Investment Funds Research Articles

The Importance of Investments in Scientific Research in the Innovative Activity of Industrial Enterprises

In the article, the importance of investments in scientific research in the implementation of digital transformation and automation in industrial enterprises is studied on the example of developed countries, such as USA, theoretical and practical proposals are made for directing investments in scientific research in digitization and automation of industrial enterprises of Uzbekistan. The innovative activity of industrial enterprises should be such that it creates innovations in all processes: from research and development to production, from production to management, from sales to delivery to consumers, to study of the post-consumer situation, introduction of new digital and automated technologies, management system evaluation of activities, improvement of the functionality of products and technologies, reduction of costs and increase of efficiency, organization and production of marketing and advertising activities, with coverage of consumers, convenient delivery to customers, packaging, clarification of product description and rules of use of the product, as well as benefits or advantages obtained as a result processes should be covered. In addition, having a certain share of the main products in the total volume of production, it is possible to create business models with the aim of achieving a large amount of income from the main products due to the increase in the volume of sales with new technologies of production. The use of investment funds by industrial enterprises in the direction of scientific research in their innovative activities has a great effect.

European Structural and Investment Funds (ESIFs) and Regional Development across the European Union (EU)

This scoping review synthesizes the evidence from eleven key studies to assess the impact of European Structural and Investment Funds (ESIFs) on regional development across the European Union (EU), focusing on fund efficiency, regional disparities and convergence, governance quality, economic freedom, and fund management. A systematic search was conducted across multiple databases to identify the relevant literature published up to 2023. Eleven studies were selected based on the date published and their focus on ESIFs’ role in regional development, employing a range of methodological approaches including Data Envelopment Analysis (DEA), spatial econometrics, and multivariate analyses. The thematic analysis identified four main categories: Methodological Approaches in Evaluating Fund Efficiency, Regional Disparities and Convergence, The Interconnection between Governance Quality, Economic Freedom, and the Efficiency of Structural Fund Management, and The Absorption Capacity and Fund Management. The review highlights the importance of sophisticated analytical tools in evaluating fund efficiency, with DEA and spatial econometrics providing critical insights into fund management efficiency. Studies underscored the nuanced efficacy of ESIFs in reducing regional disparities, albeit pointing to the need for more targeted fund allocation. Governance quality and economic freedom emerged as pivotal factors enhancing fund management efficiency, suggesting the potential of governance reforms in optimizing ESIF allocation and utilization. Challenges related to fund absorption and management were illuminated, advocating for enhanced institutional management capabilities and the development of innovative performance indicators. The findings of this scoping review contribute to a deeper understanding of the complexities surrounding ESIFs’ impact on regional development within the EU. They underscore the critical importance of governance quality, economic freedom, methodological rigor, and strategic fund allocation in enhancing the effectiveness of ESIFs. The review calls for tailored policy interventions and the integration of national and European funding strategies to maximize the impact of these programs on regional development and SME support. Future research should continue to refine these methodological approaches and explore the causal effects of funding, to enhance our understanding of ESIFs’ efficiency in promoting regional development and convergence within the European Union.

Research on mobilization and effective utilization of capital for high-speed rail system development in countries: Some issues for Vietnam

The construction project of the high-speed rail (HSR) line on the North-South axis has extremely immense scale, with complex technical-technological standards, deeply and long-term impacting the country's economic and social development. This marks the first implementation of such project in Vietnam, thus requiring thorough and comprehensive research and evaluation. The selection of an appropriate financial mechanism is crucial to the project's success. The Vietnamese government is currently implementing a socialization policy in the transportation sector in general, and the North-South HSR project is proposed to be executed through a public-private partnership (PPP) model. In this framework, the state budget plays a leading and decisive role; external resources are deemed vital for breakthroughs. However, aspects such as how to mobilize funds, how the private sector participates, how it is managed, how the capital is repaid, whether to opt for limited-term transfers or lease of asset exploitation rights, over how many years... have yet to be addressed. Researching the mobilization and utilization of financial resources in countries with developed HSR systems, the authors observe varying investment and operational methods in each nation. Even within a single country, different financial models are applied in distinct phases. Alongside the successes achieved, there are instances of failed projects resulting in substantial losses. Hence, in addition to analyzing experiences in mobilizing and using funds for construction investment of HSR systems in other countries, the article also assesses the advantages and challenges for Vietnam. These are vital suggestions to aid the Vietnamese government in drawing lessons and selecting appropriate forms of mobilization and use of capital in line with the country's actual resources, exploiting the potential and advantages of the country.

