Investment Choices Research Articles

Bus fleet decarbonization under macroeconomic and technological uncertainties: A real options approach to support decision-making

Fleet owners deal with various and critical uncertainties while planning bus fleet replacement, encompassing macroeconomic and technological factors, such as fuel and electricity prices, energy consumption, purchasing costs of electric batteries and powertrains, and bus salvage value upon resale. This paper proposes a Real Option-based framework to evaluate investment choices in different bus technologies over time (diesel, hybrid electric, compressed natural gas, and full-electric), where the proposed options usually involve replacing existing diesel fleets with alternatively powered buses. In particular, we provide a multi-option least squares Monte Carlo simulation to help fleet owners in making cost-effective investment decisions, resulting in potential cost savings of up to 10% of the annual total cost of ownership. By applying the proposed approach to different bus route types (inner-city, urban, suburban, commuter), the results show how the optimal investment choices for fleet replacement change over time. Initially, diesel buses or, at most, compressed natural gas buses are more cost-effective compared to electric technology. However, as electric technology becomes increasingly competitive, internal combustion buses are phased out. Inner-city and urban routes are better suited for the electric transition, whereas the transition may progress more slowly on other route types.Finally, we show that, under technological and macroeconomic uncertainties, the duration of contracts can strongly affect the investment decisions, in absence of specific guarantees on the new fleet.

Cryptocurrency investment: Evidence of financial literacy, experience, and risk tolerance

The growing popularity of cryptocurrency as an investment choice among millennials demonstrates their inclination toward digital advancements and openness to exploring diverse investment opportunities. The study examines how financial literacy factors impact experience regret, investment decisions, and risk tolerance, while financial literacy also affects investment decisions, with experience regret and risk tolerance acting as a mediator. The study comprises 295 participants from the millennial demographic in Indonesia who are engaged in cryptocurrency investment. The data collection techniques employed in this study involve non-probability sampling methods through the distribution of questionnaires. The analysis in this study employs Structural Equation Modeling (SEM) in conjunction with Partial Least Squares (PLS) analysis tools. The results of this study suggest that financial literacy positively impacts regret experience, investment decisions, and risk tolerance with the respective sample values of 0.146, 0.397 and 0.449. Additionally, regret experience negatively influences investment decisions with a sample value of –0.385, while risk tolerance positively influences investment decisions with a sample value of 0.198. Financial literacy has a negative impact on investment decisions when regret experience acts as a mediator with a sample value of –0.056, but a positive impact when risk tolerance serves as a mediator with a sample value of 0.089. This complex relationship highlights the importance of considering multiple factors, including financial literacy, regret experience, and risk tolerance, in understanding and predicting investment decisions among individuals, particularly in the context of the millennial generation investing in cryptocurrency in Indonesia.

The nexus between financial literacy, risk perception and investment decisions: Evidence from Indonesian investors

Financial literacy is an essential factor for individuals or households in making investment decisions. However, the problem of insufficient financial literacy is still considered one of the factors limiting the creation of successful investments, especially in relation to risk perception. Some investors have financial losses due to their limited financial literacy, making inefficient investment decisions and implicating high-risk investment choices. Hence, this study aims to explore the interconnection between financial literacy, risk perception and investment decisions. Moderated regression analysis was used for 233 investors in Indonesia who completed financial management training. The results showed that financial literacy has a positive and significant impact on investment decisions, which means that it could be used to improve the quality of investment decisions. On the other hand, risk perception as a moderating variable weakened the impact of financial literacy on investment decisions; this confirmed the consistent results before and after financial training. Overall, financial literacy across three dimensions (knowledge, skills, and attitude) plays an important role in investors allocating more funds to investment instruments than respondent groups with lower financial literacy levels. In addition, the level of financial literacy also influences the choice of investment product.

