Local Investment Research Articles

Executive compensation: investor preferences during say-on-pay votes and the role of proxy voting advisers

AbstractShareholder say-on-pay voting allows institutional investors to influence the incentives of managers and, consequently, corporate behaviour. Surprisingly, the preferences of investors on executive compensation have been largely overlooked in the ongoing debates on the role of say-on-pay in corporate governance and the impact of shareholder stewardship on sustainable corporate behaviour. The analysis of investor disclosed explanations of say-on-pay votes in the FTSE 100 companies during 2013–2021 shows that institutional investors rely repeatedly on several dominant themes aimed at improving the incentives of corporate managers and controlling managerial rent extraction. But shareholder interests remain the core focus of say-on-pay votes, with only few investors demanding that companies reward executive directors for protecting the interests of a broader range of affected stakeholders. Additionally, most investors can be grouped into several clusters formed around the voting recommendations of proxy advisers. A group of UK-based institutional investors stands out by taking a more individualistic and diverse approach to the stewardship of executive compensation. These findings highlight the role of local investors in the oversight of executive pay, the growing influence of proxy advisers along with the increasing share of foreign institutional investors, and the influence of best practice governance codes in driving investor stewardship preferences.

A five-year case study analysis of USAID local governance programming and public investment spending in post-earthquake Haiti

In the aftermath of the 2010 Haiti earthquake, the central government operations were paralyzed, and municipal officials became even more important as they were more readily able to respond to their constituents’ needs during this time of crisis. The United States Agency for International Development’s (USAID) five-year post-earthquake Limyè ak Òganizasyon pou Kolektivite yo Ale Lwen (LOKAL+) program aimed to bolster the capacity of municipalities – beyond this disaster event – through revenue mobilization activities, within quake-affected and non-quake affected areas. The intended outcome of this effort was to improve local public service delivery throughout Haiti.Nearly all participating LOKAL+ municipalities experienced increased local revenue collection, particularly in property and business taxes, from 2012 through 2017. However, the impact of these increases on public investment spending was not evident even though this was a stated objective of the program. To evaluate whether public services improved in two of the nine LOKAL+ localities, due to USAID’s local revenue mobilization efforts, I employed a case study analysis using descriptive statistics, in-depth interviewing, and content analysis.The findings revealed modest public service improvements in one of the two case study sites. However, the political climate within which LOKAL+ was executed – mainly, the unlawful installation of interim executive agents throughout the country at the time – had an observed impact on the study’s findings. The implications of country-specific political economic realities on the timing of donor-led local governance efforts are underscored, as Haiti continues to navigate compounding political crises – including the assassination of the President in 2021 – since the end of the LOKAL+ program.

Analysis of the commercial eucalyptus plantation sector in Uruguay from a macroeconomic perspective

The Uruguayan forest sector has developed based on commercial pine and eucalyptus plantations. This process has been based on the installation of vertically integrated companies, with foreign capital and some local capital, investment funds and medium and small industries. In addition to these groups, there are contractor companies in which several of the activities of the primary sector are outsourced, as well as some of the industry. Investment attraction factors are diverse and related not only to productive conditions, e.g., growth rates, but also to institutional conditions, e.g., macroeconomic stability. With the development of the forest sector, there is currently a preponderance of eucalyptus plantations over pine plantations. This characteristic has implications in terms of the products to be obtained and, therefore, the industries to be developed, and the markets to be accessed. The presentation analyzes the evolution of the participation of the forest sector in Uruguay's macroeconomy, considering its share in the country's exports as well as in international trade, with emphasis on the products obtained from eucalyptus plantations. The scope and limitations of the available data for Uruguay are considered. Finally, the importance of including the value of ecosystem services provided by the forest in the traditional macroeconomic valuation is discussed. Results show that Uruguay has an important participation in non-coniferous wood markets. According to FAO data, in 2022, Uruguay's production ranked 8th among non-coniferous pulpwood producing countries, after Chile, up one place from the previous year. The same year Uruguay ranked 10th in terms of production of bleached wood pulp. Furthermore, it is expected that the wood pulp will increase with the new operations of the third pulp mill. Furthermore, cellulose pulp ranked 3rd among Uruguay's export products in 2022, after beef and soybeans, and 2nd in the previous year. The results of this research are of interest to potential investors in the Uruguayan forest sector as well as to policymakers. Potential investors in the Uruguayan forest sector may find insights into the industry's growth potential. Policymakers can use this information to make informed decisions that support the development and regulation of the sector for the benefit of both the economy and the environment.

