Investment Ratio Research Articles

The Role of Manufacturing and Service Exports in Ethiopia’s Economic Growth Performance

The purpose of this study is to investigate the role of manufacturing and service exports in Ethiopia’s economic growth performance from 1995 until 2018. To accomplish the objective, the study developed two versions of an augmented Solow’s (1956) model. Both versions include manufacturing and service exports as potential determinants of total factor productivity (TFF). However, the first version proxies physical capital accumulation with the investment rate, and the second version uses capital per worker. The autoregressive distributed lag (ARDL) bounds testing results of the first version suggest that there is no long-run relationship among the variables. Moreover, the investment ratio and labour force growth rate variables are statistically insignificant, which contradicts the theoretical predictions of the Solow model. On the other hand, the second version of the Solow model with capital per worker shows evidence of a long-run cointegrating relationship among the variables which support the manufacturing export-led growth hypothesis in Ethiopia, in which manufacturing exports are statistically significant, while service exports are statistically insignificant in the long run. Conversely, the results of the first version show that capital per worker has a positive and significant effect on Ethiopia’s economic growth performance. Overall, the main findings suggest that the Ethiopian government should strengthen current policies that emphasize manufacturing exports and maintain high investment rates in physical capital.

TECHNOLOGY AND ITS IMPACT ON THE PROFITABILITY WITH REFERENCE TO INDIAN BANKS

In the present changing scenario, the banking industry has heavily invested in information and communication technology. With the increase in investment in innovative technologies, the challenge related to misbalance in a bank’s business operations and its reputation has been raised Therefore, it’s requisite for banks to outlay technology in a way to assure productivity of banks. The present study explores the impact of technology on public and private sector banks in India. Using the variables (Net Interest Margin; Return on Assets; Cost of Deposit; Return on Investment and Credit Deposits Ratio) of six public and private sector banks for the last ten years between 2012-2021, the study finds that investment in technology has resulted in enhancement of profitability of public sector banks. The study is carried out using SPSS Software. The research findings provide insight to the bank management to pay more attention to the employment of innovative technologies to ensure greater efficiency and improved performance.

Net Assets Value and its Determinants of Mutual Funds in Nepal: An Analysis of Monthly Returns

The research work has been conducted to examine the impact of age, total expense, total investment, and turnover ratio on financial performance of mutual funds in Nepal. Out of 29 mutual funds reported by Nepal Stock Exchange Ltd (as on 15 January, 2022), a total of 10 mutual funds following judgmental sampling technique have been selected as sample of the study. Samples are selected with the objective of getting 32 months data (from 12-Feb 2019 to 16-Sep 2021) resulted 320 observations. The required balanced panel data have been extracted from the monthly reports published on respective websites. Based on the regression result, it has been found that the age, total investment and turnover ratio have significant positive impact on net asset value but the magnitude of turnover ratio is negligible. However, impact of total expense on net asset value is positive but not found significant. The result can give mutual fund managers an insight on improving funds performance. On the other hand, the result can be helpful to investors in deciding their investment on mutual funds. Analysis with adding more variables will be beneficial in increasing the generalizability of the findings.

Facilitating developments of solar photovoltaic power and offshore wind power to achieve carbon neutralization: an evolutionary game theoretic study.

This paper aims at facilitating the developments of solar photovoltaic (PV) power and wind power generations to reduce carbon emission and achieve the carbon neutralization. The main novelty of this study is developing a new partnership comprised by the green energy investment company (GEIC), solar power plant (SPP), and offshore wind power plant (OWPP) and analyzing the impacts of typical factors on the coordinated development of SPP and OWPP based on the evolutionary game theoretical method. By using a tripartite evolutionary game model, the stability analysis of equilibrium strategy is carried out. The simulation results show that stable states could be realized under different partnerships. Impact investigation results of typical influential factors on all participants indicate that longer annual operation time, higher price of electricity sold to the power grid, and larger government subsidy will lead to more incomes for the SPP and OWPP, which will strengthen the participation willingness of all participants. For this study, the on-grid price of the SPP should be greater than 0.054 $/kWh. A reasonable investment ratio of the SPP and OWPP is the guarantee for the smooth development of the PPP project, which is suggested to be 4:6 in this study. The results of the current study have certain reference value for the policy and strategy formulations for facilitating the developments of solar PV power and offshore wind power generations.