Data-Driven Price Trends Prediction of Ethereum: A Hybrid Machine Learning and Signal Processing Approach

Due to the recent fluctuations in cryptocurrency prices, Ethereum has gained recognition as an investment asset. Given its volatile nature, there is a significant demand for accurate predictions to guide investment choices. This paper examines the most influential features of the daily price trends of Ethereum using a novel approach that combines the Random Forest classifier and the ReliefF method. Integrating the Adaptive Neuro-Fuzzy Inference System (ANFIS) and Short-Time Fourier Transform (STFT) resulted in high accuracy and performance metrics for Ethereum price trend predictions. This method stands out from prior research, primarily based on time series analysis, by enhancing pattern recognition across time and frequency domains. This adaptability leads to better prediction capabilities with accuracy reaching 76.56% in a highly chaotic market such as cryptocurrency. The STFT's ability to reveal cyclical trends in Ethereum's price provides valuable insights for the ANFIS model, leading to more precise predictions and addressing a notable gap in cryptocurrency research. Hence, compared to models in literature such as Gradient Boosting, Long Short-Term Memory, Random Forest, and Extreme Gradient Boosting, the proposed model adapts to complex data patterns and captures intricate non-linear relationships, making it well-suited for cryptocurrency prediction.

A Research Study on Promoting Investment Awareness and Identifying Optimal Investment Choices Regarding Investor Opportunities

Individuals seek a secure and prosperous life, recognizing the role of financial resources in enhancing their appeal. As a result, they engage in various investment opportunities, viewing investment as the allocation of funds in anticipation of future positive returns. This research aims to explore the level of investment awareness among investors, focusing on understanding investment options and making informed decisions for optimal investment strategies.

Empirical Analysis of Portfolio Allocation During Market Turbulence Based on Efficient Frontier

The global financial markets have experienced considerable turmoil due to the COVID-19 pandemic, in this context, portfolio management becomes critically important. This paper employs Monte Carlo Simulation to determine Efficient Frontier of a portfolio comprising fourteen US technology stocks in the period of COVID-19 pandemic by python, which also allocates portfolios for Minimum Volatility and Maximum Sharpe Ratio, along with their key parameters. According to this study, Maximum Sharpe Ratio portfolio outperforms Minimum Volatility portfolio in terms of cumulative return. However, its important to note that Maximum Sharpe Ratio portfolio also experiences a greater maximum drawdown. Additionally, this paper visually depicts the optimal allocation of asset weights across different levels of risk aversion using a chart. Furthermore, it identifies NVDA as the optimal choice for investors who have low degree of risk-aversion due to its high volatility and expected return. Conversely, IBM and CSCO emerge as the preferred choices for risk-averse investors, as they effectively mitigate the portfolios entire risk.

FTSE 100 Index Linked Structured Financial Product Pricing Analysis

Since facing widespread skepticism after the 2008 economic crisis, nowadays structured products have gradually become the preferred investment choice for individual consumers, driven by the development of technology and economy. This study analyzes the price of the two most recent structured products offered by Lowes, which closely resemble the FTSE 100 index. It focuses on analyzing the differences in predicted returns resulting from modest structural changes and explores the best solutions for different time periods. The variability is determined by combining historical variability with the GARCH model, based on the principle of Risk Neutral Pricing Theory. The final result is acquired by the application of the Monte Carlo simulation method. Based on the trial results, product B has a greater yield rate compared to product A, although being more conditional. This compensates for the shortage and resulting in a much higher yield rate for product B. Furthermore, based on the findings on the projected output of various investment goods over different time periods, it can be observed that as the length increases, the anticipated return also increases. Ultimately, the sensitivity analysis reveals that the primary source of product risk stems from the impact of risk-free yields on this particular product.

