Investment Ratio Research Articles

Industry-wise Dispersion of Investment Returns in Indian CPSEs: Experiential Confirmation on Aggregation

Purpose: The CPSEs play a vital role in the economic structure of the country by supplying necessary products and services. To sustain in the long run, it is essential to earn a reasonable amount of profit on a consistent basis. Thus, the higher the dispersion in investment returns, the higher is the risk and vice-versa. In this perspective, an industry-wise dispersion of investment returns in Indian CPSEs are carried out from 2010-11 to 2019-20. Design/Methodology/Approach: To fulfill the research objectives of the study, secondary data is used. Dispersion is calculated for the investment ratios by coefficient of variation. Furthermore, paired ‘t’ test is applied to locate any significant transform in the average dispersion of investment returns of all the selected industries taken together. One-way ANOVA is also applied to measure variation in investment returns among the selected industries. Findings/Result: The study results reveal that the rate of fluctuation in investment returns has varied extensively among the industries. Moreover, most of the selected industries in the 1st sub-period have shown better consistency in investment returns as compared to the 2nd sub-period. Further, significant differences are observed in investment returns among the selected industries, which implies that investment returns in each selected industry has a significant bearing on the aggregate investment returns of the CPSEs. Originality/Value: To recognize the rate of dispersal in investment returns generated by the CPSEs. Paper Type: Empirical Research.

A Relative Study of Average Investment Returns between Manufacturing Sector and Service Sector of CPSEs in India

Purpose: In India, CPSEs were established to achieve socio-economic objectives of the nation. Both manufacturing sector and service sector occupies an important position in the development process of an economy. In this context, a comparative study is performed between manufacturing sector and service sector of Indian CPSEs from 2010-11 to 2019-20. Design/Methodology/Approach: Based on resultant data, investment ratios are employed to compute investment returns of the CPSEs. Moreover Fishers ‘t’ test judge the differences (if any) in investment returns between manufacturing sector and service sector. In addition, linear regression equations are employed to inspect the impact of sector-wise investment returns on the aggregate investment returns. Findings/Result: Based on average investment returns, no noteworthy difference is observed between manufacturing sector and service sector in terms of ROCE and ROE. However, there exists important distinction among the same for ROA which implies that manufacturing sector has better utilization of their total assets in generating returns than that of the service sector. ROCE of the manufacturing sector contributes positively to the overall profitability of the CPSEs, while ROCE of the service sector contributes negatively to the overall profitability of the CPSEs. It further observed that the rate of negative influence by the service sector is more than that of positive influence by the manufacturing sector, thereby reducing the overall profitability of the CPSEs at aggregate level. Originality/Value: To identify the important sector in the liberal economic environment, the present study compares average investment returns between manufacturing sector and service sector of the CPSEs in India through ROA, ROCE, and ROE. Paper Type: Empirical Research.

The Impact of Total Equity, Risk-Based Capital Ratio, Adequacy Investment Ratio, Direct Premium Receivable Ratio, Liquidity Ratio, and Loss Ratio toward The Early Warning System of General Insurance

The Impact of Total Equity, Risk-Based Capital Ratio, Adequacy Investment Ratio, Direct Premium Receivable Ratio, Liquidity Ratio, and Loss Ratio toward The Early Warning System of General Insurance

Assessing the sustainability of ecosystems over fourteen years of cultivation in Longnan City of China based on emergy analysis method

