Long-term Wealth Research Articles

Challenges of International Investment in Real Property Portfolio in Nigeria

A real estate portfolio enables investors to diversify their investments and mitigate risk, thereby achieving consistent income through rental yields, property value increases, and various investment returns. It presents opportunities for long-term wealth accumulation and financial stability. Moreso, a foreign investor who is looking to invest in Nigeria has these goals in mind, with an understanding that an effectively managed portfolio can improve cash flow and provide tax advantages. This paper investigates the challenges associated with international investment in Nigeria's real estate sector, which is important for economic advancement yet presents numerous challenges for foreign investors. The study introduces both global and local perspectives and outlines the nature of international real estate investments and their importance to Nigeria's economy. It identifies and analyses the primary challenges encountered by international investors, including economic factors such as inflation and currency fluctuations, legal and regulatory challenges like land tenure issues, and political instability characterised by policy changes and corruption. Additionally, the paper addresses cultural and social hurdles, such as language differences and local perceptions of foreign investment, along with infrastructural shortcomings, including inadequate urban planning and insufficient facilities. It was recommended that reforms should aim to stabilise the economy, enhance legal clarity, promote political stability, and improve infrastructure. The conclusion highlights the necessity for a comprehensive strategy to attract and retain international investors, detailing measures to alleviate challenges and create a favourable environment for real estate development in Nigeria.

Behavioral Biases and Decision-Making in Investment among working individuals in the education sector

This study investigates the impact of behavioral biases on investment decisions among working individuals within the education sector. Behavioral finance theory serves as the theoretical foundation, emphasizing the role of psychological factors in shaping investment choices. The study employs a mixed-methods approach, combining surveys and in-depth interviews to gain insights into the investment behavior of educators, administrators, and support staff. Our findings reveal that a range of behavioral biases, including loss aversion, overconfidence, and herding, significantly influence investment decisions. Working professionals in the education sector often exhibit a strong preference for conservative investment strategies, even when market conditions may suggest otherwise. Psychological factors, such as fear of losses and a tendency to follow trends, play a vital role in shaping investment behavior. These biases are further exacerbated by a lack of financial literacy and investment education. The implications of this research suggest a need for targeted financial education programs to mitigate behavioral biases and enhance decision-making among working individuals in the education sector. Addressing these biases can lead to more informed and diversified investment strategies, potentially improving financial security and long-term wealth accumulation for this demographic. This abstract provides a brief overview of the research focus, methodology, key findings, and the potential implications of the study. It gives readers a clear understanding of the research's scope and significance.

Wealth inequality in northwestern Anatolia under the Ottomans, 1460–1870

Abstract While studies indicate that economic inequality increased in the early modern period, it is debated whether this applied to all regions, and what the causes of change were. This paper studies long-term wealth inequality in the Ottoman Empire, and its possible determinants, using data from Anatolia. Inequality tended to track demographic and economic change, but evidence for a long-term correlation is inconclusive, whereas there is evidence for the long-term disequalizing impact of taxation and changing power relations. The divergence between cities and countryside suggests structural shifts caused by external factors, and comparison with the slow economies of Europe reveals diversity within this group.

Tax Implications of Real Estate Investments: A Comprehensive Analysis

Real estate investments constitute a significant portion of many investors' portfolios, offering the potential for long-term wealth accumulation and diversification. However, beyond considerations of property location, market trends, and financing options, investors must also navigate the intricate landscape of tax implications associated with real estate investments. Taxes play a critical role in shaping investment decisions, impacting cash flow, profitability, and overall returns. Therefore, understanding and effectively managing tax obligations is paramount for maximizing investment success in the real estate market. This comprehensive analysis aims to delve into the multifaceted realm of tax implications related to real estate investments. By examining various tax strategies, structures, regulations, and their implications, this study seeks to provide investors with valuable insights and tools to optimize their tax position and enhance investment outcomes. From the tax treatment of rental income and capital gains to the utilization of tax-efficient investment structures like REITs and LLCs, every aspect of real estate taxation will be explored in detail. Moreover, with the ever-evolving nature of tax legislation and economic conditions, it is imperative for investors to stay abreast of changes that may impact their tax liabilities and investment strategies. Through a thorough analysis of historical trends and current tax laws, this study aims to equip investors with the knowledge and foresight necessary to adapt and thrive in a dynamic tax environment. In essence, this comprehensive analysis endeavors to empower real estate investors with the tools and understanding needed to navigate the complex terrain of tax implications effectively. By unraveling the intricacies of real estate taxation and providing actionable insights, this study aspires to assist investors in making informed decisions, optimizing their tax position, and ultimately realizing the full potential of their real estate investments.