Effect of Investment Decisions on Efficiency of Deposit Taking Savings and Credit Cooperative Societies in Nairobi County, Kenya

With growing competition globally, SACCOs are directing their energies on investments to enhance their efficiency and so as to survive extreme competition. However, the decision to invest is subjective and a wrong investment decision can lead companies even to bankruptcy. Investment choices can also be made in compliance with the conditions in the markets, the portfolio level divergence, the results of fundamental and technical analysis, along with what the investors and managers expect and prefer. This study’s intent was to determine how investment decisions impact the efficiency of deposit taking SACCOs in Nairobi. The study’s population was all the 43 DT-SACCOs in Nairobi County, Kenya. The independent variable for the study was investment decisions with four measures; investment in real estate, investment in government securities, investment in fixed deposit and investment in shares. The control variables were liquidity, firm size and liquidity. Firm efficiency was the response variable which was the primary focus of the study. The study utilized secondary data from 2014 to 2018 (5 years) on annual basis. A descriptive cross-sectional design together with the multiple linear regression model were used for the analysis of the variables. For this analysis the researcher used the SPSS version 21 software. The findings gave an R-square value of 0.317 meaning that 31.7 percent changes in the efficiency of DT-SACCOs in Nairobi, Kenya can be attributed to the seven selected predictor variables while 68.3 percent changes of efficiency of DT-SACCOs was attributable to other factors outside the scope of the study. It was further revealed that the predictor variables showed a strong correlation with efficiency (R=0.563). ANOVA results show that the F statistic was substantial at 5% level with a p=0.000. This shows the model was suitable for the study to provide an explanation of the variables. The results also showed that investment in real estate, investment in government securities and investment in shares produced positive and statistically substantial values for this study while investment in fixed deposits, liquidity, firm size and age were found to be statistically insignificant determiners of efficiency. This study recommends that measures should be put in place to enhance investment in government securities, real estate and shares as these three have a substantial influence on efficiency of DT-SACCOs in Nairobi. Keywords: Investment decisions, firm efficiency, liquidity, firm size, firm age

Impact of Psychological Factors on Investment Decisions in Nepalese Share Market: A Mediating Role of Financial Literacy

The Nepalese stock market is characterized by emerging market dynamics and notable volatility. It is influenced by factors such as regulatory developments, economic conditions, and investor sentiment, shaping its growth trajectory and investor behavior. This study examines the influence of psychological factors on investment decisions within the Nepalese share market, emphasizing the mediating role of financial literacy. To achieve the stated objective, data were collected from the primary source using a structured questionnaire administered through random sampling technique. The respondents comprised 410 individual investors inside the Kathmandu Valley. The SmartPLS 4.0 was used to analyze the structural relationships within the proposed theoretical model. The findings of this study validated the set hypotheses that psychological factors have positive and significant effect on investment decisions among the investors in Nepalese share market. In the context of Nepal, where the share market is characterized by volatility and emerging market dynamics, these psychological biases often lead to suboptimal investment choices. Findings indicate that investors with higher financial literacy levels are better equipped to mitigate the adverse effects of psychological biases, leading to more rational and informed investment decisions. The study highlights the critical need for enhanced financial education programs to empower investors and improve overall market efficiency. By understanding the interplay between psychological factors and financial literacy, policymakers and financial institutions can develop targeted strategies to foster a more stable and resilient investment environment in Nepal.

The Influence of Earning Per Share (EPS) and Price Earnings Ratio (PER) on Stock Prices in the Food and Beverage Sector on the Indonesian Stock Exchange (BEI) for the 2015-2019 Period

