Benefits Of Investment Research Articles

Aligning Enterprise Risk Management into Risk Disclosure of the IPO Prospectus

This concept paper aims to review the potential of aligning Enterprise Risk Management (ERM) elements into risk disclosure of the IPO prospectus. This concept paper explores the potential for aligning ERM elements within the risk disclosure section of IPO prospectuses. The paper emphasizes the regulatory requirement of the risk disclosure in the prospectus. It highlights the importance of risk disclosure in investment decision-making. It contends the best practices of risk disclosure in the IPO prospectus for the benefit of investors and also reinforces the issuing company’s commitment to effective risk management and corporate governance. By incorporating ERM principles, the prospectus not only improves transparency but also strengthens the issuing company’s commitment to effective risk management and corporate governance. The key research objective is to evaluate the integration of ERM into IPO risk disclosures, with particular emphasis on regulatory compliance, investor decision-making, and the enhancement of corporate governance practices. This research endeavors to fill the gap in the literature by enhancing the ERM elements in the existing practices of IPO disclosure.

THE EVOLVING LANDSCAPE OF INVESTOR PROTECTION: BALANCING STATE SOVEREIGNTY AND INVESTOR RIGHTS IN THE 21ST CENTURY

The evolving landscape of investor protection in the 21st century requires a delicate balance between safeguarding investor rights and preserving state sovereignty. As global investments expand, investors seek legal assurances to protect their assets, while states must retain the ability to regulate in the public interest, addressing economic, social, and environmental challenges. This tension has sparked debates about the role of investor-state dispute settlement (ISDS) mechanisms and the need for reform. By modernizing investment treaties and dispute resolution processes, the international community can create a more equitable system that fosters both investment and sustainable development, ensuring mutual benefits for investors and states alike.

Time junior middle school students invested to sports and their cognitive skill development: a time economics perspective

Great importance is attached to physical exercise and students’ cognitive development, yet the precise mechanism linking the time duration of physical activities or sports with adolescents’ cognitive development remains inconclusive. Based on the two-wave panel data of China Education Panel Survey (CEPS), this paper empirically examines the impact of daily physical exercise duration on junior middle school students’ cognitive abilities, by using the two-way fixed-effect estimation. The findings reveal a nonlinear relationship, specifically an inverted “U”-shaped pattern, between daily time length of physical activities or sports and students’ cognitive performance. The cognitive benefits of time investment in physical activities or sports reach the peak at approximately 0.829 h (equivalent to 50 min) per day among the teenagers in China. Furthermore, the daily time allocated to physical activities or sports affects students’ cognitive performance differentially, students attending rural schools were rewarded more progressively, students of poorer physical fitness and those in good shape did not show discernible between-group differences. This study shades light on educational governance and time management, urging school administrators, parents and students to optimize the efficiency and utility of time resource invested in sports activities.

The Long-term Economic Growth Impact of Chinese Investment in Africa

Africa and China have always been a community of destiny, with close ties and similar historical backgrounds. However, investigating whether the Chinese investment benefits the sustainable economic growth for Africa is valid. The gist of this essay is to look at the impacts of the Chinese investment on Africas economic growth. Through analysing the structure of Chinese investment, the constraints to Africas growth, the impacts caused by Chinese investment, and their effectiveness of them. The Solow Model is an exogenous doctorial model that is recognized by the public and also focuses on long-term economic growth. The essay will apply the Solow Model to realistic situations and use it to prove the effects that Chinese investment brought by using derivatives such as capital, investment, labor force, technology, and output. The properties of the Solow Model will also be involved. The research result is that Chinese investment has indeed helped Africas sustainable economic growth and it also fits the properties of the Solow Model. Meanwhile, there are some constraints and lack of effectiveness along with the benefits. So the essay concludes that even though the Chinese investment benefited the long-run economic growth of Africa, the African governments still need to increase their interventions in the market such as introducing policies that can control the dependency on Chinese leadership. And it is also important for Africa to maintain the ability to think independently and have its agendas.

