Investment Allocation Research Articles

Political uncertainty and cross-border equity portfolio allocation decisions: International evidence

Political risk models highlight that political uncertainty matters for corporate investment decisions. However, how political uncertainty matters for investment allocation decisions is relatively under-explored. In this study, we examine the impact of political uncertainty associated with national elections on foreign equity portfolio in 48 countries. Our results indicate that political uncertainty reduces international equity allocations to the host country and such reduction appears more pronounced in the election year. Further analysis shows that the interaction between political uncertainty and institutional quality has a positive and significant effect on international equity portfolio flow, suggesting that the value of institutional quality outweighs the negative effects of political uncertainty. Lastly, we find equity home bias to be negative and significant; however, the interaction between political uncertainty and equity home bias appears insignificant.

Factors Affecting Allocation of Czech FDI in EU Countries

The main objective of this paper is to analyse which factors have an impact on the allocation of Czech foreign direct investment (FDI) in EU countries. Multivariate panel regression with general macroeconomic variables and time dummy variables using Eurostat data for the period 2013-2019 was performed. Indicators of a tax system promoting and/or enabling aggressive tax planning, and other more general indicators were included in the model. This paper provides the opposite view by analysing the flow of FDI from a transition economy to more advanced economies. The results suggest that Czech FDI is placed in developed countries with lower statutory corporate income tax rates, and with which the Czech Republic has a larger volume of foreign trade. Furthermore, it is confirmed that the factors affecting allocation of Czech FDI in the EU are the distance between the capital cities and the existence of the so-called patent box regime.

Male plumage colouration predicts female reproductive investment and nestling survival in a colour dimorphic tropical songbird

In sexually colour dimorphic bird species, males can exhibit phenotypic variation, with males breeding in either dull female-like plumage or brightly coloured plumage. Two contradictory hypotheses predict that the male phenotype variation can influence the female investment in a given breeding attempt. Whereas females usually prefer males in bright coloured plumage, the “differential allocation hypothesis” predicts that females should invest more in their reproductive output when mating with them; while the “compensatory investment hypothesis” predicts that females should invest more when mating with non-preferred males. To test those predictions, we analysed reproductive data for two consecutive breeding seasons (2018–2019 and 2019–2020) of Lined Seedeaters Sporophila lineola. S. lineola is a socially monogamous songbird species in which males exhibit two breeding phenotypes, a black-and-white plumage being the most common, and a less common female-like brownish plumage. Our findings show that females mated with brownish males have a higher reproductive investment (i.e., egg volume) than those mated with black-and-white males. Despite the lower investment of females in egg volume, our results showed that black-and-white males have a higher nestling survival, producing more hatchings and fledglings per season than brownish males, which could suggest a higher fitness. Our findings indicate that investment allocation on the eggs and offspring survival rates can be attributed to the plumage colour of males.

Stock market integration and volatility spillovers: new evidence from Asia–Pacific and European markets

PurposeThis work investigates the volatility spillovers across stock markets and the nature of such spillovers through different periods of crises and tranquility.Design/methodology/approachUsing daily stock return volatility data from June 2003 to June 2021, the generalized forecast error variance decomposition method (based on Diebold and Yilmaz, 2012 approach) is employed to measure the degree of volatility spillovers/connectedness among stock markets of 24 Asia–Pacific and 12 European Union (EU) economies.FindingsThe empirical results from static analysis suggested that about 28.1% (63.7%) of forecast error variance in return volatility for Asia–Pacific (EU) markets is due to spillovers. The evidence from dynamic analysis suggested that during mid of the global financial crisis, European debt crisis (EDC) and Covid-19, the gross volatility spillovers for Asia–Pacific (EU) was around 67% (80%), 65% (80%) and 73% (67%), respectively. The degree of net volatility transmission from Singapore (Denmark) to other Asia–Pacific (EU) markets was found to be highest.Practical implicationsThe findings have crucial implications for the investors and portfolio managers in assessment of risk and optimum allocation of assets and investment decisions.Originality/valueThis study adds to the literature on risk management by systematically examining the impact of global financial crises, EDC and Covid-19 on the market interactions by capturing the magnitude, duration and pattern of the shock-specific market volatilities for a large sample of Asian and European markets using recent and large data set.