The objective of this study is to examine the impact of earnings per Share (EPS) and Price Earnings Ratio (PER) on the stock prices of companies in the food and beverage industry listed on the Indonesia Stock Exchange (BEI) from 2015 to 2019. EPS is utilized as a metric to gauge the profitability of each share, whereas PER characterizes the market's assessment of the earnings generated per share. The research employed a descriptive verification analysis method, utilizing a sample of seven prominent organizations within the researched sector.The data utilized is derived from the yearly financial reports of each company, specifically secondary data. The investigation employed multiple regression approaches to examine the hypothesis regarding the impact of EPS and PER on stock prices. The test utilizes the coefficient of determination to ascertain the extent to which the regression model can account for the fluctuations in stock prices.The research findings indicate a substantial correlation between EPS (Earnings Per Share), PER (Price Earnings Ratio), and firm share prices within the food and beverage industry on the IDX (Indonesia Stock Exchange). The R^2 value of 0.753 suggests that 75.3% of the changes in stock prices can be accounted for by the independent variables, EPS and PER. In this industry, share prices are primarily influenced by the profitability per share and market valuation.In addition, this study emphasizes that additional variables not investigated in this research can significantly impact stock prices, including macroeconomic conditions, market sentiment, government regulations, and other external factors. Stable macroeconomic conditions can lead to more favorable circumstances for increased stock values, whereas government policy or market sentiment alterations can profoundly influence a company's stock performance.The recommendations derived from this study are intended for investors and corporate executives operating in the food and beverage industry on the IDX. Investors are advised to consider the earnings per share (EPS) and price-to-earnings ratio (PER) components of their fundamental analysis to make better-informed investment choices. It is recommended that companies prioritize enhancing their financial performance and ensuring openness in their financial reporting to boost market trust and raise the value of their shares.Subsequent investigations might broaden the range by including supplementary variables like Dividend Yield or Return on Equity (ROE) while doing a more extensive analysis of qualitative elements that impact market perceptions of EPS and PER. This research contributes to understanding the factors that impact share prices in the Indonesian capital market, particularly within the food and beverage industry.

A Financial Analysis and Valuation of Electric Vehicle Companies

This paper examines the electric vehicle (EV) industry, with a particular focus on Tesla, NIO, and BYD. Tesla is a leading player thanks to its efficient operations and diverse product lineup, making it a preferred choice for investors. NIO, despite having a wide range of products, faces profitability challenges, which may discourage investors. BYD impresses with its consistent profitability and significant market share in China. Financial metrics such as net profit margin, operating margin, and asset turnover are analyzed to assess the performance and appeal of each company to investors. Tesla's operational efficiency, demonstrated by its strategically located Superfactories in major markets, reinforces its industry leadership. Its diverse product range and global market reach inspire investor confidence. On the other hand, NIO grapples with negative profit margins and limited production capacity, lessening its appeal to investors. BYD's steady profitability and considerable market share in China enhance investor confidence. Despite intense competition and market volatility, all three companies are poised to capitalize on the growing demand for EVs, driven by global sustainability efforts. In conclusion, Tesla and BYD appear as appealing investment prospects due to their profitability and market dominance, while NIO struggles to attract investors. Tesla's innovative production strategies and extensive market reach place it at the forefront of the EV industry, likely drawing more investors in the future.

The Importance of Green Investments in Developed Economies—MCDM Models for Achieving Adequate Green Investments

Green investments help to create less harmful alternatives and adequate funds that contribute to economic growth, sustainable development, and social well-being. The paper aims to evaluate decision making on the choice of green investments based on multi-criteria decision making (MCDM). The applied methods are empirical and analytical based on the study of the literature, multi-criteria modeling, the determination of weights, and the ranking of criteria in deciding the green investment mapping of indicators, and mapping the indicators. The research used groups of indicators that reflect the main characteristics of green growth from the OECD database. The idea is to decide on the best green investment based on green growth criteria, which consist of grouped indicators according to the areas of the green economy rather than according to their values. The results of the Analytical Hierarchy Process (AHP method) showed that half of the investments in the green economy come from public sources (0.51) and the other half are private (0.25) and institutional investors (0.24), while the Best/Worst Method (BWM) revealed that the best criterion for the decision to invest in the green economy is the environmental and resource productivity of the economy, and the worst is the base of natural assets. This paper aims to enable decision-makers to use these results as weights for the overall assessment of green investments in ESG and to simplify the decision-making approach in future analyses.

