Scale Of Investment Research Articles

ENERGY INDEPENDENT CITIES? INVESTMENT ACTIVITY OF CITIES IN THE IMPLEMENTATION OF EU CO-FINANCED PROJECTS IN RENEWABLE ENERGY SOURCES AND ITS CONDITIONS IN POLAND

Aim: The main objective of the paper is to evaluate the scale, scope, and significance of investments in renew­able energy sources by cities in Poland, which were co-financed from EU funds. This assessment will focus on the last two multiannual financial frameworks, namely for the years 2007–2013 and 2014–2020. Methods: Empirical studies were conducted based on data from the database of the Ministry of Development Funds and Regional Policy in Poland, the Local Data Bank, and the Ministry of Finance. When investigating the invest­ment activity of towns and cities related to renewable energy sources, basic descriptive statistics methods were applied. Logistic regression was used to identify the primary socio-economic, financial, and environmental conditions. Results: In the analyzed period, the role of towns and cities in the realization of renewable energy projects increased, although it is still relatively limited compared to other types of administrative communes. In the multiannual financial framework for 2007–2013, less than one in ten cities executed at least one project, while in the years 2014–2020, more than one in four cities realized at least one project related to the develop­ment of renewable energy sources supported by EU funds. The disparity in activity between towns and cities on a regional scale was huge. These investments were more often realized by towns and cities with a lower level of development, serving tourist functions, and experienced in carrying out such investments. Their lower investment activity was influenced by their level of indebtedness. Conclusions: So far, one of the main drivers behind the development of renewable energy in urban areas has been the ecological aspect, particularly the improvement of air quality. However, there is now a growing recognition of the importance of energy security.

2023 State of the industry report on investment and development of space solar power

Space solar power is an old idea. From its initial suggestion in the 1940s to the first practical concept by Dr. Peter Glaser in 1968, it has been analyzed, studied, and refined many times. Multiple government institutions, including NASA, JAXA, ESA, and CAST have invested significant funds into developing direct space solar power research. In parallel to these direct studies, considerable investment has also flowed into enabling technologies that serve as the cornerstone of current space solar power development concepts, including space solar panels, space hardware manufacturing, low-cost launch, wireless power transfer, robotic assembly, and swarm monitoring/control. In the last few years, space solar power concepts and studies have received increased funding, including non-governmental funding showing a strong positive growth trend. Multiple reports in 2021 and 2022, including from this author, have found that while space solar power has been technically feasible for decades, falling launch and hardware costs have only recently made it economically viable as well. Despite these findings, translation from economic feasibility to economic reality will require additional high-value investment.Sourcing these new funds requires investment context. This technical paper will present a state of the industry report on space solar power, including the total and source distribution of historical investments. It further contextualizes the investments in space solar power with the scale of investment in key technologies and their current technology readiness levels. The methodologies developed for this report and the data sourced are intended to serve as a catalyst, alongside industry feedback, to create a template for ongoing reporting of this growing market sub-sector and ultimately drive the full deployment of this technology.

The impact of institutions, industry, and scale of operations on foreign subsidiaries’ political connections: evidence from Saudi Arabia and Egypt

PurposeResearch on the political connections of multinational enterprises’ (MNEs’) subsidiaries in emerging host countries has been growing. The purpose of this paper is to integrate institutional and resource dependence theories to argue that MNEs-subsidiaries are likely to develop fewer formal (i.e. board-level) political connections when operating in welfare-state monarchies as compared to in host countries with developmental-state democratic systems. Furthermore, this paper argues that MNE-subsidiaries develop formal political connections to a greater extent in industries where religion influences the development of products and services considerably. Finally, the extent of developing formal political connections varies by the scale of the MNEs’ investment (or subsidiary density) in the host market.Design/methodology/approachThe paper tests its hypotheses on a sample of foreign-owned subsidiaries operating in Saudi Arabia and Egypt. The data was collected by combining information from Bureau Van Dijk’s Orbis database with company websites and other secondary sources. The final sample consisted of 156 observations – 70 MNEs-subsidiaries operating in Saudi Arabia, and 86 in Egypt.FindingsThe findings confirm that foreign subsidiaries are likely to develop fewer formal political connections in a welfare-state monarchy as compared to in a developmental-state democratic system. Furthermore, formal political connections are more significant in industries that are impacted by the influence of religion – such as the financial industry in Arab countries. Finally, the extent of using political connections varies by the scale of the MNEs’ investment in the host market – that is, with a greater scale of investment (or higher subsidiary density), formal political connections are greater.Originality/valueThe paper contributes theoretically by explaining that a combination of institutional heterogeneity and its associated resource dependence conditions between MNEs and host governments influence MNE-subsidiaries' political connections. The paper tests its hypotheses in an emerging Arab context, which is characterized by both autocratic and semi-democratic political settings, and which makes the integration of institutional and resource dependence theories useful in explaining how MNE-subsidiaries navigate local complexities in this region.

