of Sharia-compliant investment strategies.

Uncovering The Secrets of Smart Investors: How Knowledge, Attitudes And Understanding of Taxes Drive Investment Decisions In The Bibit Malang Raya Application

Globalization and new lifestyles encourage investment as a smart financial solution. BIBIT, a popular platform, needs to improve its profitability. This research shows that financial knowledge and attitudes, tax knowledge, and locus of control are important for wise investment decisions. This research uses an associative quantitative design with primary data from 170 Bibit investors in Malang Raya. Data were analyzed using multiple linear regression and mediation path analysis to test the relationship between variables. Classical assumptions are tested and the model is evaluated with SmartPLS. The majority of BIBIT users (86%) like the way the platform avoids inflation. Users also agree (95%) that BIBIT considers profit and loss and annual profits in selecting and managing mutual fund investments. This shows user satisfaction with BIBIT's ability to protect the value of money and maximize profits. Financial knowledge and attitudes, as well as tax knowledge, significantly influence the investment decisions of BIBIT investors in Malang Raya. Financial attitudes and knowledge also influence locus of control, but tax knowledge does not. Financial knowledge and attitudes, mediated by locus of control, positively influence investment decisions.

Study on the Development Path of Cosmetics in China

With the improvement of economic level and the change of people's consumption concept, cosmetics have become an essential item in people's life, which led to the outbreak of the personal care industry of cosmetics and provided the soil for private business. With the development of China's economy and the improvement of consumption capacity, since the millennium, domestic cosmetics brands have begun to rise, especially as the post-90s and post-95s become the main consumers, China-Chic consumption has become a trend, Since 2016, a large number of cutting-edge brands (such as Huaxizi and Perfect Diary) have emerged to promote the comprehensive rise of domestic products, breaking the long-standing pattern of foreign brands leading the beauty and personal care market. Therefore, China's cosmetic market has made remarkable progress in recent years, and more and more Chinese brands are loved by people, thanks to the rapid development of the Internet, which has indirectly led to the live bandwagon. This paper will introduce the market scale of Chinese cosmetics in detail, as well as discuss the current situation and problems of the development of Chinese cosmetics. Finally, the paper will illustrate the development path and outlook of China's cosmetics in terms of investment in research funding and digital transformation.

Commitment to the ESG investing and Individual Mutual Fund Investors’ Preference: Evidence from Stated Choice Experiments

Abstract Using stated choice experiments, this paper tests the causal effect of mutual funds’ commitment to the ESG investing by signing the UNPRI on individual investors’ preference for mutual funds. I find that signing the UNPRI will make mutual funds more attractive to investors. The estimated WTP is approximately 4% in terms of the annual management fees, both statistically and economically significant. The effect of signing the UNPRI on investor preference is not significantly different among investors with different sex, income, risk attitude, and mutual fund investment experience. However, it is larger among the older investors than the younger. JEL classification numbers: G20, G50. Keywords: UNPRI, Choice Experiment, ESG.

Examining the Relationship Between Financial Knowledge, Risk Tolerance, and Past Behavioural Bias on Investors Actual Investment Behavior

Purpose: The present study aims to determine the factors influencing investment intention and actual investment behaviour in mutual funds. The study uses financial knowledge and risk tolerance as moderators and past behavioral bias as a mediator. Theoretical framework: The Theory of Planned Behaviour (TPB) appears to have become a very useful model for predicting various investing behaviours. Therefore, the present utilises the TPB model to analyse mutual fund investment behaviour. Design/methodology/approach: The convenience sampling method was used to collect respondents from a population of 582 retail investors through questionnaire survey This research used partial least squares structural equation modelling (PLS-SEM) as the main method of data analysis using SmartPLS 4. Findings: Attitude, financial knowledge, and risk tolerance emerged as the most important determinants of mutual fund investment intention. This highlights the significance of creating favorable conditions in terms of accessibility, which may encourage and ease the decision of investors to purchase mutual funds. Research, Practical & Social implications: Marketers can explain how their mutual fund offerings would help both the market and investors. Marketers should prioritize proper communication about the benefits of mutual funds to investors, as communication is regarded as a critical tool for the success of mutual fund products. Originality/value: To understand individual investors' intentions to engage in mutual funds, the impact of attitude, subjective norms, and perceived behavioural control on investor intentions and, actual investment behaviour were hypothesised and analysed, financial knowledge and risk tolerance functioning as moderators. Additionally, past behavioural bias is a mediator.

