Private Investment Research Articles

Strategic planning and investment analysis for affordable housing: Enhancing viability and growth

Strategic planning and investment analysis are critical to enhancing the viability and growth of affordable housing projects. As urban populations rise and housing affordability challenges persist, effective strategies are needed to ensure that affordable housing developments are both financially viable and scalable. This paper explores key aspects of strategic planning and investment analysis in the context of affordable housing, emphasizing their role in fostering sustainable growth and maximizing impact. Strategic planning involves setting clear objectives, identifying key success factors, and developing actionable plans to achieve desired outcomes. In affordable housing, this includes assessing local housing needs, understanding market dynamics, and aligning development goals with community priorities. Effective strategic planning ensures that housing projects are responsive to the needs of low- and moderate-income populations while addressing broader urban development goals. Investment analysis plays a crucial role in determining the financial feasibility and sustainability of affordable housing projects. This includes evaluating funding sources, estimating costs, and projecting financial returns. Key components of investment analysis include financial modeling, risk assessment, and scenario planning. By employing robust analytical tools, stakeholders can identify potential financial challenges and opportunities, optimize resource allocation, and ensure that projects are financially sound. Case studies from various regions highlight successful strategic planning and investment practices. For instance, the Low-Income Housing Tax Credit (LIHTC) program in the United States has demonstrated how targeted investment incentives can stimulate the development of affordable housing while achieving financial and social returns. Similarly, initiatives in European countries have illustrated the importance of integrating strategic planning with innovative financing mechanisms to address housing shortages. Despite these successes, challenges remain, including securing adequate funding, navigating regulatory environments, and managing project risks. Addressing these challenges requires a collaborative approach involving government agencies, private investors, and community organizations. By leveraging strategic planning and investment analysis, stakeholders can enhance the viability and growth of affordable housing projects, ultimately contributing to more sustainable and inclusive urban development. In conclusion, strategic planning and investment analysis are essential for advancing affordable housing initiatives. They enable stakeholders to navigate complex financial landscapes, mitigate risks, and achieve long-term goals, fostering the growth of affordable housing and improving housing stability for underserved populations.

The Economic Efficiencies of Investment in Biogas Plants—A Case Study of a Biogas Plant Using Waste from a Dairy Farm in Poland

High investments and low economic efficiency of agricultural biogas plants operating on farms are two of the main barriers to the development of the biogas plant sector. Identification of economic and financial problems related to the operation of such facilities allows for the reduction of entry barriers for private investors, especially farmers. The aim of this research was to analyze the economic efficiency of investing in an agricultural biogas plant operating at a dairy farm. For the analysis, the case study method was applied. The economic efficiency of investment in a biogas plant was assessed using six different cash flow options. The NPV (net present value) and IRR (internal rate of return) methods were applied to assess the economic efficiency of the investment. It was found that the investment project for an agricultural biogas plant with a capacity of 0.499 MW located at a dairy farm required a subsidy of approximately 40–60% of the value of to ensure satisfactory economic efficiency. It has been shown that a particularly important aspect in assessing the economic efficiency of an investment in an agricultural biogas plant is the use of an economic calculation that takes into account the valuation and quantification of all positive external effects of such projects.

A relevância do envolvimento do Estado diante de uma estratégia econômica sustentável e socialmente inclusiva no México, o caso de sua região sul-sudeste como provável polo de desenvolvimento regional socialmente inclusivo e sustentável no país

Mexico’s South-southeastern region (here on ‘Macrosouth’) has traditionally been lagged and impoverished vis-á-vis Mexico’s northern and center region, which comprise, altogether, the so-called ‘Macronorth’ (encompassing northern, northwestern, western, and center regions). With the sole exception of highly private investment concentration on the Mayan Riviera of touristic nature, the rest of the ‘Macrosouth’ region (encompassing the Gulf of Mexico, South-pacific and Southeastern region) and its states down to the Gulf of Mexico and South Pacific region have remained isolated and disconnected from the Riviera bonanza zone, featuring better living standards, high economic growth, and better employment opportunities. Under this framework and the emergence of a new democratic leftwing government in Mexico with strong social support and commitment to promoting a balanced regional development throughout the country, under a socially inclusive strategy it results explainable its emphasis granted on fostering a balanced regional development, under a socially inclusive strategy, its decision to earmark mammoth public productive investments toward the referred region, such as the Mayan Train and the Mexican Corridor (Dos Bocas Refinery in Tabasco state) all of them immersed in the same Macroregion aiming to paralleling foster economic growth and well-being within this region and diminishing the prevailing asymmetric gap between North and South. Although the unprecedented public investments channelized so far into the Macrosouth are expected to promote an economic bonanza in this region, there is no guarantee whatsoever that such growth will render seamlessly and simultaneously a socially inclusive and sustainable development in such a region for the coming years as conceived by Mexico´s ongoing economic strategy. Under this context, the article aims to highlight some remarks and challenges ahead to overcome to implement a socially inclusive and sustainable regional strategy in this Macroregion in the coming years and the role of the State as an unavoidable key agent in attaining a balanced, socially inclusive and a sustainable approach in such region.

