Investment In India Research Articles

Trends and opportunities in renewable energy investment in Saudi Arabia: Insights for achieving vision 2030 and enhancing environmental sustainability

Renewable energy has emerged as a critical alternative to traditional energy sources due to growing environmental concerns and the need for sustainable energy development. Saudi Arabia, driven by its Vision 2030, has strongly committed to shifting from fossil fuels to renewable energy sources such as solar, wind, and hydrogen. Despite significant progress, existing investment methods often focus narrowly on financial returns and do not adequately address the risks and uncertainties associated with renewable energy projects, such as policy changes, technological challenges, and fluctuating energy prices. This paper aims to highlight and compare the trends in renewable energy investments and incorporate a risk analysis matrix to address the economic, environmental, and social aspects of Saudi Arabia’s environment. The details used in the study are obtained from Kaggle, while the adopted analysis technique involves multi-criteria decision-making (MCDM). It provides a fresh qualitative approach that allows an all-sided assessment of the investment prospects by focusing on appropriate weight for different factors. The analysis results show that using the proposed framework can help effectively prioritize investment opportunities identifying major trends and risks in developing renewable energy sources in Saudi Arabia. Current investment trends have been reviewed systematically; experts have been interviewed; MCDM techniques have been employed, as the methodology effectiveness improves the comprehension of investment tendencies and contributes to strategic management in the renewable energy market stakeholder’s activity. The MCDM analysis results show that the solar energy system has the highest investment index in the Saudi Arabian cities; the first place belongs to Abha with an investment index of 0.93, the second place belongs to Jeddah with an investment index of 0.85, and the third place belongs to Dammam with an investment index of 0.75. From these outcomes, we can easily conclude that Abha is the best place to place a solar energy project, probably because of environmental and legal factors. The analysis underscores geographic factors in deploying renewable energy, directing investors and policymakers to cities with favourable solar power generation about sustainability and economic objectives. The results are expected to enhance investment awareness among local and international stakeholders, support the strategic goals of Vision 2030, and contribute to a more sustainable and diversified energy future for Saudi Arabia. This study provides a strategic framework for optimizing renewable energy investments, promoting sustainable development, and achieving long-term economic growth. Data AvailabilityData sharing is not applicable to this article as no data sets were generated during the current study.

The social ledger: qualitatively decoding interaction-driven investment decisions among Indian investors and fund managers

Purpose This study aims to investigate the antecedents of social interaction among Indian retail investors and fund managers to understand how these factors influence investment decisions. By identifying and examining these antecedents, the study aims to shed light on the social dynamics that shape investment behavior in the Indian financial market. Design/methodology/approach The researchers have mainly adopted an interpretive strategy for the present study. Qualitative data elicited through semistructured interviews with six retail investors and two fund managers were subjected to qualitative thematic analysis. Findings Our research found several factors that make Indian retail investors and fund managers connect and make financial decisions. Peers can improve a person’s investing performance through social facilitation, and discussing investment suggestions and lessons learned can affect a group’s investment behavior. Social norms also influenced investors’ financial decisions, demonstrating compliance. Investor closeness increased information sharing. Finally, the fear of missing out (FOMO), a psychological phenomenon where people fear missing out on rewarding experiences, encouraged social engagement as investors sought appealing prospects. Research limitations/implications The researchers interviewed eight carefully selected interviewees across the divide between retail investors and fund managers. Adopting other grouping criteria, conducting a focus group discussion with more respondents or adopting a mixed-methods approach may increase our understanding of the investment decision behaviors of Indian retail investors and fund managers. Practical implications The findings have far-reaching consequences, from deepening our knowledge of investors’ motivations and actions to directing individual savers, informing the development of financial literacy initiatives, influencing fund management practices and inspiring additional research in this study area. Originality/value This research, including retail investors and fund managers, significantly contributes to the literature on investment decisions and behavioral finance, particularly in the context of Indian investors and managers. This study’s unique perspective and comprehensive approach make it a valuable addition to the field, sparking interest and further exploration among academics, practitioners and investors alike.

