Investment Stage Research Articles

INVESTMENT RISK OF SOLO-NGAWI TOLL ROAD


 
 
 
 In investing, there is definitely a risk, as well as the concession of toll roads. Risk analysis is used to anticipate losses due to an element of risk at each investment stage. The results of the analysis show that the highest risk probability for the Solo-Ngawi toll road is land availability and the influence of weather during development and the highest risk impacts are land availability, the potential for revolution in state governance. Based on the results of the analysis, the investment risk level of the Ngawi Solo Toll Road is included in the moderate risk category, so there is a need for cooperation in risk assurance by the Insurance Agency so that the risk level can be reduced to be lower than before. 
 
 
 

BIM-technologies: organizational aspects in different stages of investment and construction project

BIM using is one of the most crucial and integral parts of building management. A complex BIM-model gives a precise picture of the project’s final cost and can be used as a tool of budget measurement. BIM provides an opportunity to calculate all material and instead of manual calculating, it will change project cost estimate automatically if something in the project changes. In addition, it improves project economy and reduces the rate of random mistakes while project documentation assembling. However, experts in the construction industry acknowledge that the challenges that design companies face today in the transition to BIM are becoming more and more urgent. The article is devoted to the formation of a comprehensive view of the information model by stages of the life cycle. Through the implementation of information technologies in the field of investment and construction projects, achievable main problems allow for a new level of digital processing. Based on project lifecycle management, possible solutions to the identified problem blocks are proposed and their effectiveness is evaluated. Taking into account these changes, it will be possible to maximize the effective use of information modeling technologies at all stages of the life cycle of an investment and construction project.

Effectiveness of using visualization technologies in construction

This article describes the relevance of using 3D visualization technology for construction projects. Despite the fact that the construction industry is not knowledge-intensive and is rather conservative in the implementation of innovations, these technologies can increase its competitiveness and ensure sustainable development of the country’s economy. Advanced technologies allow increasing the company’s revenues, reducing the cost of production, increasing the competitiveness and image of the company. They help to maintain current market positions and conquer new market segments. The use of innovations in the construction industry helps to optimize the use of the entire resource potential of the enterprise, increase the efficiency of using its labor, material, financial and information resources, reduce the cost of construction and installation work, accelerate the speed of information exchange and improve marketing activities. Innovations in the construction industry are introduced at all stages of the life cycle of a construction object: at the stage of project investment, design of a construction object, use of resource-saving and advanced construction technologies, use of energy-efficient building materials, application of innovations in marketing, production organization and personnel management. 3D visualization technologies play an important role in the management of construction stages and design of construction objects. However, today, not enough attention is paid to the economic assessment of the effectiveness of using 3D visualization technology for a particular enterprise. In this regard, the degree of elaboration of the topic is insufficient, and the research topic is relevant.

Использование специальных строительно-технических знаний в борьбе с коррупцией

Introduction. Corruption risks are essential restrictive factors that hamper the normal operation of the construction industry; they are the obstacles that hamper investment and construction activities; they prevent the successful implementation of government-funded projects and development programmes. Elimination of corruption threats through the expert examination of draft legal acts in terms of corruptogenicity, law enforcement monitoring, research into practical corruption, control over business processes in the construction industry and other actions represent the top priority actions performed within the framework of Russia’s effective anti-corruption policy. Materials and methods. Corruption risks can be easily differentiated depending on specific stages of investment and construction projects. It is logical to distinguish corruption risks at due diligence and project implementation stages, at the stages of construction and commissioning, and at the stage of facility operation. Results. The co-authors have analyzed the anti-corruption efforts exerted in the construction industry both by the federal government and parties to investment construction projects. The co-authors describe several elements of anti-corruption actions aimed at the improvement of the system of state governance, in particular, the co-authors address several actions, taken by the Ministry of construction, housing and utilities of the Russian Federation. The business community considers corruption control as an effectively operating multi-faceted system, that encompasses supervision, reporting, and law enforcement. Today any control over corruption threats, that accompany the implementation of investment and construction projects, is undergoing substantial transformations triggered by the introduction of information technologies (BIM, improvement of electronic purchasing and tendering systems, etc.) Traditional instruments of control (for example, audi­ting) should focus on the involvement of competent professionals, having in-depth knowledge of construction processes and capable of performing an expert examination of project’s economic and construction constituents and accompanying business processes. Conclusions. The co-authors have substantiated the need to apply a flexible multi-faceted approach to corruption control, which should not be limited to controlling instruments to ensure the comprehensive tackling of the corruption problem.