Quality of multifamily residential land as a factor supporting sustainable urban development

The analysis of the real estate market is one of the basic tasks of a real estate valuer. Proper analysis should be preceded by determining the spatial extent of the market. It is most often assumed that comparative properties should be located on the local market, usually seen as the market of a given town or commune. In contrast, in the absence of local market transactions, the analyzed area is extended to the regional, national and, in specific cases, even international markets. The purpose of the article is to define the boundaries of the local market in the example of the city of Poznań (Poland). The market research was mainly based on statistical analysis. The results of the conducted research show that in the case of undeveloped land for multifamily housing in Poznań, the local market should be narrowed to specific city zones, not treating the city area uniformly. Additionally, it should be noted that investors make decisions about the location of residential investments, considering land prices and real estate development opportunities, which vary in different parts of the city. The quality of life of residents and the degree of sustainable development of the city that can be achieved depend on the developers' decisions on the choice of location, as well as on the spatial and technical solutions used.

Are Most Polluted Regions Most Active in Energy Transition Processes? A Case Study of Polish Regions Acquiring EU Funds for Local Investments in Renewable Energy Sources

The primary aim of this study was to assess the investment activity of basic local government units in the development of renewable energy sources co-financed by EU funds depending on CO2 emissions and other socio-economic conditions in terms of regions of Poland in the years 2007–2020. Empirical studies aimed at the verification of the research hypothesis that “the greatest investment activity in local projects co-financed from EU funds related to the development of renewable energy sources is observed for local government units in regions with highest CO2 emissions”. Empirical studies were conducted based on data from the Ministry of Investment and Economic Development in Poland, the Local Data Bank, and the National Centre for Emissions Management. Thus, the conducted analyses provide both cognitive and applicatory values for the establishment of an appropriate energy transition policy in individual regions of Poland, which may be implemented by local government authorities within the current financial framework. Data concerning CO2 emissions at the regional level were estimated by applying the original disaggregation method as modified by the authors, which made it possible to fill the research gap resulting from the lack of data on emissions at the regional level. In order to show the regional diversification in investment activity of local government units in terms of renewable energy sources, its multi-faceted analysis was conducted by applying the Ward method. Clusters of regions with similar investment activity of local government units were described based on characteristics included in the typological classification (so-called active characteristics) and selected indexes showing CO2 emission levels, as well as selected socio-economic indexes (so-called passive characteristics). Based on the empirical studies, the research hypothesis presented in this paper was negatively verified. Considering both multiannual financial frameworks, the EU financial support for the development of renewable energy sources was used primarily by local government units of a predominantly agricultural character, and less advanced in terms of their development but exhibiting conditions conducive to renewable energy development.

Business applications and state‐level stock market realized volatility: A forecasting experiment

AbstractWe analyze the predictive value of (the surprise component of) state‐level business applications, as a proxy of local investor sentiment, for the state‐level realized US stock‐market volatility. We use high‐frequency data for the period from September 2011 to October 2021 to compute realized volatility. Using an extended version of the popular heterogeneous autoregressive realized volatility model and accounting for the possibility that users of forecasts have an asymmetric loss function, we show that business applications tend to have predictive value for realized state‐level stock‐market volatility, as well as for upside (“good”) and downside (“bad”) realized volatility, for users of forecasts who suffer a larger loss from an underprediction of realized volatility than from an overprediction of the same (absolute) seize, after controlling for realized moments (realized skewness, realized kurtosis, realized jumps, and realized tail risks). We also highlight that the COVID‐19 period is a major driver of our empirical results.

