Group Of Investors Research Articles

Information Aggregation via Contracting

ABSTRACTWhen a group of investors with dispersed private information jointly invest in a risky project, how should they divide the project's profit? We show that a simple contract dividing profits in proportion to investors' risk tolerances may facilitate information aggregation by altering investors' risk‐taking incentives when they decide on how investment strategies respond to private information. Our results provide a contracting‐based approach for information aggregation, which is an alternative to learning from endogenous market variables (e.g., prices) via contingent schedules as seen in well‐known rational expectations equilibrium models.

Pengaruh Bias Perilaku terhadap Pengambilan Keputusan Irasional dengan Financial Literacy sebagai Pemoderasi

This study aims to examine the effect of status quo bias, regret aversion bias, loss aversion bias and availability bias on irrational investment decision making by investors in Malang City moderated by financial literacy. The number of respondents as many as 87 people came from a group of investors from several securities offices and community groups of Beginner Stock Investors (ISP) Malang City. This study uses moderated regression analysis as a test tool. The results of this study indicate that regret aversion bias and loss aversion bias have a positive effect on irrational investment decision making, while the status quo bias and availability bias have no effect on irrational investment decision making. The moderating variable of financial literacy weakens the effect of availability bias on irrational investment decision making, but does not weaken the effect of status quo bias, regret aversion bias, and loss aversion bias on irrational investment decision making.

From homes to assets: Transcalar territorial networks and the financialization of build to rent in Greater Manchester

Over the last decade, Greater Manchester's city-regional centre has become an important site for build to rent (BTR) housing development in the UK. The growth of this new tenure raises important empirical and conceptual questions about how far and through what means BTR has extended in post-industrial cities like Manchester, as well as how to theorise the global–local relations involved in BTR development. Drawing on a self-built database of 155 development projects incorporating 45,069 new housing units, we show that new-build BTR units have outpaced ‘build to sell’ (BTS) units almost two to one in Manchester's city-regional centre since 2012. We also found stronger international investment in BTR relative to BTS, illustrating BTR's more globalised and financialised form. Our paper understands BTR growth in Manchester as the outcome of a transcalar territorial network – an assemblage of national policy objectives, local state actors’ urban regeneration activity and heterogenous global investor groups with different priorities all seeking a return. We highlight the important role of national and local state subsidies and local authority joint ventures in constructing a territory conducive for BTR investment in Manchester. We also show how the fungibility of BTR assets as a ‘networked product’ widens the investment appeal of the tenure type, broadening and deepening housing financialization.

An efficient numerical method for the robust optimal investment problem with general utility functions

The investment utility among a group of investors may have big differences. Therefore, a critical issue for portfolio managers is how to construct a investment strategy that can satisfy the heterogeneous utility functions of different investors. In this paper, we propose a robust investment strategy under general utility functions. By using dynamic programming method, we obtain an efficient numerical method to compute the value function and the optimal strategy for the HJB equation. This approach overcomes the difficulty in finding analytic solutions for general utility functions. Numerical tests are performed to demonstrate the efficiency and accuracy of the method. The numerical results strongly support our proposed scheme.

Вплив використання об’єктів ЮНЕСКО в туристичних цілях на соціально-економічне середовище регіону

The article studies the interrelation between UNESCO objects and the level of socioeconomic development of the regions of their location, as well as the peculiarities of investing in UNESCO objects; the aspects of positive and negative impact of new technologies and innovations used in the field of tourism demand on the objects of world cultural and natural significance are determined. The basic principles and mechanisms by which the use of objects of cultural and natural heritage for tourism purposes has a significant impact on the economy of the regions of their deployment are provided. The sources and areas of activity that produce profit under the influence of the use of UNESCO objects for tourism purposes are determined. Through the interrelation of all indicators, levers of the highest and lowest values are found, taking into account the dynamics of indicators depending on the object of study. The role of marketing and marketing strategy in the activities of tourist sites under UNESCO protection is specified, and an algorithm for applying and developing a marketing strategy for such objects is provided. The investment block in the sphere of tourism in relation to UNESCO objects is considered, groups of investors and investment spheres are formulated; the efficiency of investing in the most famous objects of world cultural, historical and natural significance is computed. The congruousness and areas of influence of the use of the latest technologies and developments in the tourism sector at UNESCO sites, their integration into the process of interaction of tourist objects with tourists, including objects of world cultural, historical and natural significance, are identified, both the positive and the negative elements of such integration in the context of their economic significance are allocated. According to the results of the carried out study, it is defined that objects of the World cultural, historical and natural heritage play an important role in the development of tourism and contribute to increasing the profitability of the tourism industry and its positive impact on the socioeconomic situation of the region. The topic of further research in this direction is the study of the efficiency of existing systems for the protection of UNESCO objects in the context of involving the results of technological inventions.

