Investment Practices Research Articles

The role of sustainable investment practices in maintaining efficient working capital management

The role of sustainable investment practices in maintaining efficient working capital management

Enhancing Economic Security through Digital Transformation in Investment Processes: Theoretical Perspectives and Methodological Approaches Integrating Environmental Sustainability

This article delves into the role of digital transformation in bolstering economic security within investment processes, emphasizing the integration of environmental sustainability. It discusses theoretical perspectives and methodological approaches that illuminate how digital technologies can enhance investment practices while ensuring environmental responsibility. The authors emphasize that leveraging digital transformation can not only mitigate risks and vulnerabilities but also bolster efficiency and transparency in investment decision-making while promoting sustainable practices. Through a review of pertinent literature, the article scrutinizes the advantages of digitalization in realms such as data analytics, automation, and artificial intelligence, highlighting the dual benefits of economic security and environmental stewardship. The findings enrich the existing knowledge base on economic security and underscore the significance of embracing digital transformation infused with environmental sustainability in the investment arena. This article furnishes valuable insights for policymakers, practitioners, and researchers navigating the evolving landscape of investment processes in an increasingly digitized and environmentally conscious world.

Bourdieu revisited: new forms of digital capital – emergence, reproduction, inequality of distribution

ABSTRACT Based on Bourdieu’s theory of capital, we discuss in this paper the extent to which economically utilizable individual-level data can be seen as the foundation of an independent form of a new digital capital. A variety of digital practices, business models and data-analytical processes are based on these data. They are unfolding massive impact in all social fields and affect the reproduction strategies of actors from various social classes. Individual-level data are the subject of field-immanent conflicts, which we discuss using the example of a general digital field (which is mainly driven by the Big 5 tech companies) and the subfields (1) of software engineering, (2) of prosumption, and (3) of social media content creators. We consider individual-level data not only as relational positions within the digital field and its subfields, but also in relation to the structure of social classes. As a valuable and contested commodity, individual-level data are unequally distributed in favor of the upper class and a new digital elite. The middle and lower classes try to compensate for their limited power of disposal over digital capital through practices of status investments and singularistic counter-strategies.

The driving forces behind the prices of major cryptocurrencies: Evidence from the past five years

Purpose: The primary objective of this study is to uncover the complex relationship between cryptocurrency prices and significant global events that transpired within the past five years. These events encompass a wide spectrum, including political and global health crises, the public disclosure of multinational enterprises' investments in cryptocurrencies, and the influence of macroeconomic indicators. Beyond the exclusive focus on Bitcoin, this study adopts a more comprehensive approach encompassing various cryptocurrencies.Design/methodology/approach: This study examines the effects of the disclosure of cryptocurrency adoption plans by major corporations, the Russian-Ukraine war, Covid-19, Inflation rate, and Economic policy uncertainty within the U.S., U.K., and E.U on cryptocurrency prices (Bitcoin, Ethereum, and Binance coin) using a structural equation model over the past five years.Findings: Our findings provided several compelling insights. Most notably, during the study period major corporations’ adoption of cryptocurrencies positively influenced their price. Furthermore, a negative and significant association emerges between cryptocurrency prices and periods marked by economic policy uncertainty and inflation rates in the countries under investigation (U.S., U.K., and E.U). The results are robust under variations in sample composition and changes in sets of variables.Originality/value: The study uncovered the complex relationship between cryptocurrency price fluctuations and significant global events that transpired within the past five years by taking the factors identified in previous literature as a whole and adding new variables that are not well studied, such as the effect of Russian-Ukraine War and multinational corporations revealing cryptocurrency adoption intention on the prices of cryptocurrencies. This study represents a pivotal contribution by bridging a crucial research void and providing theoretical insights into the legal considerations to be undertaken by policymakers, and informed investment practices by traders, and corporate leaders.