Spatial dynamic simulation of beetles in biodiversity hotspots

IntroductionColeoptera is the most species-rich order of animals with the widest distribution area; however, little is known about its global suitability distribution, and a substantial number of species are experiencing silent extinction. Most of Earth’s biocommunities are concentrated in biodiversity hotspots, and these hotspots receive the largest investment of conservation funds. The survival of beetles is closely related to the richness of biodiversity, so habitat loss in hotspots results in a high extinction risk for beetles.MethodsWe used the MaxEnt model to simulate the spatial suitable distribution in six time periods (1970-1980, 1980-1990, 1990-2000, 2000-2010, 2010-2020, and 1970-2020). Furthermore, we determined the priority suitable regions in hotspots after coupling the current biodiversity zones and evaluated the congruence between the suitable habitat of beetles and hotspots.ResultsThe results revealed that less than 30% of suitable regions were located in hotspots, and approximately 49.08% of the suitable habitat remained constant in all six periods, and can be regarded as climatically stable refugia. The Mediterranean Basin had the largest suitable area in each period and was always ranked first; other regions, such as Indo-Burma, Irano-Anatolian, and Mesoamerica, also had large areas of suitable habitat. Nine excellent, ten stable, and seventeen lower hotspots were identified based on their dynamic changes in 36 hotspots.DiscussionBased on these results, corresponding planning and management measures should be implemented in different biodiversity hotspots according to the changes in geographic distribution. In this paper, we propose practical advice for different regions to improve isolated and fragmented habitats, which will support the conservation of Coleoptera taxa and the restoration of biodiversity.

A Note on the Impact of the Canada-India Diplomatic Standoff on the Performance of Canadian Mutual Funds Investments in India

On June 18, 2023, Mr. Hardeep Singh Nijjar, a Canadian citizen of Indian origin, was killed in Canada. On September 18, 2023, the Canadian Prime Minister, Mr. Justin Trudeau, accused the Indian Government of involvement in killing Mr. Nijjar in the Canadian Parliament. This accusation preceded and succeeded by other events, led to a significant diplomatic standoff that is still ongoing. We examine the impact of this event chain on the performance of daily returns of mutual funds based in Canada that are predominantly invested in Indian securities. Our results, controlled for general stock market returns, fund size, expense ratio, and interest rates, indicate that the events negatively impacted fund performance. Our study adds to the existing literature on the benefits of international diversification of mutual funds in disconnected markets. The findings of this paper suggest that political discord between two distinct and unrelated economies may impact profits and negate the advantages of international diversification. Our study is significant to professionals, particularly mutual fund managers, as it demonstrates the role of two countries’ political ties in affecting mutual fund returns.

Risk Aversion in the Future of Financial Advisory: The Legal Protections for Robo-Advisor Users in Mutual Fund Investments

Risk Aversion in the Future of Financial Advisory: The Legal Protections for Robo-Advisor Users in Mutual Fund Investments

SWOT ANALYSIS IN PRODUCTIVE MANAGEMENT OF CASH WAQF FUNDING AT MICRO WAQF BANK OF ALMUNA BERKAH MANDIRI KRAPYAK YOGYAKARTA

The role of institutions in managing cash waqf provided security guarantees and wider investment of funds. Here, the question arises of how to manage cash waqf funding at Bank Wakaf Mikro (BWM) using the SWOT approach. This research aimed to determine the strength factors, weakness factors, opportunity factors, and threat factors in the implementation of cash waqf fund management by BWM Almuna Berkah Mandiri Krapyak. This research was a type of field research using qualitative descriptive methods. Data collection techniques were observation, interviews, and documentation. Meanwhile, the data analysis technique was obtained from various sources through triangulation and carried out continuously until saturation. The results of this research could conclude that the strength factors in managing cash waqf funding at BWM Almuna Berkah Mandiri were good human resources and infrastructure. Meanwhile, the weak factor was that social media management was not running well, so promoting customer products was less than optimal. The opportunity factor was the ease of technology, where customers would find it easy to get information from the Micro Waqf Bank. Finally, the threat factor in managing cash waqf funding was the existence of customers who were in trouble, where customers needed to make installment payments at the agreed time.

