Long-term Investment Research Articles

Sustained or Not: Does Intellectual Capital Strengthen CEOs and Independent Commissioners on the Sustainability of Their Companies?

This research aims to investigate the relationship between CEO characteristics in the form of educational background and independent commissioners on sustainability reports with intellectual capital as a moderating variable. The population selected in this study were non-financial companies included in the LQ45 index for the 2018-2022 period, and 12 samples were selected based on the purposive sampling method. For the hypothetical analysis in this research, panel data regression analysis and moderate regression analysis (MRA) with Eviews 12 were used. This research shows that the characteristics of the CEO and independent commissioners have a simultaneous and partial effect on sustainability reports. However, CEO characteristics that are moderated by intellectual capital have a negative influence on the sustainability report. In contrast, independent commissioners positively influence the sustainability report after being moderated by intellectual capital. This research contributes to the application of stakeholder theory, resource-based theory, and agency theory. The novelty of this study is the empirical finding that CEO characteristics and independent commissioners can encourage the sustainability report. However, the moderated effects of intellectual capital differ for both CEO characteristics and independent commissioners on sustainability reports. This research also has several implications for shareholders and stakeholders; one of them is for investors that companies with CEOs with economic and business educational backgrounds and a high proportion of independent commissioners have a sustainable business strategy that can serve as an indicator for long-term investment.
 Keywords: characteristic CEO, independent commissioner, intellectual capital, sustainability report

Building the Infrastructure to Integrate Social Care in a Safety Net Health System.

A recent National Academies report recommended that health systems invest in new infrastructure to integrate social and medical care. Although many health systems routinely screen patients for social concerns, few health systems achieve the recommended model of integration. In this critical case study in an urban safety net health system, we describe the human capital, operational redesign, and financial investment needed to implement the National Academy recommendations. Using data from this case study, we estimate that other health systems seeking to build and maintain this infrastructure would need to invest $1 million to $3 million per year. While health systems with robust existing resources may be able to bootstrap short-term funding to initiate this work, we conclude that long-term investments by insurers and other payers will be necessary for most health systems to achieve the recommended integration of medical and social care. Researchers seeking to test whether integrating social and medical care leads to better patient and population outcomes require access to health systems and communities who have already invested in this model infrastructure. (Am J Public Health. 2024;114(6):619-625. https://doi.org/10.2105/AJPH.2024.307602).

Financial Behavior in Personal Investment: Influence of Psychological Factors on Investment Decision

In the ever-evolving realm of financial markets, understanding the underlying psychological dynamics shaping investor behavior is paramount. Financial behavior refers to the choices and actions people make when managing their own cash across a range of investment vehicles, including stocks, bonds, mutual funds, and real estate. It includes components that are vital in determining the results of investments, including risk tolerance, investment objectives, decision biases, emotions, and financial literacy. Achieving long-term investment success and financial security requires an understanding of and ability to control one's own financial behavior. An extensive research model has been painstakingly built to clarify the complex connections between these psychological variables and the process of making investing decisions. This study examines the impact of three psychological aspects on investment decisions made by 220 investors who trade on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE): information asymmetry, problem framing, and risk propensity. Effective investing strategies necessitate an awareness of the interplay between psychological biases and cognitive processes, as these aspects influence personal investment decisions. By using a quantitative research methodology, information was gathered by sending surveys to investors who were actively trading stocks on the BSE and NSE platforms. Regression analysis and correlation studies are two statistical analytic approaches that were used to investigate the connections between investing decisions and psychological aspects. The study's conclusions add to the corpus of knowledge by illuminating the complex dynamics of financial decision-making and the part played by psychological variables. Furthermore, the knowledge gained from this study has important ramifications for financial advisors, investors, and legislators that aim to improve investor welfare and encourage well-informed stock market decision-making.

