Investor Preferences Research Articles

LITERATURE REVIEW ON DETERMINANTS OF INVESTMENT CHOICE IN INDIAN POST OFFICE SCHEMES

There are multiple investment options around us. We must select the best investment choice to achieve our overall objectives. The Indian Post offers numerous savings schemes with high returns and safety. Post office schemes have long been famous for individuals seeking secure and hassle-free investment options. Understanding the factors that drive investors choices within these schemes is crucial for policymakers and financial institutions. One of the prominent factors explored in this review is demographic characteristics. Age, generation, and gender have emerged as significant determinants of investment preferences. Older investors, particularly senior citizens, find postal schemes appealing because of their simplicity and perceived safety. Moreover, female investors exhibited a strong inclination toward these schemes. Financial security and tax benefits play a pivotal role in shaping investment decisions. Investors are drawn to post office schemes because of the guaranteed returns offered by the government and the tax incentives associated with these investments. The review also highlights the impact of educational qualifications on investment choices, shedding light on how individuals with different educational backgrounds perceive these schemes.

How does environmental legislation affect enterprise investment preferences? A quasi-natural experiment based on China's new environmental protection law

China's New Environmental Protection Law (NEPL) represents a significant shift from the traditional administration to environmental legalization. Polluting enterprises face more pronounced contradictions between short-term environmental compliance and long-term development. Therefore, based on the CNRDS and CSMAR databases, this paper uses the 2015 NEPL as a quasi-natural experiment to investigate the micro-effects and mechanisms of environmental legislation on firms' investment preferences and environmental performance. The main findings of this paper are as follows. (1) The implementation of the NEPL effectively promotes the key pollutant-discharge enterprises (PDEs) to increase similar financial and environmental investment, and furthermore, the endogenous financing attributes of short-term financial investments can also provide financing for long-term environmental investment. This is due to the "reservoir" motive and the improvement in the executives' environmental awareness and green attention. (2) The NEPL exhibits heterogeneous policy effects. The key PDEs with political connections are more concerned about environmental management and investment. However, the NEPL's positive impact on environmental investment is weakened in regions with high levels of environmental justice. (3) A shift in the key PDEs' investment structure triggers a series of economic and environmental effects, such as increasing their risk-taking capacity, reducing environmental uncertainty, and significantly improving green patents. This paper provides policy implications for the process of environmental legalization in China and other developing countries.

Flexibilization or biomethane upgrading? Investment preference of German biogas plant operators for the follow‐up of guaranteed feed‐in tariffs

AbstractThis article reports the results of a discrete choice experiment with 183 German biogas plant operators designed to elicit the respondents' plans for biogas utilization pathways after the end of guaranteed feed‐in tariffs. Participants could choose between ‘flexibilization’ for demand‐based electricity generation and conversion to biomethane upgrading for direct feed‐in into the natural gas grid. A binomial logit model revealed a 37% probability of switching to biomethane upgrading. These plants are characterized by higher capacities, several involved shareholders, secured succession, costly digestate disposal and belonging to the upper performance quartile. Mixed logit estimations conducted separately for the two investment concepts revealed a very high overall willingness to invest: 71% for flexibilization and 82% for biomethane upgrading. The respondents demand a return on investment of 19% for flexibilization and 26% for biomethane upgrading. Within the flexibilization, twofold overbuilding (installed capacity equals 2 times the rated power) is clearly preferred to fivefold overbuilding. For the biomethane upgrading, private ownership of the upgrading plant is preferred to a joint investment in a central upgrading facility. Limiting the use of energy crops reduces the propensity to invest in both models, while a longer utilization period enhances it. The respondents consider lack of planning reliability as the biggest obstacle to invest, followed by long approval procedures and high investment costs due to restrictive legal requirements.

Enhancing Investment Performance and Sustainability in the Maldives Insurance Industry

The role of the insurance industry in national economic stability is indispensable, particularly in developing nations like the Maldives. Despite substantial potential, the industry's penetration levels remain below desired thresholds. This research aims to investigate the performance of Maldivian insurance companies, focusing on investment-related aspects. Drawing from existing literature on global insurance sectors, the study formulates hypotheses and employs multiple regression and qualitative analysis on primary data from the Maldives insurance industry. The findings suggest a collective influence of various factors on the financial performance of the sector. Additionally, the study explores preferred investment instruments over different time durations and identifies challenges hindering optimal investment returns. The research provides recommendations for stakeholders to enhance the investment climate, fostering sustainability and collaborative initiatives within the industry.