Trends in Industry Sectors and Geographic Locations Attracting Maximum Outward FDI from India

In recent years, India has focused on foreign direct investment (FDI) actively participating in internal as well as outward investment. While outward FDI (OFDI) plays a crucial role in the country's economic growth and export expansion, it remains relatively underexplored in terms of guiding FDI decisions in foreign markets. This study investigates various industries to empirically examine OFDI trends and their relationship with geographic locations that attract FDI from India. The research evaluates different industrial sectors involved in OFDI to identify which sectors and regions are most attractive to Indian investors. Using data from the Reserve Bank of India (RBI) spanning 2011 to 2024, the analysis employs advanced tools like EViews, Tableau, and Python. The findings provide deeper insights into OFDI trends, with a time series analysis of Joint Ventures as well as Wholly Owned Subsidiaries highlighting the investments made by different Indian sectors. The results demonstrate that Indian companies have a wide scope of investment with Wholly Owned Subsidiaries specifically in financial and business services dominantly in developed countries.

Does ESG really matter? Accessing the relevance of ESG in Indian investors’ decision-making dynamics

Does ESG really matter? Accessing the relevance of ESG in Indian investors’ decision-making dynamics

Management Guidelines for Listed Companies on the Stock Exchange of Thailand for Moving Towards Sustainability

The United Nations introduced “Transforming our World: the 2030 Agenda for Sustainable Development” as a global action plan with 17 Sustainable Development Goals (SDGs) and 169 targets. In alignment with this agenda, the Stock Exchange of Thailand (SET) launched the Thailand Sustainability Investment Index (THSI) in 2015 to promote Environ­mental, Social, and Governance (ESG) factors. However, the number of sustainable companies has decreased, and Thailand’s economic competitiveness and foreign direct investment (FDI) have declined. This research thus aimed to develop guidelines for becoming a sustainable company using a mixed-methodology approach, including qualitative interviews, survey study, and focus group discussions. Quantitative data came from a survey of 500 sustainable companies listed on SET. The findings indicated that guidelines for SET-listed companies to achieve sustainability should consist of four latent variables, arranged in order of importance: organizational support, environmental protection, social responsibility, and corporate good governance. The most critical factor identified is the accurate and transparent reporting of financial performance. Additionally, the tested hypothesis indicated differences in market capitalization with overall aspects significantly different at the 0.05 level. These insights provide valuable strategies for businesses, policymakers, and educational institutions dedicated to advancing sustainable development and improving economic competitiveness in Thailand.

ANALISIS PENGARUH BELANJA PEMERINTAH, IPM, DAN INVESTASI DALAM NEGERI TERHADAP PERTUMBUHAN EKONOMI PROVINSI PAPUA

Economic growth is a benchmark for analysis of a region's development. So it is necessary to pay attention to the determinants of economic growth. Papua is a case study in this analysis because the level of economic growth is in the high category, in addition to the human development index remaining low in the last ten years. This research aims to analyze the influence of government spending according to function, human development index and investment on economic growth in Papua Province in 2011-2019. The type of data used is panel data from 29 districts/cities for eight years using the panel data regression analysis method. The results of this research show that government spending has different results for each type of government function spending. It was found that education spending and economic spending had no influence on economic growth, but the opposite was true for health spending. Apart from that, the human development and investment index explained through PMTB also has an influence on economic growth. These findings could have implications for the government in deciding policies for allocating government spending, especially for education and economic spending functions, which are still not efficient in stimulating economic growth in the Papua region.

