Potential Investors Research Articles

Investigation and Analysis of McDonald's Market Development

As a large restaurant chain, McDonald's is affected by different external and internal factors, which makes investors begin to question its sustainable operation ability. This study takes McDonald's as an example to explore the development issues of the catering industry through its business situation. This article studies the sustainability of McDonald's stock price in the future and evaluates its continued investment potential. Therefore, based on the financial data of McDonald's and its competitors during the period from 2020 to 2023, the expected value is estimated by combining quantitative research methods and relative value evaluation methods. The results of the study show that McDonald's financial performance in the past few years has been good, including good capital structure, short-term debt repayment ability and profitability. Investors can make a long-term investment in McDonald's stock based on a sound financial position and good market expectations. This study has important practical significance for the healthy development of catering.

The cost of electricity interruption for manufacturing firms in Ethiopia: valuing outage by applying stated preference approach

ABSTRACT In sub-Saharan African countries, firms are suffering from frequent, long-lasting and random power outage, which makes planning and production activities difficult. Thus, understanding a firm’s cost associated with unreliable power supply is crucial for policymakers and potential investors in the energy sector. To this end, we estimated the economic cost of power interruption to manufacturing firms in selected cities of Oromia Regional State in Ethiopia using a mixed logit model. We collected data from a sample of 600 manufacturing firms. The result shows that a firm’s average cost of power interruption is equivalent to ETB 51,777 (~US$976) per month, which corresponds to a nine-fold of their current monthly electricity bill. In addition, the interruption costs amount to 2.22% of a firm’s gross monthly revenue. Moreover, we observed a considerable variation in our results, which be partly attributed to company size and type of industry where a company belongs to.

When R&D investment improves firm value: the role of board gender diversity

Purpose Agency theory postulates that research and development (R&D) investments are subject to managerial discretion and thus may not enhance firm value as expected. The inconclusive empirical findings in the literature is a testament of that. This paper aims to investigate the interplay between board gender diversity (i.e. women on boards) and value relevance of firms’ effort to innovate as indicated by firms’ R&D investments. Design/methodology/approach Through a sample of 1,626 US-listed firms from the period 2004 to 2019, the authors examine whether board gender diversity promotes or hampers value relevance of firms’ efforts to innovate. The authors use ordinary least squares as the baseline model and address potential endogeneity through instrumental variable two-stage least square, and selection bias through Heckman selection model. Finally, the authors use the financial crisis of 2008 as a natural experiment to investigate the effect of board gender diversity during the crisis period. Findings The results show that board gender diversity positively moderates the relation between R&D and firm value. In times of financial crisis, R&D does not destroy firm value in firms with gender diverse board. The results are robust to measurement error, endogeneity issue, particularly simultaneity and selection bias. Practical implications The findings in this study have several practical implications. Firms that invest heavily in R&D should be mindful of gender diversity in their board recruitment strategies to enhance innovation outputs and firm value. Current and potential investors (i.e. shareholders) should take into consideration board gender diversity in their investment decision-making processes as the results show that gender diverse boards promote more effective governance, which, in turn, leads to better alignment of R&D investments with shareholder value. Regulators aiming to improve corporate governance policies should encourage gender diversity on the boards. The results align with global initiatives such as the United Nations Sustainable Development Goals, particularly Goal 5 on gender equality. Policymakers may use the findings in this study to advocate for more gender diverse governance structures within corporations. Originality/value This study investigates the role gender diverse boards play in creating value from firms’ R&D activities.