Analisis Perbandingan Kinerja Keuangan Perbankan Syariah Di Asean Melalui Pendekatan Islamicity Performance Index

This study aims to analyze and compare the condition of Islamic banking financial performance in the ASEAN region using the method of the Islamicity Performance Index. The analytical method used is the analysis of financial ratios and different test analyses using the non-parametric method Kruskal Wallis where first performed the analysis of normality test using Kolmogorov Smirnov analysis and homogeneity using Levene Statistic test. Based on the calculation of different test statistics, the five countries in the ASEAN region have financial performance through different IPI methods significantly, where the seven ratios of PSR, ZPR, EDRQD, EDRBG, EDRLB, II vs NII, and IInc vs NIInc have Sig 2-tailed <0.05. from the calculation of the ratio, the Philippines and Thailand have the value of the ratio of halal income and investment to the revenue, and the haraam investment is the least meaning that the two countries are still doing business through the forbidden, while the PSR ratio, only Indonesia is focused in conducting business through the principle of risk through musyarakah and mudharabah contracts with PSR value> 30%. On this result, the Sharia councils of each country should be more intensive in controlling the compliance of shari'a from the management of Islamic banking business.

INVESTMENT DECISIONS, FUNDING DECISIONS AND ACTIVITY RATIOS ON FIRM VALUE IN INDONESIA

This study aims to find out how decisions about investment, funding, and activity ratio affect the value of manufacturing companies on the Indonesia Stock Exchange. The population of this study consisted of 179 manufacturing businesses that are listed on the Indonesia Stock Exchange. The study spans the years 2015 to 2019.Thirty manufacturing companies were used as samples, and the purposive sampling method was used for the sampling. The method of analysis employed is multiple linear regression. The results show that firm value is affected simultaneously by funding decisions, investment decisions, and activity ratio decisions. Firm value is unaffected by funding decisions, activity ratios are unaffected by funding decisions, and investment decisions are somewhat affected by funding decisions.

Bi-Objective Optimization and Emergy Analysis of Multi-Distributed Energy System Considering Shared Energy Storage

Shared energy storage (SES) provides a solution for breaking the poor techno-economic performance of independent energy storage used in renewable energy networks. This paper proposes a multi-distributed energy system (MDES) driven by several heterogeneous energy sources considering SES, where bi-objective optimization and emergy analysis methods are used for the system’s optimal capacity planning and operating scheduling considering economic, environmental, and sustainable performances, and Nash bargaining is adopted for the reasonable distribution of benefits of MDES. Then, an energy system composed of four different DESs (distributed energy system) considering one Shared Energy Storage Operator (SESO) is taken as an example for further study, namely one to four shared energy storage multi-energy systems, where MDES with and without SESO are compared. The results reveal that the operation cost of MDES considering SESO and Nash bargaining is reduced by 3.03%, while all the distributed energy systems have lower operating costs, and SESO has an additional income of $142.4/day. Correspondingly, the emergy yield ratio, emergy sustainability index, and emergy investment ratio of the corresponding system increase by 5.15%, 3.83%, and 9.94%, respectively, wherein the environmental load rate increases by 1.67% because of the greater consumption reduction of renewable resources than that of non-renewable resources under the premise of reduced emergy consumption.

Determinan Keputusan Stock Split:

This research examine whether Price to Book Value, Return on Investment and Current Ratio affect a company's decision to do Stock Split. This study uses a type of quantitative research, with purposive sampling technique. Thus, this study took a sample of 31 companies that carried out stock split corporate actions listed on the Indonesia Stock Exchange (IDX) for the 2018-2021 period. Data collection is carried out by secondary data, namely in the form of financial reports on companies that carry out stock split activities. The amount of data used was 124 samples, but there were 61 outlier data, so the total sample was 63. The data were analyzed using SPSS 26.0 and using software assistance software programs Microsoft Excel 2016. From the research conducted, it is found that Price to Book Value, Return on Investment and Current Ratio did not significantly influence the company's decision to do Stock Split as evidenced by the significant value of each variable greater than 0,05.
 Keywords: Price to Book Value, Return on Investment, Current Ratio, and Stock Split

An investment risk model with bilateral jumps

<abstract><p>In this paper, an investment risk model with bilateral jumps was considered, assuming the insurer invested the surplus in two types of assets, namely, risk-free and risky ones, in a certain proportion. First, the integral-differential equations of the Gerber-Shiu function related to ruin and penalty were obtained, then, the sinc approximation method was used to obtain a numerical solution. Furthermore, we presented a special example for finding the explicit solutions (ES). By calculating the relative errors of the approximate solution (SA) and ES, we verified the superiority of the sinc method. Finally, several examples under different kinds of jumps were provided to show the impact of parameters such as investment ratio, discount factor or intensity of Poisson process on the ruin probability.</p></abstract>

