Decisions Of Investors Research Articles

The moderating role of key audit matters in the relationship between audit committee characteristics and audit report lag

The audit committee roles are essential to corporate governance because they are accountable in many aspects of financial governance. In order to understand the relationship between audit committee meeting (ACM) frequency, audit committee size (ACZ), and audit report lag (ARL) in Jordan, this study looked at the moderating effect of key audit matters (KAMs). A correlational research strategy was employed in the study. The data gathered from the 144 Jordanian enterprises for the period of 2016 to 2020 were disclosed in their published annual financial reports. The results show that, in terms of audit committee characteristics, there is no association between ARL and ACZ. Moreover, there is a non-significant relationship found between ACM and ARL. Furthermore, the outcome shows that KAMs and ARL are not significantly associated. On the connection between ACZ and ARL, however, the interaction impact of KAMs shows no moderating effect. Furthermore, the results show that the relationship between ACM and ARL is unaffected by the use of KAMs as a moderating variable. Given their influence on investor decisions, the study hereby advises businesses to pay close attention to the date of the external auditor’s report.

The impact of corporate surplus disclosure on financial reporting quality and its reflection in investor decisions: Evidence from Iraqi banks

The impact of corporate surplus disclosure on financial reporting quality and its reflection in investor decisions: Evidence from Iraqi banks

The impact of key audit matter characteristics on financial statement understandability and investor decision-making: An empirical stud

This study investigates how key audit matter (KAM) characteristics influence financial statement understandability and subsequent investor decision making. Using Structural Equation Modeling-Variance Based (SEM-VB) through Partial Least Squares (PLS), the analysis was conducted on a diverse global sample of investors from Europe, North America, Asia-Pacific, Africa, and Latin America. The results indicate that KAM accuracy, reliability, audit quality, and financial reporting quality significantly enhance perceived financial statement understandability, which in turn positively impacts investor judgments. The mediating role of understandability is confirmed, emphasizing its crucial influence on investors’ decisions. Additionally, an importance-performance map analysis (IPMA) identified KAM reliability and accuracy as the most critical factors. This study contributes to the theoretical and managerial understanding of audit practices and investor behavior.

Entrepreneur social networks and investor decision-making: an experimental study of investor choice and founder LinkedIn networks

Entrepreneur social networks and investor decision-making: an experimental study of investor choice and founder LinkedIn networks

Financial Market Information Disclosure and Investor Decision-making from the Perspective of the Development of the Times

Financial Market Information Disclosure and Investor Decision-making from the Perspective of the Development of the Times

РАЗВИТИЕ ИССЛЕДОВАНИЙ В СФЕРЕ РЫНКА НЕДВИЖИМОСТИ

The article analyzes in detail the dynamics and complexity of the real estate market with an emphasis on forecasting methodology and its practical application in an economic context. The main theme is the integration of various forecasting models that predict trends and fluctuations in real estate prices based on a multidisciplinary approach combining economic theory, statistical data and market analysis. First, the basic principles defining the real estate economy, its differences from other sectors in terms of market conditions and consumer behavior patterns are outlined. The importance of location and consumer characteristics in determining the value of the property is emphasized. It is explained how these factors distinguish the real estate market into a separate area of research. The challenges and imperfections of the real estate market, such as lack of competitiveness and inefficiency in comparison with finance, are shown. It is argued that these characteristics require complex predictive models to improve market efficiency and investor decisionmaking. In this context, various statistical and analytical tools that have been improved over the years to improve the accuracy of forecasts in the real estate market are discussed. Theoretical judgments are supplemented by examples and empirical data confirming the effectiveness of models in various economic conditions. The author advocates continuous innovative development and adaptation of forecasting techniques used to analyze the real estate market. The need for a multidisciplinary approach is emphasized, taking into account economic indicators, opinions of market participants and geopolitical factors in forecasts. This comprehensive strategy is presented as key to navigating the complexities of global real estate markets, taking advantage of investment opportunities in an everchanging economic environment.

VIABILIDADE ECONÔMICA DA CRIAÇÃO DE TILÁPIA Oreochromis niloticus EM TANQUES CIRCULARES DE FERROCIMENTO

Ferrocement technology has been widely disseminated in Brazil, mainly because it presents construction characteristics that allow great advantages with its use in fish production. The objective of this study was to economically evaluate the farming of Oreochromis niloticus tilapia in circular ferrocement tanks in a fish farm located in the Northeast region of Pará, using the Monte Carlo Method (MCM). The operating cost methodology and economic efficiency indicators were used to evaluate tilapia farming in the analyzed enterprise. Subsequently, a risk analysis using the MCM was carried out using the @RISK software for Excel 8.2.2, with the aim of verifying the success capacity of the enterprise in light of the economic analyzes foreseen for the fish farming under study. The Total Investment found was 158,438.70 BRL, Total Operating Cost (TOC) of 8.29/BRL/kg, the Net Present Value (NPV) of 74,255.15 BRL, Internal Rate of Return (IRR) of 25 %, Benefit-Cost Ratio (BCR) at 1.46 and finally, the Capital Return Period (CRP) of 1 year and 7 months. In the risk analysis, the probabilities of obtaining the values predicted in the project for the NPV, IRR, BCR and CRP were 36.3%, 46.2%, 51.7% and 60.7%, respectively. It was concluded that the venture is profitable, and the application of MCM in economic analysis can assist in investor decision-making.