Meningkatkan Sikap Percaya Diri Dengan Storytelling Dan Perilaku Hidup Bersih Dan Sehat Anak – Anak di Lingkungan XVII Pasar 2 Barat, Kelurahan Rengas Pulau, Kecamatan Medan Marelan, Medan – Sumatera Utara

Storytelling is a powerful way to communicate, inspire, and connect people and is an invaluable tool for preserving cultural heritage, building cross-cultural understanding, and celebrating the diversity of human experience. In implementing the activity, several steps are applied to carry out storytelling, namely: Selecting and compiling stories that children like, Understanding the story you want to tell, Making body movements, Using a clear voice/intonation, Using appropriate facial expressions, Paying attention to eye contact with the audience. The learning of storytelling to children is expected to be able to build the children’ self-confidence and language ability and other purposes. Using props, apart from teaching storytelling to children in the XVII Pasar 2 Barat neighborhood, the lecturer team also teaches the importance of a healthy lifestyle. Teaching children a healthy lifestyle is a long-term investment in their health and well-being. Some of the tips given by the initiators of the activities to children in Ward -children to limit Screen Time, Teach children to have Good Sleep Habits, Teach children to choose activities they like, Teach Personal Hygiene Habits. Through a positive, consistent and involving approach, children can help them understand and implement healthy lifestyles from an early age. This helps create positive habits that they can carry into adulthood. By providing a good understanding of healthy lifestyles, children can grow into individuals who are aware of the importance of maintaining their own health and well-being.

The cultural sector in Polish economy in the regional approach

Motivation: In recent years, the impact of cultural factors on the economic development has been analysed. This research concerns the impact of culture on the labour market, the growth of innovation and creativity, participation in creating added value of GDP, stimulating exports, although the cultural sector also affects the development of tourism, entertainment and improvement in the quality of life of residents. Currently, the cultural sector is treated as a long-term economic investment affecting the development of the country.Aim: The goal of the article is to evaluate the functioning of the cultural sector in Poland. This assessment has been made on a regional basis.Results: To achieve the purpose, data of the GUS (Central Statistical Office in Poland) were analysed. The data concerned expenses allocated to culture and national heritage — they included individual types of cultural institutions and number of cultural sector entities in 2018–2021. The results of the analysis of the cultural sector have been presented in tables and diagrams. Using an agglomeration method, the Polish provinces were grouped according to values of the analysed categories of expenses allocated to culture and national heritage in the provinces in year 2021. It was noticed that the development of the cultural sector in Poland is uneven, concentrated in the country’s capital, which is typical for less developed countries. Therefore, main barriers to the development of the cultural sector in Poland were identified. The most important obstacles were: underfunding, lack of systemic solutions to support the demand for cultural goods, unfavourable legal and financial conditions for creators of culture, lack of support for cooperation between public and private cultural sector, dependence of the development of the cultural sector on politics, as well as lack of social acceptance of the cultural policy. Culture is also negatively affected by the processes of globalization, commercialization and recently the Covid 19 pandemic.

Aspiring to more? New evidence on the effect of light-touch aspirations interventions in rural Ethiopia

ABSTRACT A growing literature in economics has analysed the effects of psychological interventions designed to boost individual aspirations as a strategy to increase households’ propensity to make long-term investments and thus reduce poverty. This paper reports on a randomised controlled trial evaluating a short video-based intervention designed to increase aspirations of adults in poor rural Ethiopian households who are beneficiaries of the Productive Safety Net Program, the main government safety net program in Ethiopia. Evidence from a sample of 5,258 adults from 3,220 households is consistent with the hypothesis that there are no significant effects of the intervention on self-reported aspirations for the household, educational investment in children, or savings nine months post-treatment. This suggests that the effect of light-touch aspirations treatments for extremely poor adults may be limited in this context.

The Role of Actuaries in Sustainable Development Goals

Purpose: The general purpose of this study was to investigate the role of actuaries in Sustainable Development Goals.
 Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library.
 Findings: The findings reveal that there exists a contextual and methodological gap relating to the role of actuaries in Sustainable Development Goals. The study underscored the indispensable role of actuaries in advancing sustainable development goals (SDGs) across multiple sectors. Actuaries contribute significantly to promoting environmental sustainability by assessing and managing risks associated with climate change, while also fostering social equity and inclusivity through the design of insurance and pension schemes. Moreover, they facilitate long-term investment and infrastructure development aligned with SDGs 8 and 9, and support health and well-being initiatives, particularly in healthcare financing and risk assessment. Overall, through their expertise in risk assessment, financial management, and strategic decision-making, actuaries play a critical role in driving transformative change towards a more sustainable, inclusive, and resilient future.
 Unique Contribution to Theory, Practice and Policy: The Stakeholder theory, Institutional theory and Systems theory may be used to anchor future studies on the role of actuaries in Sustainable Development Goals. The study provided recommendations aimed at enhancing the contributions of actuaries to sustainable development agendas. It advocated for increased awareness among actuaries about their role in supporting SDGs, fostering collaboration between stakeholders, integrating sustainability considerations into actuarial practices, and promoting transparency and accountability within the profession. These recommendations emphasized the importance of aligning actuarial efforts with sustainability goals, leveraging collective expertise, and ensuring ethical and responsible decision-making. By implementing these recommendations, actuaries could play a more proactive and impactful role in advancing sustainable development goals and addressing societal challenges.
 Keywords: Actuaries, Sustainable Development Goals, Contributions, Recommendations, Awareness, Collaboration, Sustainability Considerations, Transparency