Budget politics in Indonesia

Budget politics in Indonesia is a very complex process, ranging from central to local government. The budget planning process involves planning, approving, executing, and evaluating, all of which require close coordination and cooperation between institutions. The main challenges in Indonesia's budget politics are the misallocation of funds, inequality between regions, growing debt, inflation, and unstable prices. The economic implications of inefficient budget politics are far-reaching. Imbalances between revenues and expenditures can increase the debt burden and interest costs, reducing the space for productive public spending. Inequalities in budget allocations can slow economic growth and increase social inequality. In addition, uneven financial decentralization exacerbates inequality between regions. Inflation rates fuelled by increased public spending without an increase in goods and services can reduce people's purchasing power. Budget policy uncertainty also brings uncertainty for investors, which can reduce private investment and hamper economic growth. Overall, reforms in the budget distribution process, improved financial management capacity, and a commitment to inclusive and data-driven policies are urgently needed. These measures are essential to meet the challenges and ensure sustainable and equitable development for all Indonesians.

Does Aid Induce Foreign Direct Investment: Updated Evidence from a Quasi-Experiment

Abstract While the catalytic effect of aid on foreign direct investment (FDI) has long been an implicit consensus among many policymakers and practitioners, assessments of this causal relationship remain limited and are not always reliable. To mitigate this evidence gap, this study applies an instrumental variable approach that leverages the graduation of the International Development Association (IDA) income threshold as a quasi-experiment to identify the causal linkage between foreign aid and FDI. The analysis reveals that a 1 percent drop in the ratio of aid to gross national income leads to a decline in FDI relative to gross domestic product by 0.9 percent in 42 developing countries from 1987 to 2019. In face of the aid shock induced by IDA graduation, governments in recipient countries restrict their financial policy openness, through which aid could significantly impact subsequent foreign private investment. Results emphasize the necessity of concerted policy interventions to mitigate this negative aid shock.

The Importance of Green Investments in Developed Economies—MCDM Models for Achieving Adequate Green Investments

Green investments help to create less harmful alternatives and adequate funds that contribute to economic growth, sustainable development, and social well-being. The paper aims to evaluate decision making on the choice of green investments based on multi-criteria decision making (MCDM). The applied methods are empirical and analytical based on the study of the literature, multi-criteria modeling, the determination of weights, and the ranking of criteria in deciding the green investment mapping of indicators, and mapping the indicators. The research used groups of indicators that reflect the main characteristics of green growth from the OECD database. The idea is to decide on the best green investment based on green growth criteria, which consist of grouped indicators according to the areas of the green economy rather than according to their values. The results of the Analytical Hierarchy Process (AHP method) showed that half of the investments in the green economy come from public sources (0.51) and the other half are private (0.25) and institutional investors (0.24), while the Best/Worst Method (BWM) revealed that the best criterion for the decision to invest in the green economy is the environmental and resource productivity of the economy, and the worst is the base of natural assets. This paper aims to enable decision-makers to use these results as weights for the overall assessment of green investments in ESG and to simplify the decision-making approach in future analyses.

The impact of board size, ownership structure and characteristics of the supervisory board on the financial performance of listed companies in Vietnam

This study focuses on examining the influence of board size, ownership structure and characteristics of the supervisory board on the financial performance of companies listed on the Vietnam stock market. Using the fixed-effects regression model (FEM) and the random-effects model (REM) with panel data from 2017 to 2021, the research results have shown: (i) ownership (share ownership ratio of major shareholders are state, foreign investors, domestic private investors, members of the board of directors) have a positive influence on financial performance, (ii) board size has a negative effect on the financial performance, and (iii) characteristics of the supervisory board has a positive effect on the financial performance of companies listed on the Vietnam stock market. Based on the research results, the authors propose several key policy recommendations to enhance the financial performance of listed companies on the Vietnam stock market.