Impact of behavioral factors on the investor’s intention in peer-to-peer lending

PurposePeer-to-peer lending has emerged as a promising alternative investment avenue globally. This study explores the variables influencing investors' intention in peer-to-peer lending. Studying these factors is crucial for inspiring investor motivation, which leads to the growth of peer-to-peer lending platforms in India.Design/methodology/approachThe research utilizes information gathered from 293 investors of the Rang de platform through a questionnaire. It employs ordinal logistic regression to assess how demographic characteristics, investor experience, social projects and investment factors influence the study’s outcomes.FindingsThe research indicates that the education qualification and income level of the investors are significant demographic variables in their investment decisions. Moreover, social projects, the experience of the investors and investment factors affect their intent to invest more in peer-to-peer lending projects.Research limitations/implicationsIt helps stakeholders and borrowers of crowdfunding platforms think about these aspects when creating plans to bring in and keep investors. This approach also enhances the openness and dependability of lending processes.Originality/valueThis research sheds light on Indian investors' behavior toward peer-to-peer lending platforms and includes new investment factors like project categories and impact partners that other researchers did not identify.

Creating a Responsible Renewable Energy Investment Model for the MENA Region's Low-Carbon Transition

Addressing climate change presents specific challenges for the countries of the Middle East and North Africa (MENA), particularly concerning oil production and water scarcity, but it also offers opportunities for new paths toward sustainability. The transition to low-carbon energy raises significant concerns for oil and gas producers in the MENA region, especially regarding their dependence on hydrocarbon revenues. Without proper adjustments, this transition could worsen macroeconomic imbalances and potentially threaten existing social contracts. Policymakers are working to promote various renewable energy sources and implementation strategies to mitigate the adverse effects of climate change. As a result, the development of an index capable of accurately measuring and benchmarking a country's overall sustainability and economic performance becomes essential. This index should provide a comprehensive assessment of both the current and future state of renewable energy. Additionally, it must highlight key environmental, social, governance (ESG), and economic factors within the renewable energy sector. This proposal aims to establish a composite index, referred to as the Renewable Energy Responsible Investment Index (RERII), covering 19 countries and utilizing 22 distinct metrics. The RERII trend is calculated from 2010 to 2019. The proposed index can serve as a screening tool, decision-making aid, benchmarking instrument, and guide for sustainable development.

Green finance and investment index for assessing scenario and performance in selected countries

Globally, countries are engaged in developing strategies and undertaking initiatives for green transitioning of the financial system and achieving net-zero targets by 2050. Green transitioning of the financial system includes boosting green finance (GF) and green investment (GI) in the country. Countries are making initiatives to develop infrastructure and a conducive ecosystem to attract green finance and investment. The present study attempts to develop a green finance and investment index to evaluate the green financing and investing scenario of 15 selected countries. The study attempts to evaluate countries on the basis of four integral dimensions viz., transparency, resilience, efficacy and efficiency. The dimensions include 29 variables, representing 11 parameters identified through a comprehensive literature review and experts' inputs. Multiple-factor analysis is applied to develop the index and rank the countries. The results show that the UK is ranked first, followed by Germany, the USA and Japan. These countries have taken initiatives to include environmental financing in the legal and regulatory framework. Among the developing countries, China is ranked seventh, followed by Mexico, Brazil and Indonesia. The results show that transparency and resilience dimensions are homogeneous to each other. Likewise, efficiency and efficacy are relatively more homogeneous to each other. Transparency plays the prominent role in developing GFI ecosystem. The study recommends that by improving transparency in regulations will positively impact the resilience of the country. Improving efficacy will result in increasing efficiency in the countries. The findings of the study contributes to the literature on quantitative analysis of green finance and investment. The results can contribute to the decision-making of the policymakers for devising an appropriate policy by strategically addressing the critical variables in each dimension. Lastly, the study can provide the foundation for analysing the green finance and investment ecosystem and the performance of the countries over the period of time.