Currently, the contradiction between the limited resources of China's cultivated ecosystems and population growth is becoming increasingly evident, and the negative impacts on the environment and human activities need to be curbed. Therefore, it is crucial to quantify the sustainability of cultivated ecosystems and determine these driving factors that affect their development. This study used the emergy method to quantify the input/output flow and sustainable development of the cultivated land ecosystem in Longnan City, combined with the logarithmic mean divisia index decomposition analysis (LMDI) method to evaluate the driving factors of sustainable development in the region. The results demonstrate that from 2004 to 2017, the total emergy input and output of Longnan City showed an upward trend, and non-renewable resources (N) were always in a dominant state in the total emergy (T) input, and their proportion rose from 59.69% to 66.92%. The emergy sustainability index (ESI) is less than 1, and the environmental pressure of the system is relatively higher. Comprehensive emergy production ratio (EPR), emergy investment ratio (EIR), the renewable fraction (R%), emergy yield ratio (EYR) and environmental load ratio (ELR), showed that the agricultural ecological economy in Longnan still has great development potential, and clean energy should be developed as far as possible to replace fossil fuels in future planning. LMDI results showed that the intensity factor ΔY′A is the main driving factor for the positive development of ESI. The government's ecological protection requirements can reduce waste emissions through reasonable farming system and advocating the use of organic fertilizer, so as to achieve the purpose of improving crop yield. Vigorous development of green ecological agricultural production patterns can improve the sustainability of arable ecosystems. This study can provide a theoretical basis for the sustainable development of cultivated ecosystems and the formulation of related agricultural production measures.

Impact Assessment of Investment Returns in Indian CPSEs: A Study at Aggregate Level in the Disinvestment Environment

Purpose: The CPSEs were established by the administration of Indian Govt. to serve macro-economic objectives of our country. They are viewed as a device for growth of the economy with fairness and social justice. Due to unsatisfactory performance of the CPSEs towards fulfillment of the socio-economic objectives of our country, the Govt. of India started the process of disinvestment from the financial year 1991-92 to ensure optimum utilization of national wealth and to augment return on investment of the CPSEs in India. With this background, the current paper is an effort to measure the change (i.e., impact) in investment returns of the CPSEs in the disinvestment environment during the period 2010-11 to 2019-20. Design/Methodology/Approach: Traditional investment ratios are employed for measurement of investment returns of the CPSEs on the basis of secondary data. To capture the impact in investment returns, paired t test is used in the study. Furthermore, the rate of growth related to investment returns are calculated by log linear regression method. Significant difference (if any) in the rate of growth related to different components of aggregate investment returns is measured by Chow statistic. Findings/Result: Aggregate financial investments have significantly increased. Though the growth rates of selected performance indicators are observed to be significantly positive in majority of the cases, no significant differences in growth rates of the same are found between the two sub-periods (except shareholders’ equity). Though significant increase in financial investment is observed during the years under study, impact of investment returns in the disinvestment environment is observed to be negative i.e., it indicates that investment returns (particularly ROCE and ROE) of the CPSEs at aggregate level have decreased significantly during the study period. Originality/Value: In the uninterrupted disinvestment environment, the present study has been conducted to examine the impact of investment returns through ROA, ROCE, and ROE. Paper Type: Empirical Research.

Performance Management of University Financial Budget Execution Relying on Comprehensive Budget Management Strengthening Model

In order to improve the effect of college financial budgeting, this paper combines the comprehensive budget management strengthening model to construct the school financial budget execution performance management model and selects data envelopment analysis (DEA) and stochastic frontier analysis (SFA) as empirical analysis methods. Moreover, this paper puts forward the idea of analyzing the proportion of investment funds and obtains the optimal distribution proportion through mathematical methods. Under the circumstance that the total funding input remains unchanged, this paper adjusts the investment ratio to improve the efficiency of the colleges and centers in the school and combines actual needs to construct an intelligent model of financial budget execution performance management for colleges and universities that relies on the comprehensive budget management enhancement model. In addition, the model effect verification is carried out on this basis. According to the research, the energy system proposed in this paper plays an important role in the performance management evaluation of the financial budget implementation of colleges and universities and can effectively improve the effect of college financial budgets.

