Investments In Financial Instruments Research Articles

The Use of Short Term Investments in Financial Instruments

The Use of Short Term Investments in Financial Instruments

Institutional determinants of households’ financial investment behaviour across European countries

In this paper, we examine the influence exerted by formal and informal institutions on financial investment behaviour across households from 25 European countries. Our results reveal that people from former communist countries are less likely to make such financial decisions, while the same relationship holds for those who lived in countries that adopted either gradual or shock-therapy policies on the transition to capitalism. Our results reveal that institutional factors are associated with the propensity to invest in financial instruments. Specifically, our results show that the shorter the period of exposure individuals have had to a socialist system, the greater their intensity to invest in the stock market. Moreover, weak institutional frameworks and low quality of governance are generally linked to a lower likelihood that an individual will make financial investments in shares or stocks, with the effect being magnified in former communist countries. In addition, we find that households in Protestant countries are more likely to have investments in financial instruments compared to their Orthodox and Catholic peers, but the impact is diminished in former communist countries. Last but not least, different fractionalization indices affect the investment decisions differently, while different national cultural values and dimensions are significant variables that can shape these behaviours.

A Comparative Analysis of the Choice of Mother Wavelet Functions Affecting the Accuracy of Forecasts of Daily Balances in the Treasury Single Account

Improving the accuracy of cash flow forecasting in the TSA is key to fulfilling government payment obligations, minimizing the cost of maintaining the cash reserve, providing the absence of outstanding debt accumulation and ensuring investment in financial instruments to obtain additional income. This study aims to improve the accuracy of traditional methods of forecasting the time series compiled from the daily remaining balances in the TSAbased on prior decomposition using a discrete wavelet transform. The paper compares the influence of selecting a mother wavelet out of 570 mother wavelet functions belonging to 10 wavelet families (Haar;Dabeshies; Symlet; Coiflet; Biorthogonal Spline; Reverse Biorthogonal Spline; Meyer; Shannon; Battle-Lemarie; and Cohen–Daubechies–Feauveau) and the decomposition level (from 1 to 8) on the forecast accuracy of time series compiled from the daily remaining balances in the TSA in comparison with the traditional forecasting method without prior timeseries decomposition. The model with prior time series decomposition based on the Reverse Biorthogonal Spline Wavelet [5.5] mother wavelet function, upon the eighth iteration, features the highest accuracy, significantly higher than that of the traditional forecasting models. The choice of the mother wavelet and the decomposition level play an important role in increasing the accuracy of forecasting the daily remaining balances in the TSA.

Apakah Investasi pada Industri Pulp and Paper adalah Pilihan yang Tepat ?

Investment is an economic activity that has the hope of prosperity in the future. The development of investment in financial instruments is increasing due to availability and demand. The Pulp and Paper industry in Indonesia currently has the potential to grow. Financial statement analysis is used to help decision makers. The type of research used in this research is quantitative research. by using secondary data obtained from the Annual Report obtained from the IDX website and the website of the company being sampled. The population in this study is the Pulp and Paper Industry which is listed on the Indonesia Stock Exchange in the financial statements for the period 2013 to 2017. The sample in this study is 5 companies consisting of: PT. Indah Kiat Pulp and Paper, Tbk (INKP), PT. Toba Pulp Lestari, Tbk (INRU), PT. Paper Basuki Rachmat Indonesia, Tbk (KBRI), PT. Alkindo Naratama, Tbk (ALDO) and PT. Fajar Surya Wisesa, Tbk (FASW). The results of the study recommend investors to choose the Pulp and Paper industry, because it has the potential to grow and develop. This is supported by campaigns and movements to reduce the use of single-use products, which of course can directly affect the demand for paper needs in the future and will automatically increase and increase paper prices.

Energy Sectors on Capital Market – Financing the Process “Towards Sustainability”

Purpose: The world economy continues its energy transformation towards sustainability. It is a complex, costly and time-consuming process. The transition of energy sectors towards sustainability wil require enormous financial outlays. The use of the capital market and gain of public support will be the basis of any successful Polish energy transformation. The objectives of the article are: presentation of experiences and possibilities of using Polish capital market in financing the transformation of the energy sector towards sustainability and to identify risk limit of this process. The article hypothesis is, usage of capital market by the energy sector in Poland is essential for financing of transformation energy towards sustainability. Design/Methodology/Approach: In the article, the following research methods were used: analysis of the literature of the subject, analysis of the legal acts and desk research as well. The theory was complemented with empirical studies using: case study, comparative analysis and questionnaire methods. Activity on capital market from key energy companies listed on WIG-Energy was analysed. Afterwards, questionnaire methods were applied on sample of individual investors and representative sample of the Polish society. Findings: Capital market is key source in financing energy transformation towards sustainability. Source of capital are both issue of shares and bonds. The awareness and attitude of investors and consumers regarding CSR, including RES, are not satisfactory. Promotion of the energy transformation of the economy is necessary. Practical Implications: Four key applicable conclusions were formulated: promote the CSR concept, including RES; reduce political risk; use of capital market in wider scale; control the cost of RES for society. Originality/value: Activity of energy sector companies was presented on capital market to obtain financing for transformation towards sustainability. Another advantage is consideration of attitude of both individual investors and representative sample of consumers. Investments in financial instruments of energy companies and consumption of goods and services connected with energy, could impact the process of energy transformation towards sustainability.