The power of good corporate governance in activating the impact of internal information quality on tax savings

PurposeThis paper examines the moderating effect of good corporate governance on the association between internal information quality and tax savings.Design/methodology/approachThis study uses a quantitative approach. It employs an Australian sample of analysis composed of 1,295 firm-year observations from the period 2017 to 2021. Data relating to corporate governance are hand-collected from the annual reports.FindingsBased on the result of the analysis, this study demonstrates that the interaction between corporate governance and quality of internal information is positively associated with tax savings. Superior corporate governance is critical in activating the effect of internal information quality on tax savings. This finding is robust to a battery of robustness checks and additional tests.Research limitations/implicationsThis examination utilizes only publicly traded companies from one developed country.Practical implicationsFor the company management, an effective governance structure must be at the top because it will determine the development of all other areas. This study emphasizes the need to continuously improve the effectiveness of corporate governance practices. For long-term investors, an important indicator that can be considered in assessing the “safety” of a company’s tax strategy is its corporate governance aspects. For regulators, this study is expected to assist regulators in creating a more adequate corporate governance implementation and disclosure package to be implemented by corporations in the future.Originality/valueThis study provides new evidence on a crucial construct that can strengthen the relationship between internal information quality and tax savings.

ESG rating changes and portfolio returns: A wavelet analysis across market caps

This study implements advanced wavelet analysis to affirm a strong positive connectedness between E, S, and G pillar ratings and equity portfolio returns, particularly at low frequencies or long-term investment horizons. However, for E-pillar strategies, a transient negative "equity greenium" phase in 2019–2020 indicates that elevated E-ratings coincide with reduced financial performance. Bidirectional relationships challenge conventional ESG score notions, with weaker global ESG return connections, mid-cap portfolio exceptions (2015–2017), and short-term impacts on large caps (2019–2021). Inter-pillar connections, especially post-2015 E and S dynamics, unveil evolving complexities. Hierarchical connectedness patterns among portfolios underscore unique dynamics, emphasizing the multifaceted ESG landscape.

Research on Generative Artificial Intelligence for Virtual Financial Robo-Advisor

This research explores the intersection of artificial intelligence and finance, focusing on the emergence of intelligent investment advisers, commonly known as Robo-advisers (RAs). These RAs utilize robust computer models and artificial intelligence algorithms to deliver personalized asset management investment plans for users. Notably, Wealthfront is highlighted as a prominent platform in this field, offering automated investment management services aimed at optimizing investment returns. The study investigates the impact of users' past investment performance on their adoption of intelligent advisers, considering factors such as previous defaults and recent investment performance. It reveals that frequent adjustments to the use of intelligent advisers may hinder long-term investment objectives, emphasizing the importance of consistent usage to fully capitalize on their benefits. Furthermore, the research emphasizes the significance of transparency, user-friendly interaction design, and tailored financial services to foster user trust and enhance the optimization of intelligent advisers' design.

Career concerns of young and old CEOs: Their effect on R&D spending in the software industry

The age-related career concerns of Chief Executive Officers (CEOs) have generated considerable research attention over the past 25 years. Despite theory that both very young and very old CEOs may have career concerns that encourage pursuit of short-term profitability at the expense of long-term investment, the vast majority of past studies have examined whether firms with CEOs who are nearing retirement undertake less long-term investment than other firms. Using 31 years of panel data for U.S.-based public firms making branded software products (SIC 7372), we hypothesize and find that the relationship between CEO age and R&D spending is curvilinear with firms managed by either younger or older CEOs spending less on R&D as compared to their middle-aged counterparts (i.e., an inverted U-shaped relationship). These findings are consistent with early career horizon theory and suggest that the career concerns of both young and old CEOs need to be considered by (1) researchers trying to understand the effects of CEOs on strategic decision making and (2) boards of directors attempting to focus CEOs on longer-term investment opportunities.