Would really long-only climate-transition strategies in commodities bring lower market risk for sustainable markets in the long run? The Islamic sustainable market versus the global sustainability leaders

By allocating investments towards commodities that align with climate-transition goals, environmentally conscious commodity investment strategies serve to promote and support sustainable markets, channeling capital towards sectors that prioritize environmental sustainability. Through the application of a quantile causality test, which examines the relationship between commodity-based strategies with a climate-transition focus and eco-friendly markets, over the period spanning from May 1, 2013, to May 25, 2023, our findings reveal a bi-directional causality relationship between different themes of sustainable markets and long-only climate-transition strategies in the commodity market across various market conditions. Furthermore, employing a quantile time-frequency connectedness approach allows us to discern that long-only climate-transition strategies in the commodity market exhibit lower long-run total connectedness with responsible and conscious markets compared to the short term. Consequently, these results suggest that transition-oriented strategies for commodities in a climate-conscious world not only mitigate market risk for regenerative markets in the long run but also indicate that different types of global sustainability leaders demonstrate a stronger connectedness with climate-transition strategies in commodities when compared to the Islamic sustainable market across a majority of quantiles and time horizons. In light of these findings, policymakers are urged to prioritize the long-term dimensions of climate-transition strategies in commodity markets by implementing new emission standards and environmental benchmarks. Additionally, the design and implementation of similar long-only climate-transition strategies in other markets would further enhance the long-term effectiveness of climate-conscious markets and foster stronger connections with responsible markets. our study underscores the significance of integrating climate-transition strategies into commodity markets and highlights their role in promoting sustainable and environmentally conscious investment practices. By directing investments towards climate-aligned commodities, policymakers and market participants can contribute to the long-term sustainability of global markets while fostering stronger connections between sustainable markets and climate-transition strategies in commodities.

International Diversification and Stock-Price Crash Risk

Despite the recent proliferation of research on internationalization, little attention has been paid to understanding the reasons behind the decrease in firm value accompanying international expansion. By delving into the underlying mechanisms and applying the concept of agency theory to a sample of US firms spanning from 2000 to 2022, we posit that an increased level of information asymmetry in internationally diversified firms incentivizes managers to prioritize their own interests. To protect their careers, CEOs of internationally diversified firms often suppress bad news. This behavior can lead to the accumulation of negative news and heighten the risk of a stock-price crash. Furthermore, we propose that higher levels of international experience, enhanced monitoring effectiveness, and efficient investment practices will negatively moderate the positive relationship between internationalization and stock-price crash risk.

Corporate angels: A new breed of investors in the funding landscape for technology-based start-ups

This paper examines corporate angels, small businesses that provide equity capital directly to unquoted ventures and become minority shareholders. Corporate angels have been largely ignored in entrepreneurial finance research. This novel study examines corporate angels' investment practices, goals and challenges by means of a combination of qualitative cases and a survey of 87 corporate angels. From our analysis, we conclude that due to their knowledge and experience of technology and industry, combined with their active involvement in the investments, corporate angels can be an important source of seed and early-stage financing for technology-based start-ups, particularly with regard to technological and market knowledge and experience. Corporate angels’ investment activity also leads to knowledge inflows to the corporate angel firms in terms of organizational and cultural development of the firms. With this paper we shed light on a new and unexplored investor group that is important in the changing landscape of entrepreneurial finance.

Gen Z Investor Behavior: Analyzing the Influence of Sustainable Investment Practices, Financial Education, and Risk Tolerance in Indonesia

This research analyzes G Z's investment behavior in Indonesia with a focus on sustainable investment practices, financial education and risk tolerance. The research methods used include online surveys and in-depth interviews with a representative sample of Gen Z in Indonesia. The research results show that most Gen Z tend to choose sustainable investments that align with their values, although varying levels of financial literacy influence their understanding of investment products. Additionally, Gen Z individuals' risk tolerance is influenced by their personal experiences, level of education, and social environmental influences. In conclusion, this research provides a holistic picture of the complex interactions between sustainable investment practices, financial literacy, and risk tolerance in the context of Gen Z in Indonesia. Practical implications of these findings are also presented to help stakeholders in the world of finance understand and respond to investment behavior that is increasingly relevant for future generations. Keywords: Financial Education, Gen Z Investment Behavior, Sustainable Investment Practices, Risk Tolerance

Understanding the adoption index of green investment practices among emerging market firms in Himachal Pradesh: A empirical analysis

Understanding the adoption index of green investment practices among emerging market firms in Himachal Pradesh: A empirical analysis