The determinants of investment decisions: Evidence from Hanoi, Vietnam

The aim of the research is to identify the determinants of investment decisions of individual investors - the empirical evidence of Hanoi, Vietnam. Conducting a survey of 210 individual investors and using quantitative analysis through SPSS software, the research results showed that market stability and project profitability have the greatest impact on investment decisions. Research results also showed that corporate image and investor psychology have no impact on individual investment decisions. However, research results confirmed the positive impact of business growth on investment decisions, so growing businesses have many advantages for investors, so they have many opportunities to attract financial resources from investors to expand production and business.

An Empirical Assessment of Factors Impacting Stock Prices of Nepalese Commercial Banks

This study examines the impact of various financial variables on the pricing of commercial banks in Nepal. Key financial metrics analyzed include earnings per share, dividend yield, price-toearnings (P/E) ratio, earnings yield, book value per share, money supply, market-to-book value ratio, and stock return. The research highlights the importance of market financial ratios in the investment decisions of Nepalese investors. Using data from 10 out of 20 commercial banks listed on the Nepal Stock Exchange, spanning 110 yearly observations from fiscal years 2012/13 to 2022/23, multiple regression models were employed to determine the relationships between these factors. The findings reveal that earnings per share, dividend yield, P/E ratio, book value per share, money supply, market-to-book value ratio, and stock return are significantly positively correlated with the prices of commercial banks. Conversely, earnings yield shows a negative correlation. Despite the strong preference for price and profitability metrics, the study's limited sample size and focus on commercial banks may affect the generalizability of the results. This research provides critical insights, particularly emphasizing the importance of earnings per share, dividend yield, P/E ratio, and book value per share in guiding investors' financial decisions in Nepal. The findings are anticipated to benefit investors, scholars, policymakers, and other stakeholders by enhancing their understanding of the factors influencing stock prices in the Nepalese banking sector.

Procena prelivanja šokova sa tržišta nafte na tržište berza različitih industrijskih sektora u Americi - pristup kvantilnoj regresiji

The research problem of this paper examines the impact of Brent oil price shocks on stock returns of nine companies from the US market, operating in three different industrial sectors. The observation period covers 2015 to 2023. The research process involves determining the impact of shock transmission using a quantile regression approach. The results show that most of the evaluated quantile parameters are highly statistically significant, i.e. with more than 99% probability. The estimated quantile parameters have the property of being able to observe the spillover effects of shocks in different states of the economy, such as recession, normal state and expansion. The research results suggest that the spillover of shocks from the Brent oil market is most pronounced in the automotive industry sector, that is, in the companies that are most dependent on oil for energy. The significance of the research is reflected in the lack of existing research that deals with the impact of the most important commodity in the world on the prices of company shares with the application of this methodology, which is also a contribution to science. Finally, the results of this research are very relevant for making investment decisions for economic policy makers, investors and company management.

ТЕОРЕТИЧНІ АСПЕКТИ ВИКОРИСТАННЯ МЕТОДУ МОНТЕ-КАРЛО ДЛЯ МОДЕЛЮВАННЯ ОЦІНКИ ЕФЕКТИВНОСТІ ІНВЕСТИЦІЙНИХ ПРОЕКТІВ

This article is dedicated to the theoretical study of applying the Monte Carlo method for evaluating the efficiency of investment projects within enterprises. The author examines the principles and advantages of using this stochastic method in modeling economic parameters and project risks, as well as analyzing the method's capabilities in generating various scenarios for justifying investment decisions based on probabilistic calculations. The article explores methodological aspects of simulation modeling of investments, including the creation of applied mathematical models that simulation real economic processes and situations using pseudorandom numbers to generate random variables. This allows for the determination of potential financial outcomes of investment projects with varying degrees of risk and uncertainty. The historical development of the Monte Carlo method and its contemporary use in investment analysis are highlighted, emphasizing its significance in providing a deep understanding of variations in the initial data of investment projects. Particular attention is paid to the method's ability to adapt and account for uncertainty in complex investment scenarios, making it an indispensable tool for investment analysis. Efficiency indicators of investment projects, which are used to assess the economic benefits of investments, are analyzed. Key indicators include Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI). The Monte Carlo method is used to model the probabilities of various financial scenarios and influences the assessment of these indicators, providing a more detailed analysis of potential risks and returns from projects. The article emphasizes the importance of the Monte Carlo method as a foundation for developing new approaches to evaluating investment projects and managing risks. This contributes to a better understanding of how modern approaches to simulation modeling can affect the decisions of investors and managers, especially in situations where classical evaluation methods may be ineffective. Therefore, the application of the Monte Carlo method in modeling investment projects not only helps assess overall efficiency indicators but also allows for a detailed analysis of potential investment project risks, making it an indispensable tool in contemporary investment analysis.

