Positive Investment Research Articles

SIMULATION OF THE INFLUENCE OF THE INVESTMENT ENVIRONMENT ON THE FORMATION OF AN ATTRACTIVE MACRO SPACE OF THE ECONOMY OF UKRAINE

The economic situation in most countries demonstrates an ever-increasing demand for investment resources while their supply is significantly limited. A system of factors characterized by multidirectional action forms the so-called investment environment in the country. Its structure and level of efficiency are crucial determinants for ensuring the sustainable economic development of a country. The purpose of the study is to substantiate scientific and practical recommendations for the formation of a highly efficient macro-space of the economy of Ukraine based on the implementation of rational investment policy measures. In the course of this research, an analysis of foreign investment volumes in Ukraine was conducted, and a list of factors ensuring the positive investment image of the country in the international arena was identified. The result of the study is constructed trend lines of GDP dependence on direct foreign investors in Ukraine and abroad, as well as trend lines of GDP dependence on the level of the tax burden and the integral indicator of the level of the shadow economy; the delineation of the main directions for forming an investment environment in the context of attracting foreign capital investments. The priority vectors of optimizing the investment environment in Ukraine are substantiated and the main problems of Ukraine's investment attractiveness as a motivational factor for investment activity are determined. The strategic directions for the development of investment attractiveness of the national economy under modern business conditions have been justified. The methodological basis of the research consists of a systematic, comprehensive, and evolutionary approach. The main scientific results of the study were obtained through the use of methods such as structural-logical analysis, theoretical generalization, comparative analysis, structural-functional analysis, and a comprehensive approach based on identifying cause-and-effect relationships, as well as logical, economic and mathematical modelling, analytical, and graphical methods.

THE PLACE AND ROLE OF THE STATE IN THE FORMATION AND PROMOTION OF A POSITIVE INVESTMENT IMAGE OF THE COUNTRY

The article examines the role of the state in forming and promoting a positive investment image of a country, with a focus on the Russian experience. It highlights the importance of state involvement in creating a favourable environment for investment and actively promoting the country’s investment opportunities.

Beneath the surface: discovering the fascinating factors shaping blue economy investment behaviour and paving the way for sustainable performance: an empirical study of the marine shipping firms in Egypt

ABSTRACT The blue economy investment behaviour has become highly important in the past decades as it relies on making positive investment decisions which lead to the development and growth of sustainability of every country. This paper contributes to the literature through the investigation of the drivers affecting blue economy investments, and the overall impact on the sustainability of the supply chain performance of marine shipping firms in Egypt. Egypt has a strategic geographic location with long coastlines along the Red, Mediterranean and Gulf of Aqaba seas, in addition to around 50 marine ports to which logistics firms have access to. Relying on the Technology, Organization, and Environment (TOE) theory and Appiah et al. (2023) model, this paper finds positive impacts of five factors – technological, organisational, environmental, cost spending and supply chain management on blue economy investment decisions in Egypt; however, it finds an insignificant impact of the regulatory factors on stimulating substantial investment. In addition, this paper finds an overall positive impact of blue economy investments on the sustainability of the supply chains of the Egyptian marine shipping firms. This paper suggests actions to be implemented by the Egyptian government to entirely switch to a blue economy to support the sustainability of its blue waters.

«Strategic business company» in the understanding of the Law on Foreign Investments

The object of the study is the implementation of foreign investments in strategic sectors of the economy, the subject of the study is a «strategic business entity» as an object of investment activity. The author examines aspects of the normative and legal definition of «a business entity of strategic importance for ensuring the defense of the country and the security of the state», the features of the use of this concept in law enforcement. Particular attention is paid to the role of strategic business entities in ensuring the implementation of the National Security Strategy of the Russian Federation. The methodological basis of the study was made up of general logical methods of theoretical analysis, as well as a special formal-legal method and a method of technical-legal analysis. The conclusion is substantiated about the law enforcement agency going beyond the literal interpretation of the regulatory definition of a «strategic business entity» and a new concept of such a company is formulated and understood as «a legal entity created in the Russian Federation, implementing and (or) having the ability to implement, on the basis of a license, other permit document or agreement, any of the types of activities that are of strategic importance for ensuring the defense of the country and the security of the state and the implementation of national priorities provided for by the National Security Strategy of the Russian Federation (including performing work, providing services, delivering products necessary for another legal entity to implement the specified type of activity)». This definition must be provided for in the law in order to ensure legal certainty and create a positive investment climate.