Novel insights from financial analysis of the failure to commercialise plazomicin: Implications for the antibiotic investment ecosystem

The need for novel antibiotics to combat emerging multi-drug resistant bacterial strains is widely acknowledged. The development of new therapeutic agents relies on small and medium-sized biotechnology enterprises (SMEs), representing 75% of the late-stage pipeline. However, most SME sponsors of an antibacterial approved by the FDA since 2010 have gone bankrupt, or exited at a loss, below investment cost. Uncovering financial flows related to the development and commercialisation of a single drug is complex and typically untransparent. There is therefore a lack of empirical research on the financial vulnerabilities of these critical SMEs. The development of plazomicin by Achaogen (2004–2019) entailed financial disclosures as a public company enabling application of financial analysis methods to: determine quantum and timing of public and private investments; quantify development costs; and provide a deeper understanding of the role of capital market dependency in exacerbating pipeline fragility. Achaogen’s widely cited bankruptcy, and plazomicin’s commercialisation failure, created a perception that novel antibiotics have zero market value, causing investors to question the SME developer business model. Our analysis of Achaogen’s inability to fund commercialisation suggests three key implications for the antibiotic investment ecosystem: (1) novel antibiotics with narrow approval for small patient populations affected by severe resistant infections cannot be successfully commercialised in the current US antibiotic market; (2) SMEs need incentive payments structured to enable them to survive the commercialisation cashflow drought, and (3) these changes are necessary to restore industry and financial investor confidence in the antibiotic SME development model. Achaogen’s demise demonstrates that proposals to incentivise innovation, e.g. by providing one-off payments at registration, may be insufficient to ensure access to novel antibiotics developed by SMEs. In plazomicin’s case, moreover, US government biosecurity investments have not resulted in access, as the Indian and Chinese companies which bought post-bankruptcy rights have not widely commercialised the drug. This study is timely as new market-based incentives are currently being proposed by the US, EU, Canada and Japan. In order to make further government funding effective, ensuring access, not only innovation, these must support sustainable financial models for the SMEs critical to novel antibiotic development.

Paradoxical founders’ identity and its impact on social venture performance

PurposeThis study explores the structure of founders’ hybrid personal identities and their relationship to social venture performance. The authors hypothesize that founders experience the tension between the social and commercial goals of their venture as a paradox rooted in their personal values.Design/methodology/approachThe authors surveyed 112 social enterprise founders in Chile and used structural equation modeling to test hypotheses about the relationship between self-transcendent values (i.e. promotion of others’ welfare and care for nature) and self-enhancement values (i.e. pursuing own interests and power over others) on a multidimensional scale of social venture performance.FindingsSelf-transcendence and self-enhancement are distinct yet interrelated values that coexist within social venture founders (i.e. they constitute a paradox). Self-transcendence values negatively moderate the positive relationship between self-enhancement values and social venture performance.Practical implicationsMere benevolence is insufficient for effective social venturing; success depends on the founder’s self-enhancement values or their “drive” to succeed. Founder values can thus inform organizational design choices (e.g. tasks, team composition, structures and processes) and guide public and private investment decisions.Originality/valueThis research empirically assesses the structure of hybrid personal identities, uncovering how the concurrent action of self-transcendence and self-enhancement values influences social venture performance. The authors challenge the belief that balancing social and commercial goals benefits social venture performance. Best-performing ventures are those whose founder’s exhibit high self-enhancement and low self-transcendence values.

Epistemic gerrymandering: ESG, impact investing, and the financial governance of sustainability

Finance plays an increasing role in the global governance of sustainability. To explain the rise of finance, scholarship is increasingly turning to the financial sector as a producer of policy-relevant knowledge. However, scholarship has paid little attention to how differences within the financial sector affect such knowledge production. This article differentiates two important ways how the financial sector addresses sustainability: investments following environmental, social and governance (ESG) standards, and impact investing. Whereas diversified ESG investing is centered around index and data providers, impact investors manage non-listed assets and develop idiosyncratic ‘impact’ approaches. I introduce the term ‘epistemic gerrymandering’ to describe how impact investors tailor ‘impact’ to their financial portfolios and to explain how the resulting heterogeneity and ambiguity is stabilized. Tracing the historical development of impact investing from three distinct strands into a transnational club, I argue that the club structure, together with impact investors’ proximity to private wealth management, explains the persistence of epistemic gerrymandering. As a knowledge regime, epistemic gerrymandering reinforces three dynamics of particular importance to political economists: the subjugation of sustainability to financial returns, the restriction of access to epistemic arenas to wealthy elites, and the rechanneling of charitable and public resources to de-risk private investments.

