Investment Companies Research Articles

Enhancing Chinese Pension Funds Development through ESG Investment Perspectives

In current China, where the pension funds system is facing enormous pressure, this article will explore the positive impact of incorporating ESG investments into the Chinese pension funds system on its future development. Through research on the current situation of China's pension system, it is found that there are problems such as uneven regional distribution, unbalanced development of the three pillars, high population pressure and funding gap, high investment return requirements, and limited investment channels. By studying the feasible experiences of top ESG investment companies and leading countries in development, it is concluded that ESG investment contributes to improving the return on investment and stability of pension funds, and can alleviate the existing problems in China's pension funds. Finally, it is summarized that the feasible experience of combining ESG investment with China's pension funds is to take the lead in policies first, combined with strict supervision, and pay attention to talent cultivation.

The Effect of Disclosure of Sustainable Development Goals on the Financial Performance of Banking Companies in Indonesia

This study aims to analyze the impact of Sustainable Development Goals (SDG) disclosure on the Return On Assets (ROA) of banking companies in Indonesia, to analyze the impact of SDG disclosure on the Return On Equity (ROE) of banking companies in Indonesia, and to analyze the impact of SDG disclosure on the Return On Investment (ROI) of banking companies in Indonesia. The data used in this research are secondary data sourced from the Annual Reports and Sustainability Reports of financial service companies in the banking sector listed on the Indonesia Stock Exchange (IDX) for the period 2019-2023. The research sample was selected using purposive sampling method, resulting in 15 companies as samples. The data analysis used for hypothesis testing is panel data analysis using Eviews 12 software. The results of the study indicate that SDG disclosure has a positive effect on ROA, SDG disclosure has a positive effect on ROE, and SDG disclosure has a positive effect on ROI of banking companies in Indonesia. These findings provide important empirical evidence that can encourage banking companies to pay more attention to and integrate SDGs into sustainable business strategies to achieve optimal financial performance, and promote more comprehensive and transparent SDG disclosure regulations to help investors make better investment decisions, as well as encourage investors to consider sustainability factors in their investment decisions. The implication of this research is the encouragement for banking companies to pay more attention and integrate SDGs in business strategy.

How does carbon emissions trading scheme affect the investment efficiency of companies? Evidence from China

Carbon emissions trading scheme (ETS) will change the internal and external operating environment of related companies, increase new carbon reduction costs, and may affect their investment behavior and decision-making. This study constructs the policy effect evaluation model to evaluate the net effect of China's ETS pilot policy on the investment efficiency of related companies in high-carbon industries. This study indicates that: first, China's ETS pilot policy has reduced the inefficient investment of related companies by 11.40% during the sample period. Second, innovation ability plays an enhanced moderating effect in the inhibitory effect of China's ETS pilot policy on the inefficient investment of related companies in the short term, but the effect is weakened in the long-term. Third, the policy effect is relatively obvious for non-state-owned companies and companies with more institutional shareholdings. This research has important reference value for the continuous improvement of China's national carbon market, and the steady transformation from simple investment-driven to investment-efficiency-driven economic development in China.

Common Ownership, Competition, and Corporate Governance

This paper presents a theoretical framework for determining the ownership stakes held by financial investors in companies competing in the same product market, commonly referred to as the level of common ownership. In our model, these investors are primarily motivated by the anticipation of capital gains resulting from the impact of common ownership on product market competition, which enhances profitability for the firms involved. However, common ownership also undermines effective corporate governance by diminishing blockholders’ incentives to engage in value-enhancing behaviors, such as managerial monitoring. These adverse effects on corporate governance act as limiting factors, ultimately determining the equilibrium level of common ownership. This paper was accepted by Joshua Gans, business strategy.

Exploring Sustainable Investments: How They Drive Firm Performance in Indian Private and Publicly Listed Companies

This research aims to present a holistic view of sustainable investments on firm performance by exploring the dimensions of sustainable investments and firm performance concerning Indian private and publicly listed companies. Panel data regression has been used to explore the relationship between sustainable investment and firm performance. The data of 75 BSE-listed companies has been extracted from Prowess IQ from 2012–2022.Two panels based on different ownership structures were created to observe the impact of sustainable investment and firm performance. The findings of this study indicate that sustainable investments positively impact firm performance in private ownership but negatively impact the firm’s performance in public ownership. The study provides an extensive and holistic view of sustainable investments in Indian companies listed in the BSE, which can be helpful for researchers, professionals, and policymakers in the field. The findings of this research contribute to the solutions to socio-economic challenges and support sustainable development goals through sustainable investments. This research is one of the first attempts to provide a holistic view of sustainable investments by including various aspects of sustainability and firm performance in Indian listed companies and ownership.