The Impact of Sharia Financial Literacy, Religiosity, and Perceived Quality on Investment Decisions on Sharia-Compliant Products

This research examines the influence of sharia financial literacy on investment decisions in sharia financial products, by considering two moderating variables: perceived quality and religiosity. Quantitative methods were used by collecting data through bold questionnaires via Google Form to 190 respondents who understand sharia financial products. Data analysis was conducted using Structural Equation Modeling based on behavioral finance theory. The research results show that there is a positive influence of sharia financial literacy on investment decisions in sharia financial products. Perceived quality and religiosity do not moderate the influence of financial literacy on investment decisions, but have a direct effect. The implication is that sharia financial literacy influences positive investment decisions. Perceived quality and level of religiosity also influence investment decisions in sharia financial products. These findings are important for the Islamic finance industry in developing effective marketing and service strategies, as well as for educational institutions to increase sharia financial literacy.

Dividend cuts and a firm's investment opportunity set

AbstractThis paper re‐examines corporate dividend payout policy by focusing on how investors evaluate dividend cuts. Our focus is to understand why despite the documented on average negative market response, many dividend‐cutting firms experience a positive market response. We juxtapose a well‐established literature on corporate payout policies with the literature on the role of prior information in investor evaluation of newly arrived information and document that the market responds positively to dividend cuts when firms have positive investment opportunity sets. Our results support the primary thesis that not all dividend cuts are bad news—it depends. We validate this result by documenting that firms cutting dividends in the presence of investment opportunities do make significant investments such as capital expenditures and merger and acquisition activities in future years. Furthermore, we also find that future operating profitability is higher for dividend‐cutting firms with relatively higher investment opportunities. We also document that among dividend‐cutting firms, there is a statistically significant difference in the buy‐and‐hold returns for up to 2 years, between firms with high versus low investment opportunities. This provides support for the economic significance of our results. These results provide new evidence on how investors interpret corporate payout policies to distinguish among dividend cuts.

Foreign Dependency and Economic Growth Nexus in Kenya

Foreign dependency is an economic phenomenon, which is characterized by asymmetrical benefits, favouring specific countries at the expense of others, and impeding the growth potential of dependent economies. The main objective of the study was to determine the relationship between foreign dependency and economic growth in Kenya. To achieve this overarching aim, specific objectives have been delineated to include an evaluation of the effect of import volumes and external debt levels on economic growth in Kenya. The theoretical underpinnings of this study draw from several key economic theories and models, each offering unique insights into the dynamics of foreign dependency. This study employed a descriptive and inferential statistical design and leverages a time series dataset spanning the years 1980 to 2021, meticulously sourced from the World Bank. To facilitate a comprehensive analysis, the Autoregressive Distributed Lag (ARDL) model was applied. The empirical analysis revealed noteworthy relationships between determinants of economic growth in the Kenyan context. Specifically, imports of goods and services and external debt are all identified as having statistically significant impacts on the trajectory of economic growth in Kenya. In conclusion, these findings suggest that factors like imports and external debt contributes positively to economic growth. The study recommends that policymakers should explore strategies to attract productive external debt which will stimulate positive investment spillover effects within the economy. Emphasis should be placed on the need to bolster the import-led growth through regulatory mechanisms that safeguard local producers. Responsible external debt management is underscored as pivotal to fostering sustained and robust economic growth. Additionally, trade policies designed to facilitate import-led growth are posited as potentially beneficial for the Kenyan economy.