Governance of nonstate shareholders and short-term debt for long-term investments

ABSTRACT We study the relationship between nonstate shareholder governance and short-term debt for long-term investment of state-owned enterprises in China from 2009 to 2021. Drawing on a novel, hand-collected database, we find that nonstate shareholder governance has a significantly negative effect on short-term debt used for long-term investments. Our study provides a new analytical perspective for maturity mismatch and theoretical support for deepening the reform of state-owned enterprises.

Effect of large-scale land acquisition by domestic and international entities on farm investment in northern Ghana

Rural households remained the access-marginalized demographic in Africa despite massive land rushes by both domestic and foreign enterprises. As a result, investment decisions made by agricultural households are affected. To resolve this issue, a study that examines how exposure to large-scale land acquisition (LSLA) impacts people's agricultural investment decisions is required. Using data from 664 households selected using a multistage sampling technique, we examined the nexus between LSLA under local and foreign organizations and short-term investment (STI) and long-term investments (LTI) in land-improving measures. The results revealed that although LSLA under domestic and foreign entities tends to have a negative and statistically significant impact on the probability of LTI, it has a positive and significant impact on the probability of doing so for STI. The results also showed a simultaneity between LSLA and farm investment. Thus, giving farmers legal ownership safeguards them as they undertake LTI. To encourage household investment and reduce further exposure to LSLA, improvements in legal land ownership can be made.

Financial sovereignty as one of Russia’s strategic objectives at the present stage

Ensuring the financial sovereignty of the country is one of the key tasks to achieve national goals by 2030. The financial system of the Russian Federation (hereinafter referred to as Russia, RF) should do everything necessary to guarantee the financing of those needs that had been previously funded by Western countries. To do this, the inflow of long-term savings and investments in fast-growing high-tech projects is to be provided. President of RF during the meeting with members of the Government of Russia on January 11, 2023 noted the main directions of the Government’s work for 2023. One of the directions is strengthening the financial sovereignty of the RF which is a condition to increase investments in the country’s economy. M. V. Mishustin, Prime Minister of Russia, speaking with the Government’s report in the State Duma of Russia, mentioned that to achieve the financial sovereignty of the state is one of the important tasks for the current year. Attracting long-term financial resources to the economy, investment attractiveness and providing financial support for fast-growing technology companies are the main conditions to solve this problem. Thus, the Government of RF have developed five main directions for the task implementation in order to fulfill the instructions of President of RF. The purpose of this article is to consider the main measures aimed at achieving financial sovereignty in the current conditions. The activities of the Government of RF and the Bank of Russia on the implementation of the discussed mea sures are analysed as the results of the study. The main conclusion of the article is the justification of financial sovereignty role in increasing the prestige of the Russian economy.

Peningkatan Mutu Pembelajaran Melalui Pengembangan Sarana dan Prasarana

Education is the main pillar in the development of society and the country. One effort to improve the quality of learning is by developing educational institutions' facilities and infrastructure. This research focuses on improving the quality of learning at MTs H. Agus Salim Gudo through efforts to develop facilities and infrastructure. The research method used is a case study with a qualitative approach. Data was collected through interviews, observation, and analysis of related documents. The research results show that the development of facilities and infrastructure at MTs H. Agus Salim Gudo has positively impacted the quality of learning. Developing comfortable classrooms equipped with modern learning facilities creates a conducive learning environment. The construction of libraries equipped with relevant book collections also contributes positively to improving the quality of learning. Besides that, using interactive learning software and adequate computer facilities helps increase student engagement and enrich learning methods. Student involvement in extracurricular activities related to sports and the arts provides additional valuable experience in the learning process. This research provides recommendations for other educational institutions to pay attention to the development of facilities and infrastructure as an effective strategy for improving the quality of learning. Continuous improvement of learning facilities can be a long-term investment to achieve better educational goals