Clean innovation ecosystems: Lifting distressed communities in Appalachia with clean energy

The U.S. government has invested in distressed communities in the 21st century but with minimal effect. Regarding income, poverty, joblessness, and vacancy rates, the average distressed zip code in 2018 showed no improvement compared to its standing relative to the average prosperous zip code in 2000. We have discovered the formation of unique business clusters funded by public-private partnerships have the potential to make a difference in lifting distressed communities. Our research of literature and artifacts (photographs, videos, documents, digital media - websites or social media posts) suggests the discovery of a Clean Innovation Ecosystem (CIE). CIE refers to the network of social entrepreneurs, organizations, institutions, and individuals that work together to promote sustainable technologies and practices. As of the 4th quarter of 2023, manufacturing annual run rate construction spending has skyrocketed to over $200 billion. There are another $600 billion of Voltage Valley projects announced that have not yet been built. Over the past two decades, private investment has been between $20 billion and $100 billion annually in U.S. manufacturing infrastructure. Governments are making unprecedented investments in clean energy - which include approximately $400 billion in funding from the Inflation Reduction Act (IRA), $8 billion to establish 6–10 regional Hydrogen Hubs in the U.S., investments in carbon capture, renewable energy technologies, and other investments in clean energy sectors and technologies. All these investments come with the condition that the investment lifts distressed communities. This article explains why investing in Appalachia and geographic regions with similar characteristics will maximize the social benefit of public investment in a Clean Innovation Ecosystem. Our case study covers the Greater Central Appalachian Voltage Valley (GCAVV) – the states of Kentucky, West Virginia, Ohio, Upstate New York, and Michigan, as well as the Central Appalachian region as defined by 56 of the 85 distressed communities of Appalachia.

Critical Success Factors for Public-Private Partnerships in the Development of Mega Power Generation Infrastructures in Sri Lanka

Ceylon Electricity Board (CEB) seeks alternative financing through Public Private Partnerships (PPP) due to non-cost-reflective tariff losses and debt overhang, relying on maturity in critical success factors. Thus, the research examines the success factors of Public Private Partnerships in developing power generation infrastructures in Sri Lanka, using quantitative data from a questionnaire distributed to stakeholders in CEB. The data analysis tools of descriptive and inferential statistics were used to analyze the collected data. The economic viability of the project, credibility of government policies, legal and regulatory framework, equitable risk allocation, transparent and efficient procurement process, financial market, a strong and good private consortium, and political stability, were found as the main CSFs for the development of mega power plants. The study was concentrated on the public agency of CEB, for generalization investigation to be extended to private investors, practitioners, and policymakers in the power sector. Further, a comprehensive study on the exploration of CSF to attract private investors to PPP for the development of mega power plants in Sri Lanka would be most beneficial to the industry. The framework developed in this research would be the benchmark for identifying critical success factors for improvement in PPP projects in Sri Lanka.

Innovation activity of the largest companies in the high-tech sector

Aim. To analyze the specific features of innovation activity of the largest transnational companies of the high-tech sector in order to identify general trends and assess their efficiency.Objectives. To study the expenditures on innovation in Alphabet, Apple, Microsoft and Amazon; to determine the ratio of expenditures on research and development (R&D) to total revenue and the share of innovation in total expenditures; to examine the market capitalization and the share of private investors in the ownership of shares of these companies; to analyze the share of intangible assets in total assets; to assess the intensity of innovation activity by the number of issued patents; to identify the general characteristics of innovative companies-leaders of the high-tech sectorMethods. This study utilizes financial indicators, statistical data and data on patent activity of Alphabet, Apple, Microsoft Corporation and Amazon.Results. The largest high-tech companies achieve improved innovation performance through a combination of understanding customer needs, active participation of management in the research and development program, and the creation of unique products and services based on new technologies. Financial success depends on successfully utilizing existing intellectual resources, creating long-term customer relationships, and fostering the development of human capital within companies. Companies that focus on customer satisfaction and continuously stimulate employee development demonstrate higher innovation performance and ensure commercial success in the market.Conclusions. The comparative analysis of the indicators of the largest transnational companies in the high-tech sector allows us to assess the efficiency of innovation activity, as well as to identify the key factors contributing to their sustainable development in a highly competitive market.

Geopolitical risk hedging or timing: Evidence from hedge fund strategies

An increasing number of investors are concerned about how they can diversify risks and profits amid surging geopolitical uncertainties. Using a geopolitical risk timing/hedging model, we investigate whether hedge fund managers can effectively hedge or time geopolitical risks by adopting different trading strategies. We find that excluding those in the global macro category, hedge funds with higher minimum investments and management fees exhibit greater success in hedging geopolitical risks. Meanwhile, global macro hedge funds, which have longer lockup periods, are more adept at timing geopolitical risks by increasing their market exposures. Furthermore, hedge funds which are the top geopolitical risk hedgers and timers demonstrate higher economic value than those in the bottom group over the subsequent one and three months. Our findings provide valuable insights into private investors’ selection of hedge funds during periods of heightened geopolitical risk.