К вопросу о необходимости исследования правового статуса реципиентов венчурных инвестиций в целях создания эффективного механизма охраны их прав и законных интересов с учетом наличия «риска» не только на стороне инвестора, но и на стороне реципиента

The article deals with issues related to the implementation of venture investments, special emphasis is placed on the need for increased attention to the study of the status of investment recipients (“startups”) in order to create an effective mechanism for protecting their rights and legitimate interests at all stages of investment, and the importance of the initial (“seed”) stage is additionally emphasized.

Probabilistic knowledge-based characterization of conceptual geological models

The construction of conceptual geological models is an essential task in petroleum exploration, especially during the early stages of investment, when evidence about the subsurface is limited. In this task, geoscientists recreate the most likely geological scenarios that led to potential accumulation of reserves in a target block, based on past experience, historical analogues, and interpreted “signatures” that were left in the data by physical processes. Due to cognitive constraints, this task has traditionally focused on the single most likely conceptual scenario, or at most, a reduced set of scenarios chosen a priori via ad-hoc methods, which often lead to improper block valuation and severe money losses. In this work, we propose a probabilistic framework for reasoning about conceptual geological scenarios that helps domain experts maintain multiple hypotheses throughout the exploration program. The framework is extensible and can be instantiated automatically from simple knowledge templates, a form of “knowledge standard” in the company. We show how the acquired knowledge can be leveraged for uncertainty mitigation using concepts from information theory, and assess the framework qualitatively in a real case study.

Measuring transit accessibility benefits and their implications on land value capture: a case study of the Bangkok Metropolitan Region

Infrastructure investments have long been a key factor driving the economic and urban development of a country. These investments usually require a large amount of funds, but funding for such investments is often limited to catching up with the growing urban population, especially for cities in emerging economies. As a result, finding alternative funding for infrastructure investment is increasingly important. Land value capture (LVC) is one of the mechanisms that can be used to fund infrastructure investment. An important policy question for the land value capture is determining how much of the increment land values are due to infrastructure investment. This research aims to assess the land value increment due to proximity to public transit, using Bangkok as a case study. The analysis employs hedonic regressions of low-rise residential real estate projects from 2009 to 2017 in the Bangkok Metropolitan Region. The results suggest that the proximity to the nearest mass transit stations has driven up the land values of residential lands in real estate development projects. In addition, the bid-rent coefficients over time have increased in magnitude in the latter years as more transit stations have opened, suggesting the presence of temporal effects from various stages of mass transit investments on land values. The analysis also assesses the value that can be captured through a tax-based LVC mechanism around a new mass transit station.

Incentives for labour-augmenting innovations in vertical markets: The role of wage rate

This article analyses the link between the wage rate and the incentives to develop and adopt a labour-augmenting innovation in a vertical market. In a model where an upstream monopolist sells the innovation to several downstream manufacturers, I show that the wage rate affects the incentives to innovate in different ways depending on i) the initial level of wage and ii) the timing of the policy’s implementation. Moreover, if the policy is introduced when the size and the price of innovation are common knowledge, then the policy-maker can elicit her preferred equilibrium by nudging more firms to adopt the technology. Instead, if the policy is introduced before the investment stage, then the increase of the wage rate generates two opposite effects: a positive cost-reducing effect and a negative output-contraction effect. If and only if the wage level is below a critical threshold, the former dominates the latter. I argue that, under certain conditions, a policy that raises the price of labour may be beneficial for both the incentives to invest in labour-augmenting innovation and the industry outcomes.

Bail-in and Bailout: Friends or Foes?

This paper analyzes the effects of bail-in and bailout policies on banks’ funding costs, incentives for loan monitoring, and financing capacity. In a model with moral hazard and two investment stages, a full bail-in turns out to be, ex post, the optimal policy to deal with a failing bank. Unlike a bailout, it allows the government to recapitalize the bank without resorting to distortionary taxes. As a consequence, however, investors expect bail-ins rather than bailouts. Ex ante, this raises banks’ cost of debt and depresses bankers’ incentives to monitor. When moral hazard is severe, this time inconsistency leads to a credit market collapse in which productive projects are not financed, unless the government precommits to an alternative resolution policy. The optimal policy is either a combination of bail-in and bailout—in which the government uses a minimal amount of public transfers to lower banks’ cost of debt—or liquidation, depending on the severity of moral hazard and the shadow cost of the partial bailout. This paper was accepted by Gustavo Manso, finance.