Guidance Certification Effect and Governance Supervision Effect of Government Investment Funds

The establishment of government investment funds serves as a crucial measure for governments at all levels to leverage their certification role and financial resources in attracting social capital to support enterprise development. This paper empirically examines the guiding certification effect and governance supervision effect of government investment funds on enterprise value enhancement, utilising panel data from listed companies and government investment fund investment event data spanning the period from 2011 to 2021. The research findings reveal that government investment funds significantly enhance the value of recipient enterprises. By leveraging their guidance and certification effects and governance supervision effects, these funds alleviate financing constraints, actively participate in corporate governance, and ultimately enhance corporate value. The impact of government investment funds is negatively moderated by the age and size of the enterprise, indicating that the “invest in early-stage and small businesses” investment strategy yields better results in promoting value enhancement. Furthermore, heterogeneity analysis demonstrates that government investment funds have a more pronounced impact on the value of non-heavily polluting industries, enterprises located in the eastern and southern regions of China, and non-state-owned enterprises. This article expands the research scope of government investment funds at the micro level, providing empirical evidence and theoretical support for optimising government investment funding policies and fostering the development of a modern capital market with distinctive Chinese characteristics.

DEVELOPMENT OF INVESTMENT FUNDS IN THE REPUBLIC OF SERBIA

The rapid development of the securities market laid the foundation for the development of investment funds, which were initially established in developed countries before later commencing operations in developing countries. The capital market and investment funds in the Republic of Serbia lag behind developed countries, so the impact of this sector on the development of the domestic economy is still not evident. The experiences of countries with developed financial market show that there is a decreasing market share for traditional intermediaries (such as banks) and as well growing trend in the representation of non-traditional intermediaries, primarily investment funds. However, in Central and Eastern European countries, the last two decades have been marked by increased interest from both experts and the scientific community in the operations of investment funds. Investment funds in the Republic of Serbia show potential after the Covid-19 pandemic, and the authors believe that their role in the domestic financial market is expected to improve in the future. In contemporary market economies, investment funds are rapidly evolving and becoming new, authentic financial intermediaries. Considering that investment funds represent long-term savings, more attention should be paid to raising public awareness and improving the level of financial literacy among citizens regarding the significance of investment funds for economic development in the domestic capital market. Considering mentioned, the first investment funds in the Republic of Serbia emerged only in 2007 and that they are not adequately represented in domestic literature, the authors aim to contribute to filling this gap with this work. In this context, the aim of the paper is to present the chronology of the development of investment funds (number, investment units, net asset value and investment structure) in the Republic of Serbia from 2007 to 2023.

The experience of identifying territorial units and managing the development of rural areas in the European Union and the directions of its use in domestic practice