Do metaverse implementation announcements enhance firms’ stock market value in China? A signaling theory perspective

PurposeThe metaverse has garnered increasing attention from researchers and practitioners, yet numerous firms remain hesitant to invest in it due to ongoing debates about its potential financial benefits. Therefore, it is crucial to analyze how the implementation of metaverse initiatives affects firms’ stock market value – an area that remains underexplored in the existing literature. Additionally, there is a significant lack of research on the contingency factors that shape the stock market reaction, leaving a noticeable gap in managerial guidance on the timing and benefits of investments in the metaverse. To narrow these gaps, we examine whether and when the implementation of metaverse initiatives enhances firms’ stock market value.Design/methodology/approachBased on 73 metaverse implementation announcements disclosed by Chinese listed firms during January 2021–August 2023, we employ an event study approach to test the hypotheses.FindingsWe find that metaverse implementation announcements elicit a positive stock market reaction. Moreover, the stock market reaction is stronger for technology-focused announcements and smaller firms, or when public attention to the metaverse is higher. Nevertheless, firms’ growth prospects do not significantly alter the stock market reaction.Originality/valueThis study extends the nascent literature on the metaverse by applying signaling theory to offer novel insights into the signaling effect of metaverse implementation announcements on stock market value and the boundary conditions under which the effectiveness of the signal varies. Besides, it provides managers with important implications regarding how to tailor the investment and information disclosure strategies of the metaverse to more effectively enhance firms’ stock market value.

Legal and economic perspectives on fair and equitable benefit sharing in the Nagoya Protocol.

Adopted in 2010 as a supplementary agreement to the 1992 Convention on Biological Diversity, the Nagoya Protocol (NP) mandates the fair and equitable sharing of benefits arising from the use of genetic resources provided by Indigenous peoples. Member states must newly enact or amend domestic laws to align with the NP. Consequently, many countries are currently implementing legislative, administrative, and policy measures to ensure fair benefit sharing from the use of Indigenous genetic resources. We examined the inclusion of intellectual property (IP) protection in the sharing of benefits from research and development that utilizes Indigenous genetic resources. The NP does not specify guidelines for IP-related benefit sharing, leaving each member state to establish its own rules. We used an economics-based approach to explore the optimal scope and duration of IP protection for maximizing stakeholder interests, including those of Indigenous peoples, at the national level. The optimal duration of IP protection was when the marginal social cost and benefit of IP protection were equal. When this point occurred varied depending on various factors, such as the type of genetic resources in the country, existence of alternatives, number of users, and competing actors. The optimal scope of IP protection was when the social benefit of investment in fundamental research equaled the social benefit of application development. Likewise, this point of implementation also varied based on various factors, such as the type, uniqueness, potential for further discovery, and diversity of providers in the country.

Assessment of the Current Situation and Solutions to Attract Australian FDI Capital to Vietnam in the Context of International Integration

Foreign Direct Investment (FDI) has played a pivotal role in Vietnam’s economic transformation, significantly contributing to industrialization, job creation, and export growth. Since the introduction of the Law on Foreign Investment in 1987 and Vietnam’s accession to the World Trade Organization (WTO) in 2007, the country has emerged as a leading destination for foreign investors in Southeast Asia. Key sectors attracting FDI include manufacturing, real estate, and services, which have driven economic development and facilitated Vietnam’s integration into the global economy. Despite these successes, challenges remain that hinder FDI’s full potential, including administrative inefficiencies, complex regulations, corruption, and inadequate infrastructure. The shortage of highly skilled labor, especially in technology-driven fields, also limits the country's ability to attract higher-value FDI projects. Moreover, there are regional disparities in FDI distribution, with major urban centers like Ho Chi Minh City and Hanoi receiving most investments, while rural areas are often overlooked. The impact of new-generation Free Trade Agreements (FTAs), such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), is also examined. These agreements enhance market access, legal protections for investors, and reduce trade barriers, making Vietnam increasingly attractive for high-tech and service industries. This paper assesses the current FDI landscape in Vietnam, identifying opportunities and challenges for foreign investors. Recommendations include simplifying business procedures, implementing anti-corruption measures, improving infrastructure, and enhancing workforce training to address skills gaps. By adopting these reforms, Vietnam can attract higher-quality investments, strengthen ties with global supply chains, and foster sustainable economic growth. Additionally, the research emphasizes the importance of building stronger partnerships between FDI enterprises and local firms to ensure the widespread distribution of investment benefits across the economy. With a more favorable investment climate, Vietnam can reinforce its position as a premier destination for global investors and enhance its role in the international market.