Advertising campaign performance evaluation indicators: essential analysis

The current state of the research of the theoretical basis for evaluating the effectiveness of the advertising campaign, presented in the special and scientific literature, is analyzed, the results of which indicate that attention is paid to these issues and problems. At the same time, with regard to the theoretical aspects of evaluating the effectiveness of an advertising campaign taking into account various factors and influencing factors, it is appropriate to note that such issues are described quite concisely in the recommendations of marketing practitioners or are summarized in scientific works, which, in turn, emphasizes the importance of creating such scientific basis for application in the practical activity of economic entities of various forms of ownership under modern conditions of functioning of the Ukrainian market. The indicators proposed for use by practitioners to evaluate the effectiveness of the advertising campaign were analyzed, and they were divided into two groups: marketing and financial. Marketing indicators for evaluating the effectiveness of an advertising campaign include: CTR (clickability rate); CR (conversion rate); CPC (cost per click); CPM (cost per thousand impressions); CPA (cost per action); CPI (cost per mobile app install). Financial indicators for evaluating the effectiveness of an advertising campaign include: ROAS (return on investment in advertising); ROI (return on investment ratio); ROMI (marketing return on investment ratio); CAC (cost of attracting a new customer); LTV (profit during the period of cooperation with the client). The essence and functional purpose of marketing and financial indicators for evaluating the effectiveness of the advertising campaign are analyzed.

Optimal Investment‐Consumption Strategy of Household Based on CEV Model

To maintain and increase household wealth, this study studies the optimal allocation ratio of household investment and consumption. When considering venture capital, it is assumed that the theoretical price of risky asset obeys the CEV model. Our goal was to maximize the expectation of household cumulative consumption and the discounted utility of terminal wealth and to solve the optimal consumption and investment ratio using the dynamic programming principle and HJB equation. Using logarithmic utility and isoelastic power utility function with residual utility, we get the analytical solution of the household investment‐consumption ratio by means of guessing and variable transformation. Finally, the influence of general parameters on the optimal ratio in the market is analyzed by numerical simulation and diagram, which is consistent with the description of actual situation. This study not only enriches portfolio theory but also provides investors with investment strategies.

Optimal Sizing of Onboard Hybrid Energy Storage Devices Considering the Long-Term Train Operation

With the fast development of energy storage technology, more applications of Energy Storage Devices (ESDs) have been found in rail transportation in recent years. This paper aims to address the optimal sizing problem of on-board Hybrid Energy Storage Devices (HESDs) which are installed to assist train traction and recover the regenerative braking energy. On-board HESDs combining Li-ion battery and supercapacitor can further enhance the capacity and instant power rating. In this paper, a mixed integer linear programming (MILP) model is proposed to minimize the economic cost in terms of energy consumption and installation, and the degradation cost of on-board HESDs considering the long-term train operation constrained by the initial investment of on-board HESDs. Train operation is found to be highly related to characteristics of on-board HESDs including the maximum power, capacity, and state of health (SOH). By changing the investment ratio between Li-ion battery and supercapacitor, the energy-saving rate and economic cost for various investment ratios have been obtained. Compared with the results of train optimal control with Li-ion battery only, supercapacitor only and no on-board HESDs, the results indicate an energy-saving rate up to 25.59%, from the perspective of the long-term train operation. When the allowable capital cost is relaxed from 20 k$ to 60 k$, the cost per kilometer is reduced from 0.55 USD/km to 0.53 USD/km, showing higher capital cost is closely linked to higher cost reduction in the long-term train operation.

Does stock market performance have a long effect on economic growth: Evidence from MENA

Financial market has a close relationship with economic growth because increasing economic growth, representing the real gross domestic product (GDP), will enhance the efficiency and develop the stock market. On the other hand, the good performance of the stock market will affect economic growth positively. This paper aims to investigate the impact of stock market performance on the economic growth of a group of MENA countries during the time period 2000–2019. This study uses unbalanced panel data, unit root test, co-integration test, and autoregressive distributed lag (ARDL) model for data analysis (Kao, 1999; Pesaran, Shin, & Smith, 2001). The findings report that the stock market index, banking sector development, the ratio of foreign direct investment (FDI) to the GDP, and the consumer price index, as a proxy of inflation, have a significant positive long-run effect on the economic growth, while the ratio of broad money supply (M2) to the GDP has a significant negative long-run effect on the economic growth. The policymakers and government can based on the results of the study in developing and adopting policies to improve and enhance the efficiency of the stock market and attracting new investors inside and outside the country, which results in increasing the economic growth.