The article is devoted to the generalization of approaches to the identification of territorial units and management of the rural areas development in the EU and the justification of the need for its use in domestic practice. It was established that several different approaches to the identification of rural territories and territorial units were tested during the nearly twenty-year preparatory period (typology based on a 1 km2 grid; typologies at the LAU 2 level, in particular the degree of urbanization, etc.; at the NUTS 3 levels, in particular urban-rural typology, etc.). which were improved and presented in the Methodological manual on territorial typologies. Today, this technique is basic in establishing the common statistical classification of territorial units (NUTS). It is summarized that cohesion policy is aimed at reducing regional disparities and promoting economic and social cohesion, as well as territorial convergence between EU member states, which has been carried out since the founding of the EU in 1957. In 1992, thefourth cohesion policy fund was created - the Cohesion Fund (FZ) - to finance projects to improve the state of the environment and transport infrastructure in member states where the GNP per capita is less than 90% of the EU average. It was revealed that the formation of the Just Transition Fund in 2021, which corresponds to the EU “green” transition paradigm, was an addition to the institutional architecture. It is argued that the European Structural and Investment Funds (ESIF) are the main financial instrument for supporting cohesion policy and include the following components: ERDF (European Regional Development Fund), ESF (European Social Fund), Cohesion Fund (FZ), European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF). The ERDF has been identified as the largest component of the ESIF, which focuses on promoting economic and social cohesion by investing in infrastructure, innovation and entrepreneurship. This Fund was found to support projects related to transport, energy, digital infrastructure, research and innovation, and the transition to a low-carbon economy. It is emphasized that this fund contributes to employment, social integration and development of skills of the population. The peculiarities of the cohesion fund, which provides financial assistance to member countries whose GNI per capita is below a certain threshold level, have been considered. It has been established that this fund supports large-scale infrastructure projects in the fields of transport, energy and the environment. At the same time, the EAFRD and EMFF funds support rural development and fisheries respectively, contributing to the overall objectives of cohesion policy. It has been proven that since 2013, the development of multi-year programs for the development of rural areas of the EU countries has been focused on six priorities of sustainable development: promoting the transfer of knowledge and innovations; increasing competitiveness; promoting the organization of the food production chain and risk management; restoration, preservation and development of ecosystems; increasing the efficiency of resource use and transition to a low-carbon economy; promotion of social integration, reduction of poverty and economic development in rural areas. The European Green Course, which aims to make Europe the first climate-neutral continent by 2050, is analyzed. As for agriculture and food, the Green Deal envisages measures to increase sustainability in land management, food production and consumption, in particular through measures that will be included in the strategic plans of the common agricultural policy. Activities and practical actions in domestic practice regarding the creation of conditions for the implementation of the European experience regarding the identification of territorial units and the readiness to participate in attracting financial allocations within the framework of current programs based on the implementation of regulatory and legal support and the ability to master the allocated financial funds in full have been determined. Key words: rural territories, territorial units, cohesion fund, green course, sustainable development priorities, structural funds.

Community engagement and utility collaboration for enhanced electricity access: A multi-strategy framework

Electricity shortage remains a critical challenge in developing countries striving to achieve the United Nations' universal electricity access goal by 2030. Limited fuel availability and limited funds for renewable energy investments, while demand flexibility is implemented to regulate electricity access, it faces limitations due to voluntary participation, rotating load-shedding schedules, and lack of electrification in certain communities. This research paper proposes a multi-strategy approach as an alternative solution by scheduling essential appliances and optimizing power flow in distribution grids. The article aims at community engagement and utility collaboration to improve electricity access. This paper proposes a multi-strategy framework for regulating social organization and utility operations, and attaining energy conservation, efficiency, and incentives. Optimization tool is developed to extend benefits of optimal scheduling of end user devices under power supply shortage, uncertainty of demand and grid operational codes, using multiple strategies regarding to consumers’ fairness of electricity access in a community, and maximum electricity access per customer and region. Such strategies are also compared with the case of customized appliance priority of preference. The results demonstrate that energy efficiency and economic sustainability indices can achieve 94 % and 29.5 % improvement, respectively, compared to conventional methods.

ESG integration in portfolio selection: A robust preference-based multicriteria approach

We present a framework for multi-objective optimization where the classical mean–variance portfolio model is extended to integrate the environmental, social and governance (ESG) criteria on the same playing field as risk and return and, at the same time, to reflect the investors’ preferences in the optimal portfolio allocation. To obtain the three–dimensional Pareto front, we apply an efficient multi-objective genetic algorithm, which is based on the concept of ɛ-dominance. We next address the issue of how to incorporate investors’ preferences to express the relative importance of each objective through a robust weighting scheme in a multicriteria ranking framework. The new proposal has been applied to real data to find optimal portfolios of socially responsible investment funds, and the main conclusion from the empirical tests is that it is possible to provide the investors with a robust solution in the mean–variance–ESG surface according to their preferences.