Exploring the spatialisation of the performance of residential REITs investment and direct investment in the housing market

ABSTRACT Despite numerous studies about the housing sector, the connection between the performance of residential real estate investment trusts (REITs) investment and direct investment in the housing market is still under-researched. To help fill this gap, we used quarterly data of the Australian Securities Exchange (ASX) residential REITs index and direct housing returns of Australia and its major cities, spanning March 1983 to June 2021, and adopted a suite of econometric methods to document the following findings. First, publicly listed housing (residential REITs) and private housing markets are not separated, but both are closely related in terms of their investment performance. Second, the performance of direct investment in the housing market of Adelaide, Brisbane, Melbourne and Sydney could lead to positive investment performances for residential REITs over time, while no comparable evidence is found for Canberra, Darwin, Hobart and Perth. Third, further analyses revealed a one-way direction of performance, flowing from the housing market of Brisbane, Melbourne and Sydney to residential REITs, while no similar evidence of performance flow was found for Adelaide. Our study has provided new evidence that could contribute to the discussion on the expansion of residential properties in the portfolio of institutional investors.

Analisis Teknikal Menggunakan Moving Average (MA), Moving Average Convergence-Divergence (MACD), dan Relative Strength Index (RSI) Untuk Mengoptimalkan Dalam Pengambilan Keputusan Investasi Pada Saham Sektor Manufaktur Index LQ45 BEI Tahun 2022-2023

This research examines technical stock analysis techniques for six manufacturing sector companies listed on the Indonesia Stock Exchange for the 2022–2023 period, using the Moving Average (MA), Moving Average Convergence and Divergence (MACD) and Relative Strength Index (RSI) indicators. . Astra International Tbk (ASII), PT Indofood Sukses Makmur Tbk (INDF), PT Indofood CBP Sukses Makmur Tbk (ICBP), PT Semen Indonesia Persero Tbk (SMGR), PT Indah Kiat Pulp & Paper Tbk (INKP), and PT Kalbe Farma Tbk (KLBF) are some of them. The analysis was conducted using charts from the stockbit.com website to evaluate the accuracy of signals and the investment performance of these three indicators. The research results indicate that RSI has the highest signal accuracy rate, namely 92%, while MA and MACD have accuracy rates of approximately 58% and 55%, respectively. Despite MACD producing more signals, RSI remains accurate with fewer signals. In terms of return on investment, RSI achieved a total return of 238%, followed by MACD with a total return of 161%, and MA with a total return of 101%. RSI proves to be a reliable indicator by generating positive returns without any negative returns on the studied stocks. In conclusion, RSI is the primary choice in making investment decisions in the manufacturing sector stocks on the Indonesia Stock Exchange due to its accuracy and positive investment returns. However, MA remains useful for trend analysis, and investors are advised to pay attention to the entire stock market, consider additional indicators, and have sufficient understanding of technical analysis. For future research, it is recommended to consider other sectors and a broader range of indicators.

SDG 2 – ending hunger: the effect of Nigeria’s land titling on production output and food security of farming households

Achieving zero hunger is intricately linked to sustainable agricultural production and the workings of a farming system. With land being the most important resource in smallholder agriculture in developing countries; including Nigeria; the effect of legal land ownership is a sine qua non for the process of achieving zero hunger in Nigeria. This study examined Nigeria’s attempt at making agricultural land both accessible and utilizable for smallholders in Nigeria through the Presidential Technical Steering Committee on Land Reforms in 2009. The aim was to explore the extent to which land ownership had become legalized; so that it had positive investment incentives for smallholder farmers to improve their investment portfolio on their holdings. A secondary dataset of 4,032 respondents obtained from the Living Standard Survey Integrated Survey on Agriculture (LSMS/ISA) of the 2018/2019 season, was used for the study. Data analysis included descriptive statistics and a 2-stage least square model. The apriori being that legal land ownership provided a perception of security that would enhance farm-level investment; which would therefore increase production output and hence food security. The findings revealed that although land titling was low (~12%) within the agricultural system; its return on production output was highly significant (5.3; p < 0.05). The possession of land title would also increase per capita food consumption expenditure (0.35; p < 0.05) among the farming households. On average, households with access to land titles had a significantly higher (at p < 0.01) food expenditure (N9, 868.00) than those without land titles (N6171.72). Other farm-level investment variables such as credit use, and mechanization through tractor use were significant in improving food security amidst the security presented by possession of land title. Thus, expediting the implementation and coverage of formal land registration and titling may be a first step to contributing meaningfully to the food security drive of the SDGs in Nigeria.