Who is greener, more social and better-governed? Dual ownership by SRI mutual funds stands out

This study sheds new light on ESG performance and financial characteristics of companies that are constituents of portfolios of U.S. socially responsible investing (SRI) funds. We categorize SRI fund participation into three distinct types: debt-only, equity-only, and dual ownership of debt and equity. Companies with dual ownership tend to be held by relatively bigger and more concentrated SRI funds. Our holdings-based analysis reveals that these investee companies deliver superior ESG performance across all dimensions and have larger size, higher degree of financial safety, and higher profitability compared to those in equity-only or debt-only categories.

Unveiling the role of different types of local absorptive capacity: The effects of inward FDI spillovers on regional innovation

The aim of our paper is to examine the role of different types of local absorptive capacity in moderating the relation between inward FDI spillovers and regional innovation. We use data on the investments of multinational companies (MNCs) in Brazilian regions from 2003 to 2014, linking them to regional innovative performance. Our results reveal that the transfer of technological knowledge from MNCs to local firms cannot be taken for granted since the positive effects of inward FDI spillovers on regional innovation occur when the new knowledge provided by inward FDI can be associated with the existing capabilities of local actors. The different types of absorptive capacity among local actors have diverse effects on their ability to benefit from inward FDI spillovers. Our findings reveal the distinct moderating effects of firm and local institutions capabilities, indicating that firms' absorptive capacity can derive greater benefits from the new knowledge provided by inward FDI. Finally, our study provides new empirical evidence of inward FDI spillovers and sheds new light on regional FDI attraction policies.

Evaluation of market transformation efficiency of urban investment and development companies based on the three-stage DEA model

Evaluation of market transformation efficiency of urban investment and development companies based on the three-stage DEA model

Legal Mechanisms for Protecting the Public Interests of the Russian Federation from the Transboundary Effects of ESG Standards

The study notes that ESG standards formulated in the West have no scientific basis, serve as a tool for competitive struggle against Russian companies, and contradict traditional Russian values. The first ESG standard, based on the decarbonization of the economy, does not relate to the environmental protection objectives set by the President of Russia and poses a threat to such constitutionally significant values/national interests of the country as the sovereignty, security and defense capability of Russia. The content of the second Western ESG standard is incompatible with the principles of developing a healthy society. It includes gender perversions presented as new norms, poses a threat to national interests related to morality and public health, and contradicts the meaning of Russian policy defined by the President of Russia, which consists of saving people and increasing human capital as Russia’s main wealth. The third Western ESG standard, which contains a list of non-financial reporting issues related to companies’ disclosure of information on the Internet, poses a threat to such national interests as defense capability and security. Legal mechanisms for the protection of constitutionally significant values of Russia should be based on a system of incentives for Russian economic structures that ensure Russian national interests, through preferences of the Russian state, Russian investment companies and funds. Russia’s development can be sustainable only under conditions of an influx of all Russian resources, primarily gas and oil, which form the basis of the country’s economy. The development of Russia should be based on national/public interests of the Russian Federation as priorities/standards.

Executive Work Experience and Company Investment Efficiency

Objective - The growth as well as the longevity of a firm are determined by the investment in fixed assets. This strategy requires a competent manager to ensure the optimal utilization of investment options. According to the upper echelon theory, performance can be influenced by experience. Managerial experience and competence can result in effective resource allocation, reduce resource wastage, increase profitability, and accelerate company growth. Our study aims to investigate how the job experience in accounting and/or finance of the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) affects investment efficiency.Design/Methodology - The study was conducted on 171 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2015 to 2019. We used generalized least square regression to test the hypotheses.Results - The study found that CEOs with work experience in accounting and/or finance tend to reduce inefficient investments. However, this relationship does not hold true for CFOs.Research limitations/implications - The study indicates that the CEO's accounting and financial expertise is vital in facilitating effective investment choices. Therefore, companies should consider work experience, particularly in the field of accounting and/or finance, to enhance managerial performance in achieving investment efficiency, consequently leading to an increase in profitability and growth for the company.Novelty/Originality - Prior research examined the influence of the work experience of CEOs and CFOs as auditors on the efficiency of a company's investments. This study incorporates the work experience of CEOs and CFOs in accounting and/or other financial domains.