Impact And Interaction Between Demographic Variables and Behaviour Bias on Mutual Fund Investment Decision Among Academicians

The impact of demographic variables and biases on investment performance can guide personalized investment strategies and product development within the financial services sector, catering to the unique needs and preferences of academicians as investors. With the growing importance of mutual funds in investment portfolios and the prevalence of behavioral biases influencing decision-making processes, understanding how demographic factors intersect with these biases is crucial. Moreover, the influence of demographic factors on these biases and their subsequent impact on investment outcomes remain underexplored within this specific demographic group. By uncovering how demographic characteristics intersect with behavioral biases in mutual fund investment decisions among academicians, it can inform tailored financial education programs aimed at mitigating biases and enhancing financial literacy among this demographic. The study seeks to provide valuable insights for both academicians and financial practitioners to improve investment decision-making processes and outcomes. Despite the increasing popularity of mutual funds as investment vehicles, academicians, like many investors, are susceptible to behavioral biases that can impede rational decision-making. The author concluded that addressing these implications has the potential to foster more informed and effective investment decision-making processes, benefiting academicians and the broader investor community alike.

Mutual fund value creation: Insights from the residual income model

Inspired by the residual income model used to assess firms’ value creation in the accounting field, we provide a new estimation approach to infer a fund's skills, value creation, and whether the value created by funds can predict future performance. Using a sample of 2069 active equity funds in China from 2011 to 2022, as predicted by this model, we find that the residual earnings of funds, which represent the value created through fund trading activities, are persistent. Additionally, we observe a strong and positive relationship between residual earnings and semi-year-ahead mutual fund abnormal returns. Specifically, the top quintile portfolio based on residual earnings outperforms the bottom quintile by 2.16 % abnormal returns per year. Furthermore, we note that Chinese mutual funds with higher residual earnings tend to be younger, smaller, and have substantial turnover. These findings are valuable for fund investors seeking to identify high-value funds.

Emerging Market of Nepalese Mutual Fund in Nepal: A Systematic Review

The aim of this research was to determine the current state of the Nepalese mutual fund developing market. Studies carried out between 2010 and 2023 show that the specific topic area has been investigated. The research's dataset comprised 21 articles published in Nepal during a 14-year span. In the review of Researchers found that time restrictions and insufficient information provide obstacles for investors. Risk division is provided by mutual funds, along with other advantages including cash flow, accessibility, efficiency, creativity, and prevention. The safety and liquidity of funds impact investors' opinions of mutual fund investments. Advantages of mutual funds include cost-effectiveness, accessibility, personalization, innovation, transparency, and prevention when it comes to risk segmentation.

Private Equity Investments in Support of Professional Athletes: Developing and Testing a Cross-Country Framework of Sporting and Venture Creation Performances in Countries With a Strong Long-Term Orientation

Overseas financial direct investments (ODIs) have been investigated with explanations of how investors generate a return on investment (ROI) and enable entries to new markets via sports club investments. However, investments in athletes have garnered less attention. This study explores private equity (PE) funds that could support professional athletes’ sporting performance and their second careers as entrepreneurs, actions that require a long-term approach. First, this study builds a sports entrepreneurship framework. Second, this study analyses secondary data on exceptionally strong sporting performance (Olympic Games medals), venture creation performance (the number of unicorns), and long-term orientation. As its theoretical contribution, this paper suggests that the tested framework could help future studies detail theories concerning sports startup ecosystems and agency problems. A managerial implication of the article is that sports club investments could be combined with PE fund investments to athletes in contexts dominated by funding types other than PE.

Determinants of Online Investment Decision in Islamic Mutual Funds: Theory of Planned Behavior (TPB) Approach

The purpose of this study is to analyze the determinants or factors that determine the decision to invest in Islamic Mutual Funds through online platforms, using the Theory of Planned Behavior (TPB). This study measures one dependent variable, namely the decision to invest in Islamic Mutual Funds through online platforms and six independent variables, namely Islamic financial literacy, Islamic mutual fund investment literacy, benefit perception, technological advancement, investment risk and investment return. The research is quantitative in nature, using primary data. Data collection was conducted with the dissemination of questionnaires to respondents in Greater Jakarta Area who have accessed online platforms to invest in Islamic Mutual Funds. This study then uses SEM-PLS (Structural Equation Modeling-Partial least Square) analysis with SmartPLS software to analyze the data. The study shows that Islamic Financial Literacy and Investment Literacy of Islamic Mutual Funds have a negative and significant influence on the decision to invest in Islamic Mutual Funds Online. While the variables of perception of benefits, technological advances, investment risk and investment return have no influence on the decision to invest in Islamic Mutual Funds Online. Thus, the better the level of literacy or understanding of Islamic finance and the investment literacy of Islamic mutual funds, the more people's decisions to invest in sharia-compliant mutual funds through online platforms.