Analisis Faktor-Faktor Yang Mempengaruhi Struktur Modal: Studi Kasus Pada Sektor Industri Asuransi

Purpose: The aim of this research is to determine the influence of the capital structure of the insurance industry listed on the Indonesia Stock Exchange (BEI) for the 2019-2022 period which is influenced by profitability, leverage, asset structure and company size. Methodology/approach: This research uses quantitative methods and uses purposive sampling techniques to collect observation data from a sample of 17 companies so that this research obtained 68 samples. Furthermore, data analysis in this research involves descriptive statistical analysis and panel data regression analysis using Eviews version 12 software. Findings: The findings of this research indicate that profitability and leverage are able to have a positive influence on the company's capital structure. Meanwhile, the asset structure and company size cannot have an influence on the capital structure of the insurance industry listed on the Indonesia Stock Exchange (BEI) for the 2019-2022 period. Practical implications: Practically this research contributes to investors and potential investors to always be wise in considering factors that affect the company’s capital structure so that it can make the right investment. Contributions are also given to the company to pay attention to variables that may risk affecting the capital structure so that the company does not suffer losses. Originality/value: Integrating four independent variables with a special focus on the insurance industry listed on the Indonesia Stock Exchange for the 2019-2022 period

Trade and economic cooperation of the EAEU: state, dynamics, ensuring national security

The relevance of the study lies in the fact that in the context of international political and economic tensions, the role of regional integration is more important than ever. Despite the fact that the EAEU is one of the youngest integration associations in the world, the history of its existence testifies to the importance for both participating countries and third countries and the global economy, as well as conducting joint policies in various spheres of international relations. The article provides an analysis of trade and economic cooperation between the EAEU countries from the point of view of studying the history and causes of its appearance, the current state and development prospects. The current state and features of trade and economic cooperation between the EAEU countries, the main macroeconomic and trade and economic indicators of the EAEU member states are considered. It is shown that since the creation of the EAEU in 2015, measures have been taken and successfully implemented aimed at identifying and gradually eliminating factors hindering the development of integration processes. With the help of the created strategies for the development of the grouping, supranational bodies strive to minimize the influence of internal and external factors on the growth of the economies of the member countries of the union. The EAEU has significant economic and trade, as well as investment potential. According to the authors, it is important for the EAEU countries and the association as a whole to more actively implement measures aimed at maintaining the economic security of the association and the participating countries, which requires new unified approaches to training at the country and regional levels.

Wildlife corridors in a Southern African conservation landscape: the political ecology of multispecies mobilities along the arteries of anthropogenic conservation

The decline of biodiversity is a key topic in public discussions around the globe. These debates have triggered massive efforts to increase protected areas and to safeguard the corridors connecting them. The wildlife corridors dealt with in this article are mainly thought to facilitate the mobility of elephants and some other large herbivores (for example, zebra and buffalo). Wildlife corridors are not only essential for species connectivity but also an integral part of the booming ecotourism in north-eastern Namibia’s conservation landscapes. Coexistence infrastructure is meant to contribute to economic development and local incomes. Conservancies — community-based conservation organisations in the Namibian context — gazette corridors and market wildlife abundance to ecotourists, potential investors in tourism and commercial hunters. The coexistence of humans and wildlife is challenging, though. Human-wildlife interactions frequently result in damage, and often conservationist environmental infrastructuring runs against the aims of farmers to expand their fields for commercial crop production and to gain pastures for growing cattle herds. It also runs against other governmentally endorsed infrastructuring that brings tarred roads, water pipelines and boreholes. This article analyses contested wildlife corridors as part of a larger conservationist project in the western parts of Namibia’s Zambezi Region.

The deposit insurer’s capacity assessment in the context of impact on the financial system stability