Influence of Control Environment Strategy on Financial Performance of Rushere Savings and Credit Cooperative Organization in Kiruhura District, Western Uganda

Savings and Credit Cooperative Societies (SACCOs) play a crucial role in improving the standards of living of people globally, particularly in communities and regions where they are established. By offering savings and credit facilities, SACCOs empower people to manage their finances effectively and access capital for income-generating activities. They provide loans for housing and asset acquisition. This helps individuals and families improve their living conditions and build assets, contributing to long-term wealth creation. Despite the significant role they play, SACCOs face various challenges, which impact the effectiveness of their operations. In Uganda, as in other countries, some common challenges faced by SACCOs are in terms of internal audit. The purpose of this study was to establish the influence of the control environment strategy on the financial performance of Rushere SACCO in Kiruhura District in Uganda. This research was carried out solely to determine the extent to which control environment strategy influences the financial performance of Rushere SACCO. The research questions were based on risk assessment, communication and information sharing, organizational policies and practices, organization structure, workers’ competence as well as ethics and integrity. The study was underpinned by the Stewardship Theory. This study was based on a quantitative research approach. The study used a descriptive research design whereby the attitudes, perceptions, and opinions of the respondents were statistically described in figurative terms. The target population of the study was 160 from which a sample size of 127 respondents was selected using the Yamane formula. Thereafter, respondents were selected by using both stratified and simple random sampling techniques. Self-administered questionnaires were used to collect primary data from the research sites. They contained closed-ended questions framed on a Likert scale of 5. Collected data was analyzed by the use of inferential statistics with the aid of Statistical Package for Social Scientists (SPSS) version 24.0. The study established a significant positive relationship between internal control strategy and financial performance (p=0.000<0.05). This study concluded that there is a strong positive relationship between the control environment strategy and the financial performance of Rushere SACCO. Keywords: Control Environment, Strategy, Microfinance, Financial Performance

A Study on Novice Investor Behavior in Indian Stock Exchange

Investing is not only a personal financial endeavor but also a critical driver of economic growth, shaping individual prosperity and national development. The research is significant because it emphasizes the critical role that financial literacy plays in influencing investment behavior. It also emphasizes the necessity of ongoing education and awareness campaigns to equip new investors with the information and abilities they need to make wise decisions on the Indian Stock Exchange. All things considered, the results provide insightful information that will help investors, financial institutions, and regulators develop policies to support a more knowledgeable, resilient, and inclusive investment environment in India. This study embarks on a journey to explore the intricate dynamics of investment in India, beginning with an exploration of its foundational role as the engine of economic progress. From influencing aggregate demand to shaping future productive capacity, investments yield significant influence over a nation's economic trajectory, fostering financial markets and enabling companies to raise capital for further growth. In addition, the research reveals that participants have a wide variety of investment objectives, with long-term wealth creation being the primary focus. Investment styles are characterized by a trade-off between risk and return, with moderate strategies being the most common, and considerable shares of aggressive and conservative methods. In emerging markets like India, where investor behaviors vary across a diverse spectrum, understanding the impact of different investor types becomes imperative. Delving into the distinct behaviors of individual, institutional, and foreign investors, this analysis sheds light on their contributions to the Indian stock market, unravelling their unique influences and dynamics.

Business and Corporate Models for Interventional Radiology in the Office Based Lab and Ambulatory Surgical Center Setting

The landscape of healthcare is shifting towards outpatient settings such as Office-Based Labs (OBLs) and Ambulatory Surgery Centers (ASCs). This transition, driven by the Centers for Medicare & Medicaid Services (CMS), presents various business and corporate models for interventional radiologists seeking to practice outside traditional hospital environments. The role of private equity and management services in facilitating these transitions is highlighted, offering opportunities for growth, efficiency, and enhanced control over practice operations. The document also discusses the financial aspects of establishing an OBL or ASC, the benefits of outpatient procedures, and the adaptability of private equity deals to the specific needs of medical practices. It concludes by emphasizing the potential for long-term wealth creation and the adaptability of these models to individual physician needs.

Complexity and competing interests: what factors bear on payment choices and financial decisions made for older people entering nursing homes?

