Portfolio Recommendations Research Articles

Towards Improved Hospital Services: IS/IT Strategic Recommendations for Muhammadiyah Hospital Based on Cost and Prioritization Analysis

This mixed-method study looks into the strategic priorities of information systems and technology (IS/IT) at Muhammadiyah Hospital in Sidoarjo, with a focus on long-term goals and alternative tactics. Using the Ward and Peppard approach, the research seeks to develop strategic suggestions and identify potential future application portfolios. The data was examined using cost-benefit analysis (CBA) and ranked using the Analytical Hierarchy Process. Furthermore, professional viewpoints were acquired through focus group discussions to evaluate IS/IT portfolio recommendations. The findings show that cost parameters play an important role in selecting developmental systems. The study emphasizes the need of using a multi-method approach in IS/IT strategic planning within healthcare, as well as the value of expert input in making good decisions. The findings provide a framework for Muhammadiyah Hospital to improve future services and go forward with key IS/IT projects.

Integration and transformation: The impact and applications of artificial intelligence in the financial sector

This paper explores the intersection of artificial intelligence (AI) and the financial sector, showcasing their transformative synergy. The integration of AI into finance has led to pioneering advancements like robo-advisors and AI-driven risk assessment methods. These innovations reshape investment strategies and risk management, ushering in a new era of financial operations. The study's focal question examines how AI recalibrates investment management, risk assessment, and fraud prevention in finance. The paper comprises sections on AI's impact on investment management, risk assessment, and fraud detection, detailing how robo-advisors provide personalized portfolio recommendations, AI aids risk identification and management, and transaction surveillance benefits from AI-powered fraud detection. Ethical, regulatory, and accountability considerations are discussed, reflecting AI's transformative influence on traditional financial paradigms. The application of AI in transaction detection and its role in enhancing portfolio recommendations, risk management, and automated trading are examined. While AI holds potential, its limitations such as data quality, model risks, and ethical concerns must be addressed. Regulatory oversight is crucial to ensure responsible AI implementation, fostering a balance between technological progress and financial stability. This paper underscores the intricate relationship between AI and finance, portraying AI's capacity to reshape the financial landscape and drive innovation

AN EVALUATION OF ROBO-ADVISOR RISK ASSESSMENT QUESTIONNAIRES IN SELECTED ASIA PACIFIC ECONOMIES

This study was conducted to evaluate the risk assessment questionnaires of a sample of 30 robo-advisors from seven selected Asia Pacific economies. Using a descriptive research approach, the study initially classified the questions gathered from the robo-advisor risk assessment questionnaires into risk capacity and risk tolerance, and further divided them into 26 subcategories. Then a comparison of the number of questions in each robo-advisor’s questionnaire was followed, where the risk tolerance wa found to have a higher proportion of questions than risk capacity. Next, the comparison of the questions per subcategory for each sample economy was done and reported that questions on investment amount dominate the risk capacity category, while risk versus return preference prevails in the risk tolerance category. Lastly, an analysis of the correlation between the answer value and percentage of equity in the recommended portfolios of robo-advisors in each sample economy was performed. The findings revealed that most of the robo-advisors formulate their portfolio recommendations without utilizing all the parameters or questions in the risk assessment questionnaires. The key influences of robo-advisors’ portfolio recommendations were asset allocation choices of the investors, followed by the investors’ attitude towards risk and risk versus return preference. This paper enriches the literature on robo-advisors by evaluating the risk assessment questionnaires adopted in the Asia Pacific region. In terms of practical implications, the results highlight the deficiencies of the existing questionnaires and assert that they should be reviewed and redesigned to more accurately capture investors’ risk characteristics and reflect all information gathered in the portfolio recommendations.

When financial advice rocks the market

We document the impact of recommendations by a hugely influential Chilean pension advisor, H&L, on pension investments by individuals, domestic stock market outcomes, and pension fund manager investment strategies. Following H&L's retirement portfolio recommendations, pension investors shifted amounts that, in a week, often exceeded 100% of monthly domestic stock trading volume. The market believed the recommendations—domestic stock prices responded, but they did so without trade: the massive portfolio shifts did not generate abnormally-high trading volume. To accommodate H&L's impact, pension managers adjusted portfolio compositions, making them more similar, and shifted holdings of liquid assets rather than domestic stocks.