Cover crop management strategies affect weeds and profitability of organic no-till soybean

Abstract Cover crop residue retention on the soil surface can suppress weeds and improve organic no-till soybean (Glycine max) yield and profitability compared to a tilled system. Appropriate cereal rye (Secale cereale) fall planting date and termination methods in the spring are critical to achieve these benefits. A plot-scale agronomic experiment was carried out from September 2018 to October 2021 in Kutztown, PA, USA to demonstrate the influence of cereal rye planting date (September or October) and mechanical termination method [no-till (I & J roller-crimper, Dawn ZRX roller, and mow-ted) and tilled (plow-cultivate)] on cover crop regrowth density, weed biomass, soybean yield, and economic returns. In one out of three years, the September rye planting accumulated more cover crop biomass than the October planting, but the regrowth of the rye after roller-crimping was greater with this planting date. Cover crop planting date had no effect on total weed biomass and demonstrated varying effects on soybean grain yield and economic returns. The Dawn ZRX roller outperformed the I & J roller-crimper in effectively terminating cover crops, while the I & J roller-crimper demonstrated more uniform weed suppression and led to greater soybean yields over a span of three years. Organic no-till strategies eliminated the need for tillage and reduced variable costs by 14% over plow-cultivated plots, and generated ~19% greater net revenue across the study period (no-till vs tillage = US $845 vs US $711 ha−1). Terminating cereal rye with roller-crimping technology can be a positive investment in an organic soybean production system.

Аналіз надходження прямих іноземних інвестицій в Україну

The purpose of the study is to analyze the state, dynamics and structure of foreign direct investment (FDI) inflows in Ukraine. Such research methods as analysis, synthesis and comparison, graphical method were used. The article considers the theoretical foundations of the category of foreign direct investment, reveals the characteristic features. The significance of investments for the country’s economy is substantiated, a list of advantages of Ukraine in the context of investment attractiveness is provided. An analysis of the dynamics of foreign direct investment in the Ukraine showed that over the past 22 years there have been significant fluctuations. It is found that this is due to a number of factors, including: military operations, political instability, the coronavirus pandemic, and economic crises. The dynamics of the index of investment attractiveness of Ukraine is also considered; it is concluded that Ukraine has a fairly average investment attractiveness. However, at present there is again a relatively positive trend towards an increase in FDI inflows into the country’s economy, and under the conditions of a balanced economic policy, the end of the war, and the attraction of new investors, this trend may continue. Having considered the dynamics of the structure of foreign direct investment balances by country, it was possible to identify that in the period 2015–2022 the EU countries have invested in Ukraine’s economy. At that, the presence of countries that act as offshore zones is identified. This, in turn, carries certain threats and is a consequence of bribery and tax evasion. An important task of the Government of Ukraine should be to increase the level of attraction of economically and innovatively developed investments from leading countries, as well as to reduce the outflow of capital to offshore countries. Solutions in this direction can be the creation of innovation zones, the fight against corruption and the reform of the tax system. This will help attract new foreign investment, as well as increase the level of competitiveness of Ukraine in the world space. An analysis of the dynamics of the structure of foreign direct investment balances by types of economic activity for the same period showed that such sectors as industry, wholesale and retail trade, financial and insurance activities, real estate transactions represent the largest share. At the same time, such sectors of our country’s economy as energy, information technology, construction, industry (including agro-industry), transport and logistics, critical materials and green metallurgy have the greatest growth potential. In some of these areas, despite the existing challenges and problems, a positive investment trend is already noticeable today – large-scale projects are being developed and implemented. Prospects for further research in this direction are building a multifactor model for analyzing the impact of economic factors on the dynamics of foreign direct investment, as well as building a model for forecasting the indicator for future periods.

