Investment Opportunities Research Articles

The Influence of Financial Literacy on The Investment Behavior of Indonesian Migrant Workers in Japan

This study aims to analyze the influence of financial literacy on the investment behavior of Indonesian migrant workers in Japan, taking into account factors such as age, education level, and income. The research focuses on 50 Indonesian migrant workers in the Miyazaki area of Japan. Financial literacy is considered a key factor that can affect investment behavior, helping these workers make better investment decisions. A quantitative approach was employed, using descriptive statistical methods and correlation analysis based on questionnaire data that measured respondents' understanding of financial literacy and its impact on their investment behavior. The results show that financial literacy has a positive and significant effect on investment behavior. Higher levels of financial literacy are associated with improved investment decisions. Additionally, age, education, and income also have a significant impact. These findings highlight the importance of developing more effective financial literacy education and training programs for Indonesian migrant workers in Japan, as improved financial literacy can lead to better investment decisions, increased access to investment opportunities, and enhanced financial well-being.

Mapping a sustainable water future: Private sector opportunities for global water security and resilience

Water security remains a critical global development challenge, compounded by persistent public funding shortfalls. Society urgently needs to identify opportunities for innovative private sector engagement in water security solutions. To identify feasible and impactful solutions, quantitative tools are needed to delineate complex environmental and socioeconomic water challenges and prioritize private sector investment opportunity spaces to address these challenges. We introduce the first global and regional-scale maps showing where threats to water security coincide with private sector opportunities to address them. The successful deployment of water solutions is contingent upon the societal and governance landscape that underpins a nation’s capacity to support sustainable water threat interventions and water-related business activities. By delineating areas with substantial pressures on water resources and assessing nations’ enabling environments to support private sector investments, we find nearly two-thirds of the world’s population could benefit from private sector interventions today, with middle income countries realizing the greatest benefits. In the face of global economic development and climate change, such solutions will become increasingly essential in future decades.

Analysis of the effect of Regional Stock Market on the Jakarta Composite Index using Markov Regime Switching Regression

Purpose: In the current era of information, global stock market interconnections significantly influence investment decisions. Changes in one market rapidly affect others. The co-movement of stock markets presents challenges and opportunities for investors, whereas volatility spillovers complicate risk management and investment strategies. Research Methodology: This study examines the influence of the Nikkei 225, Straits Times Index, and Shanghai Composite Index on the Jakarta Composite Index across the pre-pandemic, pandemic, and post-pandemic phases. Results: Utilizing the hidden Markov model with regime-switching regression, this study identifies changes in market behavior due to economic shifts during the pandemic, revealing two regimes: synchronization and desynchronization. Limitations: Pre-COVID-19, the Jakarta Composite Index shows strong synchronization with the Nikkei 225 and Straits Times Index, while the Shanghai Composite Index has an insignificant impact. During the COVID-19 pandemic, frequent desynchronization occurred due to high uncertainty and volatility, with only the Straits Times Index significantly influencing the Jakarta Composite Index. Post-pandemic, synchronization between the JCI and regional markets strengthened again. This study highlights the consistent influence of the Nikkei 225 and Straits Times Index, while the Shanghai Composite Index remains insignificant. Contributions: This study contributes significantly to the understanding of regional stock market relationships and offers valuable insights for academia and practice.

Factors Affecting The Financial Performance of State-Owned Enterprise Companies Listed on the IDX

This study aims to identify variables that affect the performance of banking companies listed on the IDX. The addition of the Ownership Composition variable as an independent variable is a novel part of this research. This research method involves collecting data from 22 banking companies over a five year period (2018–2022), and applying data processing analysis using panel data regression analysis techniques. The research results found that the capital adequacy ratio had an effect on Bank Performance. Likewise with the variables Non-performing loans, Liquidity Ratio, Bank Size, Market power, Gross Domestic Product, Inflation rate, and Ownership Composition which influence the performance of banking companies. The implication for financial managers is to choose the best way to utilize assets to achieve business goals, especially to improve shareholder welfare. This research emphasizes how important company performance is for investors when choosing investment opportunities in banking companies.