ОТДЕЛЬНЫЕ НАПРАВЛЕНИЯ РАЗВИТИЯ РЫНКА ДРАГОЦЕННЫХ АКТИВОВ КАК ФИНАНСОВОГО ИНСТИТУТА В АСПЕКТЕ ПОДДЕРЖКИ УСТОЙЧИВОГО ЭКОНОМИЧЕСКОГО РОСТА

In the article presented to the readers, some issues of the development of the precious assets market are considered. Such areas as investment coins made of precious metals, operations with natural and synthetic precious stones, transactions with precious nuggets, depersonalized metal accounts, digital currency introduced into circulation are briefly analyzed. It is shown that precious assets as a financial institution are becoming a factor in supporting sustainable economic growth, as is the digital currency being introduced, linked to the global gold exchange rate, and which, from the point of view of the Bank of Russia, also contributes to economic growth, which in relation to the precious asset market includes interest in long-term investments for various groups of investors.

Транспортна інфраструктура України як об’єкт інвестиційної привабливості в мінливих безпекових умовах

Restoration and development of transport infrastructure is an extremely important task. Considering this, the aim of the article is to analyze the status and identify the problems of investment in the activities of transport infrastructure enterprises in changing security conditions. The authors pay attention to the classification of transport infrastructure in order to highlight its diversity and interaction in order to emphasize the need to take into account the specifics of the activities of transport infrastructure enterprises when determining their investment attractiveness. The systemic problems of transport infrastructure and ways to relieve of them are identified. It is noted that in the last decade Ukraine has been actively working on the development of transport infrastructure with a focus on the European integration. The advantages of this process include standardization, increased investment, and enhanced competitiveness. However, there are also disadvantages, such as financial costs, insufficient structural changes, and somewhat slow adaptation to new requirements, which can cause internal difficulties and disputes. Emphasis is placed on the unevenness of investments in this industry due to the specifics of the activities of transport infrastructure enterprises. It is determined that attracting investment during the war is a difficult task due to uncertainty and risks for business. However, with the right strategy and the right use of opportunities, investments can be attracted even in such conditions. It is indicated that it is necessary to choose the optimal methodology for determining the investment attractiveness of transport infrastructure enterprises under modern conditions. An analysis of the main methods for determining investment attractiveness is carried out, their advantages and disadvantages have been specified. Groups of investors with different interests and expectations from investments are defined. The main factors that determine the investment attractiveness of transport infrastructure in changing security conditions have been identified. Most of all, this infrastructure is affected by the level of security and stability of a country or region. This is followed by legal stability, infrastructure potential, economic sustainability, innovation in technology, logistics efficiency, ecological aspects, and the geopolitical situation. Considering the interaction of these factors, a comprehensive assessment of the attractiveness for investment in transport infrastructure can be provided. All these factors should be taken into account in the formation of an integral indicator of investment attractiveness of transport infrastructure enterprises.

Specificity of Decentralized Autonomous Organizations as the Implementation of Blockchain Technology

Decentralized Autonomous Organization (DAO) is a new form of organization, the innovation of which consists in the use of blockchain technology to record the applicable rules governing the project as well as the rights and obligations of its members, usually investors. Moreover, the method of financing the project is also new here, since tokens (cryptocurrency), which are acquired by investors for the capital contributed, are most frequently used. Management in DAO is previously unheard of (until the creation of DAO-2016), since there are no governing bodies, and all decisions are made by the voting of all members of the organization. In the article, an attempt is made to assess the DAO management process, having previously analyzed blockchain technology and the specificity of this new form of organization. The own research was conducted on a selected DAO project, when analyzing the management process implemented by voting by the members of this organization from its launch (May 2022) to 11 May 2023. The obtained results confirmed the dominance of majority shareholders in DAO votes, although the method of voting (Qudratic voting) used in the project under study to protect the rights of small shareholders significantly reduced this impact. The unusual unanimity of decision-makers was also noted (as much as 65% of unanimous votes), which, as it turned out, could be the result of information campaigns conducted before each vote by groups of small investors deeply involved in the project. These activities should also translate into the accuracy of the decisions made, and thus the quality of the DAO management process.