Profitability determinants of life insurance companies in the Republic of Serbia

Background: Based on the results of research on the influence of certain internal and external factors on the profitability of insurance companies in the countries in Europe, America, Asia and Africa in the 21 st century which were published in a significant number of scientific and professional papers, the present study analyses insurance companies in Serbia in the period from 2015 to 2021. We chose this analysis bearing in mind the previous negative experiences and expressed distrust in the financial system, which greatly affected the readiness of policyholders to invest in life insurance products, as well as affecting significantly the development of life insurance in Serbia. Purpose: The aim of the paper is to present the business results of the insurance companies on the Serbian market in the analysed period and to determine which business performance the management of an insurance company should pay attention to in order to ensure positive business results. Study design/methodology/approach: We applied a fixed effects model on the nine selected variables. In the model, return on assets (ROA) is used as a dependent variable, while operating margin, expense ratio, investment ratio, growth rate of written premium of a company, company size, log (financial leverage), log (liquidity ratio), and market share are independent variables. Findings/conclusions: The results of the research indicate that there is a statistically significant and positive impact of operating margin and liquidity ratio on ROA, and statistically significant but negative impact of expense ratio and financial leverage on ROA. Limitations/future research: The limitation of our profitability analysis is that we were unable to analyse the impact of individual life insurance products on profitability. Bearing in mind numerous and significant social and economic changes over the last two years, the directions of our future research will be focused on their impact on the business operation of insurance companies.

The strategy of low-carbon development of Russia and the role of forests in its implementation

The article analyzes the role of increasing greenhouse gas absorption in the Land Use, Land Use Change, Forestry (LULUCF) sector to achieve carbon neutrality in Russia. Recommendations are given for improving the text of the “Strategy for the socioeconomic development of the Russian Federation with low greenhouse gas emissions until 2050” (LCDS). The interest of the business community in investing in climate projects in LULUCF, especially in forest climate projects, is shown. The latest changes in legal regulation are presented, opening up the possibility of increasing the return on investment in forest climate projects, and a detailed analysis of the content of the operational plan for the implementation of the LCDS in the LULUCF sector (LCDS OP) is carried out. A prospective assessment of the balance of greenhouse gases in Russian forests in 2050 is given, assuming a constant volume of logging and the area of burned areas. The ratio of public and private investment in the implementation of activities and climate projects in LULUCF proposed in the LCDS OP was calculated (4: 1), which indicates an unjustified bias in the direction of public financing. The authors justify the need for significant refinement of the LCDS OP and continuation of work to find an optimal scenario for decarbonization of the Russian Federation using the LULUCF potential.

Impact of capital investment and industrial structure optimization from the perspective of "resource curse": Evidence from developing countries

In the background of the worldwide pursuit of sustainable economic development, some developing countries with abundant resources are still facing problems of industrial transformation and upgrading and improving their development models, although they continue to increase capital investment to provide the resources and talent for industrial structure optimization. These problems occur due to the mismatch between natural resources acquired and capital invested. Therefore, this study examines 18 developing countries that are rich in natural resources but face difficulties in industrial structure transformation and investigates the influence of natural resource endowment on the relationship between capital investments and industrial structure optimization based on panel data from 1995 to 2019. The results indicate that physical capital investment in developing countries with abundant natural resources inhibits industrial transformation, while human capital and labor promote it. The presence of the threshold of natural resource abundance makes the effect of different capital investments on the optimization of industrial structure non-linear. Specifically, the increase in natural resource investment enhances the inhibiting effect of physical capital on industrial structure optimization and weakens the promoting effect of human capital. Therefore, this study argues that reasonable control of the ratio of natural resource investment to capital, promotion of physical asset restructuring or business consolidation, and improvement of human capital quality are critical for achieving industrial structural optimization in developing countries.

Empirical investigation of dynamic relations among foreign direct investment, economic growth and poverty prevalence using African data

This study examined dynamic relations among foreign direct investment (FDI), economic growth and poverty headcount ratio using a sample of 24 African Countries. To achieve this goal, historical data of the variables regarding cross section of countries were collected over 14-year period. The stratified random sampling technique was employed in selecting the sample. Following pre-regression diagnostics, we specified Vector-Auto-Regression model for computation of coefficients of the variables in dynamic relations. These were complimented with computation of relative impulse response function and forecast-error-variance decomposition of regression estimates. We found that FDI did not granger-cause economic growth among African economies, just as growth was found not sustainable and inclusive enough as to achieve substantial poverty reduction. More-so, evidence appeared to support earlier isolated findings that FDI has been largely exploitative and attracted to economies with high growth rates and low poverty ratios. The study reinforces earlier isolated findings that it is not necessarily ‘growth’ that results in decline in poverty prevalence but ‘sustained economic growth’. Hence most developing nations that depend on annual fiscal plans for poverty reduction may consistently miss development targets. Again, contrary to widely held view that foreign direct development leads to economic growth, the study established exceptional case for Africa.