Understanding the information of shock effects between energy commodity prices and maritime freight rate

Research has identified volatility transmission from the oil market to the tanker freight market through external shocks. However, in the presence of intricate nonlinear structures, the academic literature often encounters difficulties in identifying cycles and their correlations across various timescales. This paper provides a multi-market analysis to comprehend the information from shock effects on different tanker routes and multi-peak fitting. Under different shock regimes, crude oil market and tanker freight rate shocks could transit bi-directly. When events occur, the crude oil market prices the expectations. However, when the actual performance of the future market differs from the traders’ predictions of the future market, a price gap exists. Generally, the trade opportunity is tough to catch up on because only partial information can be found. In this study, we investigate the volatility connection of multi-markets and shock effects to clarify previously undisclosed information using multi-peak analysis. The information gathered and double-checked by cargo markets, crude oil supply-demand balance, and tanker freight prices of various tanker types could assist us in identifying prospective trends and investment opportunities. The volatility of each market, as well as the correlation of multi-markets, gives insights to crude oil dealers, tanker market participants, and energy regulators.

Building bridges: impact of regional cooperation and the belt and road initiative integration on Afghanistan’s trade balance

The main purpose of the study is to shed light on how the Belt and Road Initiative, Foreign Direct Investment, and Regional Cooperation affect Afghanistan's Trade Balance. In research, we used a mixed-methods approach to thoroughly investigate the relationships among distinct variables. The exploratory factor analysis (EFA) and reliability analysis were carried out using SPSS and AMOS was utilized in the research to validate the data and establish a measurement model, for confirmatory factor analysis (CFA). The study found that integration with BRI has a significant impact on Afghanistan’s trade balance (M = 3.925, SD = 1.048), with effective regional cooperation Afghanistan can enhance trade, ease barriers, and promote cooperation with neighboring countries (M = 4.017, SD = 1.095). Trade Balance (M = 3.938, SD = 1.112), Also, the importance of attracting FDI is to boost exports and reduce dependence on imports and it is necessary to implement policies for sustainable development (M = 3.983, SD = 1.096). To promote trade, and cooperation and ensure prosperity in the region, the governments can utilize strategic cooperation and create investment opportunities. In conclusion, the study found the importance of cooperation, strategies, and attracting FDI to address both trade facilitation and promote investment for a positive impact on trade balance and influence development.

Pengaruh Pertumbuhan Laba, Investment Opportunity Set dan Good Corporate Governance Terhadap Kualitas Laba Pada Perusahaan Sub Farmasi Yang Terdaftar di Bursa Efek Indonesia

This research aims to examine the influence of profit growth, investment opportunity set and good corporate governance on earnings quality. This research uses multiple linear regression as a data analysis technique assisted by SPSS with the sample criteria being sub-pharmaceutical financial reports listed on the Indonesian stock exchange in 2018-2023. Based on these criteria, a sample of 10 companies was obtained over a 6 year financial reporting period. The research results show that profit growth (X1) does not have a significant effect on profit quality. Investment Opportunity Set (X2) has a positive and significant effect on earnings quality. Good Corporate Governance (X3) has no effect on quality

Research on North American Office Furniture Industry based on STEEP Analysis Technology

In this paper, STEEP analysis technology is used to analyze the North American office furniture industry. First, the scope of the study is determined through introduction and industry scope. Secondly, the value chain, concentration, growth rate, technology, globalization, etc. are analyzed to understand the overall situation of the industry. Then, the competitiveness of the industry is analyzed by Porter's five forces model. At the same time, the financial ratio is used to analyze the profitability. Then, STEEP technology is used to analyze 12 factors of the industry, including society, technology, economy, and environment, to identify the key success factors of the industry. Finally, it is concluded that the North American office furniture industry has moderate competition, certain profitability and investment opportunities. This study can provide reference for relevant enterprises to formulate development strategies.

Accuracy of Relative Valuation Methods in Predicting the Offer Price of Indonesian IPO Stocks

The increasing Initial Public Offerings (IPO) trend in Indonesia has created many investment opportunities for institutional and retail investors. However, multiple valuation methods often result in varying IPO price predictions, leading to uncertainty and confusion among investors. This study aims to assess the effectiveness of relative valuation methods in predicting IPO offer prices, focusing on widely adopted methods due to their simplicity and accessibility. The research evaluates three popular relative valuation metrics: the price-to-book (P/B) ratio, the price-to-earnings (P/E) ratio, and the price-to-sales (P/S) ratio. By analyzing companies that went public in Indonesia in 2023 and utilizing average financial ratios from the preceding year, the study seeks to determine which method provides the most accurate price predictions. The findings indicate that the P/B ratio is the most reliable method, achieving an average absolute error of 51.1%. This suggests that the P/B method minimizes valuation errors more effectively than P/E and P/S ratios. Moreover, regression models' P/B ratio demonstrates the highest adjusted R² value of 0.781, further validating its predictive accuracy. The implications of this study are significant for investors and financial analysts who rely on relative valuation methods to make informed decisions about IPO investments. By highlighting the P/B ratio's superior performance in predicting IPO offer prices, this research contributes to the ongoing discourse on valuation methodologies and their practical application in emerging markets like Indonesia.