ОЦІНЮВАННЯ ДИНАМІКИ ПОКАЗНИКІВ ФІНАНСОВОЇ СТІЙКОСТІ ПІДПРИЄМСТВ ВАНТАЖНОГО АВТОМОБІЛЬНОГО ТРАНСПОРТУ В УКРАЇНІ

The article is devoted to the analysis and assessment of the dynamics of indicators of the financial stability of road transport enterprises in Ukraine for the period 2013-2020. The research analyzed the market of freight transport in Ukraine and identified the main problems of the operation of road transport enterprises. The trends of changes in financial results of activity, the level of profitability and unprofitability were evaluated, the dynamics of capital investments of freight road transport enterprises were studied. Changes in non- current and current assets, equity and loan capital, amounts of receivables and payables were analyzed. The dynamics of individual sustainability indicators of enterprises were studied, the ratio of capital investments and depreciation deductions, current and long-term liabilities, the level of financial autonomy and general solvency was determined. According to the results of the study, it was established that depreciation deductions remain a limited resource for truck transport enterprises, and the share of capital investments is rather insignificant. The transport industry does not attract sufficient foreign direct investment to stimulate development and increase competitiveness in the market. The researched sector is quite closed to foreign capital and owners, and is developing mainly at the expense of domestic resources. As a result of the study, it was established that the activity of motor vehicle enterprises engaged in freight transportation is characterized by the dominance of the material intensity of the cost price, insufficient working capital, large amounts of receivables, a significant share of material costs in the structure of operating rooms, which forms a dependence on working capital and the settlement system at enterprises.

Does the Equalization of Public Services Effect Regional Disparities in the Ratio of Investment to Consumption? Evidence From Provincial Level in China

Insufficient equalization of public services and coexistence of high investment and low consumption are two major dilemmas facing the high-quality development of China’s economy. This study first evaluated the level of equalization of public services by provincial panel data from 2013 to 2017. Then econometric models were constructed to investigate the effect of the equalization of public services on the regional disparities in the ratio of investment to consumption (IC). Results show that the overall level of equalization of public services in China is low and there are large regional differences. Average values of the relative level of equalization of public services show an increasing trend in order of the eastern, central, northeastern, and western regions. The ratio of IC in China also exhibits large regional differences. Public education significantly negatively affects the IC in China, and the effects exist in the eastern and central regions. The seven evaluation criteria of equalization of public services in different regions have different effects on the ratio of investment to consumption. Therefore, according to the characteristics of the relationship between the equalization of public services and the ratio of investment to consumption at the whole or regional scales, a reasonable pathway should be selected to improve the current situation of high investment and low consumption and promote high-quality and sustainable development of the Chinese economy under the new normal.

Dividend Versus Investment – Cash Flow Allocation

The aim of the article is to find out about the pattern in which operating cash flows are allocated between dividends and investment. We analyzed 419 companies from the Warsaw Stock Exchange and covered the period of 2007–2020 with 4,760 firm-year observations. We prepared regression models for the dividend and investment ratio depending on the company specificity. We found a positive relation between dividends and investment. Additionally, we found that with the increase of operating cash flow, both dividends and investment increase. We think that the best explanation of our findings lies in the free cash flow hypothesis and signaling theory of dividends. Dividends and investment might be a tool to mitigate managerial decisions and at the same time a tool to send a positive signal to the investor about the present and future good financial situation. The results contribute to the literature on firms’ investment- and dividend-cash flow sensitivity and the order of decisions: in a residual dividend policy, investment decisions are made first and the remaining profit is paid out as dividends while another theoretical approach implies that firms decide first on their dividend level, and then make investment decisions as they are reluctant to cut dividends.