Does Self-Control and Over-Confidence Influence Investment Decision: The Mediating Role of Fundamental and Technical Analysis

This study investigates the influence of self-control and over-confidence on investment decision-making, with a focus on the mediating role of fundamental and technical analysis. The respondents of the study are institutional investors operating in the Pakistan Stock Exchange Market (PSX), which includes the Lahore Stock Exchange, Karachi Stock Exchange, and Islamabad Stock Exchange. The behavior of these investors is assessed to determine the impact of stock market fluctuations on their investing decisions. The unit of analysis in this research is the institutional investors themselves. The study aims to examine the behavioral consequences of integrating self-control and overconfidence variables in investment decisions, particularly in relation to market instability and variations in fundamental and technical analysis. To select the sample, both stratified sampling and cluster sampling techniques were employed. Cluster sampling was used to save costs, while stratified sampling ensured that the sample accurately reflects the population. The states were divided into clusters to facilitate the use of cluster sampling. In terms of sample size, the study solely focuses on institutional investors in the Pakistan stock exchange PSX. Therefore, the sample consists of 375 institutional investors. Data collection for this study utilized a 5-point Likert scale, which is a commonly used measurement instrument for determining the relationship between variables. The scale allows respondents to provide their opinions on a continuum from strongly disagree to strongly agree. This approach enhances the originality and reliability of the data while minimizing respondent annoyance. Overall, this study aims to contribute to the understanding of how self-control and over-confidence influence investment decisions, with fundamental and technical analysis serving as mediators in the context of the Pakistan Stock Exchange Market. The findings from this research can provide valuable insights for institutional investors in their decision-making processes. Integrating self-control and over-confidence in investment decision-making aligns with SDG Goal 8: Decent Work and Economic Growth, by promoting responsible and sustainable investment practices.

Ascertaining factors inducing engagement and stay intention among Gen Z: a qualitative study in the Indian context

Purpose This study aims to identify specific factors that facilitate engagement and stay intention among Generation Z employees in the Indian banking, financial services and insurance (BFSI) context. Furthermore, using the frequency distribution of the identified factors, this study has ranked them in order of their association with stay intention. Design/methodology/approach Data were collected from 22 Gen Z employees working in the Indian private BFSI sector using unstructured interviews. Inductive content analysis was applied to identify the factors improving engagement and stay intention. Moreover, quantitative content analysis was applied to calculate the frequency distribution of the identified factors. Findings The study identified six prominent factors, namely, transformational leadership, employee investment practices, egalitarian practices, work-life balance, job crafting and sustainability, which significantly enhance employee engagement and stay intention among Gen Z employees. Moreover, based on the results of quantitative content analysis, it was found that transformational leadership exhibited the highest frequency in association with employee engagement and stay intention. Following this were employee involvement, egalitarian practices, work-life balance, job crafting and sustainability. Research limitations/implications In the coming days, Generation Z will contribute to almost one-third of India’s workforce, of which the BFSI sector will be the major employer. However, the issue with this generation is their retention. Hence, the study identifies factors ensuring engagement and stay intention. Originality/value Owing to the paucity of research on stay intention as a variable of interest, this study tries to capture the perceptions of Gen Z towards factors inducing their engagement and stay intention. This study assesses intention to stay (ITS) as compared to intention to leave (ITL) as it is a proactive indicator of turnover. Lastly, this study uses a qualitative approach to identify factors influencing stay intention and engagement based on interactions with employees, which, to the best of the authors’ knowledge, no prior study has attempted.

Investor value orientation and environmental and social implications: a case of New Zealand agribusinesses