Quantitative Easing and Climate Change: A Case Study

In the context of increasing global climate change, this article takes an in-depth look at how central banks can use quantitative easing to help address this issue. Based on three research methods: Green Bond, SDGs Bond, Carbon Trading Market and Carbon Reduction Project, this paper analyzes the pros and cons of specific measures of quantitative easing in dealing with climate change. The study found that the above three types of quantitative easing policies can effectively guide funds to green industries, promote green economy and sustainable development, and thus mitigate the economic impact of climate change. This research not only provides a new perspective for central bank policy making, but also provides investors with new opportunities for green investment. This paper suggests that the central bank should increase its support for green projects when formulating quantitative easing policies, and encourage investors to actively participate in green investment to jointly promote the response to climate change.

Investment Opportunities in Uganda's Real Estate Market

Uganda's real estate market presents lucrative opportunities for investors driven by rapid urbanization, economic growth, and favorable government policies. Key urban centers like Kampala, Entebbe, and Mbarara are experiencing significant development, and increasing demand for residential, commercial, and industrial properties. This growth is bolstered by a steady rise in GDP, enhanced infrastructure, and increased foreign direct investment. However, investors must navigate challenges such as regulatory complexities, land ownership issues, economic volatility, and infrastructure deficiencies. Successful investment strategies include thorough market research, due diligence, strategic location choices, local partnerships, and sustainable practices. With careful planning, investors can capitalize on Uganda's dynamic real estate market and contribute to its ongoing development. Keywords: Urbanization, Economic Growth, Investment Opportunities, Real Estate Market, Infrastructure Development

VISION: THE ROLE OF LEADERS IN IMAGINING A BETTER FUTURE

AbstractThe author works with “executives of multinational companies and board members of global, national, and regional nonprofits.” She discusses the importance of vision, and how often it is overlooked by leaders and others. She uses examples of the vision articulated by Dr. Martin Luther King Jr., President John F. Kennedy, and Eleanor Roosevelt. “By imagining and depicting what is possible,” she writes, “these leaders inspired millions of people and even future generations worldwide to pursue new paths of opportunity—for freedom and justice for all in the case of Dr. King, for science and exploration in the case of President Kennedy, and universalizing human rights across the world in the case of Eleanor Roosevelt.” She uses current‐day examples such as Kenya's Kennedy Odede and Shining Hope for Communities (SHOFCO), and Tent Partnership for Refugees, “a global NGO that mobilizes more than 300 companies worldwide to improve the lives and livelihoods of over 36 million refugees forcibly displaced from their home countries.” For corporations, she cites Trane Technologies, which “connects their commitment to the long‐term well‐being of its employees and communities. Furthermore, the company presents itself as a unique opportunity for investors, by describing its long‐term approach to growth for the company and the planet.”

Peran Fintech Peer to Peer Lending Syariah dalam Meningkatkan Akses Pembiayaan UMKM di Indonesia

This paper examines the role of Fintech Peer-to-Peer (P2P) Lending Sharia in enhancing financing access for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. The objective is to explore how P2P Lending Sharia facilitates MSMEs in securing necessary capital and offers investment opportunities in compliance with Sharia principles. The methodology involves a review of existing literature and regulatory frameworks, including the principles outlined by the OJK and DSN MUI. Findings reveal that P2P Lending Sharia provides an efficient, cost-effective, and accessible financial solution, enabling MSMEs to expand their market reach and improve business capacity. It also offers investors a Sharia-compliant alternative to traditional financing. The significance of these findings lies in the potential of P2P Lending Sharia to support MSME growth, strengthen the real sector, and contribute to national economic development, while adhering to Islamic financial principles. This innovation is essential in bridging the financing gap and fostering economic inclusivity

Global resurgence: private asset reconstruction companies as legal catalysts for financial stability in India and beyond