Gender Equality and the Risk Assessment of Corporate Financialization: An Analysis of the Increase in the Proportion of Female Executives

This paper empirically investigates the impact of the proportion of female executives on the financialization of enterprises using a sample of listed companies in the Shanghai and Shenzhen stock markets from 2009-2018. Previous studies tend to conclude that female executives are risk averse, preventing firms from participating in high-risk financial investments. However, the results of this paper show that there is a positive relationship between the proportion of female executives and the degree of corporate financialization, with an increase of 1 percent in the proportion of female executives leading to an increase of 3.8 percent in the degree of corporate financialization. Further tests show that gender inequality is a possible mechanism influencing female executives’ financial investment preferences in the unique gender culture context of China. This paper expands the research on the impact of non-institutional factors on corporate financialization, and also points out that unilaterally pursuing an increase in the proportion of female executives does not reduce the risk of corporate financialization, and that only an overall increase in the proportion of female executives can reduce the risk of corporate financialization. Improving gender equality at the social level can fundamentally reflect women’s risk aversion characteristics and encourage enterprises to make more stable investment decisions.

Trump's Tweeting Sentiment, Mutual Fund Portfolio, and Investor Preference

Trump's Tweeting Sentiment, Mutual Fund Portfolio, and Investor Preference

ВЛИЯНИЕ ФИНАНСОВОГО КРИЗИСА НА СТРАТЕГИИ УПРАВЛЕНИЯ ПОРТФЕЛЕМ ФИНАНСОВЫХ АКТИВОВ

The subject of the study is global changes and the crisis in financial markets, which obviously have a great influence on the formation of changes in investor preferences, as well as related approaches to compiling an investment portfolio of financial assets. Currently, a modern investment portfolio is a collection of different financial assets, selected because of the different reactions of their prices to volatility in market trends, mainly during periods of financial crises. The main issues of forming and managing an investment portfolio using Smart Beta funds were also presented, allowing to reduce risks and uncertainties, ensuring the effective formation and management of a portfolio of financial assets, and its diversification.

Determining Potential Investor Preferences on Financial Investment Products Through Cluster and Conjoint Analysis

The amount of capitalization and community participation in investing indicates a country's economic development. Indonesia is presently experiencing a demographic advantage that could lead to a rise in investors, particularly in financial investment products. This potential must be supported by market research on financial investment products to optimize such a large potential market. Therefore, this study aims to analyze potential market segments and design financial investment product characteristics that align with investor preferences. This study utilized a quantitative approach with k-means clustering and adaptive conjoint analysis. The study results can define the optimal investment product and provide policymakers with information for introducing and educating the public about diverse investment categories. This study provides an exhaustive analysis of investor preferences and market segmentation in the Indonesian financial investment sector.

Investor Preferences and Responses to Disclosure: Evidence from Carbon Net-Zero Pledges

Investor Preferences and Responses to Disclosure: Evidence from Carbon Net-Zero Pledges

Triskaidekaphobia: The Role of the Dreaded 13th Floor in Shaping Investment Preferences in the Indian Residential Real Estate Market

This study investigates the influence of triskaidekaphobia, the fear of the number 13, on investment preferences in the Indian residential real estate market, specifically examining attitudes towards properties on the 13th floor in high-rise buildings. Originating in Western cultures, triskaidekaphobia has transcended cultural boundaries, influencing the Indian market, which is traditionally shaped by a blend of cultural, religious, and socio-economic factors, including beliefs like Vastu Shastra. Using a quantitative research methodology, the study surveyed 500 participants from various demographic backgrounds across India. The findings reveal a significant awareness of triskaidekaphobia among the respondents, with a majority strongly believing in this superstition. This belief translates into a considerable reluctance to invest in properties on the 13th floor, with many respondents and potential developers expressing a preference to exclude or rename this floor. Statistical analyses, including correlation and regression, indicate a negative relationship between belief in triskaidekaphobia and willingness to invest in the 13th floor. These findings suggest that triskaidekaphobia significantly influences real estate investment decisions in India, reflecting the deep-rooted impact of cultural beliefs on economic behaviors. The study contributes to the understanding of cultural influences in the real estate market and offers insights for real estate developers, urban planners, and policymakers. It highlights the importance of cultural sensitivity in business strategies and the need to consider local beliefs and superstitions in market analyses. The research suggests that addressing the irrational basis of triskaidekaphobia through investor education could open new market opportunities and promote more rational investment choices.