Sustainable investing in extreme market conditions: doing well while doing good

PurposeThe aim of this study is to identify environmental, social and governance (ESG)-focused funds that can effectively uphold ethical principles while also delivering competitive financial returns by evaluating the performance of 24 well-established exchange-traded funds (ETFs). The study also compares the performance of four widely recognized ETFs representing NASDAQ (ticker: QQQ), S&P500 (SPY), Dow Jones (DIA) and Russell 2000 (IWM) with the sample of 24 ESG funds.Design/methodology/approachThis paper utilizes four complementary measures, namely Sharpe, Sortino, Omega and Calmar ratios, to assess the risk-adjusted return performance of ETFs, with a particular emphasis on extreme downside risk.FindingsThe findings indicate that ESG-focused ETFs can predominantly outperform DIA and IWM in the last five years (1 November 2018–22 March 2023). However, when compared to QQQ and SPY, only ICLN, SUSA and DSI consistently delivered competitive risk-adjusted returns. The performance of DSI and SUSA is almost equivalent to QQQ and SPY even during the last ten years.Practical implicationsThe paper conducts a risk-return analysis of alternative ESG investment funds, suggesting that not all ETFs are created equal and that careful selection is vital for achieving different investment objectives. It is imperative to recognize that past performance is not a reliable indicator of future outcomes, requiring consideration of other factors in the post-evaluation phase.Social implicationsThe study provides evidence to support the “doing well while doing good” hypothesis, indicating that competitive returns are achievable while also engaging in socially responsible investment.Originality/valueThis study fills a vital gap in the literature on ESG investment by highlighting that the choice of funds stands as the primary factor responsible for the conflicting findings by previous studies.

The Role of Green Finance in Sustainable Business Strategies: Opportunities and Challenges for Business Organizations

Amidst increasing awareness of environmental and social issues, businesses worldwide are increasingly recognizing the importance of adopting sustainable business strategies. Green finance has become a popular approach among companies to integrate financial aspects with sustainable environmental goals. This research aims to investigate in-depth the opportunities and challenges associated with green finance practices for business organizations. The study is a literature review with a qualitative approach, utilizing descriptive analysis. Data for this research were obtained through a search of articles on Google Scholar spanning from 2014 to 2024. The study findings indicate that in an era where environmental awareness is on the rise, green finance practices are becoming increasingly crucial for companies looking to adopt sustainable business strategies. Green finance enables companies to integrate environmental values into investment decisions and fund allocation, creating incentives for more environmentally efficient business practices, and helping to mitigate environmental risks that may disrupt long-term operations. However, the implementation of green finance faces several challenges, including lack of understanding and awareness, complexity in measuring environmental impact, initial costs and economies of scale, limitations in data and measurement methods, as well as resource and internal capacity constraints. To address these challenges, cross-sector collaboration among private, government, and financial institutions is key.

Internet fraud as one of the types of fraud

The article investigates the current aspects of internet fraud in the context of the coronavirus pandemic and the Russian-Ukrainian war. The increased use of the Internet during quarantine and wartime creates new opportunities for scammers, who exploit this situation to deceive people. Emotional instability, financial problems, and the spread of misinformation also contribute to the growth of fraud online. The article analyzes the legislative approach to combating fraud in Ukraine and identifies the specifics of this type of criminal offense. Due to the accessibility of the Internet, scammers quickly adapt their schemes to the digital environment, making network users more vulnerable. The explores the diversity of methods and types of internet fraud, including phishing, cryptocurrency fraud, social engineering, and other schemes. The authors provide data from the «Data Breach and Incident Response» (DBIR) report. Methods such as phishing, farming, fraud through social media and email, as well as manipulations with ICOs and crypto investment funds, are examined in detail. Special attention is paid to fraud in wartime, mentioning fundraising for military purposes, deceptive schemes with family announcements, and fake evacuation messages. The level of vulnerability of users, geographical features, and the age category most often targeted by internet fraud are evaluated. The article also discusses the aspect of computer equipment, mobile devices, and other means of accessing the Internet used by criminals to carry out fraudulent activities. The authors emphasize the prevalence of internet fraud, where perpetrators attempt to hack websites of government organizations, banks, or media to obtain confidential information or spread fake news. Measures to combat this phenomenon are proposed. Various types of internet fraud and methods of prevention are examined in detail, including software updates, installation of antivirus software, use of strong passwords, and two- factor authentication. It is noted that awareness and a responsible approach to protection on the Internet are key to preventing fraud. Additionally, the criminal liability for fraud in Ukraine and the possibility of strengthening this liability in wartime are discussed.