ABSTRACT Each year, many frail older people in Australia and their informal carers, are faced with the complex choice of how to pay for nursing home accommodation (through a refundable, one-off lump sum payment on entry, daily ‘rent-style’ interest payments or a combination), a choice interconnected with several other financial decisions. The payment choice often needs to be made suddenly after a health shock and within tight timeframes, and impacts an older person’s income, consumption, and long-term wealth. To explore what factors potentially bear on this complex choice, we modelled payment choices in online survey data using multinomial and fractional logistic regression. We found payment choices to be associated with an older person’s finances, family situation and health situation, supporting that individual budgets and access to liquidity constrains choice. Informal carer characteristics including educational attainment, English-speaking background, investment risk appetite and perceived stress were associated with choices, suggesting informal carers may directly or indirectly exert influence. Nursing home providers’ payment preferences were also associated with choices, suggesting potential influence due to providers’ capital financing requirements. We offer policy suggestions on reducing the complexity of payment choices, and better aligning the interests of consumers and providers.

The effect of financial literacy on long-term recognition and short-term trade in mutual funds: Evidence from Japan

We explore how financial literacy affects mutual fund investments through unique survey data from a broad spectrum of Japanese households. Our evidence reveals the dual effects of literacy on investments over long and short horizons. While the acquisition of financial knowledge promotes long-term investment in mutual funds, it also has the side effect of encouraging short-term investment. Specifically, people with high financial literacy share a fundamental recognition that mutual funds are suitable for long-term wealth creation. However, highly literate people intend to sell mutual funds immediately after short-term price appreciation, which could lead to frequent trading turnover. This is consistent with the knowledge bias effect whereby knowledgeable people falsely react to information, contrary to long-term investments.

Asian Paints: a valuation dilemma

Learning outcomes This case study will allow students to understand and analyse the process for conducting equity valuation by building a three-statement financial model, to understand and apply the workings of discounted cash flow (DCF) valuation methodology and its components, to apply the concepts related to the calculation of the weighted average cost of capital in the determination of discounting rate, to understand the terminal value calculation and assumptions thereof and to analyse the intrinsic valuation for the target company using the traditional multi-stage DCF model for investment decision-making. Case overview/synopsis In July 2019, Kapil Agarwal, an equity analyst operating out of Mumbai, India, was carefully looking over the financials of Asian Paints, a leading paints company in India. As an equity analyst, Kapil was constantly on the lookout for fundamentally strong but undervalued companies that could create long-term wealth for his equity fund. To decide upon the right valuation of Asian Paints, Kapil conducted fundamental analysis using the DCF method on the basis of available financial information. This case study puts students in an investment analyst role wherein they forecast financial statements and conduct DCF valuation for Asian Paints to discover potentially undervalued stocks for investment decision-making. Complexity academic level This case study is designed for use in an undergraduate or postgraduate programme in business management, particularly in a course on business valuation or investment management or security analysis. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.

Corporate Spin-Offs and Shareholders’ Wealth: A Systematic Review and Future Research Agenda

Abstract The spin-off has become a common mode of restructuring in the corporate world for the last few decades and has thus attracted the interest of researchers to investigate how this form of divestiture creates value for shareholders. While there is an agreement among researchers about the wealth creation of spin-offs around the announcement of the event, the sources of this wealth generation remain controversial. Moreover, the long-run stock performance of the spin-offs invites debates, as there are varied shreds of evidence in this regard. The present study endeavours to provide an overview of the existing literature by systematically reviewing 89 theoretical and empirical works published between 1976 and 2021 on short-term and long-term wealth effects separately to provide state-of-the-art research on the topic concerned. Based on the findings of existing literature, certain suggestions for future research have been made.

A digital financial advisory standardization framework for client success in Nigeria

The growing complexity of Nigeria's financial landscape necessitates a more structured and standardized approach to financial advisory services. This paper proposes a Digital Financial Advisory Standardization Framework aimed at improving client success in wealth management and financial planning. The framework focuses on enhancing consistency, transparency, and accessibility through technology-driven solutions. By integrating digital tools such as artificial intelligence (AI) and data analytics, the framework enables financial advisors to deliver personalized, data-driven recommendations. It also introduces standardized risk assessment and portfolio management processes, ensuring that clients receive tailored advice based on uniform best practices. The lack of standardization in Nigeria's financial advisory sector has led to inconsistencies in service quality, limiting consumer trust and market participation. This framework addresses these gaps by promoting regulatory compliance, professional ethics, and continuous advisor education. Additionally, the integration of digital platforms expands access to underserved populations, particularly in rural areas, enabling financial inclusion. By providing a centralized system for managing client information, monitoring compliance, and streamlining advisory operations, the framework improves both advisor efficiency and client outcomes. This standardized approach is expected to result in increased client satisfaction, higher investment participation, and improved financial literacy. Moreover, the framework fosters long-term wealth creation by promoting informed decision-making and reducing exposure to fraudulent schemes. The model ultimately supports economic growth by aligning financial advisory practices with global standards and improving the overall trust in Nigeria's financial system.

