Investment Funds Research Articles

A Survey on-Advancing Urban Sustainability through Smart City Integration

The three essential elements of smart city development that are highlighted in this project are air pollution monitoring, video surveillance, and optimised street lighting. Energy economy and safety are improved when intelligent sensors and controls are integrated into street lights. Proactive security measures are guaranteed by advanced video surveillance combined with AI analytics. IoT-enabled air pollution monitoring allows for the real-time collection of data for focused interventions. Savvy streetlamps outfitted with sensors and versatile controls offer energy investment funds and upgraded wellbeing by changing lighting levels in view of constant circumstances. Video reconnaissance frameworks, enabled by man-made intelligence calculations, give proactive observing and reaction abilities, guaranteeing public wellbeing and security. Moreover, air contamination observing utilizes IoT sensors to gather constant information on air quality boundaries, empowering designated intercessions to alleviate contamination levels. When these systems are integrated, sustainable urban growth is promoted, resource utilisation is optimised, and quality of life is enhanced.

Small and Medium Scale Business Financing and Its Effect on the Nigerian Economy: 1992 – 2021

This study investigated the effect of small and medium scale business financing on the Nigerian economy. The ex-post facto research design was adopted and the dependent and independent variables were observed over the period, 1992 to 2021. The nature of data was secondary, sourced from the Central Bank of Nigeria Statistical Bulletin. The data were tested using the Eview statistical software adopting the Ordinary Least Square (OLS) method on the regression model adopted. The signs and significance of the regression coefficients was relied upon in explaining the nature and influence of the independent variable on the dependent variable as to determine both magnitude and direction of impact. The aprior expectation was that SME financing positively and significantly affect the Nigerian economy. The hypotheses were tested at 0.05 (5%) level of significance. Findings from the study showed that commercial bank loan to small and medium scale enterprises have positive and significant impact on GDP. Similarly, commercial bank loan to private sector has positive and significant impact on GDP. Hence, the study concludes that small and medium scale business financing has positive and significant impact on the Nigerian economy. Hence, it implies that SMEs financing contributes to economic growth in Nigeria. The study therefore recommends that the Federal Government of Nigeria through the Central Bank of Nigeria should prioritize financial inclusiveness in the small and medium scale sector of the economy to enhance availability and accessibility of investable funds in the sector.

Quantitative Modeling of Financial Contagion: Unraveling Market Dynamics and Bubble Detection Mechanisms

This study explored the complex interplay and potential risk of financial contagion across major financial indices, focusing on the Bucharest Exchange Trading Investment Funds Index (BET-FI), along with global indices like the S&P 500, Nasdaq Composite (IXIC), and Dow Jones Industrial Average (DJIA). Our analysis covered an extensive period from 2012 to 2023, with a particular emphasis on Romania’s financial market. We employed Autoregressive Distributed Lag (ARDL) modeling to examine the interrelations among these indices, treating the BET-FI index as our primary variable. Our research also integrated Exponential Curve Fitting (EXCF) and Generalized Supremum Augmented Dickey–Fuller (GSADF) models to identify and scrutinize potential price bubbles in these indices. We analyzed moments of high volatility and deviations from typical market trends, influenced by diverse factors like government policies, presidential elections, tech sector performance, the COVID-19 pandemic, and geopolitical tensions, specifically the Russia–Ukraine conflict. The ARDL model revealed a stable long-term relationship among the variables, indicating their interconnectedness. Our study also highlights the significance of short-term market shifts leading to long-term equilibrium, as shown in the Error Correction Model (ECM). This suggests the existence of contagion effects, where small, short-term incidents can trigger long-term, domino-like impacts on the financial markets. Furthermore, our variance decomposition examined the evolving contributions of different factors over time, shedding light on their changing interactions and impact. The Cholesky factors demonstrated the interdependence between indices, essential for understanding financial contagion effects. Our research thus uncovered the nuanced dynamics of financial contagion, offering insights into market variations, the effectiveness of our models, and strategies for detecting financial bubbles. This study contributes valuable knowledge to the academic field and offers practical insights for investors in turbulent financial environments.