Impact of Systematic Investment Plans (SIP) Awareness on the Investment Decision of Information Technology (IT) Employees in Bengaluru City

The mutual fund industry in India is experiencing rapid expansion and is considered to be one of the most rapidly growing sectors within the nation's economy. Furthermore, it possesses significant prospects for sustained and substantial development in the long run. Mutual funds, along with their diverse range of instruments including systematic investment plans (SIPs), equity funds, debt funds, and hybrid fund instruments, have made a substantial contribution to economic growth in both the corporate sector and among individuals over the past decade. The current study focuses on the Systematic Investment Plan (SIP), which has emerged as a feasible alternative investment strategy for numerous investors aiming to achieve substantial returns while mitigating risk through incremental investments. The utilization of these funds facilitates the ease, availability, and affordability of saving and investing. The systematic investment plan (SIP) offers several advantages, such as professional management, diversification, diversity, liquidity, affordability, comfort, and ease of record keeping. Additionally, SIP is subject to stringent government regulation and ensures complete transparency. The current study has examined various variables related to investment and the factors that investors consider when selecting a Systematic Investment Plan. The objective of this study is to examine the level of awareness of systematic investment plans (SIP) among information technology (IT) employees and investigate the influence of demographic variables on their engagement in such investment plans. The primary objective of this study is to examine the influence of systematic investment plan (SIP) awareness on individuals' investment choices. The primary objective of this study is to examine the viability of Systematic Investment Plans (SIPs) in the Indian context, while considering the various issues, intricacies, and factors involved. Additionally, the study aims to propose strategies and approaches to effectively address the challenges associated with developing mutual funds in alignment with the economic growth potential of the country. The present study utilizes primary data obtained from a sample of 112 information technology employees located in Bangalore. The data was analyzed using SPSS version 25. The findings of the study indicate that IT employees possess awareness regarding SIP funds, albeit with a restricted comprehension of the structural and operational aspects of SIP investments. The choice to allocate funds towards Systematic Investment Plan (SIP) investments is notably impacted by variables such as age, income level, and educational attainment. The level of awareness regarding SIP (Systematic Investment Plan) has a significant impact on investment decision-making, as evidenced by a substantially high proportion. There exists a necessity to enhance awareness and facilitate the dissemination of information regarding SIP (Systematic Investment Plan) and its potential advantages.

Analysis of Investment Choices of Consumer Cyclical Sector in US

Analysis of Investment Choices of Consumer Cyclical Sector in US

Investment Willingness and Behavior Choice of the Middle-Class Families in China in the Future

Based on the survey data of the middle-class families from 20 cities in China, this paper discusses the investment willingness and behavior choice of the middle-class families in China in the future four years by means of mathematical statistics analysis. The study found that within 1 to 12 months in the future, the middle-class families will have a positive desire to invest inside the region (province). Within 12 to 24 months in the future, the middle-class families will have a strong desire to invest outside the region (province). On the other hand, in the future four years, the investment choices of the middle-class families will also change. Real estate investment, health investment, education & training will become the main investment mode of the middle-class families. The investment in high-risk financial products will be the choice of some middle-class families.

The Dynamics of Investor Sentiment Impacts in Equity Crowdfunding: Unveiling the When

AbstractExpanding upon the known impact of investor sentiment on crowdfunding contributions, we delve deeper to pinpoint specific conditions under which sentiment influences investor choices. Grounded in psychological theory, we assert that sentiment's influence thrives at the peak of investor attention, primarily on a campaign's first day and among projects with greater uncertainty. Our empirical study, based on 447 campaigns with 17,244 daily observations from the United Kingdom's Crowdcube platform, substantiates our claim. Our research enhances the comprehension of equity crowdfunding investors and provides practical insights for its proponents.