Perencanaan Strategis Sistem Informasi Menggunakan Metodologi Ward and Peppard Pada Putra Darmawan Travel Salatiga

Putra darmawan travel is a company engaged in transportation services, located on Jalan Diponegoro No 64, Sidorejo, Salatiga City, Central Java. This company provides travel services, tours, car loans, and express packages. However, in carrying out its business business, this company has not yet applied SI / IT in its company operations, so he recommends to carry out strategic planning of information systems, aiming to assist in the preparation of information systems so that later they can have benefits and be in line with the goals and business processes that exist in the company. The preparation of the strategic design of this information system uses the ward and peppard method, with this method will be carried out several analyzes on the sons of travel darmawan in order to assist in the preparation of information system designs such as SWOT analysis, Value Chain, Five Porter's, Mc Farlan Strategic Grid whose output is in the form of proposed application portfolio recommendations in the form of Making SI Web travel, SI Promotion, SI Cashier, Asset Sim, which can be used as a reference for the putra darmawan travel company to be applied within the next 2-5 years

Variations in investment advice provision: A study of financial advisors of millionaire investors

Vignette methodology is used to examine how the personal characteristics of investors and financial advisors contribute to portfolio recommendations, and the judgements that advisors make about investment knowledge and control of prospective millionaire UK clients. We find that advisors use investor characteristics to make recommendations broadly in line with economic theory and regulatory requirements. However, women are judged less knowledgeable and in control of their investments than equivalent men. They also receive portfolio recommendations with slightly lower risk profiles. Portfolio recommendations vary by advisor, with experienced advisors and those with wealthier clients recommending higher risk portfolios. Unmeasured advisor variables also impact on judgements and recommendations. These findings have relevance to the wealth management industry and regulators, in focusing attention on the conscious and unconscious influences on the judgements advisors make about their clients.

Investor Experience and Portfolio Choice

MiFID II forces banks and wealth managers to ask clients for their investment knowledge and experience. The implied regulatory view is that less experience should result in less risk taking. While this is neither shared in theoretical nor in empirical finance, it becomes a source of legal risk for asset managers and banks. How do banks react? So far this question was impossible to answer. The relevant data have not been available as they are not shared by banks. We circumvene this problem by using publicly available portfolio recommendations from robo-advisory firms. These firms fall under the same regulations as banks and wealth managers with respect to MiFID II investor profiling and are often owned by traditional banks. It is therefore reasonable to assume that their treatment of investor experience is similar to traditional banks' approaches.

Exploring Investment Behavior of Women Entrepreneur: Some Future Directions

This study aims to explore the investment behavior of female entrepreneurs as the new competitor in the investment field and to determine the underlying factors that influence their investment attitudes. A qualitative investigation approach was employed for the study that includes 18 in-depth exploratory interviews to ascertain the fundamental determinants of the investment behavior represented by female entrepreneurs, an emergent section in investment. The accumulated data was analyzed through manual coding procedures. The study revealed that female entrepreneurs are not inclined to take risk in their business for investment decisions, they are somewhat conservative and risk averse. This research also asserts that if they spend quality time and get better training about the nuances of different investment tools, so they will also take risks in investment activities. Two big cosmopolitan cities Karachi and Lahore in Pakistan were selected as sample for this study. Research in other countries considering the culture and ethnicity must be conducted to expand the scope of understanding the investment behaviors of female entrepreneurs. This study outcomes would help the investment manager to understand women’s psychology to develop significant portfolio recommendations, service providers to develop consultancy training centers, policy makers to mitigate their risk and maximize their return opportunities. Hence, intending to provide opportunities for gender equalities, this research appears to be the first in Pakistan to adopt the inductive approach in this domain.

What Drives Robo-Advice?