Shock amplification in an interconnected financial system of banks and investment funds

This paper shows how the combined endogenous reaction of banks and investment funds to an exogenous shock can amplify or dampen losses to the financial system compared to results from single-sector stress testing models. We build a new model of contagion propagation using a very large and granular data set for the euro area. Based on the economic shock caused by the Covid-19 outbreak, we model three sources of exogenous shocks: a default shock, a market shock and a redemption shock. Our contagion mechanism operates through a dual channel of liquidity and solvency risk. Our analysis reveals that adding the fund sector to our model for banks leads to additional losses through fire sales and a further depletion of banks’ capital ratios by around one percentage point. The main driver of additional bank losses are endogenous market losses generated by investment funds’ asset liquidation.

Transmission channels of the cohesion policy: direct and indirect effects on EA synchronicity

This study focuses on the examination of the side effects of the European cohesion policy (ECP), in particular, the direct and indirect effects of the European structural and investment (ESI) funds on business cycle co-movement in the Euro area (EA) countries. The results of analysis performed using the simultaneous equations framework in the 2000–2019 period reveal that increasing ESI payments within the cohesion policy have overall contributed to more synchronized EA business cycles. Even though the ESI payments do not seem to directly support synchronization, probably because of their procyclical nature, we find that the unintended benefits of the ESI payments with respect to the synchronization lie in their indirect positive effects, which outweigh the negative direct effect. The total positive effect of the ECP emerges because increasing investment from the ESI funds promotes the EA business cycle synchronization via trade, bilateral FDI, and income similarity. Meanwhile, similar evidence has not been confirmed for the specialization channel.

Implementing health system and the new federalism in Somalia: challenges and opportunities.

In the 21st century, healthcare stands out as a formidable, contentious social responsibility for governments due to its high costs. This study delves into Somalia's healthcare system under Federal Government leadership, scrutinizing the complexities of health governance and financing. The Federal Government (FGS), along with governmental states (FMS) and regional authorities, collectively shoulder leadership and governance roles within Somalia's healthcare framework. Vital to resilient and inclusive development, the health sector holds a pivotal role. A strategic investment in healthcare not only drives substantial demographic dividends through enhanced life expectancy and reduced fertility rates, but also paves Somalia's trajectory toward progress. The Federal Government of Somalia confronts a multitude of challenges in its pursuit of effective healthcare implementation. A prominent obstacle lies in health financing. Somalia relies heavily on international and private sources for health support, primarily due to limited government revenue generation. This financial shortfall restrains the government's capacity to allocate ample funds for public services and critical investments, including healthcare. This paper sheds light on the present healthcare landscape in Somalia and expounds on the hurdles confronted by healthcare systems under federal governance. Moreover, it delves into the historical evolution of Somalia's healthcare system and the advent of new federalist principles. In doing so, this study comprehensively examines the dynamics of healthcare governance, financing, and historical progression in Somalia.