Modeling the Effects of Volatility and Uncertainty in Psychological Errors on Collective Decision-Making of Investors in the Iranian Capital Market

Objective: The aim of the present study is to model the effects of volatility and uncertainty in psychological errors on the collective decision-making of investors in the Iranian capital market. Methodology: To test the hypotheses, a sample consisting of 204 companies from those listed on the Tehran Stock Exchange was selected using the systematic elimination method over a 5-year period from 2018 to 2022. The research data were collected on a monthly basis with a panel data approach and were analyzed using three multiple linear regression models. These models were calculated using the Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) and Threshold Generalized Autoregressive Conditional Heteroskedasticity (TGARCH) methods, with the help of Excel 2016 and Eviews13 software for statistical analysis. Findings: According to the results of the statistical tests of the research hypotheses, the volatility of the psychological error index and investors' trading behavior has a significant and negative impact on abnormal stock returns. Additionally, the volatility of the psychological error index has a significant and positive impact on the volume and frequency of abnormal stock trades. However, the volatility of investors' trading behavior has a significant and negative impact on the volume and frequency of abnormal stock trades. Conclusion: The results of the analysis of the EGARCH and TGARCH conditional heteroskedasticity models indicate asymmetry in the influence of collective investment decisions from past data and past volatility, which is consistent with the Prospect Theory that claims positive and negative returns have different effects on investor utility.

Effect of Segment Reporting Practice on Investors Decision Making: A Comparative Analysis of Nigeria and South Africa

Aim: Segment disclosure is expected to present essential information to meet the increased need of demand for published corporate disclosure of firms by stakeholders worldwide. This study examined the effect of Segment Reporting Practises on Investors’ Decision Making: A Comparative analysis of Nigeria and South Africa. Methodology: The research design was ex post facto. As of the end of 2023, the study’s population included 66 firms from the Johannesburg Stock Exchange and 46 multinational corporations listed on the Nigeria Exchange Group.15 businesses from each of the two stock exchanges were chosen using the purposive sampling method. Data were obtained from the audited annual reports of the companies from the period 2015 to 2022 and analyzed using Panel regression analysis. Results: Findings revealed that segment reporting practices have an insignificant effect on investors’ decision-making of multinational firms in Nigeria while on the decision-making of investors for multinational companies in South Africa, segment reporting practice can be argued to have a considerable impact.it can be said that segment reporting practice has a significant effect on investors’ decision-making of multinational firms in South Africa. Conclusion: This comprehensive panel regression analysis delved into the intricate relationship between segment reporting practice, leverage, firm size, and investors’ decision-making for multinational organisations in both Nigeria and South Africa. Recommendation: The findings offer nuanced insights into how these factors contribute to shaping investment decisions, as measured by share prices, in the respective countries. While the results vary between the two nations, they collectively underline the complexity of factors influencing investors’ choices and highlight the need for a tailored approach to decision-making frameworks.

AN An Empirical Review Of Behavioral Biases In Investment Decisions

The present study is to focus on the insights of investment behavior of investors in general. Investment analysis was performing from very long periods, but most of times analysis was proven wrong and investor couldn’t make fruits of their investment. The main reason for the failure of analysis is they focus on the different aspects of Economies and predict what happens in future but they neglect the capacity and failure of human brain while analyzing and processing the data. Here this research will focus on the different issues corresponding to the behavioral aspects which plays crucial role while investing the funds. Cognitive behavior of investors will create disadvantageous result of an investment. These behavioral issues are called Behavioral Biases. These biases influence an investor unknowingly to deviate from the actual analysis for choosing investment option. This research made to find such aspects to influence the investor decisions. The behavioral biases create chaos to the investors and guiding others to fear for Markets, hence market flies down trend. The Behavioral Biases includes Herding, Home bias, Over Confidence, Anchoring, Gambler Fallacy, Loss Aversion, Regrets and Mental Accounting and so on.