ПАРАМЕТРИ ЕКОНОМІКО-МАТЕМАТИЧНОЇ МОДЕЛІ ПРОГНОЗУВАННЯ СПЕКУЛЯТИВНОГО ПОПИТУ НА МАЛОЦІННІ АКЦІЇ В УМОВАХ ІНФОРМАЦІЙНОГО СУСПІЛЬСТВА

In recent years, a phenomenon of extremely large changes in the price of shares of individual companies has been noticed on the securities market. The peculiarity of this phenomenon is that companies whose share prices have undergone large changes often did not have economic prerequisites for increasing the price, but rather on the contrary - all financial and economic indicators indicated a decrease in the profitability of companies, a growing debt burden, and a reduction in the customer base. But the availability of direct access to the securities market by a large group of unqualified individual investors and their ability to coordinate among themselves using social networks created the conditions under which a rapid change in price occurred. The study of the conditions of such a change and their inclusion in the economic-mathematical model is an urgent task.

Accelerating Vaccine Innovation for Emerging Infectious Diseases via Parallel Discovery

The COVID-19 pandemic has raised awareness about the global imperative to develop and stockpile vaccines against future outbreaks of emerging infectious diseases (EIDs). Prior to the pandemic, vaccine development for EIDs was stagnant, largely due to the lack of financial incentives for pharmaceutical firms to invest in vaccine research and development (R&D). This R&D requires significant capital investment, most notably in conducting clinical trials, but vaccines generate much less profit for pharmaceutical firms compared with other therapeutics in disease areas such as oncology. The portfolio approach of financing drug development has been proposed as a financial innovation to improve the risk/return trade-off of investment in drug development projects through the use of diversification and securitization. By investing in a sizable and well-diversified portfolio of novel drug candidates, and issuing equity and securitized debt based on this portfolio, the financial performance of such a biomedical “megafund” can attract a wider group of private-sector investors. To analyze the viability of the portfolio approach in expediting vaccine development against EIDs, we simulate the financial performance of a hypothetical vaccine megafund consisting of 120 messenger RNA (mRNA) vaccine candidates in the preclinical stage, which target 11 EIDs, including a hypothetical “disease X” that may be responsible for the next pandemic. We calibrate the simulation parameters with input from domain experts in mRNA technology and an extensive literature review and find that this vaccine portfolio will generate an average annualized return on investment of −6.0% per annum and a negative net present value of −$9.5 billion, despite the scientific advantages of mRNA technology and the financial benefits of diversification. We also show that clinical trial costs account for 94% of the total investment; vaccine manufacturing costs account for only 6%. The most important factor of the megafund’s financial performance is the price per vaccine dose. Other factors, such as the increased probability of success due to mRNA technology, the size of the megafund portfolio, and the possibility of conducting human challenge trials, do not significantly improve its financial performance. Our analysis indicates that continued collaboration between government agencies and the private sector will be necessary if the goal is to create a sustainable business model and robust vaccine ecosystem for addressing future pandemics.

Asset flow model for a homogeneous group of investors: High-frequency trading limit

Deterministic and stochastic asset flow models have been designed to study the effects of behavioral components on market dynamics. These models have been successful in explaining the mechanisms behind price overshoots, oscillations, reversals, liquidity- and value-induced market bubbles and oscillations, and flash crashes. While these models are originally nonlinear, we demonstrate here that, in the case of a market consisting of a homogeneous group of investors with identical trading sentiments, natural modifications of the response functions yield a version that can be represented by a linear dynamical system across the entire state space of the system. We show that this linear version exhibits all types of price behavior, just like the nonlinear version, while also having the benefit of being explicitly integrable even with time-varying parameters. We present a limiting case of the model that corresponds to fast trading, which is appropriate for modern electronic markets, and provide examples illustrating the differences in the response of the price to variability in the intrinsic value of shares or liquidity.