84 Advances, Challenges and Prospects for the Sustainable Use of the chigüiro in Colombia

Abstract The sustainable use of chigüiro or capybara is a strategy proposal to prevent the decline of the species population by maintaining and conserving appropriate habitats, reducing illegal capture, promoting its recognition, and achieving a better distribution of its benefits and its environmental services. The objective of this work is to present the progress made toward the sustainable use of capybaras in Colombia. The biological information compiled during the last 15 years indicates that the density of the populations of this species is heterogeneous throughout the flooded savannahs with space-time variations between < 1 individual/ha, and up to 6 individual/ha. These variations are associated with strong climatic variations, changes in habitat quality, and the impact of a series of conditioning factors, both natural (water availability over time) and anthropogenic origin (hunting, land use, eventual competition with cattle, and the incidence of burning). Commercial hunting as a sustainable strategy includes the identification of various products and by-products of the species, as well as its linkage in Bioeconomy projects (Figure 1) through the compliance of associated normative, the reinforcement of environmental authorities, an effective communication strategy and user commitment. Capybara meat is characterized by having a low-fat content and a protein ratio greater than 20%; and its carcass meat performance is between 44% and 53%. In addition to the training in the preparation of various meat by-products and the analysis and processing of the fur, there is an updated market study that includes an interview phase, a pilot test of exploitation, yields and tastings for approach to the actor of the commercial chain and meet future investors or buyers. With these results, a financial model was formulated with all the necessary costs to make use of the Chigüiro products. Additionally, a prototype processing plant was designed and it has three mobile components (A, B, C); two complementary fixed structures (D, E) and a module for the processing of by-products and waste (Figure 2). Finally, linking capybara population concentration points within ecotourism activities will expand the options for its use and conservation of the Chigüiro population and its habitats. Among the actual limitations for Chigüiro use we have the delay in issuing the resolution for the allocation of the global utilization quota, and the modification of the closure to increase the period of use. These resolutions will encourage the participation of other users and local investors, which is expected to reduce the transformation of natural ecosystems and their associated biodiversity.

The Effect of State Housing Policies on Eviction Filings and Judgments in the United States, 2001–2018

Housing instability is a significant problem in the United States, with a long literature documenting its impact on the social well-being of Americans. A relatively new line of research has illuminated the degree to which eviction is a substantial contributor to health risks, including “deaths of despair” from alcohol or drug-related accidental poisonings. Although eviction is a persistent threat in the United States, there is comparatively less research that is both longitudinal and that evaluates multiple policies simultaneously to guide decision makers about which policies are more or less effective at lowering eviction activity. In this study we test the association between housing policies and eviction processes for a large proportion of U.S. counties from 2001 to 2018 using a panel of state-level landlord–tenant laws and a panel of local housing-specific investments by the U.S. Department of Housing and Urban Development. We find evidence that some state and local policies are effective at reducing the number of eviction filings and the incidence of multiple filings to the same household, although there is less evidence that actual eviction judgments can be mitigated with these policies.

Rural road stimulus and the role of matching mandates on economic recovery in China

This paper explores the implications for economic recovery of a rural road stimulus program in China that led to the sudden suspension of local matching mandates. The main results reveal that a temporary cost share exemption stimulates short-term income growth in treated villages. As an explanation, I find that a cost share exemption leads to larger increases on local investment mainly on allied road improvements and to a lesser extent support for rural enterprise development and agricultural services. The observed crowding-in effects are further linked to the reallocation of households out of agriculture and a rise in entrepreneurial activities by returning migrants. The findings imply that matching mandates impede the ability of fiscally constrained locales to mobilize sufficient resources to cover their share of project costs, contributing to inadequate road investment from upper-levels of government. Suspending matching mandate helps to relax local budget constraints, stimulating income and local multipliers that help to accelerate economic recovery.