The paper is devoted to the development of a scientific and methodological approach to determining the indicators of the deposit insurer's ability to influence the financial system stability. The scale and complexity of the tasks of ensuring the immediate and gradual reconstruction of Ukraine, high dynamics and proper quality of economic growth, the functioning of the economy in the conditions of war and a constant external threat actualize the issue of increasing domestic investment potential and intensifying the transformation of household savings into investments. It creates challenges for the deposit insurance system. In the research structural and logical analysis, induction, comparison, and relative values were used. The capacity of a deposit insurer in the context of its impact on financial stability should be considered in the context of operational, resource and payment capacity, each of which can be assessed by an appropriate indicator. The operational capacity reflects the ability of the deposit insurer to influence the situation in the deposit market and perform the function of deposit guaranteeing. The normative value of the operational capacity indicator in Ukraine is proposed to be set at the level which, in the conditions of the dynamic banking sector of Ukraine and the deposit market as its component, will allow considering the slightest deviations of the indicator (μ+2σ). The resource capacity reflects the coverage level of guaranteed deposits by the insurer's financial resources. The normative value of the resource capacity indicator in Ukraine is proposed to be set at the level of 0.8%, which meets the requirements of Directive 2014/49/EU of the European Parliament and of the Council. The payment capacity reflects the sufficiency of the deposit insurer's financial resources to pay compensation to depositors in the future. The normative value of the payment capacity indicator in Ukraine, by analogy with the indicator of the ratio between insurance technical reserves and the average value of insurance payments, is proposed to be set at least 1 in annual terms and not less than 12 in monthly terms.

Legal problems of state regulation economic activities in a special period

The paper reveals the role and problems of determining the peculiarities of solving legal problems of state regulation of economic activity in a special period as one of the conditions for the development of a modern democratic society. A detailed study of this issue was conducted, aspects of the regulatory and legal environment and the problems of Ukrainian business work in such difficult conditions were considered. The last few years, the most difficult in the history of the state, have shown that there is a need to move from direct administrative assistance to the formation of a favorable economic and social environment for the improvement of mechanisms and tools for stimulating the development of business entities. It is the priority of state regulation and support of entrepreneurship in such conditions that will provide an opportunity not only to preserve business, but also to expand it with a simultaneous increase in the number of jobs, which is one of the foundations of the functioning of the welfare state. Any difficulties in economic activity quite often give rise to new opportunities for growth, the economy is being restructured, new niches are opening that can be used for growth, and in the future, filling the state and local budgets. The historical experience of the states that have gone through the war shows that the economic system and business development is a key area of further reform and modernization, and the main goal of this process is to create favorable conditions for economic activity, to activate the investment potential of the country and to create comfortable conditions for the functioning of the capital involved. One of the fundamental elements of creating a favorable business environment in Ukraine is the deregulation of economic activity, that is, the maximum simplification of business and government cooperation, the formation of a free market, a transparent permit system, and partnership relations with state regulatory and supervisory bodies. An important aspect of state regulation of economic activity in a special period of state development is, first of all, the conscious formation by state structures of appropriate direct and indirect business support tools, in particular, the creation of incentives, the use of material, financial and other resources that are attracted to its subjects. Special attention was paid to the need to develop and implement specialized legal acts that would regulate the protection of business activities in such emergency situations.

Comparative Analysis of Investment Value in the Media and Entertainment Industry

Propelled by technological development, the Media and Entertainment (M&E) industry has experienced a remarkable transformation and expansion over the past few decades, giving rise to numerous potential investment opportunities. In this context, this essay conducts a comparative analysis of value investing in the M&E industry, focusing on Paramount Global, Netflix, Fox Corporation, and The Walt Disney Company. This research utilizes value investing principles proposed by Benjamin Graham to evaluate the financial strength and profitability of four research subjects. The study suggests Netflix as the most desirable investment due to its robust revenue growth, EPS projection, and profitability trends while highlighting the fierce competition, high valuation risks, and cybersecurity threats faced by Netflix. This paper also acknowledges its limitations related to historical data, market dynamics, and quantitative analysis. The aim of this study is to explore implying value investing in the M&E industry and provide investors with a recommendation of the most desirable investment option in this sector.