The economics of prepackaged bankruptcy

The economics of prepackaged bankruptcy

"Mr. Phonograph, Are You There?": Mechanical Failure and Technological Determinism, 1877-1900.

When Thomas Edison handed over his 1877 invention of the phonograph-the new sound recording technology-to a group of investors to market across the U.S, the company lacked the proper expertise, manufacturing, and supply networks to do so. This article traces one company's struggle in dealing with the recurring malfunction of exhibition phonographs, which impacted how audiences came to view the innovation. In doing so, the article revisits the issue of technological determinism as parsed by scholars such as Bruno Latour, Robert Heilbroner, Thomas Hughes, Donald MacKenzie, and Judy Wajcman. Investigating under what circumstances one innovation enjoys more (or less) autonomy vis-à-vis social forces, the case study suggests that scholars should make more granular assessments of how technology and society impact each other.

Factors influencing the behavior of young investors’ investment decisions: The emerging market analysis

The objective of this study is to examine the impact of financial literacy, locus of control, and technological advancement on the investment behavior of young investors when making decisions in the Purwokerto City of Indonesia Stock Investors group members. This study employs a quantitative methodology and questionnaire-based data collection techniques. Using a technique of purposive sampling on the population of 272 members of the Purwokerto City of Indonesia Stock Investors group, the sample for this study consisted of 105 individuals. The findings of statistical analysis of data utilizing multiple linear regressions show that financial literacy has a positive effect on investment decisions, locus of control has no effect on investment decisions, and technological advancement has a positive effect on investment decisions. With limitations such as the population only from one city of Indonesia, i.e., Purwokerto, this study contributes to advancing knowledge, particularly in financial accounting research, more specifically to evaluate factors affecting behavioral young investors in investment decision-making. Therefore, it is expected to benefit future research on a similar topic.

Interdependent Trading Behavior of Foreign and Local Investors: Evidence from the Colombo Stock Exchange

This study examines the interdependent trading behaviour of investors in foreign and local contexts with a particular reference to the Colombo Stock Exchange (CSE) of Sri Lanka to fill up the gap in the local literature regarding behavioural aspects and independence among foreign and local investors within their investment policies, procedures, and actions. Based on secondary data collected from a statistical sample drawn from daily trading statistics of CSE, covering both buying and selling actions of local and foreign investors for the period from 2007 to 2019, this study has examined the nature of four main investor groups namely foreign institutions, foreign individuals, domestic institutions, and domestic individuals in terms of daily purchases turnover, sales turnover, share volume traded purchases, and share volume traded sales data. The results showed that the local investors are quite irrational concerning the foreign investors. Hence, foreign investors' interdependence on local investors' behavioural information is weak. Local investors also highly rely on their trading behavior instead of being vigilant about the trading behaviour of foreign investors.

Methods of classifying Tunisian investors into homogeneous groups

PurposeFinancial theory is based on the assumption of rationality of individuals. Defenders of behavioral finance recommend that the rationality hypothesis of efficiency theory is too narrow and irrelevant (Barberis and Thaler, 2002). The irrationality of the investor is reflected in his choice and his behaviour. However, his choice depends on the way the problem is formulated and described. The irrational investor does not think in terms of final wealth but rather in terms of gains and losses.Design/methodology/approachThis research is interested in the methods of classification of the investors in homogeneous groups. In the study, the classification method used to group individual in the sample is the dynamic aggregation method. However, to identify the number of groups to use in this method, the authors also used the hierarchical method on a sub-sample. Thus, to this end the authors present a topological analysis to test the hypothesis of the heterogeneity of Tunisian investor groups in terms of belief.FindingsThe results suggest that the majority of investors are quite irrational. Therefore, the Tunisian investor considers itself irrational because of the presence of several anomalies in its behavior.Originality/valueThis research proposes to help identify the variables that are truly determining in the process of interpreting information. The authors wish to formulate recommendations for the use of information, in order to help professionals and investors in the orientation of the investment strategy. In particular, the authors attempt to indicate the variables to which attention should be paid. In addition, behavioral financial analysis is useful for investors. Thus, taking into account certain irrational phenomena is important to make a decision. In addition, it allows to better identify the investor's own shortcomings and to detect certain negative trends.