Implementing land value capture in a Global South city: evaluation of the experience in the City of São Paulo, Brazil

The use of land value capture (LVC) tools has been advocated by many authors as way of financing public investments in urban interventions. The rationale behind these tools is to capture part of the capital gains on land derived from public sector interventions in urban development, such as implementing infrastructure or changing land use regulations. They may be of great significance in very limited budget environments such as in countries undergoing rapid urbanization that need to provide a great amount of infrastructure and urban services in order to accommodate urban growth. Since the 1980s, the City of São Paulo, Brazil, has been implementing LVC through a wide range of different tools. The objective of this paper is to evaluate the implementation of two of these tools, the Building Rights Levy (OODC – Outorga Onerosa do Direito de Construir) and the Additional Building Rights Certificates (CEPAC – Certificado de Potencial Adicional Construtivo), from 1995 until 2020. Rather than evaluating these instruments just from a revenue viewpoint, the study also sets out to analyze how effective they have been in reducing social disparities, considering the location and type of investments undertaken.

Strengthening City Branding Through Investment in Ambarawa Urban Area, Semarang Regency

City branding can shape an area’s positioning and marketing differentiation so that a city can build a clear identity and strong associations and instil positive attributes to compete with other cities, especially for tourism. The primary purpose of city branding is to increase tourists and foster a good perception of the area. Ambarawa Urban Area is part of strategic National Kedungsepur (province) for social and cultural focus. The development of this area aims to create a historical city area that becomes the centre of tourism development. Tourism development also requires support from investors. Investment is important because it can also provide social benefits to the community. Therefore, this article aims to determine investment locations to strengthen the city branding of the Ambarawa Urban Area. The data used in this research are secondary and primary. Secondary data includes land value, road network, land use, and hazard map. The validation of land use data and road networks is carried out using the ground check. The variables used in the analysis are land value, ease of accessibility, and availability of land that can be developed for construction. The analysis techniques used are kernel density and overlay mapping such a conservation area, limited development land and tourism location. The processing map using Geographic Information System (GIS) mapping software. This research resulted in investment locations in several villages, such as Baran, Kupang, Lodoyong, Ngampin, Panjang and Tambakboyo with a total area of 19.14 hectares. The largest investment location can be allocated in Panjang Village which has an area of 9.79 hectares and is spread across two locations.

Consumer Protection Against Local Cryptocurrency Investments in Indonesia

Pasar cryptocurrency yang terus berkembang diharapkan dapat menarik lebih banyak investordan menghasilkan volume transaksi yang lebih tinggi. Semua pihak yang terlibat perlu merasaaman dan terlindungi, oleh karena itu penting untuk kepastian hukum. Penelitian inimenggunakan jenis penelitian hukum normatif. regulasi investasi mata uang kripto lokal di aturdalam Peraturan Badan Pengawas Perdagangan Berjangka Komoditi Nomor 7 Tahun 2020 Pasal1 ayat 1 menjelaskan bahwa kripto dapat di perjual belikan di Pasar Fisik Aset Kripto, namunhanya boleh kripto yang hanya telah terdaftar dalam Daftar Aset Kripto yang dapatdiperdagangkan. Kewajiban dalam mendaftarkan cryptocurrency yang akan diperjualbelikan inisesuai dengan peraturan Bappebti nomor 8 tahun 2021. Perlidungan konsumen kripto ditinjaudalam Undang- Undang No. 19 tahun 2016 tentang perubahan atas Undang-Undang No. 11tahun 2008 Tentang Informasi dan Transaksi Elektronik dalam pengaturan ini mengatur tindakpidana di bidang cyber di Indonesia khusus terkait investasi virtual currency adalah kejahatanpenipuan melalui media elektronik. Sedangkan perlindungan preventif tertuang dalam Undang-Undang No 8 tahun 1999 tentang Pasal 2 mengenai asas-asas perlindungan konsumen yangsejalan dengan kebutuhan hukum.