Multi-Stage Rolling Grid Expansion Planning for Distribution Networks Considering Conditional Value at Risk

Existing single-stage planning and multi-stage non-rolling planning methods for distribution networks have problems such as low equipment utilization efficiency and poor investment benefits. In order to solve the above problems, this paper firstly proposes a multi-stage rolling planning method for distribution networks based on analyzing the limitations of the existing planning methods, which divides the planning cycle of the distribution network into multiple planning stages, and makes rolling amendments to the planning scheme of each stage according to the latest information during the planning cycle. Then, a multi-stage rolling planning model of distribution network taking into account conditional value at risk is established with the objective of minimizing the total investment and operation cost of the distribution network. On the one hand, the users’ electricity bill is taken into account in the objective function, and the necessity of this part of the benefits is demonstrated. On the other hand, the conditional value at risk is used to quantify the uncertainty of the operation cost in the process of the expansion planning of the distribution network, which reduces the operation cost risk of the distribution network. Next, this paper uses the rainflow counting method to characterize the capacity decay characteristics of energy storage in the distribution network, and proposes an iterative solution framework that considers energy storage capacity decay to solve the proposed model. Finally, the proposed method is applied to an 18-node distribution network planning case. This confirms that the multi-stage rolling planning method could improve the investment benefits and reduce the investment cost by approximately 27.27%. Besides, it will increase the total cost by approximately 2750 USD in the case if the users’ electricity bill is not taken into account. And the maximum capacity of energy storage may decay to 87.6% of the initial capacity or even lower during operation, which may cause the line current to exceed the limit if it is not taken into account.

Board characteristics and accounting value relevance: Insights from Saudi Arabia

This study aims to determine the extent to which corporate governance affects the usefulness of financial information available to investors in Saudi Arabia. The research investigates the impact of board characteristics—including independence, size, and frequency of meetings—on the value relevance of financial statements. Data from 125 non-financial firms from 2018 to 2022 were analyzed. The results indicate that increases in both book value per share (BVPS) and earnings per share (EPS) significantly enhance share prices. Furthermore, board independence, size, and meeting frequency amplify the value relevance of EPS but not BVPS, highlighting the complementary role of these governance attributes in equity valuation. High-quality governance and financial reporting are crucial for accurate evaluation of financial statements, enabling investors to perform more precise equity valuations. This underscores the importance of robust corporate governance structures. These insights are valuable for regulators, firms, and investors. Regulators can use these findings to strengthen corporate governance frameworks, ensuring boards are independent, well-sized, and diligent, thereby enhancing financial transparency. Firms can improve their governance practices, boosting the credibility and usefulness of their financial reports, which fosters greater market trust and attracts investment. Investors benefit from more reliable financial information, allowing for better-informed decisions and more precise equity valuations.

Impact of internal governance on investment policy: Evidence from CEO voluntary turnovers

The theoretical and empirical literature suggests that CEO might not make risky long-term investments if the CEO believes that the benefit of such investments would not materialize or is not recognized by the market until after the CEO has retired. This paper tests the predictions of the Acharya, Myers, and Rajan (2011) internal governance model to counteract the CEO’s tendency to forego such investments on a sample of voluntary CEO turnovers. We find that the optimal level of sharing of tasks between the CEO and her top-management team, the firm’s internal governance, is dependent on the CEO’s career horizon. Additionally, we find the effect of internal governance only matters for older CEOs. We also find that the closer the internal governance is to the optimal level, the smaller is the underinvestment for an older outgoing CEO. We find that the new incoming CEO divests profitably the assets acquired under good internal governance. Finally, we find that optimal internal governance is found to have positive effects on corporate innovation. Our results are robust to continuous matching by generalized propensity score and controlling for the CEO’s explicit pay-performance sensitivity, succession plan, and pay duration.

Quantifying benefits of renewable investments for German residential Prosumers in times of volatile energy markets

The COVID-19 pandemic and the Russian invasion of Ukraine have led to unseen disruptions in the global energy markets since the end of 2021. Residential renewable investments like photovoltaic systems, battery home storage systems, and heat pumps are therefore gaining traction. However, the benefits of those technologies during the energy crisis and beyond have not been fully quantified yet. Therefore, in this study, we benchmark renewable investments for a broad variety of single-family homes by evaluating potential cost savings and emission reductions. In addition, the study considers the influence of recent political incentives and subsidies. The results show that photovoltaic systems are a no-regret investment decision, both economically and environmentally. At the climax of the energy crisis, a typical German household with a heat pump could save 1850 € and reduce equivalent CO2 emissions by 250 g/kWh annually. Politically introduced price breaks on electricity and natural gas do not reverse this advantage. Furthermore, when owning an electric vehicle renewable investments are often more beneficial.