A bi-level optimization model for the asset-liability management of insurance companies

<p style='text-indent:20px;'>Different from traditional asset-liability management where only investment allocation is considered, this paper introduces policy product allocation into asset-liability management of insurance companies. In order to balance product allocation and investment allocation, a bi-level optimization model is employed. Since the decision-making environment of the two allocation processes is full of indeterminacy, the imprecise information of the model is measured by uncertain variables in order to deal with the lack of enough historical data. To solve this bi-level Optimization problem containing uncertain variables, an uncertain bilevel programming model is used. Furthermore, we simulate a scenario to compare the bi-level optimization approach with other approaches by virtue of hybrid intelligent algorithms.</p>

Research on the data collection standardization system of capacity construction report in changqing oilfield

The capacity construction project group of Changqing oilfield needs to repeatedly enter the same data into multiple different information systems of the company every day. This work mode causes many problems, such as multiple entries, heavy repetitive workload, and difficult to guarantee data quality. Through in-depth analysis of business process and data entry status of the capacity construction project group, this paper puts forward the working ideas of data collection link standardization and data collection standard standardization, explores and establishes a standardized data collection system for the whole chain of capacity construction report data, including investment plan, well information entry, investment allocation, predrilling, drilling, well log, logging, oil testing (gas testing), production and injection, and well delivery. The system guarantees the timeliness, integrity and accuracy of data. In addition, it provides an external data sharing service, build the capacity construction data sharing platform, and realize the “one-time data entry, multiple system reuse, automatic report generation” of capacity construction report data.

International Tax Competitiveness: Between TAX Optimization and Tax Fairness

Goal – this work aims to examine tax competition between countries and the balance between tax optimization and tax fairness. The study focuses on the impact of tax competition on the allocation of foreign investment, capital mobility and the competitive advantage of the economy in the international arena, as well as on the analysis of entrepreneurs’ motivation for tax optimization and its effects on public revenues and tax fairness. Research methodology – the research methodology works on a review of the scientific literature on tax competition, tax and tax optimization. These criteria are analysed on the basis of the analysis of determinants of tax competitiveness and the interaction between tax policy and the economic sphere. Score/results – the results of the analysis of the literature synthesis confirm that the increase in tax competition between countries leads to the transfer of investment allocations and, in the end, contributes to the growth of the competitive advantage of the economy on the international arena. Entrepreneurs seeking tax optimization choose a jurisdiction with the effectiveness of tax applications, and the application has an impact on public revenues and on achieving tax justice. Originality/value – the added value of this work is a new perspective on tax competitiveness and the related issues of tax optimization and tax fairness. The work also includes recommendations for policy makers, businesses and society.

Avaliação da vulnerabilidade natural de aquíferos subterrâneos visando à hierarquização de locais para implantação de sistemas de abastecimento de água e esgotamento sanitário no município de Ananindeua/PA

ABSTRACT The methodologies for determining aquifer vulnerabilities are currently used as tools to support proposals for the groundwater protection, associated to water management resources and planning and territorial ordination activities. In this context, the objective of this present work is the vulnerability assessment of an aquifer system of interest located in the municipality of Ananindeua, the state of Pará. To this end, the following activities were executed: survey and systematization of pertinent information to existing wells in the municipality of Ananindeua-PA; determination of the constituent parameters of the GOD method and the hydrogeological values of hydraulic conductivity and hydraulic transmissivity; extrapolating the pertinent information for all the interest area aiming the spatialization of homogeneous zones by degree of vulnerability e, finally, the hierarchization of locations for the implementation of water supply systems. With the completion of this present work, it was verified that most part of the area of interest has an aquifer system classified as unconfined, mixed lithological extracts and distance from the top to the water table less than 20 meters. These information, associated with the pattern of land use and occupation, based on the study of hydrogeologic values, enables the subsidy for decision-making regarding the most appropriate allocation of preventive investments with basic sanitation infrastructure, in order to minimize or nullify the associated risks of contamination in the referred area. However, to a better support for an efficient decision-making from the public managers and the actions of other social actors involved in the use and management of groundwater in the locality, it must be provided other information and complementary studies.