The self-coordination mean-variance strategy in continuous time

The dynamic mean-variance portfolio selection problem is time inconsistent. In the literature, scholars try to derive the pre-committed strategy, the time consistent strategy and the self-coordination strategy. The pre-committed strategy only concern the global investment interest of the investor. The time consistent strategy only concerns the local investment interests of the investor, while the self-coordination strategy balances between the global investment interest and local investment interests of the investor. However, the self-coordination strategy is only studied for the discrete time mean-variance setting. We study the self-coordination strategy for the continuous time mean-variance setting in this paper. With the help of mean-field reformulation, we derive the analytical self-coordination mean-variance strategy and show that the pre-committed strategy and time consistent strategy are special cases of the self-coordination strategy.

To Investigate the Foreign Investment in US Stock Market in Overcoming the Rising Inflation Rate in Malaysia

The purpose of this study had been targeted to explore the investigation on the foreign investment in US stock market in aligned to understand the potential market return to overcome the rising inflation rate in Malaysia. This had been motivated by the increasing interest and preference among the local investors in Malaysia into seeking into alterative investment method in foreign investment market which include foreign stock market. Therefore, the quantitative study had been conducted where the combination of the correlation analysis and regression analysis will test the research framework for the study and further comparative analysis had bene used to identify the comparison between the performance of the foreign stock market return against the inflation rate in Malaysia. The results had proven that only the inflation rate between Malaysia and US remained significant having positive relationship between the two variables rejecting other suggestion from the research framework. The comparative analysis had unveiled that the foreign stock market return considering the exchange rate through NYSE and NASDAQ had been greater and significantly surpass the inflation rate in Malaysia suggesting the recommendation for the investors to invest in the US stock market to overcome the inflation pressure in Malaysia.

Assessing The Impact of Cross Border Investment on India’s Growth & Development for the Periods from 2019-20 to 2021-22

Abstract: Cross-border investment (CBI), sometimes referred to as foreign direct investment (FDI), has been a major contributor to India's economic expansion. India has emerged as one of the world's most alluring locations for foreign direct investment in recent years. India has a sizable and expanding domestic market, a highly skilled labour population, and an inviting investment environment, among other reasons for this. The influence of the CBI on India's growth and development between 2019–20 and 2021–22 is evaluated in this research study. The study looks at FDI inflow trends, the most popular industries for FDI, and the effects of CBI on a range of economic metrics, including GDP growth, inflation, and employment. The study concludes that between 2019–20 and 2021–2022, FDI inflows to India grew dramatically. Manufacturing, infrastructure, and services were the main industries that drew foreign direct investment. India's GDP growth, inflation, and employment all benefited from the CBI. The study comes to the conclusion that CBI is essential to India's capacity to continue developing its economy. India's government ought to keep enacting laws that draw in and keep international capital.

예상치 못한 외국인 순매도로 인한 비대칭적 변동성

This paper investigates whether the unexpected net selling by foreign investors is regarded as a bad news for domestic investors and causes asymmetric volatility beyond the bad news of the market. Stocks are sorted into five groups by the ratios of foreign investors' holding stock, and analyze if the lower ratios would lead to any difference in the asymmetry. We estimate bivariate GARCH model, diagonal BEKK, and find that stocks with lower proportion of foreign investors tend to show higher asymmetric volatility. Since stocks with lesser foreign investors tend to higher proportions of local investors, we can conclude that stocks with higher proportions of local investors tend to show higher asymmetric volatility. The effect of firm size was further analyzed to determine whether this was the cause of the asymmetric volatility. The stocks of five groups were again sub-divided by firm size into three groups, large, mid-cap, and small stocks. Within each group, additional asymmetry due to the unexpected net selling by foreign investors was evident in small and mid-cap stocks. Thus we claim that domestic individual investors' risk aversion would be a possible cause for the asymmetric volatility along with a bandwagon effect. Bandwagon effect arise since individual traders are aware that foreign investors are well-informed traders and choose to follow their action.