Purpose This study aims to transcend geographical boundaries and provide insights into innovative strategies used by Indian Asset Reconstruction Companies (ARCs) in managing distressed assets. The study examines the origins, evolution, challenges and opportunities faced by ARCs to derive lessons that can be universally applicable and serve as a valuable blueprint for global investors and institutions seeking effective strategies in managing distressed assets. From a legal and compliance angle, this opens up many perspectives that would help plug loopholes and grey zones within the legal ambit for organisations and institutions. Design/methodology/approach The study invokes a critical review of existing literature, news, discussions and publicly available information from reliable sources such as the central bank’s websites to develop the viewpoints and provide recommendations. Findings ARCs face challenges, recovering only 19.15% of distressed assets in 2022. Despite constraints like funding, governance issues and regulatory hurdles, there is a substantial opportunity for investors in the Rs. 9.6 lakh crore non-performing assets. The study suggests strategic assessments by banks, emphasises ARCs’ roles in specific sectors and calls for regulatory adjustments. With diverse investors and favourable regulations, this evolving landscape offers significant global opportunities for policymakers and investors in distressed assets. Practical implications This study serves as a valuable guide for shaping resilient policies, fostering cross-border collaborations and optimising distressed asset management strategies on a global scale. Originality/value This study breaks new ground by examining the private ARCs sector within an emerging economy’s dynamics, presenting insights relevant to global distressed markets. This study serves as a unique resource for those navigating the complexities of distressed markets globally, providing insights that can inform strategies, policies and academic discussions in the broader financial landscape.

Energy Management System for an Industrial Microgrid Using Optimization Algorithms-Based Reinforcement Learning Technique

The climate crisis necessitates a global shift to achieve a secure, sustainable, and affordable energy system toward a green energy transition reaching climate neutrality by 2050. Because of this, renewable energy sources have come to the forefront, and the research interest in microgrids that rely on distributed generation and storage systems has exploded. Furthermore, many new markets for energy trading, ancillary services, and frequency reserve markets have provided attractive investment opportunities in exchange for balancing the supply and demand of electricity. Artificial intelligence can be utilized to locally optimize energy consumption, trade energy with the main grid, and participate in these markets. Reinforcement learning (RL) is one of the most promising approaches to achieve this goal because it enables an agent to learn optimal behavior in a microgrid by executing specific actions that maximize the long-term reward signal/function. The study focuses on testing two optimization algorithms: logic-based optimization and reinforcement learning. This paper builds on the existing research framework by combining PPO with machine learning-based load forecasting to produce an optimal solution for an industrial microgrid in Norway under different pricing schemes, including day-ahead pricing and peak pricing. It addresses the peak shaving and price arbitrage challenges by taking the historical data into the algorithm and making the decisions according to the energy consumption pattern, battery characteristics, PV production, and energy price. The RL-based approach is implemented in Python based on real data from the site and in combination with MATLAB-Simulink to validate its results. The application of the RL algorithm achieved an average monthly cost saving of 20% compared with logic-based optimization. These findings contribute to digitalization and decarbonization of energy technology, and support the fundamental goals and policies of the European Green Deal.

Determinants of Investment Decisions of Mutual Fund in Nepal

Mutual funds in Nepal are financial vehicles that pool money from multiple investors to invest in diversified portfolios of securities, managed by professional fund managers. They play a crucial role in mobilizing savings and providing access to diversified investment opportunities for Nepalese investors. This study examines the factors influencing investment decisions in mutual funds in Nepal, focusing particularly on financial literacy, risk perception, investment behavior, and peer group influence. To achieve the stated objective, data were collected from the primary source using a structured questionnaire administered through convenience sampling technique. The respondents comprised 204 individual investors of mutual funds inside the Kathmandu Valley. The Smart PLS 4.0 was used to analyze the structural relationships within the proposed theoretical model. The findings of this study validated the set hypotheses that financial literacy, risk perception and investment behaviour have positive and significant effect on investment decisions among the investors in Nepalese mutual funds but the peer group has no any effect on investment decision. These results underscore the importance of targeted financial education programs and tailored investment strategies that enhance individual investor knowledge and understanding, thereby fostering more informed and independent investment decisions in Nepal's mutual fund market. The results may encourage to promote financial literacy through educational programs and integrating it into national curricula can empower investors to make informed decisions in Nepalese context.

Marketization and corporate cash holdings: Role of financial constraint alleviation

AbstractThis study examines the relationship between marketization and corporate cash holdings. Using a sample of the Chinese stock market spanning from 2007 to 2020, our empirical results show that marketization negatively affects corporate cash holdings. This effect is more pronounced for firms in the eastern and central regions of China and Chinese Growth Enterprise Market (GEM). Additionally, our study finds that investment opportunities and state‐owned features of firms play moderating roles in the effect of marketization on firms' cash holdings. State‐owned enterprises (SOEs) are less affected by marketization; however, the more investment opportunities a firm has, the greater is the negative impact of marketization on its cash holdings. Finally, we find that marketization can affect corporate cash holdings through firms' financing constraints. These results are robust to various tests and alternative explanations.