Investment Pattern of Gulf Migrants in Thiruvananthapuram District: A Critical Analysis

The study examines the economic behavior of Gulf migrants in terms of their savings habits, investment preferences, and the impact of their financial decisions on the local economy. This article aims to provide insights into the socioeconomic dynamics of Gulf migration and its implications for both migrants and the host community. The findings underscore the need for tailored policy interventions to harness the potential of remittances and investments for sustainable development in Thiruvananthapuram district. Keralites living in gulf are wealth of India and Strength of Kerala. Remittances receive serve as a key source of income for Kerala’s economy. The migrant household utilize the bulk of the remittance from the gulf countries on consumption, savings and investment. It has been recognized as a powerful tool for income generation and employment.

Environmental, social, governance (ESG) & sustainable finance : Emergence of new era of investing

Since the financial crisis, investors have given greater regard to environmental, social, and governance (ESG) factors when making stock market choices. To achieve sustainable development, these elements are fundamental. This research paper aims to assess the impact of risk profile, investing decision-making, and asset familiarity on the preferences of individual stock market investors for ESG investing by using investment behaviour as a mediator. According to the paper, there is a growing trend in investments that consider environmental, social, and governance (ESG) concerns. The study’s methodology included secondary data sources as well as primary data obtained using a Google form poll, which yielded 400 legitimate responses. To examine the sample size, the programme G*Power 3.1.9.2 was used. A total of 400 responses were included into the research, with the programme determining a sample size of 262 individuals. People from all throughout India filled out the survey. To construct the structural equation model, the Smart PLS programme was used. The validity and reliability of the constructs were evaluated using Confirmatory Composite Analysis. Use of confirmatory composite analysis allowed for evaluation of the constructs’ dependability. With Cronbach’s Alpha, Composite Reliability, and Rho A values of 0.7, the validity and reliability tests utilised in this study were powerful. The study’s results provide light on how ESG factors would influence investing choices in the long run. When drafting legislation pertaining to the stock market, authorities would have the option to include investor preferences.

Voting in the Stock Market – Retail Investor Preference during COVID-19

Voting in the Stock Market – Retail Investor Preference during COVID-19

Crafting Portfolios Tailored to Investor Preferences with Generative AI

Crafting Portfolios Tailored to Investor Preferences with Generative AI

Navigating Hybrid Mutual Funds: An Analysis of Investor Preferences and Behavior in India

Navigating Hybrid Mutual Funds: An Analysis of Investor Preferences and Behavior in India

Balancing risk and return: A case study of Ichimoku trading in the Indonesian Sharia Stock Market

In line with Sharia principles, this study explores the correlation between increased returns and heightened risks, aligned with Al-Ghunm bi Al-Ghurm. Daily data from the Jakarta Islamic Index 70, spanning December 2021 to November 2023, was analysed using quantitative methods. Four key trading strategies were assessed: buy-and-hold and three Ichimoku strategies (Conservative, Moderate, and Aggressive). The results indicate the effectiveness of a moderate Ichimoku strategy because of its well-balanced approach. Despite no significant performance differences between Ichimoku's trading rules and buy-and-hold, the study emphasizes nuanced decision-making for diverse investor preferences. The insights benefited Indonesian Sharia investors, suggesting enhancements in risk mitigation techniques, and considering external factors. Enriching technical analysis and Sharia-compliant investments, this study underscores the importance of aligning financial objectives with ethical considerations, contributing to the evolving landscape of the Indonesian Sharia stock market.