Application of the Fractal Brownian Motion to the Athens Stock Exchange

The Athens Stock Exchange (ASE) is a dynamic financial market with complex interactions and inherent volatility. Traditional models often fall short in capturing the intricate dependencies and long memory effects observed in real-world financial data. In this study, we explore the application of fractional Brownian motion (fBm) to model stock price dynamics within the ASE, specifically utilizing the Athens General Composite (ATG) index. The ATG is considered a key barometer of the overall health of the Greek stock market. Investors and analysts monitor the index to gauge investor sentiment, economic trends, and potential investment opportunities in Greek companies. We find that the Hurst exponent falls outside the range typically associated with fractal Brownian motion. This, combined with the established non-normality of increments, disfavors both geometric Brownian motion and fractal Brownian motion models for the ATG index.

Investment attractiveness of the Russian Arctic through the prism of international cooperation and development of transport corridors

The Russian Arctic has numerous resources, infrastructure facilities that are important for international relations, and therefore is potentially very attractive to investors. Nevertheless, there are a number of objective reasons hindering its development, which require international cooperation, investment and updating of the regulatory framework for the process of foreign investments inflow into the region, with an emphasis on its specifics. The purpose of the article is to study the attractiveness and investment potential of the Arctic zone of the Russian Federation (AZRF) in the new geopolitical realities, to identify the most promising areas of foreign investments. It is concluded that the Arctic can offer resources and opportunities for development and cooperation. It is open for investment, and the Russian government is trying to implement as many projects as possible, including those in which the BRICS countries participate, that will contribute to the development of this region. One of the key areas of foreign investments application is the zone of development of the transport and logistics potential of the Arctic through transport corridors, which will simultaneously lead to infrastructural connectivity of the entire Eurasian continent and will promote cooperation in the Eurasian arena of the CIS countries.

Predicting Equity Crowdfunding Success

Equity crowdfunding has grown exponentially in the United States since the passage of the JOBS Act in 2013, yet it continues to be a research area that is relatively unexplored in the United States due to the limited availability of data. U.S equity crowdfunding campaigns are notoriously unsuccessful, and this paper develops a predictive model for equity crowdfunding success to determine whether the positivity of the language used, and the length of the campaign description influences an investor’s decision to invest. A model is developed on a balanced training set and applied to a test set, and the overall results are evaluated using a confusion matrix to determine the accuracy, precision, and recall of the model. Our overall results indicate that both the tone of sentiment and the length of the campaign description are predictive of an equity crowdfunding campaign’s success. Specifically, the potential investors appear to be attracted to positive campaign descriptions that are written with concise language.

Current expansions in the Brazilian timber market

The attractive financial returns from timberland investments in Brazil, particularly fast-growth tree plantations like pine and eucalyptus, have attracted multiple investors over the last decade. Among the countries with a competitive Pulp and Paper Industry (PPI), pulp and paper investors have expanded substantially in Brazil with new mills and planted areas. This paper presents a comprehensive investigation of the dynamics of the Brazilian pulp and paper industry forest sector in the past decade. We described the current macroeconomic and political environment in Brazil and the expansion of mills and timberland in Brazil. Brazil is, clearly, among the selective countries where a substantial expansion of the forest sector is possible. The regions like Mato Grosso do Sul have impressive scales of productivity and expansion. Other areas, like the states of Maranhão, Piaui, Tocantins and Bahia present potential to expand forest plantation, however, they are limited by weather constraints (extensive drought and fire seasons). Even well-known markets, like the South region of Brazil, have has opportunities to expansion subject to higher land prices. Brazil’s attractiveness for timberland investments is underscored by robust economic indicators and extensive natural resources. Yet, navigating the complexities of its political landscape remains a critical consideration for potential investors looking to capitalize on the country’s promising forestry sector.