The Sectorial Analysis Of Moderating Effect Of Business Responsibility And Sustainability Reporting On The Financial Performance And Investor Reaction

Purpose – This paper attempts to provide significant information as an indicator of non-financial reporting. Business responsibility and sustainability reporting has gained less attention in pre-existing pieces of literature. The purpose of this study is to examine the relationship between financial performance and investor reaction in the four sectors. Further, the study has also aimed to identify the moderating role of business responsibility and sustainability reporting on financial performance and investor reaction in sectors. There are four sectors considered such as oil and gas industry, fast moving consumer goods sector, health sector and Information technology sector. Design/Methodology/Approach: This research is based on secondary data. Data was gathered from the company's annual report to analyze the financial performance and BRSR Report. Data on investor reaction gathered from the websites of NSE and BSE. Financial performance is independent variable in this study model. Financial performance consists of four dimensions return on equity, current ratio, debt-equity ratio, and earning per share. In addition, E-views have been adopted to apply regression on data to examine the relationship between variables. Findings: Findings revealed that financial performance has a significant and positive impact on investors. The study also demonstrates that all industries have positively impacted and supported results. Practical/Research Implications: This study has implications for investors who have been making investment decisions solely based on information about the firm's financial performance. Specifically, investors can understand the impact of sustainability reports while making an investment decision. Originality/ Value- This paper adds significant contribution to industry and investor decision making. India has contributed fewer documents in this research area. There is significant potential in India.

What’s important ... and for whom The importance of financial, environmental, social, and governance performance for investor decision-making

What’s important ... and for whom The importance of financial, environmental, social, and governance performance for investor decision-making

The Unintended Consequences of Audit Materiality Disclosures on Whistleblowing Intentions

SYNOPSIS Within the accounting profession, there exists disagreement about the merits of disclosing auditors’ materiality thresholds. Professional standards require materiality threshold disclosures in the United Kingdom and The Netherlands but not in the United States. Additionally, some audit firms, like PwC-Finland and PwC-Sweden, elect to disclose materiality voluntarily. Although disclosing materiality has been shown to benefit investor decision-making, prior research also suggests that client personnel may take advantage of the information to engage in earnings manipulations below the materiality threshold. We contribute to this debate by examining the influence of materiality disclosures on employee whistleblowing intentions. We conduct an experiment wherein we manipulate materiality threshold disclosure (absent or present) and earnings manipulation amount (above or below materiality). We find evidence that the disclosure of the materiality threshold significantly decreases whistleblowing intentions when earnings manipulation falls below materiality and has no effect on whistleblowing intentions for above-materiality earnings manipulation. Data Availability: The data are available from the authors.

Behavioral Finance: Several Key Effects of Investor Decision-Making

This paper examines the field of behavioral finance. First, a review of the behavioral finance literature will highlight the key findings and theories that have emerged in this field. Second, this paper will also discuss the practical applications of behavioral finance, including how it can be applied to improve investment decisions and reduce cognitive biases. Finally, several future research directions that may further advance the field of behavioral finance are analyzed, such as exploring the role of emotions in financial decision-making and examining the impact of social factors on investor behavior, pointing out shortcomings and making extensions to current research in this field. This paper will specifically analyze behavioral finance in terms of loss aversion, market anomalies, framing effect and endowment effect, revealing the psychological bias and cognitive bias of human beings in the process of financial decision-making, and providing new perspectives and methods for understanding the operating mechanism of the financial market and investment strategies.

Determinants of Stock Investment Decisions of Investor in Environmental Wetlands

This study aims to examine the determinants of investment decisions of stock investors in wetland environments. Investment is an activity of investing funds or capital in other parties, either directly or indirectly with the hope that the owner of the capital will get a number of benefits from the results of investing the funds or capital. There are several factors that influence investment decisions including financial literacy, Risk Perception, Financial Experience and Herding. This study uses a quantitative research approach. The population in this study are the investors in the Wetland Environment, with a sample of 122 investors who fit the predetermined criteria. The sample sampling technique in this study used non- probability sampling. The data that used in the study are primary data, with the data collection method in the form of a questionnaire distributed using google form. The data analysis technique uses multiple regression analysis by first conducting a validity test, reliability test, and classical assumption test. The results found that Financial Literacy, Financial Experience and Herding behaviour have a positive effect on Investment Decisions, while Risk Perception has no effect on investment decisions.

Influential Factors Shaping Investor Decision-Making in the Nepalese Stock Market

The study investigates factors influencing investors' decision-making in the Nepalese stock market. It uses a research design with primary data collected through a questionnaire. The study focuses on financial performance, brokers' recommendations, and informal information as key factors affecting investment decisions. The findings suggest that most investors analyze the market condition and prioritize financial performance, while informal sources have a weaker correlation. Some investors still rely on rumors for their decisions. The study contributes valuable insights to investor behavior and decision-making in the Nepalese stock market.