Understanding Behavioural Biases Driving Equity Investors in India: A Factor Analysis Approach

In the dynamic realm of equity investment decisions, this study challenges the traditional assumption of investor impartiality and rationality, arguing that investors’ choices are often shaped more by beliefs and psychological inclinations than by objective reasoning alone. Drawing from behavioural finance theory, which contests the adequacy of the standard finance model in capturing the nuances of decision-making, this research delves into the psychological forces influencing private investors. Recognizing the prevalent biases coloring their decisions, the study investigates common prejudices impacting investor choices. Leveraging survey data from 375 equity investors, the research employs exploratory factor analysis and regression models to disentangle the effects of cognitive biases, such as the gambler’s fallacy, overconfidence, aversion to ambiguity, lack of representativeness, aversion to loss, and anchoring. The findings challenge the assumption of investor rationality, offering valuable insights into the complexities of financial decision-making. Notably, the study underscores a robust and positive association between these biases and equity investment decisions, shedding light on the intricate interplay between psychological factors and investment behaviour.

La Sustentabilidad Empresarial, los informes de sustentabilidad, los índices sustentables y el desempeño financiero

Business sustainability is of great importance today because the context of economic crisis marked by the COVID 19 pandemic has awakened organizations, where the concept of the Triple Bottom Line is exceeded to escalate to the concept of Sustainability. The objective of this work was to outline the way in which sustainability has evolved in the business field, where indexes and reports have been established that allow sizing its impact on financial performance. A documentary investigation was carried out, developing topics such as, Bases of business sustainability, ISO Standards related to the adoption of sustainable practices in companies, Socially responsible investment indices, Evolution of sustainability reports and The relationship between business sustainability and financial performance. The findings allow us to know that sustainability has permeated companies which have adopted ISO standards, as well as sustainability reports, providing information about the sustainable practices they carry out, which allows investors to make informed decisions. It was also found that empirical research has managed to establish the existence of a positive relationship between Business Sustainability and Financial Performance, thus demonstrating the importance of adopting the former to achieve financial success.

Effect of Behavioural Biases on Investment Decisions of Individual Investors in India

The current study "effect of behavioural biases on investment decisions of individual investors in India" aims to uncover and quantify the influence of behavioural biases on individual investors' investment decisions. The study's goal is to examine the influence of behavioural biases on individual investors' investing decisions. It is discovered that five components are formed from the thirteen items as a consequence of heuristics factor analysis, namely Availability, Representativeness, Overconfidence, Anchoring, and Gambler's Fallacy. The prospective factor analysis also reveals that three components are retrieved and loaded from the eleven items, namely Loss Aversion, Regret Aversion, and Mental Accounting. According to the findings of this study, behavioural biases affect individual investors while making investment decisions in the Indian securities market. Investor behaviour in making investment decisions is influenced to a larger extent by availability, representativeness, overconfidence, anchoring, and loss aversion. To be successful, an investor must first understand his or her own investment behaviour, which begins with recognising and avoiding behavioural biases from their own experiences, followed by setting realistic and achievable goals through a diversifiable portfolio, and taking into account all financial market mechanisms.

Youth Investment Trends : Analysing the Rise of Young Investors in the Stock Market : Indian Vs U.S. Stocks

This study explores why young Indian investors are increasingly favouring U.S. stocks over domestic ones. Through surveys & interviews with investors aged 18-35, we uncover key influences such as the allure of global brands, the perceived stability of U.S. markets, and the power of social media. While tech innovations and easy access to trading platforms boost their enthusiasm, a gap in financial literacy poses risks. The reasons causing young investors to prefer US stocks over Indian stocks are higher returns, stability & global exposure. We highlight the need for better education and support to harness this demographic’s potential, aiming to democratize investment opportunities in the digital age

Influence of personality, biases on financial risk tolerance among retail investors in India

Investors’ personality traits and psychological biases play a crucial role in the decision-making process and risk-taking behavior of investors. The emotional and psychological factors impact the decision-making, giving rise to biases. These biases make investors make irrational decisions, which signifies the need for this study. This study aims to assess investors’ personalities using HEXACO model and its interaction with biases and financial risk tolerance. The data of 530 retail investors in India, who had more than 2 years of investing experience in the stock market, were collected. The study considered the HEXACO model since it captures all dimensions of personality that are not considered in the commonly used Big Five Model (BFM). The result of structural equation modeling and mediation analysis shows that the ‘honesty-humility’ trait significantly affects overconfidence bias. The mediation analysis of biases between traits and financial risk tolerance showed complete, partial, and no mediation effect depending on the nature of prejudice. Clear distinction of personality traits into ‘virtue traits’ and ‘character traits’ can be observed. This clear distinction paves the way for employing the HEXACO model in future studies.