PurposeThis study aims to examine the value orientations of New Zealand agribusiness investors and how these orientations influence their reactions to the environmental and social implications of agribusinesses.Design/methodology/approachIn the context of the New Zealand agricultural sector, the views of investors as published in print and broadcast media between 2018 and 2022 are gathered. The study uses qualitative content analysis to analyse the data. The study is based on the value-belief-norm theory.FindingsThe study reveals that New Zealand agribusiness investors express concern about the environmental (biospheric) and social (altruistic) impacts of the agribusiness sector, prompting calls for greater transparency, climate adaptation and ethical investment options. Additionally, they actively support local businesses to benefit their communities and preserve cultural heritage. Despite these biospheric and altruistic tendencies, investors also prioritise financial and non-financial interests (egoistic). This highlights a nuanced perspective guiding their investment choices – a balance between self-interest and contributing to the greater good. This signals a shift towards socially and environmentally responsible investment practices driven by multifaceted values.Research limitations/implicationsThe findings of this study highlight the role of non-pecuniary motives, like values, in determining the relevance of environmental and social information.Practical implicationsThe study’s findings offer insight to agribusinesses on how investors’ value orientations shape their investment decisions. This understanding can guide businesses in framing a reporting strategy that enhances the likelihood of investors perceiving reporting as relevant and persuasive, thereby attracting more investments. In turn, this tailored reporting approach assists investors in making well-informed decisions in assessing the environmental and societal risks of agribusinesses.Originality/valueThe study offers a framework explaining how agribusinesses can increase the likelihood of investors finding firms reporting relevant and persuasive, leading to increased investments in environmentally and socially sustainable practices.

Dynamic assessment of the abatement effects of the low-carbon practices in the prefabricated building supply chain

PurposePrefabricated buildings (PBs) have proven to effectively mitigate carbon emissions in the construction industry. Existing studies have analyzed the environmental performance of PBs considering the shift in construction methods, ignoring the emissions abatement effects of the low-carbon practices adopted by participants in the prefabricated building supply chain (PBSC). Thus, it is challenging to exploit the environmental advantages of PBs. To further reveal the carbon reduction potential of PBs and assist participants in making low-carbon practice strategy decisions, this paper constructs a system dynamics (SD) model to explore the performance of PBSC in low-carbon practices.Design/methodology/approachThis study adopts the SD approach to integrate the complex dynamic relationship between variables and explicitly considers the environmental and economic impacts of PBSC to explore the carbon emission reduction effects of low-carbon practices by enterprises under environmental policies from the supply chain perspective.FindingsResults show that with the advance of prefabrication level, the carbon emissions from production and transportation processes increase, and the total carbon emissions of PBSC show an upward trend. Low-carbon practices of rational transportation route planning and carbon-reduction energy investment can effectively reduce carbon emissions with negative economic impacts on transportation enterprises. The application of sustainable materials in low-carbon practices is both economically and environmentally friendly. In addition, carbon tax does not always promote the implementation of low-carbon practices, and the improvement of enterprises' environmental awareness can further strengthen the effect of low-carbon practices.Originality/valueThis study dynamically assesses the carbon reduction effects of low-carbon practices in PBSC, informing the low-carbon decision-making of participants in building construction projects and guiding the government to formulate environmental policies.

Understanding Human Behavior in Finance: A Qualitative Study on Cognitive Biases and Decision-making in Investment Practices

This qualitative research delves into cognitive biases and decision-making in investment practices to comprehend the intricate dynamics shaping human behavior in financial markets. The study aims to explore the influence of cognitive biases, emotional factors, and socio-cultural influences on investment decisions. Adopting thematic analysis, relevant literature on cognitive biases and decision-making in investment practices is systematically reviewed. The data analysis process involves iterative coding to identify recurring themes and patterns. Findings reveal the pervasive impact of cognitive biases such as overconfidence and confirmation bias on investment behavior, leading to suboptimal decision-making outcomes. Emotional factors like fear of missing out (FOMO) drive speculative behavior among investors, contributing to market inefficiencies. Moreover, socio-cultural factors influence risk perception and decision-making norms, shaping investment strategies across different cultural contexts. The study underscores the importance of recognizing and addressing cognitive biases in investment practices to improve decision outcomes and enhance long-term financial well-being. Behavioral interventions and technological advancements offer promising avenues for mitigating cognitive biases and enhancing decision-making efficiency. The implications for future research include deeper exploration of underlying mechanisms driving biases and cross-cultural comparisons to inform culturally sensitive interventions. This study contributes to advancing knowledge in behavioral finance and informs evidence-based practices in investment management.