Assessment of Entrepreneurial Ecosystems and SMEs’ Growth in Ilorin Metropolis, Kwara State

SMEs often face resource constraints, ranging from financial capital to human resources and market access. Understanding how entrepreneurial ecosystems facilitate resource allocation and address these constraints is crucial for enabling sustainable growth. This study therefore investigated the impact of entrepreneurial ecosystems on firms’ growth, with a focus on SMEs operating in Ilorin metropolis, Kwara State. A cross-sectional survey research design and a quantitative data gathering method were used in this study. Three hundred and forty-three (343) SMEs make up the study's sample size, which was chosen to represent the 3124 SMEs that are registered with the Kwara State Board of Internal Revenue and pay taxes totaling one hundred thousand naira or more. Standard multiple linear regression analysis was employed to analyze the data obtained from the administration of a structured survey questionnaire. Findings of the study revealed that entrepreneurial ecosystems through access to capital, entrepreneurial support infrastructure and talent and knowledge exchange have significant impact on SMEs growth. The study concluded that entrepreneurial ecosystems constitute the bedrock upon which SMEs thrive and catalyze economic growth. By providing startups with the necessary resources to invest, innovate, and expand, access to finance plays a pivotal role in fueling entrepreneurial activity, job creation, and economic growth. The study recommended among others that, programs and initiatives aimed at improving financial literacy among entrepreneurs, empowering them to make informed decisions about financing options and investment opportunities should be invested on and implement policies and initiatives that promote diversity and inclusion within the financial ecosystem, ensuring equitable access to finance for women, minority entrepreneurs, and underserved communities.

Omnibus Law: Effectiveness of Online Licensing and Law Enforcement of the Capture Fisheries Sector in Indonesia

The government has carried out the task of simplifying several laws through the ratification of Law Number 6 of 2023 concerning the Stipulation of Government Regulation in Lieu of Law Number 11 of 2020 regarding Job Creation. This initiative aims to encourage investment and increase employment opportunities. A number of articles of the old law have been amended or deleted by this regulation. One of the laws in question is Law Number 31 of 2004 concerning Fisheries. In addition, Law Number 45 of 2009 is an amendment to Law Number 31 of 2004. This study applies a normative legal research methodology, where this type of research refers to scientific investigations of legal issues by conducting research through library sources or data related to secondary license issued by the OSS Institution through an integrated electronic system. This research approach is characterized by consideration of the risk-based licensing process, not only based on licensing criteria. Apart from the main goal of increasing user convenience, individuals with limited educational levels, such as fishermen, may face challenges when trying to access the OSS system. The application and implementation of criminal law as the main legal remedy poses its own challenges. Therefore, the utilization of the criminal justice system as a means to eradicate fish theft is mainly used as a final remedy (ultimum remedium). While other sanctions, such as administrative sanctions and actions, are generally used as the main means of law enforcement.

How do global commodities react to increasing geopolitical risks? New insights into the Russia-Ukraine and Palestine-Israel conflicts

The present study examines the impact of geopolitical risk on global commodities returns by including both major conflicts spanning from January 3, 2023 to December 18, 2023 to cover both the Russia-Ukraine and Palestine-Israel wars. Our study utilizes the QVAR model, the Quantile-on-Quantile regression (QQR) and the frequency causality test. Surprisingly, during the pre-conflict period, our findings reveal a weak positive influence of GPR on commodities, indicating their resilience to extreme negative shocks. Variance decompositions further highlight the limited role of GPR in explaining the commodity price variance. The spillover analysis highlights a low interconnectedness between GPR and commodities, demonstrating a high hedging effectiveness against expected negative GPR shocks. The heterogeneous reaction of commodities to extremely positive GPR shocks suggests diverse responses, emphasizing the need for nuanced investment strategies. Conversely, during the crisis periods, commodities exhibit a resilience to both negative and positive shocks from geopolitical tensions, therefore, presenting diversification opportunities for investors. The causality frequency analysis emphasizes the complex dynamics between GPR and commodities in both the time and frequency domains. Our study also offers significant implications for investors, portfolio managers, and policymakers, advocating for recognition of the weak pre-conflict link between GPR and commodities.