Analysis of the Impact of Foreign Trade and Foreign Direct Investment on Kazakhstan’s Economic Growth

Identification of relationships between macroeconomic indicators is essential in economic growth. Because in order to create effective economic solutions in a market economy, it is necessary to be able to evaluate them using mathematical statistics and other applied mathematical methods. As a result of the literature review, various points of view on the relationship between macroeconomic indicators showed the absence of a single general opinion in the literature. The article conducted a study to identify the relationship between macroeconomic indicators and applied the methods of correlation and regression analysis to identify quantitative relationships between indicators. The purpose of the study is to identify the relationship between economic indicators and assess the impact of foreign trade and foreign direct investment on the gross domestic product of Kazakhstan. In the course of the study, the relationship between exports, imports, foreign trade and foreign direct investment and gross domestic product was determined by the correlation method, and to determine the relationship of these economic indicators with the gross domestic product, the multivariate regression method was used. As a result of the study, it was found that exports affect the change in the gross domestic product of Kazakhstan at a higher level than the indicators of foreign trade and imports, foreign direct investment has a negative impact on the gross domestic product. The result of the regression analysis on the ratio of exports, imports, foreign trade, and foreign direct investment to gross domestic product was 0.96%. This shows the practical significance of the formed regression model.

Role of Real Estate in a Mixed-Asset Portfolio and the Impact of Illiquidity

Real estate ratios have increased in recent years. This article thus examines the diversification potential of real estate investments that German investors can achieve at a global scale. To this end, it analyzes how the illiquidity of some real estate investments or the illiquidity preference of an investor can bring about optimal investment ratios. Optimum allocation quotas for German investors with a wide range of mixed-asset allocations are examined. In addition to traditional optimizations, this article applies the three-fund theorem to include liquid and illiquid forms of real estate investment and to determine optimum allocation ratios. While real estate may be an essential component in a mixed-asset portfolio, it is not included in all optimal portfolios. An optimal portfolio also depends on the investment form, insofar as real estate vehicles are not always suitable for diversifying the portfolio risk or for improving the performance of a mixed-asset portfolio. Moreover, illiquid investment vehicles can often provide strong diversification benefits. The optimum allocations to real estate thus depend on the investor’s illiquidity acceptance, even if allocation dominance has increased in recent years. While many studies have demonstrated the advantage that investors gain from adding certain real estate assets, such as those obtained by direct investments, this study goes further by examining the comparative advantage of different real estate investment forms within a variety of asset classes. New insights can thus be gained by considering investors’ liquidity preferences within a given portfolio. One of these insights is that there is a trade-off between illiquidity and diversification potential. Another is that optimum portfolio allocations depend on illiquidity acceptance. These findings therefore also provide practical guidance not only to German investors with a global portfolio diversification but also to practitioners who add illiquid asset classes to their portfolio, to say nothing of the valuable field knowledge it offers to researchers in this field.

Модель экономического поведения коренных малочисленных народов Севера в условиях глобализации

This paper focuses on the findings of the theoretical and empirical study dedicated to the model of economic behavior of indigenous minorities of the North in the context of the globalization. Developed and verified in the empirical study, the model uncovers various strategies of economic behavior of indigenous minorities of the North. The identified strategies determined by internal (time attitude, values) and external (culture, sex, age) factors make different contributions to the perceived economic well-being of these peoples. The most significant and positive contribution is made by the balanced strategy of economic behavior: optimal ratio of savings, investments and activity, reliance on financial knowledge in making economic decisions, high level of economic self-regulation and self-control. Yet, the increased importance attached to material values, the pursuit to obtain them at the expense of good health and vocation, together with the distrust in financial institutions and actors, on the contrary, reduces the level of perceived economic well-being. 
 The developed model can serve as the basis for the concept of transforming economic behavior of the indigenous minorities of the North.