ТРАНСФОРМАЦИЯ ИНВЕСТИЦИОННЫХ ПРАКТИК В МИРОВОМ НЕФТЕГАЗОВОМ СЕКТОРЕ: ТЕНДЕНЦИИ И ПЕРСПЕКТИВЫ В УСЛОВИЯХ ГЛОБАЛЬНЫХ ИЗМЕНЕНИЙ

The article examines the transformation of investment practices in the global oil and gas sector in the context of global changes. The analysis of current trends in investing in the oil and gas industry is carried out, highlighting the key factors influencing these practices in a changing global market. The article also discusses the prospects for the development of the industry and possible scenarios for its development in the future. In addition, the main problems and opportunities faced by the oil and gas industry are identified, as well as recommendations for adapting investment strategies to new conditions are proposed.

A Study on Awareness of Cryptocurrency among College Students

Cryptocurrencies have emerged as a novel form of digital asset, sparking interest and debate globally. This study investigates the awareness of cryptocurrency among college students in Ernakulam district, India. It aims to assess the level of knowledge students possess regarding cryptocurrencies, including their understanding of concepts like blockchain technology. The research explores factors influencing student awareness, such as their exposure to financial literacy programs and media coverage. The study employs surveys or interviews (method to be specified) to gather data from a representative sample of college students. By analyzing the findings, the research seeks to identify areas of knowledge gaps and shed light on students' perceptions towards cryptocurrency investment. This exploration can contribute valuable insights for policymakers, educators, and financial institutions to develop targeted initiatives that enhance financial literacy and responsible investment practices among young adults in India's evolving financial landscape.

The Assessment of Investment Habits Among College Students

The purpose of the research project is to look into college students’ financial practises. College Students’ investment preferences, practices, and attitudes towards various investment possibilities will be investigated in this study. With an emphasis on understanding college students’ financial habits in terms of their investment choices, risk tolerance, investment goals, and awareness of various investment possibilities, the research will be carried out through surveys and data analysis. The results of this study will advance knowledge of college students’ investment practises and offer guidance to financial institutions, educators, and regulators as they build plans and initiatives to encourage young investors to make responsible financial decisions.The project will investigate the elements-such as financial literacy, familial history, and investment knowledge-that affect college students’ investment choices. Additionally, the study will look at college students’ levels of knowledge and comprehension of the risks associated with investing as well as how they view the advantages and disadvantages of various investment options. The findings of this study will offer insightful information about college students’ investment practices, which may be utilized to create specialized financial education programs and investment methods to assist nascent investors in making wise financial decisions.

Forecasting ESG Stock Indices Using a Machine Learning Approach

As the demand for investment products tied to environmental, social and governance (ESG) concerns rises, ESG stock indices have been established. These indices aim to aid investors in navigating and assessing the risks associated with firms based on ESG factors and potential investment returns. The objective of the article is to predict ESG stock indices using a machine learning approach. We use daily data of Dow Jones Sustainability Index (DJSI) World, DJSI Asia Pacific and DJSI Emerging Market from 2018 to 2022 as samples. Two-layer ensemble model – combination of support vector machine (SVM), random forest (RF), long short-term memory (LSTM) and gated recurrent unit (GRU) algorithms – is employed to forecast the indices. The results show that the ensemble model accurately forecasts the indices, with the prediction line closely matching the actual values. It gives the implication that investors are able to improve investment decisions, assist in managing investment risk, and optimize their portfolio diversification. Meanwhile, policymakers are able to anticipate economic trends, inflation and interest rates, assisting in the development of successful economic policies. This research article presents a machine learning approach for predicting ESG stock indices. The proposed model combines SVM, RF, LSTM and GRU algorithms to create a powerful two-layer ensemble model that outperforms individual models. The results show that the ensemble model accurately forecasts ESG stock indices, with the prediction line closely matching the actual values. The model offers insights into the behaviour of different algorithms, highlighting their strengths and limitations. The proposed model can guide decision-making processes, support investment strategies, and ultimately contribute to advancing sustainable investment practices.