Signal configurations: Exploring set-theoretic relationships in angel investing

Anchored in signaling theory, we use a configurational approach to examine how new ventures credibly communicate their underlying firm quality, using a unique dataset of 117 new ventures that sought investment from a prominent angel group located in the Northeastern United States. Unlike existing research, which employs econometric models to reflect one best solution, we use crisp-set qualitative comparative analysis (cs/QCA) to understand signal configurations during the angel investment decision-making process. Our findings suggest that there are multiple paths to our three outcomes, passed small group screening, passed large group presentation, and passed due diligence/invested, validating notions of equifinality. Signals are complementary and configurations differ by industry sector. We also find that effective signal configurations differ by stage of investment, thereby offering evidence of cognitive dual processing on the part of the angel investors. We contribute to the literature on signaling by linking our findings to recent work on signal interactions and by highlighting the configurational and temporal aspects of signaling in the angel investment context. Implications are discussed.

A Market Mechanism for Ensuring the Efficiency of Investment and Construction Projects

Aim . The presented study aims to formulate the methodological basis of a market mechanism for ensuring the efficiency of investment and construction projects in the context of negligible transaction costs. Tasks . The authors analyze the effect of the relationship between the subjects of an investment and construction project on its efficiency; examine the major groups of fundamental economic mechanisms for enabling integration cooperation between economic entities; describe the IPD approach as the methodological basis of a market mechanism for ensuring the efficiency of investment and construction projects; define the principles of formation of local and global maximum economic effects of investments at the stage of an investment and construction project; formulate the methodological foundations of an economic IPD partnership, which is viewed as a market mechanism for maximizing the integral effect of an investment and construction project. Methods . This study uses general scientific methods of cognition and the institutional approach, which considers the market, organizational, and government groups as the fundamental economic mechanisms for enabling integration cooperation between economic entities, to develop the economic fundamentals of the IPD approach as a methodological basis of a market mechanism for ensuring the efficiency of investment and construction projects. Results . During the implementation of investment and construction projects, the so-called mutual effects of independent entities arise when changes in the cost and/or duration of one stage of the project affect the quality of the results at another stage. The need to develop mechanisms for ensuring the integral efficiency of investment and construction projects by compensating for efficiency losses at each stage is substantiated. In the case of negligible transaction costs, the best such mechanism would be to establish voluntary agreements between the parties based on a market mechanism. In investment and construction management, IPD contracts serve as the instrument of such agreements. The authors develop a methodological basis for an economic IPD partnership by differentiating the subjects included in the IPD contract in correlation with their costs and results within the investment and construction process and by establishing the conditions for remuneration payments and internalization of "internal" externalities by types of subjects in the IPD project. Conclusions . Economic interaction modeled according to the presented methodology is meant to ensure a cognitive IPD partnership combining the knowledge, competencies, and interests of different subjects, experts and specialists, which in turn serves as one of the mechanisms for maximizing the integral effect of an investment and construction project. Having a common digital information space for the project is a modern prerequisite for a successful IPD partnership based on the presented model of economic interaction between subjects.

Theoretical Foundation and Model Construction of Comprehensive Evaluation of Distribution Network

As my country's economy has shifted from a stage of rapid growth to a stage of high-quality development. The scale of the distribution network is gradually increasing, and the manpower, material and financial resources involved are increasing day by day. Therefore, scientific comprehensive investment evaluation and decision-making for the distribution network is of great significance to the sustainable development of the distribution network. Based on hierarchical analysis method and entropy weight method, this paper proposes an evaluation model of analytic hierarchy process based on entropy weight. Score the indicators of 142 substations in a city, and calculate the comprehensive score of each substation. According to the evaluation results, relevant suggestions are given for the next stage of investment in different power supply stations in a certain city. On this basis, the analytic hierarchy process based on entropy weight is improved. Combining the variable weight theory to optimize the weight calculated by the model, and then obtain a more reasonable comprehensive score of the substation.