Portfolio management with the help of AI: What drives retail Indian investors to robo‐advisors?

Portfolio management with the help of <scp>AI</scp>: What drives retail Indian investors to robo‐advisors?

Lubrizol plans big Indian investment

Lubrizol plans big Indian investment

Factors affecting mutual fund investors in India: A review

Factors affecting mutual fund investors in India: A review

Firms Entangled in Geopolitical Conflicts: Evidence from the Russia-Ukraine War

We examine the reactions of US-based multinationals and subsequent financial market reactions to Russia’s invasion of Ukraine in February 2022. The multinationals’ firm-level decisions range from clean exits from the Russian market, all the way to ‘digging in’ as if the war never happened. Findings show that, in the short-term, markets favour ‘middle ground’ decisions which balance shareholder interests with regulatory and ethical concerns. This is manifest through those firms taking extreme decisions, on either end of the spectrum, experiencing more negative returns. In the longer term, however, investor ethical concerns and other considerations dominate such that firms announcing clean breaks incur lower losses compared to their peers. In other words, sitting on the fence and playing both sides does not pay off for long. We also show interesting differences in investor reactions between two major non-US markets: China − a Russia-leaning country − vs India − a neutral country. While Indian investors behave largely similar to US investors, Chinese investors do not significantly punish firms that stay put in Russia. We re-examine the situation one year into the war and show that markets reward a Russia-opposing corporate position in the longer term.

FDI IN INDIA: AN ANALYSIS OF LEGAL FRAMEWORKS AND INVESTOR PROTECTIONS

This paper provides a comprehensive analysis of Foreign Direct Investment (FDI) in India, focusing on the multifaceted legal frameworks and investor protection mechanisms that characterize the Indian investment landscape. As one of the world's fastest-growing economies, India presents significant opportunities for foreign investors seeking to tap into its vast market potential. However, the journey is not without challenges, including regulatory complexities, infrastructural inadequacies, and cultural differences that can impede investment processes. This study delves into various government initiatives aimed at fostering a conducive environment for FDI, including reforms that simplify regulations and promote transparency. Additionally, it examines the mechanisms in place to protect investors, such as the role of the Securities and Exchange Board of India (SEBI) and the establishment of grievance redressal systems. The findings underscore the importance of understanding both the opportunities and challenges inherent in the FDI landscape, offering valuable insights for potential investors and policymakers striving to enhance the investment climate in India.

Connectedness between Sustainable Investment Indexes: The QVAR Approach

We studied the relationship between sustainable investment indexes and examine whether this relationship varies in bullish, bearish, and stable financial markets. To understand this issue more deeply, we analyzed the connectedness between three indexes—the Sustainable Impact investments, Paris-aligned stocks, and green bonds indexes—using the daily closing prices from 1 June 2017 to 15 April 2024, encompassing 1793 observations. We used a quantile vector autoregressive (QVAR) model to understand the dynamic relationship among the considered indices. The findings indicate that sustainable investments are strongly interconnected in both high and low quantiles, but this connection weakens significantly during periods of market stability. The Sustainable Impact investments and Paris-aligned stocks indexes are net transmitters of impacts to other sustainable alternatives, while the green bonds index is a net receiver. We also observed an increase in interconnectedness across all quantiles during the pandemic, the Russia–Ukraine military conflict, and changes in the European Union and the United States’ monetary policies.