Landlords vs Tenants = Top vs Bottom? Class Positions in Rental Housing in Germany

Home ownership status is closely linked to social inequality in Germany, where tenants face several disadvantages in multiple dimensions. Even though Germany is one of the biggest renter and therefore landlord nations, in the context of the housing question it is the demand side that has been discussed and studied most. Less attention has been given to the supply side, particularly individual small-scale landlords. This article is one of the first attempts to shed light on the largest provider group that literally holds the keys to homes in its hands. Drawing on quantitative data, this article examines the socioeconomic profiles of landlords compared to tenants over time, finding landlords in the upper strata and witnessing long-term wealth divides in relation to tenants. Coupled with structural power imbalances during tenancies, this research seeks to stimulate research on private renting in the future from a class perspective.

Economic policy uncertainty and natural resource policy in the United States

In households with high uncertainty, consumption is likely to be reduced, credit access is available more easily, and equity market investments are less likely to be made. Economic policy uncertainty for natural resource policy is largely ignored in the existing literature. This paper explores the impacts of economic policy uncertainty on natural resources considering the roles of financial development, inflation and economic growth in the United States from 1985 to 2020. We employed advanced econometric methods in the empirical analysis, including the diagonal VECH MGARCH model and the robust Prais-Winsten AR(1) regression model. Our result suggests that natural resource development is discouraged by economic policy uncertainty. Natural resources have outperformed the broader market over the past year owing to improving demand conditions and inflationary pressures, which have fueled a sustained commodity price. Increasing demand and inflationary pressures have led to a sustained price of commodities and the preservation of natural resources. Because of government policy uncertainties such as limited resources, demographics, climate change, societal expectations, public policies, and regulatory structures, policymakers are advised to encourage sustainable development to maximize long-term wealth. Incoherent policies in different domains may lead to unsustainable practices. Improved policy coherence requires the integration of economic, environmental, and social goals across policy areas.

ROBO-ADVICE: AN EFFECTIVE TOOL TO REDUCE INEQUALITIES?

When it comes to financial choices, households face complex decisions. Choosing how much to save or consume out of a monthly income in a way that is optimal over working life and retirement is the fundamental issue in personal finance. This decision has significant repercussions on a household’s well-being and the well-being of their offspring because even slight differences in monthly saving rates can amount to substantial variation in long-term wealth accumulation. But the choice of how much to consume and save at each point in time is only the first of a series of intertwined decisions households face. For instance, households also need to decide whether they should invest their savings in stocks, bonds, housing, or other assets, all of which have very different risk-return profiles. Also, households need to choose how to finance their consumption, especially for durable goods such as cars, housing, or academic degrees. Financing choices have enormous consequences on financial and mental well-being, especially for individuals at the beginning of their careers and with lower-paying jobs who face the challenge of attempting to reduce their student and credit-card debt balances. Virtually every household around the globe faces these personal finance decisions on a daily basis, but very few of them are equipped to understand the trade-offs and make sound choices. Historically, human financial advisors and financial planners have provided support. However, due to the opportunity cost of time, financial advisors find it economically profitable to cater to wealthy individuals, who paradoxically are better equipped to make these decisions relative to vulnerable households in the first place. Differential access to financial advice has likely contributed to the growing wealth inequality documented in the U.S. and abroad over the last few decades. How can we ensure that sound financial advice is available to all households, especially the most vulnerable ones? Over the past decade, we have experienced a revolution in personal finance with the introduction of robo-advisors embedded in financial technology (fintech) applications (apps). Robo-advisors collect and analyze large amounts of transactional data and provide individuals with suggestions on how to improve their choices. Depending on the soundness and appropriateness of the algorithms they employ, robo-advisors have the potential to improve households’ decision making considerably. In what follows, we describe the nature and scope of robo-advisors in financial decision making and discuss a few examples of robo-advice designs that have delivered mixed success. Finally, we discuss some of the most critical policy debates around robo-advisors.

The Impact of Financial Literacy, Generation, and Socioeconomic Factors on Financial Risk Tolerance: An African American Study

Previous research that considered African Americans as a homogenous group has determined that they are reluctant to invest in equities and corporate debt bonds, resulting in lost opportunities to build wealth. This study explored financial literacy, age and generational cohort identity, and socioeconomic factors as possible limitations to African Americans’ engagement in financial markets to build wealth. Financial risk tolerance is usually measured using three basic approaches: (a) assessing investment portfolio assets; (b) assessing responses to subjective questions; and (c) assessing responses to hypothetical questions with specific scenarios. The third approach was utilized in this study by conducting a multidimensional risk analysis with a 13-item assessment that addressed the constructs of investment risk, risk comfort and experience, and speculative risk. African Americans appear to be no different from any other group of Americans when provided with education to improve their financial literacy and financial risk tolerance levels, which are critical for reaching long-term wealth goals.