ЕМПІРИЧНИЙ АНАЛІЗ ДІЯЛЬНОСТІ “ЗЕЛЕНИХ” ПІДПРИЄМСТВ І ПЕРСПЕКТИВИ РОЗВИТКУ ВІДНОВЛЮВАНОЇ ЕНЕРГЕТИКИ В УКРАЇНІ

Purpose. This paper comprehensively analyzes the performance of five prominent Ukrainian green enterprises spanning the period from 2016 to 2020. Specifically, it focuses on PJSC Myronivskyi Hliboprodukt and NJSC Naftogaz, recognized as top contributors to green technologies in Ukraine, and delves into the green metallurgy advancements of PJSC Interpipe Steel, PJSC Energomash-spetsstal, and PJSC Dniprospetsstal. The study not only evaluates their achievements but also formulates strategic recommendations, outlining a potential developmental roadmap for fostering positive transformations within the Ukrainian green economy. Design/Methodology/Approach. The problem of establishing an effective financial mechanism in Ukraine, aimed at the development of the green economy through green investment, and, therefore, the search for sources of funding for green business, is currently open for discussion. The study of the financial statements of five green enterprises in Ukraine as well as the currently existing approaches to solving the above-mentioned problems made it possible to determine the sources of financing the green economy, which embrace the state budget (through targeted state and regional investments), foreign (international) investments, commercial funds (funds of off-budget investment, environmental and other funds), own funds (funds of enterprises and organizations creating market infrastructure - environmental investment banks, natural resource exchanges, consulting agencies). Findings. Both social and economic benefits of the development of renewable energy sources are undeniable. However, no sector of the economy will be able to develop sustainably without appropriate state incentives and an attractive business climate in the country. Under current conditions, the Government of Ukraine faces the task of preserving those national and international investors in RES who have already invested in the economy of Ukraine, providing conditions for their further business activity in the post-war period. The financial mechanism for the formation of a green economy can function effectively if one understands the factors of a green financial system, which rely on environmentally determined transformations of the modern investment environment. These include:a) transformation of investors’ assessments of environmental investment results; b) growing needs for intermediary services of the financial sector as a result of the development of market mechanisms forensuring sustainable development (carbon markets, green technologies among others); c) representa-tiveness of market assessments of ecologically safe production; investment attractiveness of various financial instruments, peculiarities of their pricing. Practical implications. The results obtained during the analysis of the profitability indicators of the mentioned enterprises made it possible to set recommendations for the potential developmental vector for changes in the green economy in the Ukrainian market. The prospects for the development of renewable energy sources in Ukraine have been analyzed to prove that starting from 2019, investments in new renewable energy projects in Ukraine have been consistently higher than those in fossil fuel projects. Originality/Value. The paper not only contributes valuable data on sustainable practices of Ukrainian green enterprises but also formulates recommendations, outlining a potential developmental trajectory for advancing the green economy within the Ukrainian market. This dual focus on analysis and strategic recommendations enhances the originality and practical value of the paper.

The Impact of Derivatives Collateralization on Liquidity Risk: Evidence from the Investment Fund Sector

The Impact of Derivatives Collateralization on Liquidity Risk: Evidence from the Investment Fund Sector

GREEN FINANCE: THEORETICAL ASPECT AND FEATURES OF FUNCTIONING IN UKRAINE

The article analyzes the concept of "green finance", which is the concept and practice of financial instruments and resources aimed at supporting projects and initiatives that promote environmental sustainability, as well as social and economic well-being. It can cover a wide variety of financial products, from loans and investments to debt and insurance, aimed at reducing the impact of human activities on the environment. The main idea is to promote sustainable development, preserve natural resources and improve the quality of life, while ensuring economic development. The main components of the green finance structure are identified: green bonds, green loans and credits, specialized insurance services, green investment funds, financing of green startups, etc. Green loans and credits issued by banks promote energy saving projects and the use of renewable energy sources. Green bonds issued by governments and companies attract investments for environmental initiatives. Investment funds focused on green technologies and sustainable construction are characterized by specialization. Socially responsible investments include sustainability and environmental responsibility criteria. Specialized insurance products cover risks associated with climate change. Green startup financing supports the development of innovative environmental technologies. This diversity reflects the growing interest in sustainability and environmental finance. Based on the analysis, the importance of theoretical substantiation of the concept of green finance in the context of Ukraine's European integration processes is proved. Strategies for overcoming the difficulties associated with the application of green finance in Ukraine are proposed. As for the strategies to overcome the difficulties, it is important to develop common standards and definitions for green finance, which will help to unify the understanding and application of this concept. In addition, engaging government agencies and international institutions to create a favorable legislative and regulatory environment is an important aspect. Financial barriers can be reduced through the development of incentives, subsidies, and other instruments aimed at green investments. Finally, it is important to promote education and awareness campaigns to raise awareness of the benefits and opportunities of green finance among all stakeholders.

Symbiotic Relationship between Capital Budgeting and Financing Decision-Making

This study aims to explore the symbiotic relationship between capital budgeting and financing decision-making in corporate financial management. The research design and methodology involve a comprehensive literature analysis, incorporating seminal theories and recent empirical studies to elucidate the interconnectedness of investment choices and funding strategies. Findings indicate that effective coordination between capital budgeting and financing decisions is essential for firms to optimize resource allocation, manage financial risks, and enhance shareholder value. Strategic capital allocation enables firms to prioritize investments that offer the highest potential for value creation while aligning investment decisions with financing considerations, which ensures efficient use of financial resources. The implications of this research suggest that integrating capital budgeting and financing decision-making enables firms to navigate dynamic market conditions, adapt to regulatory changes, and capitalize on emerging opportunities. By addressing these research gaps, scholars can better understand the factors driving firms' strategic planning and value-creation initiatives.