Gender differences in risk perception and investment behavior

Purpose- Gender differences in investment behavior have been reported by various studies. Behavioral investing seeks to bridge the gap between psychology and investing. Behavioral finance is becoming more predominant in the financial and investment industry. The general concept of behavioral finance suggests that investors do not necessarily make rational investment decisions. Many results of behavioral finance studies show that men and women have different strengths and weaknesses in terms of skills required for investment management. This study focuses on the role of gender in risk perception and investment behavior, with a sample size of 288 respondents. In other words, the aim of the research is to reveal whether there is a difference in investment preferences between men and women. It is investigated whether the gender factor affects investment decision-making behavior. Using an experimental finance approach, the relationship between gender diversity and investment decisions is examined. Methodology- This study focuses on the role of gender in risk perception and investment behavior, with a sample size of 288 respondents. Gender differences in investment behavior have been reported by various studies. Behavioral investing seeks to bridge the gap between psychology and investing. Behavioral finance is becoming more predominant in the financial and investment industry. The general concept of behavioral finance suggests that investors do not necessarily make rational investment decisions. In accordance with the aim of the research, to reveal whether there is a difference in investment choices between men and women, the investment differences between the genders are shown using the graphic method in this study. Then, the normality test and Mann-Whitney U test were applied by using 288 respondents, respectively. Findings- According to the graphic method results it is found that women generally prefer to invest between 10% and 25% of their monthly income in financial markets. T cryptocurrency market is riskier than the stock market for both women and men. Women experience more stress than men at the thought of losing money because of their investment choices. The Cronbach Alpha coefficient for estimating the reliability of the scale employed for respondents’ investment preference was found to be 0.701. The results of data processing obtained by the value of the Kolmogorov-Simirnov significant which means the data were not normally distributed residuals. According to Mann-Whitney U test results, it is underlined that the gender factor differs according to the following variables based on 95% significance level: Conclusion- Survey with different aspects of questions focus on investors’ risk perception. “How often do you check your investments?”; “What is your approximate holding time of an investment instrument?”; “What percentage of your monthly income would you prefer to invest in financial markets?”; “The thought of losing money because of my investment choices is stressed me out”; “Have you ever invested in Cryptocurrencies?”; “What is the most suitable option for your knowledge of the cryptocurrency market?”. It is concluded that there is a significant difference between gender and investment preference. Keywords: Behavioural finance, financial market, cryptocurrency, gender factor, risk perception. JEL Codes: G10, G40, G41

ESG Transformation in the Largest Emerging Capital Market of China. A Literature Review

The paper provides a scholarly examination of academic studies of the ESG landscape in China through a systematic literature review with a major focus on the nature and intensity of regulatory guidelines and policies. While many studies indicate positive effects of Chinese ESG policies on corporate ESG performance and investment, they primarily focus on environmental aspects. This analysis of China’s ESG rating system exposes relationships between ESG ratings, corporate performance, financing costs, including both debt and equity financing. The research on equity financing costs is inconsistent and limited in scope, indicating the need for additional investigation. Of the factors influencing ESG, the past year has seen a surge in research on the topic of digital transformation and ESG performance. Most studies demonstrate thatdigital transformation contributes to ESG performance, and a few suggest that digital transformation positively moderates the effect of ESG performance on firm value enhancement. This review discusses the growth of ESG investment in China, focusing on pension funds, commercial banks, and ESG funds, as well as investor preferences. Despite the growing role of ESG in investment decisions, extant research is largely theoretical, underscoring the need for more empirical and quantitative studies. The research identifies gaps in studies devoted to ESG investment, including the need for comprehensive studies on the impact of ESG across various insurance types and industries, and the development of effective ESG quality assessment methods. This review is among the first academic resources summarizing and integrating various studies, and highlighting areas for future ESG research in China.

Comparison of the Property Players’ Preferences on Housing Prices in Surabaya

A landed house is a real estate product that is used to fulfill consumption or investment motives. This study was conducted to compare the preferences of developers, consumers, and investors for housing prices in Surabaya on both motives. Respondents were selected by purposive sampling and obtained 417 respondents. Data collection through questionnaires was conducted offline to developers and online to consumers and investors. Test data used Kendall concordance and Kruskal Wall test to analyze the comparison of developer, consumer, and investor preferences. The results showed that the three players had different preference variables on house prices in Surabaya related to physical quality, brand, location concept, location environment, financial condition, and livability. Developers focus on products (physical quality and housing concept) and brands. Consumers prioritize physical quality, location environment, and financial condition. Furthermore, investors prioritize the physical and environmental quality of the location. Physical quality is a key preference among developers, consumers, and investors. These findings indicate that each party has their own prioritized interests, so their preferences differ according to their motives.

Earnings quality and national IPO: Central Asian case

Object: The study aims to assess the impact of the National IPO/SPO Program on Earnings quality in KASE-listed companies and provide recommendations to the investor community.Methods: KASE Stock Exchange sample population is 52 local companies, 26 state and 26 private, across different industries excluding financial institutions and investment holdings. Time horizon is 13 years during 2009‒2021 period totaling 572 unbalanced panel firm-year observations. To estimate Earnings quality, we follow (Kasznik, 1999) cash flow model for accrual based Earnings management jointly with real activity (Roychowdhury, 2006) aggregate model.Findings: We found that the National IPO/SPO process creates partial state-owned enterprises and improve their key investment indicators.Conclusions: Partially state-owned companies outperform private ones and thus become the preferable investment strategy based on Earnings quality risk, cash generation, profitability and leverage-based risk. Theoretically, this study is the first to analyze Earnings management from the National IPO/SPO perspective and the first to relate Earnings quality with structure ownership in case of Kazakhstan. Practically, results and discussion are useful for investors of KASE-listed companies in investment decision making.