The promise of robo-advisory firms is to provide low cost access to diversified portfolios built in accordance with the academic literature on normative portfolio choice. We investigate the latter claim. How much normative advice does robo-advice contain? For this purpose we web-scrap portfolio recommendations for 151200 investor types (input combinations from an online questionnaire) for one of the largest US robo-advisors. Our results show that the type of investment goal and the length of time horizon are dominating inputs with significant influence on recommended equity allocations. Normative advice in the form of Merton type hedging demands plays no role at all.

Portfolio recommendations to improve risk of default in microfinance

This article presents an exciting application of machine learning for loan origination in microfinance. Microfinance targets people who cannot build a credit history and therefore cannot access loans from banks or other financial institutions. We use data from a Mexican microfinance company that operates in several regions throughout the country. The objective is to guide intermediate lenders to choose their clients and achieve a lowerr credit default risk. We use several statistical models such as principal component analysis, clustering analysis and a regression tree. We obtain, as a result, a series of recommendations based on the characteristics of the clients.

Information System Strategic Planning In PT. Hostingan Awan Indonesia Using Ward & Peppard Methodology

Information Systems at this time is needed by the company to survive in business competition with competitors. The information system must also be aligned with the vision and mission and business processes that exist in the company now days so company can generate profits (profitable) at the same time. PT. Hostingan Awan Indonesia is a web development product & service provider company with online transaction feature and purchase processes that integrated with mobile payments. To make business process run optimally, an information system is needed to archive every output document that produced by each division in the company. The process of collecting data in this paper through observation and direct interviews with several stakeholders in the company. This research used Ward & Peppard metho with internal value chain analysis, SWOT, PEST, Five Forces Porter and Mc Farlan Strategic Grid. This research also provides application portfolio recommendations with internal business environment analysis, external business environment analysis, internal SI environmental analysis and external SI environmental analysis.

Investment behaviour of women entrepreneurs

PurposeThe purpose of this paper is to understand the new kind of investors – women entrepreneurs – and to find out the factors that drive their investment behaviour and investment decisions.Design/methodology/approachThe approach of qualitative enquiry was used for the research in which 18 in-depth exploratory interviews were conducted to identify the determinants of the investment behaviour shown by women entrepreneurs, a growing segment in investment. The accumulated data was analysed using open coding.FindingsThe research show that women entrepreneurs consider investment as a long-term instrument are risk averse and quite conservative. They are willing to take risks in business but not for making investment decisions. The reasons for this low-risk behaviour include lack of time to understand investments and lack of knowledge about various products. The research asserts that if they spend time to be informed about the nuances of investment instruments, they are likely to take risks for their investments as well. The interviews also reflect that women entrepreneurs often mimic the investment behaviour of their parents.Research limitations/implicationsThe sample for this research was taken from only two cities in India and a broader research in other cities as well will expand the understanding of investment behaviours demonstrated by women entrepreneurs. The differences in women entrepreneurs’ investment behaviour due to culture and ethnicity of the respondent are also not considered.Practical implicationsThe outcomes of the research will help the investment manager to get a better insight into the psychology of women entrepreneurs as investors. This will help them develop personalized and relevant portfolio recommendations. Second, the findings will help service providers to develop training modules for their investment advisors by sensitizing them to needs and wants of women entrepreneurs as potential investors. Third, the research will be of interest for policymakers and researchers to understand the determinants of personal investment decision-making amongst women entrepreneurs. Finally, it will help women entrepreneurs understand and mitigate their biases while taking investment decisions. It will lead them to take wiser investment decisions, thereby reducing the risk and maximizing opportunities of returns.Social implicationsThe research will provide opportunities for enhancing gender equality amongst investors. This can be achieved by educating the investment advisors on the traits and preferences of women entrepreneurs as investors. Designing and delivering specific workshops on investment awareness for women entrepreneurs can also be accomplished based on the findings of this research.Originality/valueTo the researcher’s best knowledge, the investment behaviour of women entrepreneurs in India has been little investigated. This study appears to be the first qualitative research attempt in that direction. This paper will be useful in understanding the behavioural biases by women entrepreneurs in considering their personal investment decisions.