Problems of attracting domestic investments in Ukraine during war

The article states what the internal and external investments are, examines the essence of internal investment and reveals its main components. Considered the importance of shifting emphasis from outward foreign investment to inward investment for achieving economic stability and growth in the face of fullscale invasion. At the same time, the relationship between internal and external investment is presented. The main problems of domestic investment at the time of a full-scale invasion and possible ways to solve them are studied. It is indicated what kind of economic policy should be built in the period of constant threats and instability. The positive and negative features of investing in the economy of Ukraine and the impact of the war are revealed. In this work, it is described why Ukraine can be considered an attractive country for investment. The material also describes the justification of the importance of the allocation of domestic investments as a necessary direction in the economy of Ukraine, the definition of the necessary concepts, the definition of interrelationships and causeand-effect problems in the matter of investments during a full-scale invasion. The article analyzes three types of domestic investments, namely state investments, investments at the expense of citizens' savings, and investments of large businesses. It is also revealed how each of these types can become key in the development of Ukraine in the economic sphere due to their involvement in the budget. It is also indicated what helped to save the situation in the country after the Russian full-scale invasion, namely, that Ukraine was set back 15 years in achieving its poverty reduction goals. The author describes how large and small businesses affect the economy of countries during wartime, as well as the problems that corporations face. The possibility of domestic investment through the country's citizens, the state budget and domestic Ukrainian business corporations is mentioned. The ways of attracting investment in the context of a full-scale invasion are indicated. The author describes how each type of domestic investment has suffered because of the invasion and how the war has affected each. The opportunities that the Ukrainian state can offer in response to inward investment are considered. The dynamics of the six-month dynamics of the investment climate is also presented. It is indicated how much the capital of direct investors in Ukraine decreased in the first half of 2022.

Анализ трансмиссионного механизма государственных инвестиций на основе DSGE-модели

This paper attempts to assess the impact of public investment within the framework of a simple DSGE model calibrated on Russian data. To this end, three versions of the DSGE model were constructed. The first model, referred to as the baseline model, assumes efficient allocation of public investment. The second model considers inefficient use of public investment when it is not fully converted into capital. The third model examines crowding out of private investment by public investment. The primary focus of this paper is to analyze the effects of public investment shock on various components of the economy. Two distinct effects are identified with regard to investment. The first effect relates to a short-term increase in demand due to an increase in investment activity. The size of this effect is strongly influenced by the crowding-out phenomenon, in particular by the ability of the economy to absorb investment effectively. The second effect is a reduction in marginal costs in the medium to long run, which facilitates economic growth even at the expense of increased private investment. This effect depends primarily on the efficiency of transformation of public investment into capital. The study also analyzes the sensitivity of the results to parameterization, including the degree of economic openness. The findings of the study explain the transmission mechanism of public investment, including the factors affecting its efficiency. It is important to note that the main objective of the study was to investigate the transmission mechanism and its determinants, while the next stage of the research is expected to include a comprehensive assessment of the parameters using Russian data.

О ПРОЕКТИРОВАНИИ И ОРГАНИЗАЦИИ ПРОИЗВОДСТВА БПЛА ГРАЖДАНСКОГО НАЗНАЧЕНИЯ В КНИТУ-КАИ

The article is devoted to the study of issues of organization of research in the field of design and organization of production of civil UAVs. The authors note that the use of UAVs significantly reduces the cost of complex and labor-intensive work. With the development of technologies in this area, it becomes necessary to systematically study and analyze the results of ongoing research. The article focuses on the key problems and factors that determine the success of projects in this area. The authors emphasize that the UAV sector is competitive and dynamic, so the approaches and methods for evaluating the effectiveness of R&D should be adaptable and flexible. Understanding the peculiarities of evaluating the effectiveness of R&D in the field of designing and organizing the production of UAVs is important for making decisions on the allocation of resources and investments. The importance of the scientific school of KNRTU-KAI in the creation of modern Russian UAVs is noted. So, a scientific group consisting of Gainutdinov V.G., Abdullin I.N., Golovina E.S. A.V. a patent for a utility model "Modular design of a vertical takeoff and landing unmanned aerial vehicle with a combined power plant" was obtained. The authors reflected the advantages and disadvantages of existing VTOL UAVs, as well as the problem of lack of piloting skills among potential users. As part of the article, the authors developed a sales plan, a calendar plan, and also calculated the effectiveness of full investment costs over 5 years of project implementation.

Measuring equity in spatial development investments for the provincial development program in Wasit governorate

To access the range of achieved equity in the spatial distribution for the investment by the region’s development program in Wasit province, the Gini coefficient, and Lorenz curve were utilized. Previously mentioned methodologies were used in the quantitative analysis. To measure the disparity and the optimal allocation of investments, a comparison is implemented. This comparison was between the percentage of allocating investment in development programs in the basic service sectors (municipal, sewage, water, roads, and education) and between the three components of (population, area, and level and disability). Findings showed that the local authorities depend on population (the municipal sector, sewage, urban water) and urban land area in allocating investments. Findings also showed a lack of interest by authorities in two factors. These factors are rural land area and the deficit in providing services. This deficit is reflected in the variation of equity in determining the number of investment allocations between different counties of Wasit province.