Creating Low‐Carbon Economies: Probing Transition Dynamics through the Lens of Field Theory

AbstractWe employ field theory as an approach to analysing sustainable regional development by reconciling funding needs and funding procurement. Initial expectations that private capital would bridge the financial gap to decarbonize our economies and societies have not materialized. Instead, state‐led coalitions increasingly introduce spatialized decarbonization strategies in which public development banks are pivotal, yet underappreciated, actors. Field theory provides a fresh perspective for mapping the particular context in which regional industrial policies intersect with broader national and supra‐national investment programmes and funding needs for these long‐term initiatives. Transitions are typically directed but open‐ended social processes, necessitating agency to both alter context and institutions and stabilize the emerging new structures. Field theory can surpass limitations in approaches like transition studies and integrate change mechanisms across scales.

STATE AND PROSPECTS FOR THE DEVELOPMENT OF ISLAMIC FINANCE INSTRUMENTS (SUKUK) IN RUSSIA AND ABROAD

The search for new sources of financing investment projects in modern Russia in the context of external sanctions and the implementation of geopolitical threats actualizes the problem of incorporating Islamic finance instruments into the structure of the financial market. The early twentieth century development experience of a number of foreign countries shows the steady growth of the assets of Islamic banks, investment funds and the volume of issuance of investment certificates (sukuk), which constitute the main segments of Islamic finance in the world. Islamic financial assets are widely represented in the Gulf countries, Southeast Asia, the Middle East and South Asia, and Africa. The implementation of the principles of Islamic finance in the Russian Federation is hampered by legal, cultural, historical and political factors. While there are certain Islamic financial products in Russia, there is no issue of sukuk at all. In this regard, the purpose of this paper is to study the principles of Islamic finance and the functioning mechanism of the market for the investment certificates (sukuk), possibilities and limitations of their implementation in the modern Russian economy. The author defines sukuk as an Islamic financial instrument used for securitization of assets, and identifies its differences from traditional bonds. Alternative approaches to solving the problem of compliance of sukuk with Sharia principles are analyzed. The prerequisites for realizing the potential of sukuk in modern Russia are determined and the obstacles to their issuance are formulated. It is concluded that the adoption of the Federal Law of 04.08.2023 N 417-FZ "On Conducting an Experiment to Establish Special Regulation in Order to Create the Necessary Conditions for Carrying out Partnership Financing Activities in Certain Constituent Entities of the Russian Federation and on Introducing Amendments to Certain Legislative Acts of the Russian Federation" and its implementation, taking into account its provisions of pilot projects in a number of Russian regions, will make it possible to intensify the process of incorporation of project financing instruments into the structure of the financial markets of modern Russia.

From a ‘plain vanilla’ exercise to a highly complex compliance monitoring framework: Some practical challenges in investment compliance

The paper analyses the evolution of investment compliance over the past 15 years, since the Financial Crisis of 2008, and its transformation from a ‘plain vanilla’ task to a highly complex monitoring framework. The paper attempts to identify the roots for this transformation and comes to conclusions that are not intuitive. It further analyses the investment policies used in the sales prospectuses of the investment funds and elaborates patterns for those policies. The analysis suggests that it is appropriate to divide the patterns into two basic concepts: The ‘investment concept’ and the ‘exposure concept’. While the former seemed to fully dominate the market 15 years ago, the transformation to the new concept appears to progress at an accelerated pace. This is due to the increased complexity of the investment policies of funds and of the financial instruments that have been created by the financial market participants, as well as investment strategies employed by the portfolio managers, which cannot be properly encompassed by the old concept any longer. Participation in the creditor committees is an event that is obvious for the portfolio managers but may present fundamental legal concerns. Already, participation in such committees is doubtful for the funds that are prohibited from exercising a significant influence on their investment targets, such as undertakings for collective investment in transferable securities. An additional question that emerges when participating in such committees, and one which is analysed in this paper, is the question on the allocation of costs, the answer to which is rather art than science.