The The Influence of Financial Literacy, Risk Perception, Herding, Loss Aversion, Anchoring, And Income on Gold Investment Decisions at PT. Pegadaian (Persero)

The investment interest in Indonesia is rising in line with the society's awareness on the benefit of investment, especially gold investment. Investors act rationally or irrationally in making investment decisions. The aim of this research is to study the effect of financial literacy, risk perception, herding, loss aversion, anchoring and income to the decision of gold investment at PT. Pegadaian. This is a quantity experiment with the customer of PT. Pegadaian who used the gold investment as a population and sample of this research. Using the accidental sampling technique, there are 100 respondents. Data collection using a direct and online questionnaire. The Structural equation model partial least square method with the SmartPLS 3.0 software used to analyze the data collected. The results show that financial literacy affects investment decisions. Respondents have a fairly high level of education and moderately high association of financial literacy. While the risk perception, herding, loss aversion, anchoring and income are not affecting the investment decisions.

Integration of productive waqf in Sharia insurance: Enhancing investment and life protection

Purpose – This study investigates the integration of productive waqf into Sharia insurance in Indonesia and its contribution to investment benefits and life protection. It aims to explore how waqf can enhance the economic and social impacts of Sharia insurance products.Methodology – A qualitative approach was employed, involving a comprehensive review of the literature on waqf, Sharia insurance, and Islamic finance. Additionally, interviews were conducted with experts in Sharia insurance and waqf management to gather insights into the current practices and challenges.Findings – This study reveals that productive waqf initiatives within Sharia insurance have the potential to significantly improve investment returns and expand the scope of life protection benefits offered to participants. It identifies key areas in which waqf funds can be deployed effectively, such as long-term investment projects and social welfare programs.Implications – The findings have practical implications for policymakers, Sharia insurance providers, and waqf administrators in enhancing collaboration to maximize the socio-economic benefits of waqf. By integrating waqf into insurance products, stakeholders can foster sustainable development and financial inclusivity.Originality – This study contributes to the literature by offering insights into the innovative use of waqf within the dynamic context of Sharia insurance. It underscores the originality of leveraging waqf assets to address contemporary socioeconomic challenges and promote ethical finance principles.

DO INVESTORS GET BENEFITS FROM CORPORATE GREEN SUKUK ISSUANCE

This study evaluates whether investors benefit from green sukuk by examining the responses of stock returns to the announcements of corporate green sukuk (green Islamic bonds) issuance. Applying the standard event study methodology, it finds that stock returns respond positively and significantly to the announcements of green sukuk issuance, suggesting that investors perceive and react favorably to the announcement. This significantly positive response is observed both for the individual firm (through CARs) and for a sample of all firms (through CAARs). Thus, it can be concluded that investors benefit from the announcements of green sukuk issuance. Further, this study draws a comparative analysis of investors’ response to the announcements of corporate green sukuk and corporate green bond issuance, and the findings also show that investors respond positively to the announcements of green bond issuances. However, the investors’ response is slightly higher to the announcements of corporate green sukuk issuance compared to corporate green bonds, and the investors get slightly more benefit from green sukuk issuance as compared to green bond issuance. These finding inform policymakers for the formulation of strategies to attract investors by integrating green bonds with shariah principles to fund environment-friendly projects and consequently mitigate the climate change risk.

Competing buyers’ investment and ordering strategies under supply disruption

Supply chain disruptions can be costly and disruptive, and reducing supplier uncertainty through investments can be an effective strategy for mitigating these risks. In this study, we explore ordering and investment strategies in a downstream competitive environment, considering supply uncertainty. We consider two buyers ordering from a single supplier and competing in a Cournot market. Buyers must balance investment benefits against costs when making investment decisions. We find that without downstream competition, a relatively low investment proportion can yield a “win-win” outcome. Under downstream competition, an increased number of investors does not necessarily lead to higher supplier reliability. When both buyers invest at a high ratio, the significant decline in order quantities may results in lower supplier reliability. When there is only one investing buyer in the market, even though the competitor may benefit from spillover reliability enhancement — free-riding, the buyer may also be willing to provide an investment subsidy to improve the supplier’s reliability. When both buyers invest at a moderate ratio, downstream competition may benefit all supply chain members. Moreover, increasing wholesale price differentiation and endogenous investment ratios can effectively reduce free-riding behavior of the non-investing buyer. These findings have practical implications for supply chain managers aiming to reduce supply risks and allocate investment resources efficiently.