INITIATIVE RECONSTRUCTION OF NEGLECTED BUILDINGS AS A WAY OF FORMING HOUSING FUNDS FOR INTERNALLY DISPLACED PERSONS

The article provides examples of the leadership of representatives of civil society institutions, volunteers who proactively and participatoryly reconstruct buildings, help resettle internally displaced persons who suffered as a result of hostilities caused by Russian aggression. It has been proven that the reconstruction of existing buildings is an effective and quick way to provide internally displaced persons with housing. Examples of the implementation of projects of the Ukrainian Social Investment Fund (UFSI) are given. Donors of the project in different years were the governments of Germany (KfW), Japan (JSDF), Sweden (SIDA), Great Britain (DFID), the World Bank, the European Union, the Charles Stewart Mott Foundation, the Canadian International Development Agency, the International Renaissance Foundation , the UN Development Program for the reconstruction of existing residential and non-residential buildings with the aim of arranging housing for internally displaced persons, which creates conditions for fruitful cooperation with foreign donors, productive and transparent involvement of financial resources.

Prospek Industri Asuransi di Indonesia

Theoretically, the relationship between insurance and economic growth can be a causal relationship, economic growth supports insurance growth or insurance growth supports economic growth. The aim of this research is to look at the prospects for insurance growth which are linked to macroeconomic indicators, such as: growth in the number of insurance companies, investment funds, gross premium receipts, economic growth and gross domestic product.The research method used is descriptive analysis which discusses insurance growth over the 10 (ten) years from 2013 to 2022. The research results show that, this can be seen from the average growth over the 10 (ten) years from 2013 to 2022, including; insurance company growth was 0.83%, investment fund growth was 11.48%, gross premium receipts growth was 12.80%, and average economic growth in Indonesia was 4.87% and gross domestic product growth was 8.41%.

Student-Managed Investment Funds Turn Pro: Innovation, Benchmarking, and Performance

Student-Managed Investment Funds Turn Pro: Innovation, Benchmarking, and Performance

OPTIMIZING ISLAMIC BANK PERFORMANCE FOR UNLOCKING PATH OF PROFITABILITY

This study investigated the impact of some investment fund ratios in Islamic banks operating in Syria, represented by both the financing-to-deposits ratio FDR and the resource investment ratio IRR, in addition to the liquidity ratio, on the profitability of these banks, represented by ROA and ROE. In addition, this study aimed to identify the reality of the financial performance of Syrian Islamic banks according to these indicators and clarify the extent to which there are significant differences between them. This was done during the period from 2010 to 2022, based on the annual financial statements published in the annual financial reports issued by the banks under study. 
 The study found that there were significant differences in the performance of the Syrian Islamic banks studied regarding indicators of fund investment. While the performance of these banks was similar in terms of indicators of profitability and liquidity, there were no significant differences between any of them. The study also concluded that there is a positive and significant effect of FDR and IRR on ROE overall, compared to the absence of any significant effect of these two indicators on ROA. There is no significant effect of the liquidity ratio on ROA or ROE overall.