Analisis Portofolio Optimal Saham Syariah Jakarta Islamic Index (JII) Periode 2015-2017

Tren investasi di pasar saham syariah Indonesia mengalami peningkatan dari tahun 2015 sampai dengan 2017. Peningkatan ini juga harus diimbangi dengan sikap investor yang mampu memilih kombinasi saham terbaik dengan tingkat pengembalian dan risiko yang terukur melalui portofolio optimal. Tujuan penelitian ini adalah untuk menghitung portofolio optimal saham syariah Jakarta Islamic Index menggunakan Model Markowitz dengan preferensi risiko terendah, Model Markowitz dengan sharpe ratio optimal, dan Single Index Model. Analisis kemudian dilakukan untuk membandingkan tingkat pengembalian yang diharapkan dan tingkat risiko portofolio yang terbentuk dari model tersebut, dan memberikan rekomendasi portofolio optimal kepada investor yang dapat dijadikan sebagai bahan pertimbangan pengambilan keputusan dalam berinvestasi pada saham syariah Jakarta Islamic Index. Penelitian ini menggunakan data harga saham harian, data dividen, IHSG, dan data sukuk. Pemilihan 18 objek saham diperoleh dengan menggunakan metode purposive sampling. Berdasarkan hasil perhitungan, portofolio optimal diperoleh menggunakan model Markowitz dengan sharpe ratio optimal yang menghasilkan kombinasi saham terbaik dengan tingkat pengembalian yang diharapkan dan tingkat risiko sebesar 33,74 persen dan 22 persen dalam setahun.

IS/IT STRATEGIC PLANNING PADA PERUSAHAAN MONO JAYA CILACAP JAWA TENGAH

At present business competition in Indonesia is getting tougher, including business competition in the field of wig making. PT Mono Jaya is one of the companies engaged in the production of wigs that are in Kroya, Cilacap district, Central Java. To increase competitiveness against its competitors, companies must be able to create new innovations and use information systems that are in accordance with the needs of the company as a support to improve performance, increase competitiveness against its competitors, and realize the company's goals. But to get an information system that fits the needs of the company, it requires an information system strategic planning. This study uses the Ward And Peppard method, the tools used are SWOT analysis, Value Chain analysis, McFarlan Strategic Grid analysis, Five Force Porter Model analysis, Critical Success Factor (CSF) analysis, and Balaced ScoreCard (BSC) analysis. The final results of this study are in the form of information system portfolio recommendations that are needed by PT Mono Jaya to improve the competitiveness of the company

PERENCANAAN STRATEGIS SI/TI PADA DOCUMENT MANAGEMENT MENGGUNAKAN WARD AND PEPPARD (STUDI KASUS: PT. VISIONET DATA INTERNATIONAL)

PT. Visionet Data International is a company engaged in the field of IT that serves Total IT Managed services. Because the development of Information Systems and Information Technology (IS / IT) in fulfilling the company's vision and mission, a good plan is needed. In this research focuses on the documentation management system in which there is no good company documentation management in accordance with the provisions in force. Regarding data collection methods, this research uses interviews with company’s employees. This research is a qualitative descriptive study using the Ward and Peppard method. Which includes SWOT analysis, Value Chain analysis, PEST analysis, application mapping analysis using McFarlan Strategic Grid and analysis of Proposed Information Systems. This research results in the form of application portfolio recommendations such as the development of Document Management in the form of Web-based applications in which all processes are integrated into one. So in the process of submitting new documents to the process of issuing documents can be done in an application which can support the reduction in the use of paper in the company.