Investment in Fine Art Market Versus Investment in Financial Instruments

The art market has been seen always as an area of excellence, where only the elected people can understand the mysteries of the specific of the arts. Although there might be both investments in assets, the investment in art and the investment in financial instruments are different. This paper explores the differences between these two types of investments.
 Keywords: art investment, art value, art price

Institutional and Human-Nature Determinants of Financial Investment Behavior Across European Households

This paper explores the institutional and human-nature determinants of financial investment behavior across households from 25 European countries by employing the seventh wave of the SHARE-ERIC survey. We find that households’ investment behavior in shares or stocks is strongly associated with other financial decisions, such as the investments in retirement accounts and life insurance policies, gender and the computer usage skills. Besides individual characteristics widely studied in the literature and associated with investement propensity in financial instruments, we document that institutional factors matter too. Our findings reveal that the longer individuals had a period of exposure to a socialist system, the lesser their intensity to invest in the stock market in comparison with their capitalist counterparts. One noteworthy result is that the individuals from former communist countries that experienced the fastest and most successful transition had the lowest predilection to invest in stock market. In the same vein, weak institutional frameworks and left-wing ideological orientation of national governments are linked with lower probability of an individual to make financial investments in shares or stocks. In addition, we find that households from Protestant and Orthodox countries are more inclined to have investments in financial instruments in comparison with their Catholic counterparts. Last but not least, while ethnic, linguistic and religious fractionalization indexes play a negative role on investment behavior, national cultural values and dimensions exert a significant role in households’ investment mentality.

Investments in Financial Instruments for Other Companies in TFRS, BOBI FRS and MSUGT: Recognition, Valuation, Presentation and Disclosures

Bu çalışmada işletmelerin spekülatif amaçlarla diğer işletmelerin borçlanma ve özkaynağa dayalı araçlarına yaptıkları finansal araç yatırımları incelenmiştir. Ülkemizde muhasebe uygulamaları Türkiye Muhasebe Standartları / Türkiye Finansal Raporlama Standartları, Büyük ve Orta Boy İşletmeler için Finansal Raporlama Standartları ve Muhasebe Sistemi Uygulama Genel Tebliğleri / Vergi Usul Kanunu doğrultusunda yapılmaktadır. Bu çalışmada finansal varlık yatırımlarının varlıklar arasına alınması, raporlama dönemlerinde ölçümü, finansal tablolarda sunum ve açıklamaları konuları üç düzenlemeye göre incelenmiştir. Belirtilen durumlar her üç uygulamaya göre açıklanmış ve aralarındaki farklar ortaya konulmuştur. Söz konusu farklar, işlem maliyetleri, finansal araçların finansal tablolara alınması, dönem sonu değerlemeleri ve muhasebe kayıtlarına alınmalarında ortaya çıkmaktadır. Konu ile ilgili muhasebe kayıtları her üç düzenlemeye göre örneklerle açıklanmıştır.

ФИНАНСОВЫЕ РИСКИ БАНКА НА ФОНДОВОМ РЫНКЕ

The article describes the role of commercial banks as professional participants of the stock market and presents an analysis of the activities of PJSC "SBERBANK" in securities market. As part of the analysis, the composition and structure of the Bank's assets were considered, the risks of the investment strategy were determined; the Bank's investments in financial instruments were evaluated, grouped by portfolios and by types of securities. Based on the study, priority directions of the investment strategy of PJSC "SBERBANK" on the stock market is determined.

Blurred Vision, Perilous Future: Management Fraud at Olympus

ABSTRACTIn 2011, Japan was shocked by the revelation of a fraud at one of its most prominent companies, Olympus. What was more shocking was that the fraud was perpetrated by its Chairman of the Board and past president, Tsuyoshi Kikukawa, in collusion with several other Board members and officers. The whistleblower was Michael Woodford, a British citizen and the Company's first non-Japanese president and CEO. Woodford had held the post of president for just six months before he was precipitously fired at a Board of Director's meeting on October 14, 2011.The case has been successfully used in both undergraduate and graduate courses that include intermediate financial accounting, advanced accounting, auditing, and forensic accounting. It demonstrates how poor governance structures allowed company executives and directors to circumvent accounting rules and hide investment losses for over two decades. The accounting topics include (1) methods of accounting for investments in financial instruments, (2) recognition and measurement of goodwill at the time of acquisition, and (3) consolidation accounting. The case requires students to link economic events to business decisions, and understand the financial reporting ramifications of those decisions. The case also requires students to critically analyze corporate governance mechanisms, and to consider the external auditor's responsibility for detecting and communicating financial statement fraud.

Ukrainian Companies of Food Industry: Investment Activity and Factors Affecting the Results

This paper analyzes the investment activity of food industry in Ukraine for 2005-2011 according to the volume of investment in fixed assets. Innovative activities of food companies are analyzed, amounts of investments in financial instruments and the basic source of investment financing are defined. Based on the analysis and synthesis of previous research the factors influencing the volume and efficiency of investment have been identified.

THE LEDGER OF ANN DEWITT BEVIER (1762–1834), EARLY AMERICAN ESTATE MANAGER AND MOTHER

The ledger that Ann DeWitt Bevier kept from 1802 until 1813 represents a rich primary source that provides perspective on how a rural agriculturalist and household head interacted with the social and cultural environment in the young American nation. Her accounting records expand the gendered history of economic life by illustrating the life and work of a woman who managed a farm, family household, brick kiln, rental property, and investments in financial instruments. The costs of educating her children were also detailed in the ledger, helping to inform us about the educational opportunities for females in early America.