The role of institutional quality in the nexus between green financing and sustainable development

This study investigates the moderating influence of institutional quality on the relationship between green finance and sustainable development goals. The study takes data from 46 countries, including 22 developed and 24 developing countries, from 2013 to 2022. We use feasible generalized least square method for analyzing the data. Findings direct that green financing and institutional quality significantly enhance sustainable development goals. Further, regression outcomes also prove the moderating effect of institutional quality in our analysis. The interactive role of institutional quality significantly improves the influence of green finance on sustainable development goals. The strong quality of institutions certifies that investment in green finance is effectively allocated, strengthening their favorable impacts on social and environmental outcomes. Understanding this relationship is vital for policymakers and management to exploit the benefits of green finance investment in attaining sustainable development goals.

The Impact Analysis of the Relationship Between Foreign Aid and Economic Development in Nigeria

This study examines the impacts of foreign direct investment (FDI) as a proxy for Foreign Aid, alongside other critical economic and political variables, on Nigeria's economic development. Utilizing an Ordinary Least Squares (OLS) regression model from 1981 to 2022, it explores the dynamics between FDI, trade openness, unemployment rate, corruption index, inflation rate, political stability, and population growth rate in shaping Nigeria's economic growth trajectory. The findings reveal that FDI significantly contributes to economic development, while trade openness highlights the importance of a conducive external economic environment. Conversely, the adverse effects of inflation and corruption highlight critical challenges that undermine the potential benefits of foreign aid and investment. This study highlights the complex relationship between foreign aid, economic policies, and institutional frameworks. It emphasizes Nigeria's need to bolster governance and macroeconomic stability to optimize the developmental impacts of foreign aid. Through empirical analysis, this research contributes to the discourse on development economics, offering professional insights into the conditions under which foreign aid can effectively foster sustainable economic growth in Nigeria.

Nilai dan Kualitas Emas Dinar pada Komunitas Magnet Rezeki Banda Aceh dalam Tinjauan Syarat Objek Jual Beli Menurut Fiqh Muamalah

Dinar Khoirur Roziqiin is a Magnet Rezeki community product. Although the quality standard of this dinar is in accordance with LBMA regulations, the existence of value and quality is still a concern among people outside Magnet Rezeki because people still doubt the quality standards. Therefore, empirical evidence is needed so that the standard and quality can be recognized by all circles and in accordance with the provisions of Fiqh Muamalah. Based on these problems, this research was conducted with the aim of examining the value and quality of dinars among Magnet Rezeki in reviewing the terms of the object of sale and purchase according to Fiqh Muamalah. This research uses qualitative methods with descriptive analysis type of research. The results of this study indicate that the value and quality of dinars Khoirur Roziqiin's are in accordance with the provisions of the terms of the object of sale and purchase in Fiqh Muamalah. The parties involved in production, certification and sale have ensured that the value and quality of this dinar is maintained. Therefore, the results of this study are expected to provide empirical information to all groups regarding the value and quality of this dinar. As a result, it’s expected to increase the trust and interest of Magnet Rezeki members and the public to invest in dinar Khoirur Roziqiin. The author suggests that the dinar Khoirur Roziqiin company carefully ensure the transparency of the value and quality of dinar. In addition, the company must conduct vigorous education to the wider community about the benefits of dinar investment.

Innovative foresight for water utilities asset management using PRISM software

Our analysis aims to better understand water losses by developing a specific methodology for estimating water leak flow rates and durations. Additionally, it aims to improve asset management practices for drinking water utilities by forecasting the costs and benefits of investment and operational decisions on the network. Current utility practices are compared to a "do nothing" policy and to the potential effective asset management policies proposed by an artificial neural network (ANN) based software, PRISM. Applied to four utilities in France, our methodology provides valuable insights for enhancing water loss estimates and finding trade-off asset management policies.

GDP-linked bonds as a new asset class

Using stochastic spanning tests without any distributional assumptions on returns, we show that the two classes of GDP-linked bonds, floaters and linkers, are not spanned by a broad benchmark set of stocks, bonds, and cash for a wide range of design specifications. Thus, they provide a new asset class with significant diversification benefits for investors, with proportional investments to these novel instruments estimated in the double digits and an increase in Sharpe ratios by up to 0.37 over the benchmark. The benefits depend on the market risk premium, but they persist for a wide range of premia estimates from existing literature and are robust to a randomized test. Using the generalized method of moments regressions, we document the finance and macro determinants of GDP-linked bond returns.