Do as I Say, Not as I Do: An Analysis of Portfolio Development Recommendations Made by Financial Advisors

A survey of over 200 financial professionals was used to determine how financial advisors assess, rank, and use client characteristics and risk-profiling inputs when developing asset allocation recommendations. Findings from this study suggest that in a scenario-free context, financial advisors rank a client’s time horizon as the most important risk-profiling input. However, when viewed in the context of a specific client scenario, financial advisors appear to alter the importance of certain risk-profiling inputs, becoming overly reliant upon a client’s age and employment status. Results from this study also show that financial advisors are somewhat inconsistent in their use of risk-profiling inputs across client scenarios. Results do show that older financial advisors with more experience are more apt to consistently recommend portfolios with higher equity ratios than their younger counterparts. TOPICS:Portfolio construction, risk management, wealth management Key Findings • In a client-neutral context, financial advisors rank time horizon, liquidity need, risk capacity, risk need, and risk tolerance as important risk-profiling inputs. • However, when faced with client asset allocation choices, financial advisors appear to use other risk-profiling inputs to shape portfolio recommendations. • Although not a recommended practice, financial advisors seem to be overly reliant on the use of client age and employment status when developing asset allocation recommendations.

Variations in Investment Advice Provision: A Study of Financial Advisors of Millionaire Investors

We analyse portfolio recommendations and judgements about the investment knowledge and control of fictitious but plausible millionaire clients made by a panel of professional investment advisors. Using the vignette methodology in which we describe millionaire investors in pen portraits, we exactly control the information set given to each advisor about the would-be clients. Investor characteristics contribute to the portfolio recommendations in ways broadly in line with expectations. However advisor characteristics are at least as important. Experienced advisors and those with wealthier clients recommend higher risk portfolios, as do the very youngest category of advisors. Unmeasured advisor variables drive both judgements made about clients and the recommendations made. Female clients are judged to be less knowledgeable and less in control than equivalent male investors yet both genders receive the same investment advice. We conclude that millionaire investors receive very different investment advice depending on who their advisor is. These findings have relevance to the wealth management industry and financial market regulators who monitor advisor activities.

The Efficient Frontuzzle: What Investment Risk Profiling Still Fails to Solve

A global study of over 200 professional financial advisors is undertaken to test how risk profile factors are used to make investment portfolio allocation recommendations. When presented with identical risk profile information, similar to what a competent financial advisor would normally collect from a prospective client, respondents are asked to recommend a portfolio allocation among equity, fixed income, and cash for five hypothetical client scenarios. The results find that financial advisors, using their professional judgment, inconsistently puzzled together the presented risk profile factors into portfolio recommendations, on average doing little more than applying the heuristic 100-minus-age rule to recommendations. These troubling results highlight the regulatory need for uniform risk profile evaluation guidance in fiduciary contexts. TOPICS:Portfolio construction, risk management, legal/regulatory/public policy

Collective mental accounting: an integrated behavioural portfolio selection model for multiple mental accounts

We propose a behavioural portfolio selection model called collective mental accounting (CMA), which integrates all mental sub-portfolios (mental accounts) in one mathematical model. Moreover, this study contributes to the literature of behavioural portfolio selection in three further ways: first, the CMA model can determine the proportions of wealth allocated to each mental sub-portfolio with and without input from the investor. Second, unlike other mental accounting models (MA), in CMA it is possible to define constraints on total asset holdings such as short-selling, and cardinality constraints. Third, in order to make CMA more tractable and mathematically elegant, we obtain a semi-definite programming representation of the model. We also present a numerical example to investigate the effects of short-selling constraints as well as to compare the portfolio recommendations, utility functions, feasibility, and optimality of the CMA and MA models. The results reveal that although both models’ solutions are mean-variance efficient, CMA outperforms MA in terms of behavioural efficient frontier and utility functions.

Millionaire investors: financial advisors, attribution theory and gender differences

ABSTRACTTo date little attention has been paid to how social cognitive bias can influence how financial advisors interpret and respond to the needs of millionaire investors, and if this varies depending on the gender of the investor. This research investigates whether experienced professional financial advisors who work with millionaire investors make different attributions for the control and knowledge that investors have of their investments, and if they make different investment portfolio recommendations to equivalent male and female investors. Using methodology novel to finance, this vignette-based study that controls for gender finds evidence that professional financial advisors judge millionaire female investors to have less control over their investment portfolios relative to men. Empirical results also show that female advisors judge women to be less knowledgeable about investments than men. Despite such perceptual differences, advisors recommend equally risky portfolios to male and female investors. These results have implications for wealth management institutions and the monitoring of financial advisors for millionaire individuals.