Employee emotional investment: An institutional logic perspective

Based on the conservation of resources (COR) theory, institutional logic, and institutional arrangements, this study conceptualized and examined employee emotional investment as an important factor that influenced hospitality employee job and personal outcomes. In Study 1 (N=211), the reliability of the modified employee emotional investment scale was examined. In Study 2 (N=250), first using confirmatory factor analysis (CFA) the reliability, convergent and discriminant validity of the measure was confirmed. Second, partial-least squares structural equation modeling (PLS-SEM) analysis of hospitality employees revealed that their emotional investment affected their work attitudes and behaviors. Organizational service climate and employee hierarchy in the organization were identified as significant antecedents of emotional investment. Emotional investment directly influenced employee resilience, organizational citizenship behavior (OCB), organizational commitment, and employee engagement. Emotional investment indirectly affected employee subjective wellbeing, whereas organizational commitment and employee engagement showed full mediation effects. The findings extended COR theory and revealed employee emotional investment as a distinct form of employee organizational behavior. Practical implications for hospitality managers are provided.

Research on the Impact of Financial Agglomeration on Green Investment

With growing global attention on sustainable environmental development, green investment has become an important tool to drive the green transformation of the economy. Financial agglomeration areas, as capital-intensive regions, provide strong support for green technological innovation and eco-environmental projects. Additionally, the policy inclinations and investment preferences of financial agglomeration areas directly influence the flow and efficiency of green funds, further shaping the path of economic green transformation. Based on this, this paper selects panel data from 31 provinces in China (except Hong Kong, Macau, and Taiwan) over 15 years from 2007 to 2021. Using the fixed effects model, the study examines the impact of financial agglomeration on the scale of green investment and conducts a heterogeneous analysis of the effects in different regions of China, as well as proposing related policy suggestions. The results show that an increase in the level of financial agglomeration can significantly enhance the scale of green investment in a region, especially in the central regions. Compared to the eastern and western regions, the promotion effect of financial agglomeration is more pronounced in the central region.

The impact of time constraints on new venture investment decisions: an experimental study

ABSTRACT Researchers have suggested that new venture investors quickly conclude their decisions and rely on heuristics. However, there is a paucity of empirical work exploring the impact of time constraints on new venture investment decisions. To fill this gap, we are exploring the impact of time constraints on the new venture investment decision process and the final investment decision using the arguments of the Dual Process Theory. A balanced experiment setup is used, where the treated group is given time constraints to make the decision. Results show that investors under time constraints consider only a subset of the available information signals to perceive the probable prospects and to make final investment decisions. This consideration of a subset of information signals results in a partial assessment of the proposal where investors focus more on return potential than risk exposure aspect of investment proposals. This inclination towards return potential increases the scale of investment.

The Significance of the Financial Situation of Local Government Units for Their Energy Transition Activities: The Case of the Podkarpackie Region

This paper discusses the financial determinants of the efforts of local government units (LGUs) to invest in the area of energy transition (ET). The main objective is to verify the links between the scale, directions, and funding sources of LGUs’ investments in ET and their budgetary situation described by the level of income independence, budget result, and debt level. The general research hypothesis assumes that the ET investment activity of LGUs is associated with their financial situation. The analysis covers the period 2019–2022 and uses data from the questionnaire-based survey conducted in 2023 among 181 LGUs in the Podkarpackie region in southern Poland. Non-parametric tests were employed to verify the association between the LGUs’ ET investment activity and their financial situation: the Chi2 test, the Mann–Whitney U test, the Kruskal–Wallis test, and the Kendall’s Tau correlation. Financial aspects were shown to influence the scale of municipal ET investments, as well as the type of projects implemented. Among the analysed financial indicators, the debt level was the most important constraint for LGUs to make their own ET investments. The debt level not only determined the scale of municipal ET investment, but also influenced decisions on the type of investments.