The Impact of Knowledge Management on Competitive Advantage in Private Sector Companies: A Case Study of Al-Hayat Investment Company

The Impact of Knowledge Management on Competitive Advantage in Private Sector Companies: A Case Study of Al-Hayat Investment Company

Групповые иски в Канаде

The article is dedicated to class actions and class litigation in Canada. Initially evolved from legislative sources of England and the USA, class litigation in Canada has received independent and original development. The profound reform in Ontario that took place in July 2020 made significant amendments to Class Proceedings Act, 1992, which reflect the latest achievements in the field of class litigation. The latest changes in this Act are analysed in the article. Moreover, the following questions are raised: certification and authorisation as class proceedings, necessary to confirm the group for class action, its multiplicity, necessary to form the class action, questions of preferability of group procedure (predominance and superiority) and native language in class litigation. Special point of research is question of costs in class litigation, which has peculiar features in Canadian class action law. They consist in refusal to compensate the judicial costs or in compensation by third-party investor company or by the state (state funds). These approaches offer a fresh look at the problem of compensation of judicial costs in class litigation. The experience of Canada can be used in certain boundaries in Russia.

Comparison of Commercial Investment Value in the Food Industry

This article aims to provide investment advice to investors by comparing and analyzing four representative companies in the food industry. This article can help investors choose the most suitable stocks and gain more benefits. This article identified four representative companies and conducted data organization and financial analysis on them. Based on the results, the most suitable companies for investors to invest in were identified, along with their corresponding advantages and risks. This article analyzes and calculates the data released by the four major companies, and concludes that Starbucks (SBUX) is the most suitable stock for investors to choose because it has high investment returns and low investment risks. And the other three companies will all have some flaws to some extent. This article provides a method of analyzing data to find the most suitable stocks for investment, which can help investors make decisions, it can also help investors have the ability to distinguish between good and bad stocks themselves.

The impact of China's carbon emissions trading policy on corporate investment expenditures: Evidence from carbon-intensive industries

The carbon emissions trading (CET) policy internalises the cost of carbon emission reductions borne by companies, which will affect the companies' investment and management decisions. From a micro perspective, this paper analyzes the impact on company investment expenditure and its transmission mechanism by implementing the CET policy. Based on panel data of China's A-share listed companies from eight carbon-intensive industries spanning 2010 to 2020, the time-varying difference-in-difference model and its extended model are used to evaluate the impact of the policy in the pilot areas. The results show that: first, based on the cost effect and legality theories, CET policy can reduce the investment expenditure of the companies by 71.95%. Second, CET policy reduces corporate investment expenditures by increasing corporate debt financing costs. When debt financing costs increase by 120.25%, the investment expenditures will reduce by 2.56% indirectly while the intermediary effect of equity financing costs is not significant. Finally, with the implementation of CET policy, the inhibitory effect on corporate investment expenditures has gradually increased. CET policy has a more significant inhibitory effect on investment expenditures of nonstate-owned companies and small-scale companies. The results have passed the robustness test and provide evidence for the policy-maker to balance microeconomic entity development and carbon reduction, and for companies to make optimization investment and financing decisions in response to policy shocks effectively.

Benefits and functionality of an interorganisational workplace health management network - insights from the companies' perspective.

Workplace health management (WHM) is a worthwhile investment for companies. Nevertheless, the implementation of health-promoting interventions remains limited, especially in small and medium-sized enterprises. Interorganisational networks could be a promising way to raise awareness of the advantages of implementing WHM. Therefore, the aim of this study is to analyse the perceived functionality and benefits of a regional WHM network from companies' perspective and to present initial results on this specific topic. An explorative qualitative case study was conducted analysing ERZgesund, a WHM network in a rural region in Germany. Twenty-two companies that participated in the network were interviewed about their experiences and perceived advantages and disadvantages participating in the WHM network ERZgesund. The findings show that the network has raised awareness about WHM among the companies, provides opportunities for exchange of knowledge and experiences, and generates or strengthens collaboration. The positive effects were enhanced by the network's structure, such as regionality and a direct contact person. Nevertheless, some companies stated that they would welcome a higher level of participation and transparency. Overall, it becomes clear that a WHM network can be a valuable tool to emphasize the relevance of WHM to companies. Therefore, further studies should validate and intensify the research on WHM networks to ensure a long-term benefit from the network.