A fair-biased allocation of investment between economic sectors using social accounting matrix multiplier analysis

Economists have exploited the social accounting matrix in linear economic models to analyze the effect of some variables such as government spending, investment, and export on other economic indicators including total output, employment, household income, and economic growth. In this paper, the influence of investment injection on some economic indicators is analyzed. In addition, to gather different indicators in a general view, these economic indicators are applied as inputs and outputs in a data envelopment analysis model. Overall, to get to the best possible economic conditions, a fair revenue allocation method is used based on a data envelopment analysis model to determine each economic sector’s quota of investment. Next, a kind of fair-biased allocation method improving the economic conditions in comparison to the prior model is proposed. Finally, the whole process for Iran’s social accounting matrix and subsequent results are presented.

Pressões institucionais na configuração da capacidade de análise de big data

Abstract This article aims to analyze the setting up of tangible resources and human big data skills, in the face of institutional pressures, in the big data analytics capability in Brazilian companies. Innovation influences the environment in which companies are inserted, increasing uncertainties, resulting in behavioral changes of social players. In response to individual efforts to rationally deal with uncertainties and constraints, organizational homogenization emerges. However, the institutional pressures that influence the setting up of specific resources are still not fully understood in the literature. The replication of the study by Dubey (2019b) is considered, seeing big data technology as an innovation that has caused changes in the social context, thus we seek to grasp the setting up of organizational big data resources in Brazilian companies to build BDA capability, due to institutional pressures. The study makes it possible to see how institutional pressures set up BDA capability, thus being able to provide means to investment allocation decisions in data technology or improve technical management skills in the business intelligence team. The study brought to light the environmental response, resulting from the technological innovation of big data, in Brazilian companies. This demonstrates that organizations adhering to big data technology select their resources in the face of various pressures, in order to build big data analytics capability. This research has a descriptive and quantitative nature, and its operationalization took place through a survey. The research population consists of Brazilian companies that use technology with a large volume of structured and/or unstructured data, to generate results and insights, which support decision making. The survey participants were employees of Brazilian companies that have positions related to building big data analytics capability, located through the LinkedIn platform. 136 valid responses were obtained. To test the hypotheses, the Structural Equation Modeling technique was used by means of the software Smartspls v. 3.2.3. This study contributes by bringing an understanding of organizational behavior in the face of institutional pressures (coercive, normative, and mimetic) when selecting tangible resources and human big data skills to build BDA capability, using Resource-Based Theory. It is observed that the setting up of BDA capability is influenced by tangible resources and human skills. Tangible resources are selected due to formal pressures, competitive conditions, and by imitating existing standards in the market. Meanwhile, the required human skills are impacted, through legitimation and professional networks of decision makers.

How Do Corporate Tax Hikes Affect Investment Allocation within Multinationals?

How Do Corporate Tax Hikes Affect Investment Allocation within Multinationals?

Infrastructure and EU Regional Convergence: What Policy Implications Does Non-Linearity Bring?

One of the priority areas of the EU is infrastructure development. Over 2021–2027, it is planned to allocate more than 116 billion EUR of support from EU structural funds to transport and ICT infrastructure. For investments to promote the growth of lagging regions and reduce regional disparities, investments must be efficiently allocated. Considering limitations of previous studies, this study aims to provide recommendations for policymakers regarding infrastructure investment allocation after assessing the non-linear relationships between transport and ICT infrastructure development and convergence of EU MS NUTS2 regions. The general specification for estimations is based on the neoclassical conditional beta-convergence model. Additionally, a non-linear specification with interactions is developed to estimate the effect of infrastructure development on convergence. We used Generalized Methods of Movement estimator for the robustness check to reduce possible endogeneity bias. Estimations indicated that a non-linear relationship between infrastructure development and convergence is present. We have found strong evidence of the diminishing marginal effect of infrastructure development on convergence and have identified a tipping point after which infrastructure development slows down convergence, i.e., convergence is still present but at a slower rate. The study results made it possible to present several essential recommendations to policymakers that would increase the effectiveness of investments in infrastructure. Investments should be distributed according to smaller regional units, i.e., NUTS 2 level. The optimal level of infrastructure development that ensures convergence of regions for each type of infrastructure has to be established to ensure that the investments are not too intense and to generate the maximum potential outcomes.