The international political economy of Saudi Arabia: Sovereign fund and foreign policy

AbstractThis article develops a framework for attributing motivations to Sovereign Wealth Fund (SWF) investment by noting that there are two major subdivisions, those that argue that the investments are undertaken due to macroeconomic factors and those that argue there is a political element as well. The political literature is divided into three subcategories of domestic political considerations, geopolitical competition and economic diplomacy. The literature of the Public Investment Fund (PIF) does not include any discussion of economic diplomacy as a consideration, an omission this article seeks to rectify. Using a realist understanding of international political economy (IPE), the article explores the influence of elites, the nature of PIF investments in America, India, China and Russia, and collaboration with other SWFs on investment. The article concludes that economic diplomacy should be considered as one of a multitude of variables that determine how and where the PIF invests.

Japan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Investment Funds

Japan: Financial Sector Assessment Program-Technical Note on Regulation and Supervision of Investment Funds

Sosialisasi Hukum Perbankan Pembiayaan Kredit Usaha Rakyat (KUR) Bagi Pengembangan UMKM di Desa Kalidungjaya Karawang

The People's Business Credit Program is one of the government's programs to increase access to financing for Micro, Small, and Medium Enterprises (MSMEs) which is channeled through financial institutions with a guarantee pattern. The financing distributed by people's business credit comes from banking funds or financial institutions that are people's business credit distributors. The funds provided are in the form of working capital and investment funds which are distributed to individual/individual MSMEs, business entities, and/or business groups who have productive and viable businesses but do not have additional collateral and also do not have good financial records. Even though the government has provided large MSME funds, the public is still unaware of people's business credit distribution. The people's business credit program is still the spearhead of government programs in efforts to expand access to financing for micro, small, and medium enterprises. The main aim of implementing this socialization is for the community to be able to develop their business into a bigger one, have business activities with good financial reports, and have no doubts about applying for people's business credit to the nearest state-owned bank to expand their business.

PENGARUH PROFITABILITAS, KEPUTUSAN INVESTASI, KEPUTUSAN PENDANAAN, TERHADAP NILAI PERUSAHAAN:

A company is founded with the aim of achieving maximum profits or maximum profits and optimizing company value. Company value can describe the condition and financial performance of a company. The aim of this research is to determine the influence of profitability, investment decisions, funding decisions, dividend policy and company size on company value. This type of research uses a systematic literature review By collecting literature reviews obtained from Google Scholar methodology and empirical data analysis techniques. The results of this research state that profitability has a very positive and significant influence on investment decisions, funding decisions, dividend policy and company size on company value.

The Role of the Financial Services Authority as a Strategic Partner for the Progress of the Indonesian Capital Market

The Indonesian capital market still faces several obstacles, including relatively low growth rates, limited access to finance, and significant financial risks. Financial services authorities can become strategic partners that encourage capital market growth and stability by innovating products and services, increasing financial access, and collaborating with other parties. This research uses a descriptive type of research with a literature review and reading sources related to the research collected using the literature review research method. This research aims to explore the role of financial services authorities as strategic partners in supporting the progress of the capital market in Indonesia. Based on various sources and theories, it can be concluded that as a supervisory authority, the OJK regulates and supervises institutional, prudential and sound aspects and carries out inspections of financial institutions to ensure that each financial institution is healthy and able to serve the public interest. OJK regulations apply to the issuance of operating permits for stock exchanges, clearing and guarantee institutions, investment fund custodians and settlement agents, securities companies, investment advisors, securities bureaus and other legal entities. OJK also collaborates with various related parties, including educational institutions, the financial industry and the government, to encourage innovation in the Indonesian capital market. The impact of this OJK partnership can help mitigate community losses due to errors by capital market players.

The Role of Social Investment Funds in Promoting Capacity Development of Youth Organizations in Senegal

This take a look at examines the effect of social investment price range at the capacity improvement of teens agencies in Senegal, utilising a blended-strategies technique. Quantitative analyses consisting of descriptive records, correlation analyses, regression analyses, and ANCOVA, along qualitative insights from interviews, shed light on the connection among funding degrees and programmatic effectiveness. The findings display sturdy wonderful correlations between investment ranges and programmatic effectiveness, supported via regression and ANCOVA analyses demonstrating the giant have an impact on of funding on organizational outcomes. Qualitative records in addition improve the understanding, highlighting stepped forward management, resource management, and community engagement amongst teens companies. This observe emphasizes the importance of sustained funding in youngsters-led initiatives and recommends targeted help to maximise their ability as drivers of social alternate and sustainable improvement in Senegal.