Investment choice of heavily polluting enterprises under green credit policy: Comparison between green and traditional paths

Green credit is an effective financial policy tool to promote green and low-carbon transformation. To analyze whether green credit constraints (GCC) can affect the investment decisions of heavily polluting enterprises (HPEs), this article studies the impact of GCC on green investment decisions of HPEs from 2013 to 2022. Based on the data of bank loan amount, interest rate and maturity of enterprises, this paper uses the entropy weight method to construct the bank loan constraint index of HPEs under green credit, and investigates the nonlinear effect of GCC on enterprises' green investment preference and its main mechanism. The results show that: (1) there is a U-shaped relationship between GCC and green investment ratio of HPEs. (2) Corporate R&D expenditure, financial asset investment, and investment term structure are the main influencing mechanisms. (3) Government environmental regulation and public environmental supervision play a positive and negative regulate role respectively. (4) The results of heterogeneity test show that green credit policy (GCP) is more significant in the eastern region, state-owned enterprises, electric power industry, chemical industry, and material industry. The research conclusions provide targeted suggestions for promoting the development of GCP and accelerating the green transformation of HPEs.

Role of Financial Literacy in Household Investment Decisions in Iraq

Purpose: The aim of the study was to assess the role of financial literacy in household investment decisions in Iraq. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study indicated that households with higher levels of financial literacy tend to make more informed and effective investment choices, which lead to better financial outcomes. These households are more likely to participate in financial markets, diversify their investments, and utilize a broader range of financial instruments, which helps in mitigating risks and enhancing returns. Financially literate individuals are also more adept at understanding complex financial products, assessing investment risks, and planning for long-term financial goals such as retirement. Conversely, a lack of financial literacy can result in poor financial decisions, leading to lower participation in the stock market, inadequate savings, and suboptimal investment portfolios. Thus, enhancing financial literacy is essential for empowering households to make sound investment decisions, ultimately contributing to greater financial stability and wealth accumulation. Implications to Theory, Practice and Policy: Behavioral finance theory, portfolio theory and agency theory may be used to anchor future studies on assessing the role of financial literacy in household investment decisions in Iraq. In terms of practical recommendations, developing and implementing targeted financial education programs is essential. These programs should focus on improving specific aspects of financial literacy relevant to investment decisions. From a policy perspective, advocating for policies that support the integration of financial literacy education into school curricula at all levels is essential.

A study on factors influencing the choice of investment w.r.to LIC of India

A study on factors influencing the choice of investment w.r.to LIC of India

Beyond market anomalies: How heuristics and perceived efficiency shape investor behavior in developing markets

Cognitive biases often influence investor behavior in developing capital markets, leading to market anomalies and affecting overall market efficiency. With the increasing integration of global financial markets and the growing participation of retail investors, understanding these biases is more critical than ever. While market anomalies have been extensively studied in developed markets, their influence in developing economies remains under-explored. This study aims to examine the impact of heuristic biases on investment decisions, focusing on Nepal’s stock market. Structural Equation Modeling is used to assess how perceived market efficiency mediates the relationship between heuristic biases and investor behavior. Data were collected from purposively selected 403 active individual investors in Nepal Stock Exchange (NEPSE). The findings reveal that representative and overconfidence biases significantly and positively influence investment decisions and market efficiency. Specifically, investors exhibiting these biases are more likely to make confident and bold investment choices, believing in their ability to predict market movements accurately. Furthermore, the study finds that perceived market efficiency mediates the relationship between anchoring and adjustment bias and investment decisions, suggesting that investors who rely heavily on initial information (anchors) adjust their decisions based on their perceptions of market efficiency. The results highlight the critical role of heuristic biases in shaping investor behavior and stress the importance of market efficiency in this process. The study emphasizes the need to enhance investor awareness of these biases and implement policies to improve market transparency and efficiency. Such measures are vital for mitigating risks and fostering a more robust and resilient financial market in developing economies like Nepal.