Digital Transformation and Foreign Direct Investment of Enterprises:Evidence from Listed Companies in China

The rapid development of the digital economy has been instrumental in driving corporate digital transformation, exerting profound effects on enterprises' outward foreign direct investment (OFDI). Concurrently, advancements in digital technologies have led to qualitative and quantitative leaps in the quality and scale of trade and investment. Based on theoretical analysis, this paper focuses on A-share listed companies on the Shanghai and Shenzhen Stock Exchanges between 2011 and 2021, examining how digital transformation promotes enterprises' outward OFDI and its underlying mechanisms. The research reveals that corporate digital transformation significantly enhances their engagement in outward foreign direct investment, and this conclusion remains robust after being subjected to various robustness checks, including indicator substitution, interaction fixed effects, double clustering robust standard errors, and panel quantile regressions.Moreover, upon conducting endogeneity tests using the mean value of a digital transformation index grouped by year and industry as an instrumental variable, the findings still hold firm. This study enriches the body of knowledge on the economic consequences of digital transformation for tangible businesses and the factors influencing corporate outward foreign direct investment. It provides valuable insights to guide enterprises in more effectively expanding into overseas markets.

Study on the Impact and Mechanism of the Quality of Host Country Institutions on China's OFDI

In recent years, the scale of China's Outward foreign direct investment (OFDI) has grown rapidly, but with the increasingly complex and changeable international environment, China's OFDI is facing great pressure. Taking 159 countries as samples, this paper selects 10 secondary indicators from the three dimensions of politics, economy, and law to construct the evaluation system of host country institutional quality, and measures the host country institutional quality from 2011 to 2021, studies the influence of host country institutional quality on China's OFDI and the intermediary mechanism, and conducts heterogeneity test. The conclusion shows that the improvement of host country's institutional quality significantly promotes the inflow of China's OFDI, and at the same time, the improvement of host country's institutional quality can improve the country's scientific and technological innovation ability and infrastructure construction level, and ultimately promote the increase of China's OFDI. This promoting effect is more obvious in low-middle-income countries and countries that have signed the Belt and Road agreements. Finally, suggestions are put forward based on the conclusions.

RELATIONSHIP OF THE SCALE OF INVESTMENT AND CHANGE IN FIXED ASSETS ON FARMS IN THE WIELKOPOLSKA PROVINCE

The operation and development of any economic entity require the implementation of investments. In the case of farms in Poland, characterized by inadequate capital and structural problems, it is particularly necessary to undertake investment activities to modernize the farms. The main purpose of the study was to evaluate agricultural investments made on farms in the Wielkopolska Voivodeship. The analysis is based on unpublished data of the individual results registered in the Polish FADN for the farms which continuously participated in the system of agricultural accounting from 2009 to 2021. Measuring the scale of investments, the comprehensiveness of the implemented investments was determined by relating the sum of investment expenditures to the average annual size of fixed assets (reduced by the value of land). The results confirm that the initial level of farm resources strongly impact the capacity for development. The size of the farm, measured by the area of utilised agriculture area, determines the incurring of an appropriate and relatively stable amount of investment in subsequent years of operation. The results of the study indicate that not only the implementation of investments in general but also their scale (in relation to the value of assets) determines the development capabilities of farms and, therefore, the improvement of the farms’ resources.

Green credit, financing constraints, and corporate investment: From the perspectives of scale and efficiency

Green credit plays a crucial role in resource allocation as it serves as a link between financial systems and environmental protection. This study utilizes the “Green Credit Guidelines” issued by the China Banking Regulatory Commission in 2012 as an exogenous shock, employing the Difference-in-Differences (DID) approach to examine the impact of green credit policies on corporate investment levels. The findings reveal that green credit enhances investment efficiency by reducing the investment scale of high-pollution enterprises. Furthermore, considering the temporal nature of policy impact and strategic responses from enterprises, these effects become evident and increasingly strengthened two years after policy implementation. The financing constraint intermediary mechanism suggests that financing constraints only serve as an intermediary factor between green credit policies and investment efficiency, exerting relatively weak control over short-term investment scales. Additionally, internal and external regulatory mechanisms along with enterprise heterogeneity indicate asymmetric effects resulting from green credit policies. Policy implications derived from this research emphasize the necessity for a rational combination of command-and-control environmental regulations with green credit policies while also improving upon existing green credit measures to prevent strategic corporate behavior.