Manajemen Risiko Pada Investasi Bisnis Properti Syariah

Risk management in sharia property business investment is a crucial element in ensuring the sustainability and success of long-term investments. The sharia property business, which includes unique aspects such as sharia provisions, market fluctuations and regulatory changes, faces risks that need to be carefully identified, evaluated and managed. The risk management process involves the steps of identifying risks, determining risk tolerance, and using mitigation strategies, including avoiding, reducing, sharing, or accepting risks. Alignment with sharia principles and a deep understanding of property law are key. Portfolio diversification, continuous monitoring, and collaboration with sharia experts are important factors in maintaining a balance between potential profits and risks. By implementing effective risk management, investors can maintain sharia integrity while protecting investment value and achieving financial goals in a sustainable manner.

Analyzing the impact of COVID-19 on global stock markets: An international comparative analysis

In 2020, during the first wave of COVID-19, a massive collapse was observed in the stock markets of all the economically wealthy and prominent countries all over the world. Consequently, the second and third waves of COVID-19 strike stock markets in 2021. The objective of the present study is to search for the effect of the pandemic on eight major stock exchanges across different continents, namely, SENSEX, Dow-Jones, NYSE Composite, FTSE 100, SSE Composite, Nikkei 225, MOEX and MASI, in 2020-2021. Various techniques assess nonlinear analysis, volatility, and the chaotic nature of these markets. The present study concludes that though all the indices are volatile and non-chaotic, some structural changes in pattern are identified in this time frame. The FTSE 100 stands out as a stable investment option, while the NYSE Composite is recommended primarily for long-term investments.

Equity markets volatility clustering: A multiscale analysis of intraday and overnight returns

Volatility clustering, widely observed in daily equity market returns, has not been analyzed for high-resolution intraday and overnight returns, nor has its time scale dependency been systematically explored. This paper examines the volatility clustering of intraday and overnight returns in 15 global equity markets, both developed and emerging. Findings reveal universal volatility clustering in intraday and overnight returns across various time scales, from daily to monthly and beyond. It appears that the volatility clustering of overnight returns is even more pronounced than intraday returns. However, the cross clustering between two volatility series is generally weak within each market. These observations suggest both short- and long-term investment risks, providing meaningful insights for equity market investors’ risk management.

Asset pricing and the carbon beta of externalities

Climate policy needs to set incentives for investors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. These investors decide on uncertain investments according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives in a consumption-based asset pricing model distorted by technology spillovers and time-inconsistency. We find that both distortions reduce the equilibrium asset return and delay investment in abatement. However, their effect on the carbon beta and the risk premium for abatement can be decreasing (when innovation spillovers are not anticipated) or increasing (when climate policy is not credible). We show that the distortions can be overcome by modified carbon pricing by a regulator, or by financial incentives, implemented in our model by a long-term investment fund. The fund pays a subsidy to reduce technology costs or offers financial contracts to boost investment returns to complement the carbon price. The investment fund can thus pave the way for carbon pricing in later periods by preventing a capital misallocation that would be too expensive to correct, thus improving the feasibility of ambitious carbon pricing.

Extreme Connectedness Across Chinese Stock and Commodity Futures Markets

This study examines the price spillovers and connectedness among stock markets, the Shanghai Stock Exchange Composite (SSEC) index, Hang Seng index, Shenzhen Stock Exchange (SZSE) index, commodity futures markets, Aluminum (AL), Gold (AU), Copper (CU), Zinc, Steel Rebar, and Natural Rubber in bearish and bullish market situations. We use the quantile connectedness approach of Ando et al. (2022) to calculate hedge coverage ratios, optimal portfolio weights, and hedge coverage effectiveness. Our empirical analysis yields several important results. First, there is no difference in the results of the TVP-VAR-DY and TVP-VAR models in relation to the magnitude of return transmission during the sample period. Second, CU is the main transmitter and AU is the main receiver of shocks from the network. Third, under the QVAR method estimations, the CU (AU) is the major (minor) contributors to the network during the normal, bearish, and bullish market statuses. Fourth, the results of the hedge ratio strategy confirm that CU and AU are respectively the most and the least expensive assets for a long-term investment in the Chinese stock market in different market conditions.