Response of ecosystem services in Beijing-Tianjin Sandstorm Source Control Project to differing engineering measures scenarios

Changed land use patterns are the most direct manifestation of ecological engineering implemented by humans, being among the driving factors for changes in ecosystem services (ESs). However, different ecological engineering governance measures can lead to different changes in land use, resulting in corresponding changes to ESs and ecosystem service value (ESV), yet these changes is the content that needs to be clarified. In this study, four kinds of ESs, namely water yield, soil conservation, carbon storage and water purification, were quantified in part region of the Beijing-Tianjin Sandstorm Source Control Project (BTSSCP). In addition, eight scenarios were simulated according to the land use change caused by engineering management measures, and the ESs and ESV ensuing under these differing scenarios quantified accordingly. The results show that the main land use types in the study area from 2000 to 2020 were cropland and forestland, while during this period land use change mainly consisted of the expansion of grassland (+466.79 km2) and loss of cropland (−2095.27 km2). For different engineering management measures, protective governance will play a greater role in improving ESs than restoration governance. Protecting the existing governance outcomes from degrading can maintain a water yield of 36.85 × 108 m3, soil conservation of 73.72 × 106 t, carbon storage of 89.01 × 106 t, the purified water nitrogen content of 1.21 × 106 t, with the total ESV maintained at 54.237 billion yuan. Moreover, the high-investment counties clearly engage in ecological restoration that provides high ESV. Yet, there are still some counties with high project investment where the gains in ESV are low, such as Luanping county and Pingquan county. Therefore, it should be reasonably distributed based on the existing governance results in the next round of project investment allocation. In the past 20 years, engineering governance measures have significantly improved the ESs in the region. Nevertheless, looking ahead, it remains necessary to strengthen the emphasis on protecting governance outcomes.

IMPLEMENTATION OF DSN-MUI FATWA ON SHARIA INSURANCE PRODUCTS AT PT. ASURANSI TAKAFUL PALEMBANG BRANCH

Insurance problems do not only stop at transactions, but also at investments. Most of the insurance purchased by the public is actually insurance that contains maysir, gharar, and usury. This means that the money received from the investment received by the customer is also not maintained as halal. It is different from investing in Sharia insurance because there is a Sharia Supervisory Board which ensures that all insurance mechanisms and investment allocations do not conflict with Sharia law. Sharia Insurance Companies are entrusted by the participants to manage premiums, develop in a lawful way, provide compensation to those who experience disasters according to the contents of the agreed agreement deed, based on the characteristics of takafuli, tabarru and mudharabah.This study aims to analyze how the implementation of the DSN-MUI fatwa regarding general guidelines for sharia insurance at PT Asuransu Takaful.This study uses a Qualitative Approach that is related to phenomena that refer to the actions of economic actors, namely humans who act around economic phenomena as well as in consumption, production and distribution with all kinds of transaction derivatives and their interactions. The research results show thattabarru funds that has been collected is managed by the company on the basis of wakalah through insurance invested in various sharia investment instruments so that the funds are more productive. The results of the tabarru' investment are actually purely the rights of the participants, while the insurance company can obtain profit sharing from the investment through a tijarah contract. Companies can also benefit from wakalah bil ujrah contracts. This is in accordance with the DSN MUI fatwa No.DSN-MUI No.21/DSN-MUI/X of 2001 concerning General Guidelines for Sharia Insurance

Decentralized Robust Portfolio Optimization Based on Cooperative-Competitive Multiagent Systems.

This article addresses decentralized robust portfolio optimization based on multiagent systems. Decentralized robust portfolio optimization is first formulated as two distributed minimax optimization problems in a Markowitz return-risk framework. Cooperative-competitive multiagent systems are developed and applied for solving the formulated problems. The multiagent systems are shown to be able to reach consensuses in the expected stock prices and convergence in investment allocations through both intergroup and intragroup interactions. Experimental results of the multiagent systems with stock data from four major markets are elaborated to substantiate the efficacy of multiagent systems for decentralized robust portfolio optimization.

INFRASTRUCTURE IN THE FRAMEWORK OF PRODUCTION FUNCTIONS: EVIDENCE OF EU MEMBER STATES AT THE REGIONAL LEVEL

Infrastructure development is seen as an essential tool for boosting economic growth. Infrastructure is funded under various programs to contribute to economic growth, and reduce regional disparities. Evaluations of the results achieved have to be carried out to develop efficient infrastructure development and investment allocation policy. This is highlighted in both the reports of policymakers and scientific publications. The main limitation of these studies is that they focus on assessing the return on infrastructure development at the national level, leaving the question of what outcomes were achieved at the regional level. This article aims to evaluate the economic outcomes of transport and ICT infrastructure development at the NUTS 2 regional level in the EU-28 countries, using 2000–2019 data. The research is based on the neoclassical production function complementing it with an infrastructure indicator. Based on previous research, it is hypothesized that economic outcomes may depend on the institutional environment of the region. Consequently, the research model specification is supplemented by government quality as a possible moderator. Research findings suggest just motorway and internet infrastructure are significantly positively related to production outcomes. Estimations show higher government quality and less corruption are related to the bigger production output of the infrastructure input.