Using spatial elimination and ranking methods in the renewable energy investment parcel search process

The study presents a framework for an elimination algorithm aimed at determining potential investment locations for photovoltaic farms in three separate counties located in northeastern Poland. The research focuses on identifying environmental and economic criteria for solar farm locations, establishing boundary values, and discussing the outcomes of multi-criteria decision support using the Boolean method and Borda ranking methods. Through the amalgamation of the elimination algorithm and a multi-criteria decision-making model, ten different location variants were derived, ranging from the best (Variant 1) to the worst (Variant 10), out of a total of 1024 variants. The results highlight five critical criteria that persisted after the elimination algorithm: distance from medium voltage lines, distance from roads, parcel shape, average parcel width, and average slope. The analysis revealed that the analysed counties have between 150 and 1336 optimal locations (depending on the analysed area) that satisfy all the specified conditions. This method, which enables the swift and reproducible identification of suitable areas for photovoltaic farm construction, can be applied in various European regions.

The detrimental consequences of mining and inspiration for the Gandhamardan movement in western Odisha, India

AbstractMost of Odisha's mineral resources are situated in tribally controlled regions that are impacted by resource extraction operations. Being a mineral‐rich state, Odisha is becoming a popular investment location. The majority of the population is made up of indigenous people who have historically subsisted on the highlands' natural resources. Local people (most of them are tribal) of the Gandhamardan hills region have protested extraction, insisting that their rights to holy religious sites near the mine, traditional methods of subsistence and the environment be protected. The purpose of this article is to look into the impact of mining during the extraction phase in the 1980s, which was a driving element in the emergence of the resistance movement, as well as discuss the future expectations of mining and its effect. The paper is based on primary data that includes direct interview to 366 households. The purposive sampling method has been deployed to collect data from the participants of Gandhamardan movement (1980s). According to the findings, mining has impacted three vital areas, including religious beliefs, the environment and livelihood, prompting the local community to resist mining activities. These three areas were crucial for the emergence of Gandhamardan or BALCO (Bharat Aluminium Company) movement. The environmental component has received widespread support both domestically and worldwide. The State Government should have a clear strategy in place that acknowledges the economic relevance of managing forest resources in a way which improves local people's economic conditions with local economic development.

The impact of ownership structure on firm value: New evidence from Thai listed firms

This research aimed to examine the impact of ownership structure on firm value based on new evidence from 100 listed companies in Thailand in 2020. Firm value was measured by Tobin’s Q, while ownership structure variables were institutional ownership, local investors’ ownership, family ownership, and government ownership. Multiple regression analysis was used to statistically analyse the data. The results of the study showed that the variable of ownership affecting a firm’s value consisted of institutional ownership, local investors’ ownership, and family ownership. On the other hand, government ownership and foreign ownership did not have an impact on firm values in regards to the proportion of institutional investors, local investors’ ownership and family ownership leading to encouraged corporate governance mechanisms with consequential transparency and reliability. Therefore, a listed company should be aware and pay attention to the proportion of appropriate ownership structure that may affect firm performance leading to an increase in further potential investors.

Towards A Strategy for Pro-Poor Tourism Development in Pakistan: Exploring New Horizons

The study holds significance as it has the potential to establish sustainable and inclusive tourism practices in Pakistan, simultaneously promoting economic growth and addressing the requirements of marginalized communities. This study tried to explore the hidden tourist attractions for pro-poor tourism development in Pakistan and specifically studied the tourist attractions of Khushab district. Focus group discussion method have been used to collect information from the respective area. Moreover, the study tried to identify the strengths and weaknesses of the tourism industry to make Khushab district as one of the good tourist attraction points of Pakistan. The study reveals that the travel industry faces challenges in various areas, including limited advertising efforts, inadequate infrastructure, and inadequate transportation. Stakeholders suggest the need for improved facilities, particularly for women and children, and the need for redesigning and examining significant structures and locations. They also advocate for liberal government approaches to support local and global investments, land acquisition, and promoting new ventures. Governments are increasingly focusing on promoting and promoting the travel industry, but a proper physical and restricted system is crucial for its growth.