Automated identification of construction works and structural elements at an early stage of investment and construction projects’ implementation

The article discusses the issues of construction objects pricing in terms of the formation of certain types of costs and an analysis of their interrelationships based on the generated data bank of design and estimate documentation of implemented state investment construction projects. Special attention is paid to the research of the impact of changes in design solutions on the cost of construction. Approaches to the reorganization of the established design technology are proposed. These approaches use automated identification of construction work and structural elements based on the method for assigning criteria for the selection of building structures that are supposed to be erected around the technological space specified by the customer. The selection criteria established in this way assist designers in finding optimal design solutions for the subsequent development of working documentation.

Venture Capital in the Rise of Sustainable Investment

In recent years, the world has witnessed a soaring inflow of capital into sustainable investment. This is particularly so following the devastating COVID-19 pandemic. However, while a growing size of literature has deliberated debt financing in sustainable investment, less ink has been spilt on equity financing in this space, and even less scholarship has explored the role of government and law in facilitating sustainable Venture Capital (“VC”) funds. This paper proposes a dualist approach towards facilitating the development of sustainable VC funds encompassing a contractarian strategy with government support. The contractarian approach includes effective contracting covering the entire VC cycle in sustainable investment. It aims to provide strong incentives for all participants, ranging from investors, entrepreneurs, fund managers, to credit-rating agencies and evaluation firms. In the same vein, this paper seeks to craft a role for regulators that facilitates the simultaneous availability of several factors in a sustainable VC cycle (i.e., fund-raising, investment and exit). In the fund-raising stage, governments may play an active role by expanding the source of financing for sustainable VC funds and enacting detailed and targeted legislations. For the VC investment stage, sustainable VC funds should make full use of its strong corporate governance rights and monitoring to ensure that start-ups deliver their sustainable promises. In the exit stage, a specialized sustainability board is strongly recommended to offer viable exit options, together with greater standardization and comparability in sustainability information disclosure, and regulatory support for trustworthy sustainable impact rating agencies to sustain investor confidence.

The Investment Style Drift Puzzle and Risk-Taking in Venture Capital

Limited partners allocate capital into venture capital funds with the expectation of a risk-return profile matching the fund's investment style in terms of startup investment stage, location and industry. This paper draws a connection between style drifts in these three dimensions and the connected risk-taking attitude of the general partner. By analyzing a sample of 31,521 investments with respect to the motivation for style drifts, this paper seeks to answer whether style drifts are deliberate risk-shifts or happen out of competitive pressure. The results suggest that venture capitalists increase risk, when they have strong past performance and public markets are bullish in order to make the most of the balance of compensation and employment incentives. This balancing most likely constitutes an agency conflict between limited partners and general partners. Further, results show that most risky style drifts have a negative impact on the probability of a successful exit even after controlling for performance persistence and endogeneity. Finally, the findings show that aggregate style drift has a negative effect on a fund's performance measured as its exit rate.

Optimal Government Incentives to Improve the New Technology Adoption: Subsidizing Infrastructure Investment or Usage?

To promote new technology adoption, governments around the world are contemplating different ideas to develop effective subsidy policies. At the new technology infrastructure investment stage, governments can use investment subsidy to reduce the new technology firms' investment cost; at the market stage of promoting the new technology, governments can use usage subsidy to reduce consumers' cost of using the service provided by the new technology firms. In this study, we develop a game-theoretic model to examine the impact of both investment subsidy and usage subsidy on the new technology adoption. We find that both the investment subsidy and usage subsidy can entice the new technology firms to increase the infrastructure investment level so as to further improve the market penetration of the new technology. Next, by also examining the optimal government subsidy policy subject to a budget constraint, we find that the optimal government subsidy policy depends on both the government's objective function and the amount of the budget. Specifically, when the budget is low, both investment subsidy and usage subsidy are equally effective in improving market penetration, consumer surplus, firm profit, and social welfare. However, when the budget is high, it is optimal for the government to offer investment subsidy only to maximize the market penetration of the new technology; while it is optimal for the government to offer usage subsidy only to maximize consumer surplus or social welfare. Our results can serve as guidelines for the government when designing the optimal subsidy programs to achieve different goals associated with new technology promotion.