GameStop or Game Just Started? Leveling the Playing Field for Social Media Meme Investors to Rebuild the Public’s Trust

Against the GameStop frenzy in 2021, this article defines meme investors as a new group of investors in financial markets while demonstrating meme investors’ regulatory and social implications. By comparing meme investors with traditional investors under the MiFID II regime, this article finds that meme investors are significantly less wealthy than traditional investors, trade via digital trading platforms, and rely on social media information for investment decision making. This article argues that the emergence of meme investors is an expression of the public’s desire for financial inclusion and their frustration with traditional financial institutions. Therefore, properly engaging with meme investors is crucial for rebuilding the public’s trust towards regulators. After illustrating meme investors’ exposure to default risks, legal uncertainty, and online misinformation, this article calls for regulators to engage with social media meme investors and improve financial literacy among the public.

Classifying responsible investors: Identifying clusters of Ontario investors

AbstractLittle empirical research has explored Canadian investors' interest in responsible investing. A variety of demographic and attitudinal characteristics can contribute to who makes ethical investments. Using a survey of 1,834 residents of Ontario, Canada three groups of investors are identified: those interested in responsible investments who actively avoid investing in some sectors, those interested in responsible investments who do not actively avoid any types of investments, and traditional investors that are not interested in responsible investing. Demographic and attitudinal variables that explain who falls into which group are explored.

Financial reports quality from the students perspective

For a market economy to function properly, it is essential that the information required by market participants is available in a timely manner and of the required quality. The quality of financial reporting usually comes to the fore when a corporate scandal results in significant damage to certain investor groups or other stakeholders. Accounting reports should be prepared and published in accordance with internationally accepted standards (IFRS) and/or accepted country-specific accounting principles (GAAP). However, these standards alone cannot determine the quality of the published accounts. A financial report can be defined as the product at the micro level when viewed in the context of a complex accounting system. Both theoretical and practical approaches suggest that the greatest responsibility in quality respect lies with those who carry out the accounting activity and with managers. This research seeks to answer the question of how accounting students in Hungarian higher education institutions perceive the quality of financial reporting as future managers and decision-makers. This was explored in a pilot study conducted in April 2022, in which 119 third-year undergraduate students answered the question. Our study is not representative, but it has a signaling value. They conclude that the students' approach is close to that of standard makers but differs in language and style. This conclusion may result from the different cultural, social, economic, linguistic, and educational contexts. The authors consider it essential that students consistently use and master accounting terminology during education, for which they primarily consider it necessary to employ professionals with theoretical knowledge and practical experience in accounting education.

The interconnectedness across risk appetite of distinct investor types in Borsa Istanbul

Purpose This study aims to investigate the interconnectedness across the risk appetite of distinct investor types in Borsa Istanbul. This study also examines the causal impact of global implied volatility indices on the risk appetite of these investor groups. Design/methodology/approach The authors use a novel time-varying frequency connectedness framework of Chatziantoniou et al. and a new time-varying Granger causality test with a recursive evolving procedure by Shi et al. over June 2008 and July 2022. Findings The results show a high level of interconnectedness across the risk appetite of different investor types. The sizable spillovers to domestic types of investors either occur from professional or foreign investors, indicating the long-term dominant effect of foreign and more qualified investors on the domestic investors in Borsa Istanbul. The authors provide significant evidence of causality from the global implied volatility to the Borsa Istanbul risk appetite indices, which are getting stronger after the COVID-19 outbreak. Originality/value Unlike the previous studies, the authors analyze the risk appetite sub-indices of various types of investors to reveal behavioral distinctions and interconnectedness across them. The authors use a novel econometric framework to assess investors’ risk appetite in different investment horizons in a time-varying system. Together with volatility index (VIX), the authors also use volatilities of oil (OVX), gold (GVZ) and currency (EVZ), considering the information transmission not only from stock markets but also energy, metals and currency markets. The present data set covers significant financial crises, socioeconomic events and the COVID-19 outbreak.