MONEY MARKET INSTRUMENTS AND ECONOMIC GROWTH IN NIGERIA

<p>This paper examined the effect of money market instruments on economic growth in Nigeria from 1980 to 2020. To achieve the above objective, secondary data on real gross domestic product, treasury bills, commercial papers, bankers’ acceptances and monetary policy rate were sourced from the statistical bulletin of Nigeria’s apex bank. The Error Correction Mechanism (ECM) was used as the main analytical tool. The result revealed that all the instruments of money market – treasury bills, commercial papers and bankers’ acceptances have positive effect on economic growth in Nigeria during the period of study. This means that money market instruments – treasury bills, commercial papers and bankers acceptances enhanced economic growth in Nigeria during the period of study. However, only bankers’ acceptances significantly (meaningfully) influenced economic growth in Nigeria during the period of study. What this suggests is that though treasury bills and commercial papers have contributed to economic growth in Nigeria from 1980 to 2020, but their contribution is very low to trigger a meaningful increase in economic growth. At the same time, Monetary Policy Rate has negative and insignificant relationship with economic growth in Nigeria during the period considered in this study. The study concluded that money market instruments - treasury bills, commercial papers and bankers’ acceptances have impacted on economic growth in Nigeria. Therefore, recommended that government should put in place policies that will increase the operations of money market in Nigeria in order to make short-term securities and loans available for investment. Deposit money banks and other operators in the money market should be encouraged to possess sufficient approved securities for trading in the money market. Government should ensure easy and effective communication between the operators in the money market. At the same time, there should be a downward review of the cost of raising funds in the Nigerian money market so as to enhance competitiveness and improve the attractiveness of the market as one of the major sources of raising funds for investment which in turn will increase economic growth in Nigeria.</p><p><strong>JEL</strong>: E44; G14</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0214/a.php" alt="Hit counter" /></p>

Stock Valuation of Telecommunication Provider in Saudi Arabia with the Case Study of Tawal Spin-Off of Saudi Telecom Company (STC)

This study investigates the stock valuation implications of the strategic spin-off plan involving Tawal, the biggest telecom tower infrastructure provider in Saudi Arabia, a 100% owned subsidiary of the Saudi Telecommunications Company (STC). Saudi Public Investment Fund (PIF) has sent a nonbinding offer to acquire 51% of Tawal's shares from the STC group, which is aligned with the Saudi Vision 2030 strategy. The findings of this research contribute nuanced insights into the relationship between spin-offs and stock valuation within the context of the telecommunications industry. By scrutinizing the anticipated impact of the Tawal spin-off on STC stock price, this study provides valuable information for investors and the STC group navigating the strategic decisions and their implications for the stock value. The research employs a comprehensive stock valuation framework with absolute-relative valuation, internal-external analysis, and risk assessment to gauge the potential effects on STC's respective stock values of the Tawal spin-off. Comparative analyses conducted within the telecommunications sector in Saudi Arabia offer valuable benchmarks for assessing the performance of STC Group. According to the intrinsic valuation approach and the Discounted Cash Flow model, STC stock price is undervalued compared to the stock price of 19th November 2023 by 38.3 SAR. Assuming the spin-off failed, obtaining the fair price at 41.5 SAR per share based on the DCF model and 54.2 SAR based on the relative valuation PE ratio. If the Spin-off is agreed upon and concluded, the fair price is valued at 42.6 SAR per share based on the DCF model. Sensitivity analysis and Monte Carlo simulation resulted in two results: the gross profit margin is a sensitive variable of the stock price movement, and the buy option is preferable. In line with that, STC has a solid holding organization, is financially healthy, and has sustained a competitive advantage. STC is expected to deploy the liquidity into investment and expansion in the region and globally, generating a higher return to satisfy the investor interest.

Rights of Investors as Participants in Relationships Related to the Creation and Use of Results of Intellectual Activity

Relevance. The article considers the problems caused by the limited possibilities of legal registration of relations between investors and persons creating the results of intellectual activity or organizing the creation of RIA. It is noted that the obligatory rights based on contracts concluded by investors do not allow to fully take into account their interests and provide guarantees of their observance when disposing of exclusive rights to the intellectual property created with the attraction of investment funds. The conclusions are substantiated that taking into account the growing needs in attracting investment funds for the implementation of projects related to the creation and use of RIAs, it is necessary to provide investors with the opportunity to participate in the ownership of exclusive rights to RIAs created with their support, which will allow investors to control the subsequent disposal of exclusive rights to such RIAs, directly participate in the licensing processes and receive remuneration for their use.The purpose is to develop theoretical provisions that form the basis for the development of legal regulation ensuring the observance of investors' rights as participants in relations related to the creation and use of RIA.Objectives: to identify the peculiarities of registration of investors' rights when they participate in relations related to the creation and use of RIA with the attraction of investment funds; to develop proposals aimed at improving the legal regulation of relations between investors, persons organizing the creation and use of RIA, authors and right holders for various cases of organization of investment activity in the field under consideration.Methodology. The dialectical-materialistic method, methods of analysis and synthesis, formal-legal method were used in writing the work.The results of the research are of theoretical and applied nature and are aimed at improving the quality of legal regulation of legal relations related to the creation and use of RIA.The conclusions made on the basis of the results of the conducted research have a discussion character and are aimed at improving the legal regulation of investment activities related to the creation of RIA. The article is a continuation of the author's scientific research.