Shanghai oil futures prices and firms' investment decisions: Evidence from Chinese manufacturing firms

International crude oil futures prices play a key role in market pricing, price discovery, and reshaping the market order. As the world's largest importer of crude oil, China urgently needs to establish contracts based on Asian supply and demand to mitigate currency risk for refiners and consumers. Against the backdrop of the launch of yuan-denominated crude oil futures by the Shanghai International Energy Exchange (INE) on March 26, 2018, this paper examines the impact of crude oil futures prices on the investment scale of Chinese manufacturing companies based on data from listed manufacturing companies in China from 2016Q1 to 2021Q3. The study finds that increases in international crude oil futures prices suppress the investment scale of Chinese manufacturing enterprises, while price volatility has a promoting effect. The listing of Shanghai crude oil futures has a negative shock effect on the impact of international crude oil futures prices on the investment scale of Chinese manufacturing enterprises. Additionally, increases in operational leverage amplify the negative impact of international crude oil futures prices on the investment scale of enterprises and weaken the positive impact of changes in international crude oil futures prices on the investment scale. Furthermore, among large manufacturing enterprises, volatility and increases in international crude oil futures prices suppress their investment scale; whereas in small and micro manufacturing enterprises, price increases and volatility significantly boost their investment scale. This paper provides empirical evidence and policy implications for fully leveraging Shanghai crude oil futures to optimize corporate investment decisions and support the sustainable development of enterprises.

Mitigating soft and hard infrastructure deficiencies in emerging markets

This study examines the impact of soft and hard infrastructure deficiencies on foreign firms’ investments in emerging markets and firm strategies to mitigate such impact. Soft infrastructure refers to intangible components such as institutions and regulations, while hard infrastructure encompasses tangible physical components like transportation, energy systems, and water supply. Drawing on resource dependence theory, we argue that foreign firms are likely to decrease their investment scale in countries with deficient soft and hard infrastructures to reduce uncertainty. We further propose two strategies to mitigate the negative effects of infrastructure deficiencies. First, foreign firms can adopt an influencing strategy, increasing their influence on the host government to alleviate the negative impact of soft infrastructure deficiencies. Second, a shielding strategy can be employed to reduce dependence on the host government, particularly when dealing with hard infrastructure deficiencies. We analyze data from a sample of 3,341 foreign firms operating in 88 emerging economies between 2005 and 2020 and find empirical support for these arguments, highlighting the significance of infrastructural considerations for foreign investments in emerging economies.

Analysis and Reflection on Investment Status of Innovative Drugs in China

At present, China's innovative drug support policies and market volume are good, but China's innovative drug research and development(R&D) success rate and market share still need to be improved. This is related to the unreasonable investment direction of innovative drugs and the low utilization efficiency of R&D resources. Therefore, the objective of this paper is to evaluate China's present state of investment in innovation drugs and explore how to promote the effectiveness and sustainability of innovative drug investment. Through data analysis, this paper found that the scale and frequency of investment and financing of innovative drugs in China are declining. The problem with China's innovative drug investment is that the valuation of hot projects is too high, the allocation of funds is unreasonable, the investment is not in line with the actual needs of the industry, and only the pursuit of short-term returns. Given the various problems in China's innovative drug investment, the government needs to create a long-term stable environment for the innovative drug investment market and prudently formulate relevant policies to strike a balance between stimulating the market and regulating the market. Entrepreneurs should choose the direction of R&D according to their areas of expertise combined with cutting-edge scientific research progress rather than adjusting the direction of R&D to cater to the preferences of investment institutions. Investment institutions should avoid risks caused by unreasonable capital allocation by strengthening the layout of the pre-investment track and prudently carrying out project valuation analysis.