Economic evaluation of the second-use batteries energy storage system considering the quantification of environmental benefits

The number of retired batteries from electric vehicles continues to grow, which not only puts pressure on battery recycling but also leads to environmental pollution. By replacing the conventional batteries with the second-use batteries in configuring the energy storage system, the investment cost can be effectively reduced, and the issue of retired batteries disposal can be alleviated. In view of this, the paper investigates the quantification of the environmental benefits of second-use batteries, and comprehensively evaluates the second-use batteries energy storage system (SUBESS) in terms of environmental and economic benefits. The energy storage configuration model aimed at maximizing annual net income is developed, and the improved particle swarm optimization algorithm is applied to determine the optimal capacity and power in a photovoltaic (PV) pilot area. Under the same capacity condition, several evaluation indexes are used to compare the economics of the SUBESS with the conventional batteries energy storage system (CBESS). The results show that: (1) Compared to end-of-life disposal of batteries, secondary utilization will yield greater environmental benefits. (2) When the cost per unit capacity of the SUBESS is lower than 63.99 % of the CBESS, the economy of the SUBESS is better than that of the CBESS. Finally, targeted suggestions are made to further promote the scale development of the retired batteries secondary utilization industry. The research results not only validate the economic feasibility of the SUBESS but also have significant environmental benefits, which can provide a reference for potential investors.

Investment Advice of Dialysis Companies: Whats the Trend of the Industry?

The global dialysis market is continuing expanding in the recent years and dialysis industry has expected investment prospects. This study presents a comprehensive investment analysis framework comparing four top companies in the kidney care and dialysis service industry. This article aims help investor choose the most suitable company among them with the highest investment value to invest in. The study uses official financial data from Nasdaq from 2023 and forecast data from estimates of 2024 of 4 dialysis companies on the waiting list. By analyzing and comparing the financial statements of four companies, the asset investment potential and growth rate of the four companies were determined. Results demonstrate that the company DaVita rank as the most appealing investment option out of four companies, followed by Medtronic, Baxter and Fresenius. Based on financial statements, DaVita is attractive with highest expected growth rates in EPS and gross revenue, PEG ratio, and relatively high annual and quarterly gross margin.

Making the hard sale: Migrant sales agents and the precarious labours of Philippine real estate brokerage

In recent years, scholars have taken interest in the significant remittance contributions of Filipinos living and working abroad to what some have called the Philippine ‘real estate boom’. In the case of real estate property as investment, however, much remains unknown with regards to how major Philippine real estate developers capture, facilitate and ensure the continuous flow of migrant investments into condominium units in the Philippines. This article examines how Philippine real estate developers make use of a particular kind of sales labour to reach various Overseas Filipino Worker (OFW) populations. It argues that most major developers rely on a hierarchical, networked and transnationalized labour arrangement, composed mainly of licensed and unlicensed sales agents. Drawing from interviews with sales agents working in and between the cities of Metro Manila and Dubai, it then complicates dominant depictions of real estate sales agents by demonstrating the precarious conditions they work under as well as how this flexible labour arrangement often works in two ways. First, this article demonstrates that through their sales labour, specific Filipino migrant community dynamics such as community leadership, charity and other migrant ‘life projects’ such as investments, side hustles and debt get absorbed into the very circuitry of real estate accumulation. Second, through sales agents’ recruitment of OFW ‘marketing partners’, Philippine real estate developers are able to enter and expand into spaces of migrant advocacy and of migrant in/formal work to enrol OFWs either as potential investors, as labour or both.

Gender homophily and local bias in equity crowdfunding

AbstractWe investigate gender-specific local biases among investors in equity crowdfunding. Based on data from a major German crowdfunding platform, we find that domestic investors favour ventures that are geographically closer to their own place of residence. This bias is particularly evident among female investors, although it is partially offset by gender homophily, whereby female investors favour companies with women in the top management team. Finally, we show that the introduction of the German Small Investor Protection Act may have exacerbated local biases in the German crowdfunding market, particularly with respect to firms with female management. Overall, our results suggest that establishing their companies in close proximity to a large number of potential female crowd investors may help improve female entrepreneurs’ chances of attracting equity crowdfunding investment.