The European Investor State: Its characteristics, genesis, and effects

In the wake of financial, sovereign debt and health crises, public interventions in the European economy have taken on a new level of breadth, marking a reentry in force of the state in economic life that goes beyond the regulatory state. Yet, these interventions do not follow the old Keynesian interventions neither, being shaped through a particular logic of investment that link public and private actors in a particular configuration. The introduction to this special issue lays out this configuration for the case of the EU and its Member States through the concept of “European Investor state.” By this concept, we refer to the redefinition of the role of European states in the economy as an “investor,” in reference to private investment funds, which the state seeks both to imitate and to enroll. The paper embeds this redefinition of state intervention in the context of the 2010s in Europe, characterized by worries about “secular stagnation” and growing concern about an “investment gap,” interpreted as the failure of financial markets to invest in productive sectors, especially when risky. The budgetary constraints and the ideological outlook then shaped the specific financial and off-balanced sheet tools of the investor state. Finally, the paper explores the implications of the Covid-crisis on this intervention model. It concludes that despite major changes in fiscal policy at the EU level, this approach is likely to persist, because of the lasting interpretation in terms of “investment gap,” which only public-private collaborations are seen to be able to fill.

The limited role of sustainability in mutual fund investor decisions: A machine learning approach

Despite the growth in the supply of socially responsible investment products, the weight of environmental, social and governance (ESG) factors in the decisions of mutual fund investors remains under-researched. We conducted a study relating fund flows to past returns, ESG performance and other financial variables using data from 3,767 US mutual funds from 2015 to 2021. First, we aimed to assess the importance of ESG performance in investment decisions. Next, we studied whether ESG performance is increasingly important or has reached its limit. Finally, we developed decisional models to predict the flows raised by each investment fund, its financial return and ESG performance. We used logistic regression, neural networks, random forest and gradient boosting decision trees. We found that the investors consider ESG performance, but the factors that matter most are past growth, mutual fund fees and past returns. Our models predicted the money raised by the funds, obtaining accuracy rates of around 70%. In addition to confirming that “past financial return does not guarantee future financial return,” we found that “past ESG performance guarantees future ESG performance,” which may be of interest to socially responsible investors.

Government Education Funding and Government Higher Education Investment in Uganda

The paper examines the relationships between government funding of education and government investment in higher education in Uganda during the 2005 to 2020 period. The major hypotheses of the study are that government funding of higher education (GHE) depends on government investment in education (GIE) and the reverse is true. During the given period, government spending on education as a percentage of GDP for Uganda was on average 2%, while the world average was 4% (World Bank, 2022). This implies that low levels of government funding are responsible for the low levels of government investment in higher education in Uganda. Therefore, the study aims to estimate the government investment function of higher education and the production function of government funding in Uganda during the given period. The analyses of the relationships between government education funding (GIE) and government investment in higher education (GHE) are conducted by using the generalised least squares (GLS) method. The dataset for the study was obtained from Uganda’s Ministry of Education and Sports (MoES), Education Sector Plan. The effects of 1% government spending on primary education, secondary education, technical and vocational education training (GTVE) and GHE on GIE were as follows: 0.354%, 0.086%, 0.044% and 0.063% per annum, respectively. This implies that in Uganda, GHE contributes very little (0.063%) to GHF compared to the contribution of GPE to GIE (0.35%). Meanwhile, a 1% increase in GIE might have caused growth in GHE and GTVE to rise by 11.45% and 17.18%, respectively. Hence, the paper suggests increasing GIE, GTVE and GHE adequately.