Stock market liberalization and corporate investment revisited: Evidence from China

Recent reform in China has made a subset of Chinese stocks available to foreign investors, partially opening up China's stock market. Our difference-in-differences analysis shows that this liberalization reform boosts investments in investable firms relative to noninvestable ones, with results robust to various sensitivity analyses. Besides capital inflows and risk sharing, a potential but underexplored channel is improved corporate governance due to direct and indirect pressures from foreign investors, which lowers the cost of capital and improves capital allocation efficiency. Consistent with this corporate governance channel, we find that the liberalization reform reduces investable firms’ agency costs, increases their investment efficiency and total factor productivity, and improves their operating performance. Further analysis finds that the positive investment effect from the liberalization reform is stronger among firms that were poorly governed before the reform.

Carbon reduction measures-based life cycle assessment of the photovoltaic-supported sewage treatment system

This study developed a photovoltaic (PV)-supported wastewater treatment system (WWTS) and conducted a combined experimental and simulation-based life cycle assessment (LCA). The system's energy demand and greenhouse gas (GHG) emissions were predicted through data analysis from manufacturers and the Ecoinvent databases. The energy payback time (EPBT) and GHG payback time (GPBT) were assessed. Additionally, the life cycle cost (LCC) based economic analysis was performed. The result showed that the EPBT and GPBT of the PV-supported WWTS were 11.31 years and 8.3 years, respectively, while the EPBT and GPBT of the PV-supported wastewater treatment plant (WWTP) were 9.7 years and 7.1 years, respectively. Differences in treatment scale, equipment size, and electrical stability between the PV-supported WWTS and the PV-supported WWTP necessitate independent LCA assessments to ensure environmental consistency. Based on the LCA results, recommendations for further system optimization were proposed to reduce carbon emissions. Moreover, the analysis and comparison of the PV-supported WWTS under different scenarios revealed positive investment returns. These results provide the foundation for the system's expansion, which include different energy structures and various sewage types.

Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact

The aim of this study is to examine whether sustainable finance literacy and the perceived environmental impact of sustainable finance instruments exert substantial influence over the sustainable investment attitudes of investors within the developing country setting of Ankara, Türkiye. Following a systematic literature review, an online survey was designed and conducted. Multivariate regression models were used for the analysis. The findings illustrate that individuals with a greater level of sustainable finance literacy and a positive perception of the favorable environmental effects of sustainable finance instruments tend to exhibit a positive investment stance and are more likely to invest in sustainable finance instruments. Among the questions related to sustainable finance literacy, the most significant factor in explaining sustainable investment attitude is the knowledge of how sustainable finance instruments can be utilized for risk diversification. In addition, it is depicted that individuals with higher income levels exhibit a favorable disposition toward sustainable finance instruments. The results of our study imply that, to stimulate sustainable investments in developing countries, regulatory authorities and sustainable fund issuers such as financial corporations can enhance promotional campaigns and workshops aimed at increasing awareness and understanding of sustainable finance literacy, sustainable financial instruments, and their positive impact on the environment.