Blood and Water: Information Technology Investment and Control in Family-owned Businesses

ABSTRACT Family-owned businesses differ in their strategic intent and behavior as they serve as a reservoir of wealth and social status for their family owners. Family-owned businesses demonstrate relatively conservative strategic decision making that aspires long-term wealth preservation and enhancement. For family owners, investments in information technology (IT) raise a predicament as they are risky, yet a long-term imperative. We propose three hypotheses that build upon the thesis that family owners combine a deep understanding of the business with a strong influence on stakeholders within and beyond the firm’s boundaries to exert strategic control in the extended enterprise. First, family ownership negatively influences IT investment, because family owners are likely to avoid investments in IT that are frivolous, reduce information asymmetry, or leave auditable digital trails. Second, the negative influence of family ownership on IT investment is weakened when a career professional is appointed in the senior-most executive position of a family-owned business. This is because professional executives strive to utilize IT for control and performance benefits, and family owners desire to use IT to monitor and control the non-family professional executive. Third, family ownership weakens the negative influence of environmental hostility on the relationship between IT investment and firm performance, as family-owned businesses incur less dynamic adjustment costs and maintain better alignment between IT and business strategy. Empirical analysis, consisting of panel regression estimations, on archival data of publicly listed Indian firms in the years 2006 to 2018 provides support for our theory that highlights how IT for control acts as a noneconomic motivation for the strategic IT behavior of firms. In doing so, we bring family ownership into the theoretical foreground for future IS scholarship. We contribute to theory and practice by advancing the nature of ownership and executive management as sources of heterogeneity in IT investment and its business value.

Financial literacy and education in financial decisions, personal finances, and long-term wealth

Financial literacy and education in financial decisions, personal finances, and long-term wealth

The integration of traditional financial indicators, value indicators, and non-traditional indicators in the analysis of business performance: a documentary review.

This literature review focuses on the integration of traditional financial indicators, value indicators, and non-traditional indicators in the analysis of business performance. It emphasizes the importance of considering these different types of indicators to obtain a comprehensive view of corporate performance. Traditional financial indicators are complemented by value indicators, which assess long-term wealth creation, and non-traditional indicators, which include aspects such as customer satisfaction and corporate social responsibility. The integration of these indicators allows for more informed and strategic decision-making. Corporate decision-making must adopt a holistic view that incorporates different analysis approaches. When building non-traditional indicators, factors such as company size, sector, and strategic planning need to be taken into account. In addition, comparisons with other organizations in the same sector should be made to assess whether a company is achieving success, especially for non-traditional indicators where the aim is to find companies with similar characteristics.

A model for wealth management through standardized financial advisory practices in Nigeria

This paper proposes a model for wealth management through standardized financial advisory practices in Nigeria, aimed at improving financial literacy, investment decisions, and long-term wealth creation. In the context of Nigeria’s evolving financial sector, the need for a standardized approach to financial advisory services has become essential to bridge gaps in wealth management and improve the financial well-being of individuals and institutions. The model focuses on establishing a framework that standardizes financial advisory services, ensuring consistency, transparency, and accountability across the financial services industry. Key components include developing regulatory guidelines for financial advisors, implementing standardized tools for risk assessment and portfolio management, and promoting adherence to ethical practices. This framework also emphasizes the importance of financial literacy as a foundational element in wealth management. By improving public knowledge on investment options, risk tolerance, and long-term financial planning, individuals can make more informed decisions, reducing exposure to fraudulent schemes and unregulated advisors. Additionally, the model proposes the development of a national certification program for financial advisors to ensure high standards of practice. Another aspect of the model involves leveraging technology to provide personalized financial solutions. Digital platforms, powered by artificial intelligence, will offer customized investment strategies tailored to individual financial goals and risk profiles. These platforms will also improve accessibility to advisory services, especially for underserved populations. The expected outcomes of this model include a more resilient financial services industry, increased consumer trust in financial advisory services, and broader participation in investment activities. In the long term, standardized financial advisory practices will lead to better wealth distribution and economic growth in Nigeria. In conclusion, the proposed model for wealth management through standardized financial advisory practices provides a comprehensive solution to enhance financial decision-making and wealth creation in Nigeria, fostering sustainable economic development.