On statistical indices for analyzing investment interaction between countries (through the example of Russia and Vietnam)

Aim. The presented study aims to assess the potential of investment cooperation between Russia and Vietnam using statistical indices for analyzing investment interaction between countries. Tasks. The author constructs statistical indices for Russia–Vietnam investment cooperation; develops the investment interaction complementarity index; analyzes the values of the calculated indices to assess the current state and potential of investment cooperation. Methods. This study uses such research methods as construction and analysis of statistical indices of investment cooperation between countries. Results. The author calculates statistical indices for analyzing investment cooperation between Russia and Vietnam, showing the ratio of mutual investment to the total volume of direct investment, the scope of the countries’ economies, incoming and outgoing bilateral flows. An investment cooperation complementarity index is proposed and calculated (for Russia and Vietnam), showing the extent to which the industries where incoming foreign direct investment of one country is directed coincide with the industries of outgoing direct investment of the partner country. Conclusions. The calculated indices for analyzing investment cooperation show that the investment cooperation between Russia and Vietnam is not fully developed. That said, analysis of the values of the investment cooperation complementarity index makes it possible to conclude that the countries have sufficient potential for the development of bilateral investment cooperation.

PROFITABILITY ANALYSIS PT. HERO SUPERMARKET TBK AFTER CONVERTING GIANT TO IKEA

This study aims to determine the financial performance at PT. Hero Supermarket Tbk for the 2018-2022 period using quarterly, using the Return on Investment ratio, and the Return on Equity ratio using the Du Pont System approach. The population in this study is the entire financial report data of PT. Hero Supermarket Group Tbk taken from the Indonesian Stock Exchange (IDX) website. The sample of this study uses time series data for the last five years consisting of quarterly balance sheets and profit and loss reports from PT. Hero Supermarket Group Tbk Period 2018-2022. Data collection techniques for this study using documentation techniques, which include data collection in the form of quarterly financial reports for the last 5 periods of PT. HERO Supermarket Group Tbk on the company's official website listed where it aims to collect and analyze financial report data and then perform a profitability ratio analysis. From the results of this study, we can see that the impact of converting Giant to IKEA for now looks influential but is still not clearly visible or not significantly visible. To see the results of the significant profitability ratios of PT Hero Supermarket Group Tbk, it takes 2 to 3 years.

Nesting Biology of the Potter Wasp Ancistrocerus flavomarginatus (Hymenoptera, Vespidae, Eumeninae) Revealed by Trap-Nest Experiments in Southern Brazil.

This paper provides the first description of the nesting biology of Ancistrocerus flavomarginatus (Brèthes) (Hymenoptera, Vespidae, Eumeninae), the only species of the genus found in Brazil. Our trap-nest experiments were conducted in two Mixed Ombrophilous Forest fragments and two adjacent matrices in Guarapuava (Paraná state, Brazil) from August 2017 to July 2018. In each area, we set 192 trap nests divided into six groups of 32 units, totalling 768 trap nests. We obtained a total of 47 nests of A. flavomarginatus, the vast majority of them (43, 91.5%) founded in the forest fragments. Most nests were built in wooden traps with a bore diameter of either 5 or 7mm (19 nests in each type, 80.8%). Nests comprised 1-12 subcylindrical brood cells arranged linearly and separated from one another by transverse partitions of soil mastic. Larvae consumed 6-10 lepidopteran caterpillars before spinning the cocoon. Ancistrocerus flavomarginatus produced up to 6 annual generations (multivoltinism) and its immature forms were parasitized by chrysidid and ichneumonid wasps. The calculated sex ratio (1.78:1) was statistically biased towards males, but since they (21.3 ± 2.0mg) were significantly lighter than females (50.9 ± 4.0mg), the resulting investment ratio (1.34:1) was female biased. Males emerged from more external cells and developed significantly faster (27.2 ± 0.46days) than females (30.1 ± 0.66days), hence a case of protandry. We demonstrated that A. flavomarginatus is largely dependent on the Atlantic Rainforest and thus that deforestation poses a critical threat to this important species.

Research on the Influence of Regional Industrial Cluster and Regional Economy Based on ANN-RBF Algorithm - Take Shanghai, China as an example

The scientific planning of urban future space layout improves the quality of the regional economy for the city's future development and has important guiding significance. Taking Shanghai as an example, this paper first quantifies the regional industrial cluster and regional economy, then constructs the artificial neural network-radial basis function (ANN-RBF) algorithm and sets the algorithm test index. Based on data collection, RBF is used for contribution analysis to explore the impact of regional industrial clusters on regional economic indicators in Shanghai, China. The results show that the ratio of foreign investment (11.4%), the percentage of the tertiary industry's added value to the secondary industry's (10%) to the regional economy of Shanghai, China is more prominent than the other indicators. The scientific and technological achievements, energy consumption per unit of GDP, and electricity consumption accounted relatively small. This paper's significance is conducive to analyzing the correlation between regional economic and industrial cluster indicators in Shanghai, China.