Comparison of Business Investment Value in Real Estate Industry

The global economy is in a downward trend due to the COVID-19 pandemic, the current war between regions, and worsening relations between countries. In 2023, China's leading real estate company, a pillar industry, will be unable to repay its debts. In the context of economic globalization, this paper will explore the impact of the real estate industry in the United States, analyze the investment value through several indicators, and analyze the data of four leading real estate enterprises in the United States, namely D.R.Horton, Lennar Corporation, LGI Homes and NVR. Through the calculation of EPS, P/E ratio, PEG ratio, revenue and EPS growth rate and GP/A ratio, these indicators are used to determine which company is the most valuable investment company among the leading enterprises in the US real estate industry. The research in this paper can not only identify the companies with the highest investment value, but also provide ideas for future research on other companies in other industries.

Analisis Penyusunan Dan Penyajian Laporan Keuangan Berdasarkan Sak-Etap (Studi Kasus Di Perumdam Tirta Pandalungan Jember)

The research results show that Perumdam Tirta Pandalungan Jember has implemented SAK ETAP in the preparation and presentation of their financial reports. The transaction recording process starts from recording in the general journal based on valid transaction evidence. Each transaction is then posted to the general ledger. The final results of the ledger are summarized in a work sheet, which is then used as the basis for preparing financial reports. Consistent application of SAK ETAP helps ensure that a company's financial reports are prepared in a structured and orderly manner, which in turn supports better and sustainable management decision making. The financial report of Perumdam Tirta Pandalungan Jember for the 2022 financial year has met the provisions stipulated by SAK ETAP. The report includes five main components: balance sheet, income statement, change in equity report, cash flow statement, and Notes to Financial Statements (CALK). The preparation and presentation of these financial reports is carried out in accordance with applicable accounting standards, ensuring that the information presented is relevant, transparent and reliable. This is important not only for the company's internal interests but also for external stakeholders who need accurate information for evaluating company performance and investment decisions. Compliance with SAK ETAP also shows the company's commitment to maintaining transparency and accountability in its financial reporting.

Investment in Cybersecurity Companies in Times of Political and Economic Instability

Investment in Cybersecurity Companies in Times of Political and Economic Instability

A Study of the Implementation of PSAK 74 on Firm's Value of Insurance Companies in Indonesia

Firm’s value plays an important role for both company management and investors in investment decisions. Often, net profit or revenue is closely related to the creation of firm’s value. This research examines whether the application of the Pernyataan Standar Akuntansi Keuangan (PSAK) or Indonesian Financial Accounting Standards Board 74 affects company value as measured using Tobin’s Q. Standards for insurance company contracts have changed based on the adoption of IFRS 17, and are still being prepared and conducted in-depth studies. This research uses a quantitative approach with panel data regression testing using STATA. Data was collected in the form of secondary data on insurance companies listed on the Indonesia Stock Exchange from 2012 to 2022, using a purposive sampling method. The results of the research show that operational profit (loss) from the new face of insurance company financial reports has a positive effect, while insurance company investment profit (loss) has a negative effect on company value. This research expands the study of the implications of implementing PSAK 74 for insurance companies in the future.

Pengaruh Karakteristik Klien dan Kantor Akuntan Publik Terhadap Audit Delay di Indonesia

This study aims to study the audit delay phenomenon that occurs in trading, service and investment companies listed on the Indonesia Stock Exchange for the period 2018-2022. This research uses quantitative methods. The type of data used is secondary data sourced from audited financial reports from 2018-2022. The sample in this study was taken from data on trading, service and investment sector companies listed on the IDX. The data analysis technique in this study uses multiple linear regression tests. The results of this study state that the going concern audit opinion variable has an effect on audit delay, while the solvency variable, company size, audit tenure, public accounting firm size, and KAP industry specialization have no effect on audit delay.