Analysis of the Effect of Sharia Compliance and Islamic Corporate Governance on Fraud in Islamic Banks in Indonesia 2017-2019

This study aims to analyze the factors that influence the occurrence of fraud in Islamic banks in Indonesia. Measurement of fraud in Islamic banks is based on the number of internal frauds that occur in the financial year. The population in this study is Islamic banks in Indonesia for the period 2017-2019. The sample is selected using purposive sampling method and the number of samples obtained is 24 samples. The data used in this study are secondary data in the form of financial reports and corporate governance reports. Data analysis is performed using classical assumption tests and regression analysis. The results of this study indicate that Islamic corporate governance has a significant effect on internal fraud in Islamic banks in Indonesia. Meanwhile, partially the profit sharing ratio and Islamic investment ratio do not have a significant effect on internal fraud in Islamic banks in Indonesia. Islamic banking must comply with accounting standards and Auditing Organizations for Islamic Financial Institutions (AAOIFI) to minimize fraud in operations.

Metoda za odabir odgovarajućih perioda ulaganja za ostvarivanje profita od arbitraže i objašnjenje pojma "stock returns"

The current paper presents theoretical and experimental evidence to justify the need for paying attention to the investment horizon. Therefore, a criterion called the 'Safest Investment Horizon' (SIH) is utilized to select the appropriate investment horizon. To compute this quantity, a ratio called the 'Safest Investment Ratio' (SIR) is calculated, and the relationship between these criteria and arbitrage opportunities, along with methods for making an arbitrage profit through selecting an appropriate time horizon are discussed. Afterward, by applying this method for real-life data, the presence of arbitrage opportunities at different time horizons is confirmed. Furthermore, the effects of the time horizon on optimal portfolio composition are described. Finally, it is shown that these criteria outperform some of the conventional variables in CAPM, the 3-factor, and the 5-factor models for explaining stock returns and using SIH or SIR as a new variable increases the explanatory power of these models.

The Effect of Fiscal Policy and Selected Macroeconomic Indicators on Human Development Index: The Case for OECD Countries

The discrepancies in the development levels among countries stem from plentiful factors such as unfair distribution of income, inqualities in the access of education, health and technology as well as exposure to violence and gender inequalities. All of these factors distrupt social cohesion and interdependence and raise concerns over the efficiency of institutions and their policies which have a key role in achieving sustainable development. In conjuction with this aim, in this study it is endeavored to analyse the effect of fiscal policy tools and selected macroeconomic indicators like inflation, fixed capital investment ratio and economic growth on human development index encompassing health, education and standart of living dimensions in 34 OECD countries for the period 2000-2018. The analyses are realized with respect to development level of countires in OECD. Since cross sectional dependence, autocorrelation ad hetereskodacity problem are encountered during the analysis, Driscoll-Kraay panel data analysis is realized which is recommended in the literature. According to the outputs of the analyses, government expenditure as a proxy for expansionary fiscal policy affects the human development index positively for all groups of countries. On the other hand, public dept and budget balance have a posive effect, consumer price index has a negative effect on indices for solely developed countries and developed countires-G7. It is also deducted that economic growth deemed as a backbone for sustainable development has no statisticaly significant impact on human development index for all three group of countries.

The effect of liquidity risk on the performance of banks: Evidence from Jordan

This study aimed to determine the impact of liquidity risk on financial performance of Jordanian banks, where liquidity risk was measured by (Liquidity ratio, net working capital, cash and investment ratio to total deposits), and financial performance was also measured through the index (return on assets) and the modifying variable (bank size) measured through the natural logarithm of total assets was also added. To achieve the objectives of the study, the analytical quantitative approach was adopted. The study community consisted of all 13 commercial banks listed on the Amman Stock Exchange. All banks in the study community were selected as a study sample using the comprehensive survey method, and the statistical analysis program (SPSS) was used to test the study hypotheses. Based on the results of the statistical analysis, it was found that there was an impact of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange, and there was an impact for each of (current liquidity ratio, net working capital, cash and investment ratio to total deposits) on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. It was also found that the size of the bank contributes to modifying the effect of liquidity risk on financial performance measured by return on assets in Jordanian commercial banks listed on Amman Stock Exchange. The study concluded a set of recommendations, the most important of which are: commercial bank administrations should increase interest in exploiting their liquidity within acceptable risk limits to reach optimal ratios for financial performance by balancing the returns to be achieved with the potential risks of such expenses in a way that ensures the positive impact of liquidity risk on the financial performance of those banks.