Do Financial Performance and Sustainability Activities Matter for the Stock Performance? Investigating Non-Primary Consumer Goods in Indonesia

Purpose: This study seeks to investigate the impact of sustainability reporting index, particularly focusing on non-primary consumer goods, on stock returns during the period of 2018 to 2022, with a specific emphasis on the COVID-19 pandemic period. By analyzing the relationship between sustainability reporting and stock returns, the research aims to provide insights into the resilience and stability of companies in the face of market volatility induced by the COVID-19 crisis, particularly in the Indonesian stock market. Methods: The research methodology involves the application of multiple linear regression, incorporating dummy variables to empirically test the influence of sustainability reporting index on company stock returns during the COVID-19 event. Data collection entails gathering sustainability report data from each company within the non-primary consumer goods sector. Statistical analysis techniques are used to assess the impact of sustainability performance on stock return volatility and stability during the specified time period. Results and Discussion: The findings of the study reveal that firms within the non-primary consumer goods sector experienced substantial impacts on their leverage and profitability during the COVID-19 pandemic, significantly influencing stock returns. Notably, companies with strong performance in ESG (Environment, Social, and Governance) aspects demonstrate relatively stable stock prices amidst the epidemic. However, the analysis indicates that social reporting index performance exhibits higher volatility in stock prices compared to other ESG components. Moreover, the study observes a minimal increase in stock return volatility for companies with good ESG performance. Implications of the Research: The research outcomes have important implications for investors, policymakers, and corporate stakeholders, particularly in understanding the role of sustainability reporting in mitigating stock return volatility during times of crisis. The study underscores the significance of integrating ESG considerations into investment decisions and corporate strategies to enhance resilience and stability in the face of market disruptions such as the COVID-19 pandemic. Additionally, the research provides policy recommendations for government intervention through fiscal incentives to promote ESG investment and sustainable corporate practices. Originality/Value: This study contributes to the literature by examining the impact of sustainability reporting index on stock returns within the context of the COVID-19 pandemic, particularly focusing on the non-primary consumer goods sector in Indonesia. By providing empirical evidence of the relationship between ESG performance and stock return volatility during a period of crisis, the research offers valuable insights into the role of sustainability reporting in driving investor confidence and market stability. The findings highlight the importance of sustainable investment practices and provide actionable recommendations for policymakers and corporate decision-makers alike.

FINTECH, TAXATION, AND REGULATORY COMPLIANCE: NAVIGATING THE NEW FINANCIAL LANDSCAPE

The emergence of financial technology (Fintech) has revolutionized the global financial landscape, offering innovative solutions that challenge traditional banking systems and investment practices. This review explores the intersection of Fintech, taxation, and regulatory compliance, highlighting the complexities and opportunities within this dynamic ecosystem. Fintech encompasses a wide range of technologies, including blockchain, artificial intelligence, and mobile payment systems, which have streamlined financial services and expanded access to capital markets. However, this rapid evolution poses significant challenges for taxation and regulatory frameworks. Traditional tax laws struggle to keep pace with the speed and complexity of digital transactions, leading to uncertainties in tax treatment and enforcement. Navigating the tax implications of Fintech requires a nuanced understanding of digital assets, decentralized finance (DeFi) platforms, and cross-border transactions. Tax authorities worldwide are grappling with these challenges, seeking to balance innovation and compliance while ensuring a fair and transparent tax regime. The review examines various approaches adopted by governments and regulatory bodies to address Fintech taxation, including legislative reforms, international cooperation, and the use of advanced data analytics. Furthermore, regulatory compliance remains a critical concern for Fintech firms, as they must navigate a labyrinth of rules and standards across jurisdictions. Compliance requirements vary widely, ranging from anti-money laundering (AML) regulations to data protection laws, presenting operational and legal challenges for market participants. The review discusses strategies for achieving regulatory compliance in the Fintech sector, emphasizing the importance of proactive risk management, regulatory engagement, and technological solutions such as RegTech. Despite these challenges, the convergence of Fintech, taxation, and regulatory compliance offers immense opportunities for innovation and growth. By embracing digital transformation and adopting agile regulatory frameworks, governments and businesses can unlock the full potential of Fintech while safeguarding financial stability and integrity. This review provides insights into the evolving landscape of Fintech taxation and regulatory compliance, highlighting key trends, challenges, and best practices for navigating this new frontier in finance.
 Keywords: Fintech, Taxation, Financial, Technology, Review.