CEOs’ financial work experience and firms’ outbound investments

Outbound investment refers to the act of investing by enterprises or individuals in regions or countries outside their home country. We explore the impact of CEO financial work experience on the outbound investments of Chinese A-share listed firms. The results demonstrate a significant, positive correlation between CEO financial work experience and the scale of outbound investments, particularly for nonbank financial work experience. We also reveal that the intermediary mechanism of CEO financial work experience is due to an increase in the proportion of financial assets and the easing of financing constraints, thereby promoting outbound investments. Moreover, the research shows that the effect of CEO financial work experience varies by ownership type and scale, with state-owned and large-scale firms receiving greater benefits.

Predictors of non-suicidal self-injury in adolescents with depressive disorder: the role of alexithymia, childhood trauma, and body investment.

This study analyzes the relationship of alexithymia, childhood trauma, and body investment to non-suicidal self-injury (NSSI) behaviors in adolescents with depressive disorder and whether they have predictive and diagnostic value for non-suicidal self-injury (NSSI) behaviors in adolescents with depressive disorder. A total of 225 patients with a diagnosis of adolescent depressive disorder were included in the study and were divided into two groups according to the DSM-5 criteria: 98 cases without NSSI and 127 cases with NSSI. Compare the demographic data, 24-item Hamilton Depression Scale (HAMD-24), 20-item Toronto Alexithymia Scale (TAS-20), Childhood Trauma Questionnaire-Short Form (CTQ-SF), and Body Investment Scale (BIS) scores between two groups. Binary logistic regression was used to analyze the independent risk factors contributing to NSSI behaviors in adolescents with depression, and establish four predictive models. Based on the models' predictive probability, the ROC curves were plotted to calculate the value of the predictive diagnostic effect. The group without NSSI had lower scores than the group with NSSI on HAMD-24 total score, TAS-20 total score, difficulty identifying feelings, difficulty describing feelings, and externally focused thinking, as well as lower scores on CTQ-SF total score, physical neglect, emotional neglect, physical abuse, and emotional abuse. In contrast, the BIS total score, body image feelings and attitudes, body care, and body protection factor scores were higher for the group without NSSI. The BIS body care factor score and the CTQ-SF emotional abuse factor score were significantly linked with adolescents diagnosed with depressive disorder who exhibited NSSI behaviors. These results provide a good diagnostic model for adolescents with depressive disorder. Low levels of body care and childhood emotional abuse may independently contribute to the implementation of NSSI in adolescents with depressive disorder. Body investment and childhood trauma are valuable in diagnosing and predicting NSSI behaviors and should be considered as potentially important factors in clinical treatment.

Private equity investment in health care delivery, Australia, 2008-2022.

To examine the scale of private equity investment in Australian health care delivery assets (clinics, hospitals, imaging facilities, other doctor-led health care services). Extraction of information about private equity acquisitions of hospitals, clinics, imaging centres and invitro fertilisation facilities in Australia, 2008-2022, from a commercial database (PitchBook), supplemented by information from publicly available online media sources. Number and value of private equity acquisitions of health care assets, 2008-2022; numbers of clinic parent company and clinic acquisitions, 2017-2022. A total of 75 private equity acquisitions of health care delivery assets in Australia during 2008-2022 were identified; the annual number rose from three acquisitions in 2008 to eighteen in 2022. During 2008-2010, five of seven acquisitions were of invitro fertilisation providers; during 2020-2022, 22 of 39 acquisitions were of clinics or clinic groups, including eleven of eighteen in 2022. The total value of the 39 acquisitions for which purchase price could be ascertained (52%) was $24.1 billion. During 2017-2022, the clinic specialty with the greatest number of private equity acquisitions was general practice (256 of 446 clinics purchased within acquisitions). Seven companies owning ophthalmology clinics (24 clinics) were acquired by private equity. Four private equity acquisitions during 2017-2022 included 60 oncology clinics, all related to a single clinic group. The number of private equity acquisitions of Australian health care delivery assets increased during 2008-2022. Doctors should be aware of the motivations and dynamics of private equity companies, as they are increasingly likely to interact with these firms and assets owned by these firms.

Costing of a Combination Intervention (Kyaterekera) Addressing Sexual Risk-Taking Behaviors among Vulnerable Women in Southern Uganda.