The Performance Evaluation of IEE in Colleges and Universities Based on AHP Model

At present, the country strongly encourages all walks of life to innovate, especially in the field of education. China's major colleges and universities have increased the encouragement of innovation and entrepreneurship education (IEE) projects in keeping with the pace of the times, so it is particularly important to reasonably evaluate the actual benefits of the project. On the one hand, it can greatly improve the recognition of all walks of life for emerging education projects. On the other hand, it can realize the timely and accurate application of the financial funds of the project. Based on this background, through the analysis and summary of existing theories and comprehensive consideration at all levels, this paper studies the new education projects from the aspects of teaching environment, conditions, quality, satisfaction, and financial capital and then constructs a set of performance evaluation index system for IEE in major colleges and universities. At the same time, this paper analyzes the actual education environment in China and evaluates the IEE in all kinds of colleges and universities by using analytic hierarchy process (AHP). Judging from the assessment results, the current teaching conditions and the quality of teachers in Chinese universities are very good. But the conclusion from the perspective of students is opposite, and the investment ratio of their financial capital is not optimistic. Therefore, this paper puts forward the optimization suggestions.

The effect of farm size on the sustainability of wheat production using emergy approach

The effect of three farm areas, including small, medium, and large, on the sustainability of wheat production was studied using the emergy technique in 2018–19 in Jovein, Iran. By increasing the size of the farm, the share of renewable natural resources decreased and the share of purchased resources increased. The total emergy supporting small, medium, and large farms, was 1.39 × 1016, 1.95 × 1016, and 2.16 × 1016 sej ha−1 yr−1, respectively. In small farms, the share of renewable natural inputs, non-renewable natural inputs, and purchased inputs of total input emergy were 55.6 × 1013, 63.01 × 1014, and 70.30 × 1014 sej ha−1 yr−1, respectively. However, the share of renewable natural inputs, non-renewable natural inputs, and purchased inputs on large farms were 50.9 × 1013, 11.38 × 1016, and 98.03 × 1015 sej ha−1 yr−1, respectively. As the farm size increased from small to large, the emergy yield ratio and emergy investment ratio increased by 11.11% and 101%, respectively, while the unit emergy value, renewable emergy ratio, emergy investment ratio, and environmental sustainability index decreased by 27.31, 50.61, 45.45, and 18.65%, respectively. According to the results, although cultivation in large farms uses less renewable environmental resources and more purchased resources, a higher yield is produced per unit area.

ANALISIS TINGKAT KESEHATAN KEUANGAN PADA PERUSAHAAN ASURANSI GO PUBLIC DI BURSA EFEK INDONESIA

The purpose of this study is to identify and understand the effect of Risk Based Capital(RBC), Investment Ratio, Claim Ratio, and Premium Growth Ratio on increasing premiumincome in insurance companies listed on the Indonesia Stock Exchange (IDX) in 2016-2020. This study uses quantitative research that refers to financial data and other datafrom IDX database and the company's official website to find out the company's financialstatements for 2016-2020. Data collection techniques using the method of documentationand literature study. The focus of this research is the level of financial soundness ofinsurance companies that go public on the IDX in 2016-2020. The results of this studyindicate that RBC and Premium Growth Ratio have a positive effect on increasingpremium income in insurance companies listed on the IDX in 2016-2020. While theInvestment Ratio (ROI) and claims ratio do not have a positive effect on increasingpremium income in insurance companies listed on the IDX in 2016-2020. Meanwhile,RBC, Investment Ratio (ROI), Claim Ratio, and Premium Growth have a simultaneouspositive effect on the increase in Premium Income in insurance companies listed on theIndonesia Stock Exchange (IDX) in 2016-2020.