Evaluation of Factors That Affect Venture Capital Investment: Evidence from India

India has become one of the major recipients of venture capital (VC) in the last decade. It is important to understand if the factors that have played an important role in influencing the VC investment in developed countries are of relevance in the context of developing countries as well. The purpose of the study is to explore the various dimensions of VC investments in India with respect to factors such as industry of investment, stage of investment, round of investment, stake acquired, geographical location, syndication, investor type, etc. and their impact on the amount of investment. A descriptive and empirical research has been carried out using VC investment deals in India during the period from 1st January, 2004 to 31st October, 2016. It is found that the amount of investment by a VC fund in an undertaking is primarily influenced by the stage of investment and the stake acquired. Investor type and industry are also found to have a significant effect on the funding amount. While economic growth and market index are found to have a very small effect on the amount of VC funding, geographical location and syndication donot seem to have any effect on the amount invested.

A SURVEY OF THE HOLD‐UP PROBLEM IN THE EXPERIMENTAL ECONOMICS LITERATURE

AbstractThis paper reviews experimental studies on the so‐called “hold‐up problem.” Common features in the experimental design and results are summarized. Most experimental studies show evidence of the hold‐up problem, but to an extent less severe than what standard self‐interest model predicts. Hold‐up occurs at the individual level, but exhibits a less severe pattern than theoretically predicted at the aggregate level. A positive correlation is found between the investment stage decisions and subsequent bargaining behavior. Social preferences largely influence the results in hold‐up games. Remedies that enhance the effect of social preferences can effectively alleviate the hold‐up problem. These laboratory findings are also relevant to real‐life hold‐up situations, but differences in the specific institution and environment may require more variations in the experimental design.

ESG risks Management in Commercial Organizations

The study subject of this paper is the identification of changes in public perception of environmental problems, social and corporate governance issues, and the risks arising from its. The goal is going to be finding ways to manage these risks. The research’s methodology envisages a consistent analysis of impact of the amended approaches of society on the basic aspects of companies’ activities, starting from the investment stage, with definition of qualitative and quantitative parameters of the likely risks and benefits associated with the introduction of sustainable development principles by commercial organizations. The result of the study is identification a degree of impact of acceptance of importance or refusal of management of the specified risks on companies’ financial result and its value for shareholders and investors. It is substantiated that nowadays the motivation of investors is determined not only by financial performance of the company, but also by its efforts to comply with the changed ideas of state and society about interaction of the economy and the environment, relations between people. Recommendations are formulated for companies to manage these risks, which are important for all sectors of the economy.

A real estate portfolio management risk assessment framework for nonlisted real estate funds in India

PurposeThis study provides an extensive risk assessment framework for nonlisted real estate funds' (NREFs) portfolio management in India across their life cycle; that is, the investment stage, the monitoring stage and the exit stage in an emerging market context. The study of risk across these three stages is a new addition to the literature and assumes importance in the context of real estate portfolio management for NREFs in the emerging markets (e.g. India), which are predominantly an opportunistic investment play.Design/methodology/approachThe risk assessment framework is built on the multiactor/multicriteria risk priorities, using analytical hierarchy process (AHP), obtained from 35 experts in four real estate fund management professional groups; namely, investors/fund managers, valuers, consultants and international developers.FindingsThe results demonstrate that the real estate portfolio management risk priorities change across the three life cycle stages of the fund. At the investment stage, specific risks are most critical; at the monitoring stage, it is important to concentrate on all three risks – specific, systematic and management risks; and at the exit stage, systematic risk plays a crucial role. Real estate portfolio management risk evaluation at the subfactor level shows that investee/partner and location selection needs to be critically evaluated at the time of the investment; project execution and quality of development must be monitored during the construction/monitoring period; and repatriation of the funds, currency volatility and exit risk (resale) are critical at the exit stage of the fund.Practical implicationsThe understanding of the real estate portfolio management risk transformation across the life cycle stages is crucial for NREF managers for risk minimization, transfer and mitigation strategy formulation in their real estate portfolios. Unlike previous research that evaluates investment risk, this study breaks the NREF's risks into the investment, monitoring and exit stages. The key risk factors for each stage depend on the NREF's real estate activities for that stage. These activities, in turn, give rise to a typical risk profile for that stage. The findings are crucial for the various stakeholders of real estate fund management and policymakers in an emerging market context; particularly India, one of the fastest growing major economies in the world.Originality/valueThis risk assessment framework for simultaneously assessing risk across the three life cycle stages of NREFs is a new addition to the literature.