In Uganda, women engaged in sex work (WESW) are a marginalized population at the intersection of multiple vulnerabilities. The Kyaterekera intervention is targeted at WESW in Rakai and the greater Masaka regions in Uganda and combines a traditional HIV risk-reduction approach with a savings-led economic empowerment intervention and financial literacy training. We estimated the economic costs of the Kyaterekera intervention from a program provider perspective using a prospective activity-based micro-costing method. All program activities and resource uses were measured and valued across the control arm receiving a traditional HIV risk-reduction intervention and the treatment arm receiving a matched individual development savings account and financial literacy training on top of HIV risk reduction. The total per-participant cost by arm was adjusted for inflation and discounted at an annual rate of 3% and presented in 2019 US dollars. The total per-participant costs of the control and intervention arms were estimated at $323 and $1,435, respectively, using the per-protocol sample. When calculated based on the intent-to-treat sample, the per-participant costs were reduced to $183 and $588, respectively. The key cost drivers were the capital invested in individual development accounts and personnel and transportation costs for program operations, linked to WESW's higher mobility and the dispersed pattern of hot spot locations. The findings provide evidence of the economic costs of implementing a targeted intervention for this marginalized population in resource-constrained settings and shed light on the scale of potential investment needed to better achieve the health equity goal of HIV prevention strategies.

FEATURES OF INNOVATIVE AND INVESTMENT DEVELOPMENT OF ENTERPRISES IN THE AGRICULTURAL SECTOR

The presence of a sufficient number of different forms of ownership and forms of management in the agricultural sector complicates the mechanism of financial investment in enterprises of the appropriate profile. It also affects investment processes in the agricultural sector. Stimulating investments in the agricultural sector has a decisive impact on both agriculture and the development of the economy in general. In the agrarian policy of Ukraine, as in the agrarian policy of developed countries, increasing investment attractiveness is one of the priorities. Of course, economic development is impossible without investments. From this point of view, the question of forming a financing mechanism for the sustainable development of agriculture remains relevant. Currently, investment growth is one of the main conditions for meeting the demand for high technologies, which is determined by the need for intensive development of agriculture. Low investment activity in the past years, the scale of investments in the fixed capital of agriculture do not meet the real needs of renewal and modernization of production. Therefore, the most urgent task for the development of the agricultural industry is the formation of a favorable investment climate and the activation of investment activities of all business entities. This is possible mainly on the basis of increasing investment activity while simultaneously increasing the efficiency of investment, especially innovative, which is very important in the conditions of limited resources necessary for rational financing of the development of agricultural production. Investments increase production productivity, increase the availability of food in the market and help keep prices low, making food more affordable for rural and urban consumers. Also, investments in agriculture reduce the vulnerability of food supplies to shocks, contributing to the stability of consumption. A favorable investment climate helps mobilize capital, skills, technology, and intermediate resources that enable firms to expand, thereby helping to direct resources to more productive uses.

The influence of financial flexibility on firm performance: the moderating effects of investment efficiency and investment scale

PurposeFinancial flexibility and investment efficiency are of vital importance in strategic choices at boardrooms, particularly in post-crisis recovery strategies. This study examines the moderating effects of investment efficiency and investment scale on the relationship between financial flexibility and firm performance.Design/methodology/approachThe authors use sample of 10,755 US-listed firms over the period 2010–2021 to examine the relationships between investment scale, investment efficiency, financial flexibility and firm performance. Particular attention is paid to overinvestment and underinvestment.FindingsFindings of this study reveal that financial flexibility mitigates investment inefficiency through reducing overinvestment. Financial flexibility contributes to boost a firm’s accounting and market performance. Additionally, investment efficiency and investment scale have moderating effects on the relationship between financial flexibility and firm performance. However, the influence of investment efficiency is greater than the influence of investment scale. Finally, the authors find that the direct and indirect effects of financial flexibility are stronger on market performance than accounting performance, implying that market is more sensitive to corporate financial policies.Research limitations/implicationsFindings of this study have implications for scholars, decision-makers policymakers, investors and other stakeholders.Practical implicationsThis study has its own limitations due to the sample selection issues, country context and the research model adopted by this study.Originality/valueThe novel contribution to the extant literature is incorporating the influence of investment scale and investment efficiency into the relationship between financial flexibility and firm performance.