Exploring the pathways accounting: Foreign direct investment as a catalyst for idiosyncratic risk, sectoral GDP, economic activity, and economic growth

This study examines the interaction between foreign direct investment (FDI), idiosyncratic risk, sectoral GDP, economic activity, and economic growth in ASEAN countries using structural equation modeling (SEM) performed using AMOS software. The analysis uses data from the ASEAN Statistics Database 2023 to distinguish the significant direct and indirect impacts of FDI on idiosyncratic risks, sectoral GDP, economic activity and aggregate economic growth can. ASEAN, which includes ten Southeast Asian countries, has experienced rapid economic growth and increasing integration in recent decades, making it an interesting area to study these relationships. The study covers a comprehensive period to capture trends and differences among ASEAN member states. Applying SEM with AMOS allows a detailed examination of complex relationships between important economic variables. The results show a clear link between FDI inflows, idiosyncratic risks, industry GDP performance, economic activity, and overall economic growth. More specifically, FDI inflows have a notable direct influence on idiosyncratic risks, which then impact GDP growth by sector, and the level of economic activity and ultimately contribute to economic growth trends. economy more broadly in ASEAN countries. These findings highlight the importance of understanding and effectively managing the dynamics between FDI and various economic indicators to promote sustainable economic development across ASEAN. This information can inform policymakers, investors, and stakeholders in developing targeted strategies and policies that maximize the benefits of FDI while minimizing related risks to promote strong and inclusive economic growth in the region. This study highlights the multifaceted relationships in the ASEAN economic context, emphasizing the need for strategic interventions and policy frameworks to exploit the potential of foreign investment directed at ASEAN, to the Sustainable Development Goals and long-term economic prosperity in the region.

Socioeconomic Factors Driving the Transition to a Low-Carbon Energy System

Citizen participation via different investment schemes may be a promising solution to the financing barriers inhibiting energy transition. In this regard, citizens may be approached as potential investors in renewables, but, to mobilize their capital, strategies need to be developed. Much like other services or products seeking to improve their market position, renewable energy investments by citizens also require dedicated efforts to acquire a strong market position. Using a large sample of Greek citizens, this study investigated whether it is possible to identify distinct and addressable citizen clusters which can enable energy developers and marketers to effectively address the preferences and needs of potential investor segments. The performance of k-means cluster analysis identified four clusters: Indifferent Investors were neither driven by economic or social factors, Enthusiastic Investors were motivated both by economic and social factors, Pro-environmental Investors were driven by the environmental benefits, and Social Investors were motivated by the social aspects of the investment. Moreover, each cluster demonstrated different levels of willingness-to-invest in renewable energy and were knowledge about renewable energy investments. It was concluded that citizens should not be approached as a homogeneous target group by marketing experts and policymakers, while novel strategies should be followed.

An integrated AHP-TOPSIS approach for bamboo product evaluation and selection in rural communities

This study introduces a decision support model integrating the Analytic Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) to select an economic tree product champion (bamboo) to benefit rural communities. An extensive literature review and expert discussions identified sixteen sub-criteria distributed across five main criteria. The study proposes four categories of bamboo products as alternatives, emphasizing community-level production capacity. The AHP determines priority weights, while TOPSIS prioritizes alternatives conducive to becoming the product champion within a community case study. The findings affirm the efficacy of Multi-Criteria Decision-Making (MCDM) in identifying a champion, with “Value addition potential,” “Domestic market demand,” and “International market (export) demand” identified as pivotal criteria. Bamboo culm-based products for energy-related applications emerged as the chosen product champion in a community case study in Thailand. This study offers practical implications for rural communities and potential investors in economic tree ventures, allowing the customization of decision criteria and alternatives for specific contexts. Socially, the focus on bamboo highlights diverse benefits along the entire supply chain, from upstream to downstream. The research pioneers a decision support model, providing insights into market opportunity analysis and supply chain network design based on the selected product champion.