Implementation of eco startups in the development of green territories

In the context of the spread of the European Green Deal and activation of green economy on the European continent, the issue of the development of green territories and appropriate tools for regulating these processes arises. At the same time, a special place is given to innovative entrepreneurship as a driver of green development of territories. The article is devoted to the substantiation of the areas of implementation of environmental innovations - eco-startups in the development of territories in the context of the spread of the principles of green economy. To achieve this goal, the article uses dialectical method of cognition, systemic and complex approaches, methods of observation and logical generalization, system-structural analysis, cognitive modeling. The authors propose the definition of "green territory", develop its concept and systematize the main components. Arguments are given on the impact of eco-startups on the activation of green development of the territory, the models of innovative activity as basic ones for ecological startups are revealed. The challenges and opportunities of eco-startups in the context of the spread of the European discourse of green economy are structured. The problems of ecological entrepreneurship in Ukraine are identified and the potential for overcoming them is determined. A conceptual scheme has been developed that reveals a cognitive relationship between components such as entrepreneurial activity, ecosystem stability, circularity principles, territorial disproportions, migration flows, green territory image, regional investments and establishes the impact of these components on the level of green development. The authors state the intensification of innovative entrepreneurship through ecological startups, and prove that systematized principles of circularity and a new look at the development of green territories are the driver of this process. It is proved that the implementation of these principles through ecological entrepreneurship allows to form and maintain the image of green territories and promotes the formation of a positive investment climate at regional level. The results of the study can be useful both for the state and regional management systems, since they substantiate the directions of formation of regional development policy, and for business structures in terms of determining the priorities and prospects of environmental development

Attention Spillover in Asset Pricing

ABSTRACTExploiting a screen display feature whereby the order of stock display is determined by the stock's listing code, we lever a novel identification strategy and study how the interaction between overconfidence and limited attention affect asset pricing. We find that stocks displayed next to those with higher returns in the past two weeks are associated with higher returns in the future week, which are reverted in the long run. This is consistent with our conjectures that investors tend to trade more after positive investment experience and are more likely to pay attention to neighboring stocks, both confirmed using trading data.

Factors Affecting Contemporary High School Students in Doing Investment

The past research about high school students investment behaviors is mainly carried out during the start of the 21st century. However, with the increasingly changing family wealth and living standards in China, the amount of money high school students possess is much higher nowadays. Moreover, this study is carried out in Beijing, one of the most flourished metropolises in China. Therefore, a study that is more time-sensitive should be carried. This paper examines the factors affecting investment behavior among contemporary high school students from an affiliated school of Peking University in China. A questionnaire-based survey was conducted to collect data from about 100 high school students. The findings revealed that most of the respondents had discussions about financial issues with their parents or other guardians during their high school years, and observed their parents or guardians engaging in positive investment behaviors.

CONDITIONS AND FACTORS AFFECTING POSITIVE INVESTMENT CLIMATE IN THE KYRGYZ REPUBLIC

Abstract: In the context of globalization, the investment attractiveness of a country is essential for the economy of the country. The purpose of this paper is to explore the factors affecting the inflow of foreign direct investment in the example of the Kyrgyz Republic as a member of the Eurasian Economic Union (EAEU). The paper introduces the ways and changes in the country’s investment activities and explains how the country attempts to attract investors and improve state legislation, ideology, and economic policy to create a favorable investment climate. The investment climate discussed in this paper as a set of factors plays a decisive role in attracting investment to the country's economy. In addition, this paper identifies the factors determining investment climate that depend on political stability, the transparent legal framework, the tax coefficient, and the attractive benefits, and concludes by emphasizing that all of these factors create a favorable climate for investors and help the Kyrgyz Republic to form a positive investment image.
 Keywords: the Kyrgyz Republic, investment attractiveness, investment climate, state investment policy.

ABC’s North and South (Book I and Book II) Miniseries as an Expression of Reaganite Ideology

The article examines the compatibility of David L. Wolper’s adaptation of North and South (Book I and Book II) with Reaganite ideology. It discusses the modifications of the original text (characters and events) to demonstrate how a Civil War novel has been transformed into a mirror image of Reaganite America. Wolper’s TV adaptation forms part of Ronald Reagan’s governing narrative of building one and strong America. The positive investment in the past – sanitizing or eliminating socially divisive issues, such as slavery and promoting core values such as family – helps to reach the national consensus on history that everybody (Southerners and Northerners) can identify with. Wrapped in the 1980s aesthetics of opulence, Wolper’s adaptation conveys a message of America’s greatness, attainable under the Lincoln-Reagan rallying cry “we must all stand united as Americans.”