Empirical Investigation of the Effect of Public Investment on Private Investment in Tanzanian Context

Empirical Investigation of the Effect of Public Investment on Private Investment in Tanzanian Context

How Public and Private Investment Reduces Poverty: A Case Study of Provinces with Nickel Production in Indonesia

How Public and Private Investment Reduces Poverty: A Case Study of Provinces with Nickel Production in Indonesia

Determinants of Share Prices of Agriculture Listed Firms

The stock market plays an important role in economic development by promoting capital formation and enhancing economic growth. The stock market is among the main sources of financing in the critical sector of the economy. Trading of securities on the Zimbabwe stock exchange facilitates savers and users of capital by fund pooling, risk sharing and transferring wealth. One of the important sectors of the Zimbabwean economy devoid of adequate financing is the agricultural sector. This sector has been experiencing several challenges over the period 2002 -2022 mostly from lack of sustainable finance especially from private investment. It is assumed that lack of funding is due to volatility of stock prices. The objective of the study is to analyze different factors affecting share price of agriculture sector listed firm on the Zimbabwe Stock Exchange using the panel regression model. Based on the random effect the study established that share prices are determined by earnings per share, price earnings ratio and return on equity positively impacts stock prices in Zimbabwe. The government should control inflation to ensure price stability to aid in easy financial planning. Further the governments should promote agricultural growth initiatives and strategies which would stimulate demand for agricultural oriented stocks.

Biomass-Solar Energy: A Comprehensive Review of Sustainable Energy Generation

India is the world's most populous country and plays a crucial role in achieving the United Nations' Sustainable Development Goals by 2030. SDG No. 7 (affordable and clean energy) and climate change reduction goals are essential for sustainable development. This review discusses clean energy potential, obstacles and stimulants, and renewable energy policies in India, focusing on solar and biomass resources. With biomass resources, the nation can generate 130 million tonnes of oil equivalent annually, and it can generate 5,000 trillion kWh of solar energy annually. For the production of renewable energy, biomass resources such as Jatropha, sweet sorghum, cassava, rice, coconut, and agricultural leftovers can be employed. The purpose of this review is to highlight the benefits of using bioenergy to achieve a sustainable energy future through financial incentives, enhanced research, public awareness, social amenities, strategic replenishment, and productive intergovernmental collaborations. Solar thermal and photovoltaic systems offer great possibilities for grid-connected, off-grid, and hybrid installations. Site-specific considerations such as incentives, financing, research, public awareness, government regulations, and private investments influence the techno-economic viability and environmental relevance of solar power and bioenergy for India's sustainable development.

External Debt, Transmission Channels, and Economic Growth: Evidence of Debt Overhang and Crowding-Out Effect

This study investigates the intricate relationship between external debt, debt service, and economic growth by using the panel data of 32 Asian Developing Economies (ADE) spanning 1995 to 2020. Employing a two-step system generalized method of moments (GMM) and a dynamic common correlated estimate (DCCE) model, the research explores key macroeconomic channels through which debt influences growth and rigorously tests for debt overhang and crowding-out effects. Findings reveal that public and private investment, total factor productivity, and national savings are pivotal channels transmitting the non-linear effect of external debt on economic growth. Notably, only private and public investment convey the non-linear effects of debt service to economic growth, while productivity and savings convey the linear effect. Evidence of debt overhang and crowding-out effects is identified in the sampled economies. The study suggests strategic measures for developing countries, emphasizing the productive use of accumulated debt, enhanced debt management, and timely project completion. Furthermore, it advocates for fostering economic growth through increased productivity, domestic savings, and private sector expansion to reduce dependence on foreign debt, facilitating both debt repayment and economic self-sufficiency.

PROBLEMS OF VERTICAL INTEGRATION AMONG FISH FARMERS AND WAY FORWARD IN RIVERS STATE, NIGERIA

This study examines the impact of private investment on economic performance in Nigeria using time series data from 1980 -2018. Multiple regression and co-integration methods are employed to analyze the data. The objectives of this study is to, among other things, examine the casual relationship between private investment and economic growth in Nigeria and to investigate the impact of private domestic investment on economic performance in Nigeria. Being a time series data, the first step is to test for the stationarity of the data by using Phillips Perron-Fuller unit root test. Ordinary least square (OLS) and Auto regressive distributed lag (ARDL) technique is used to estimate the models. The results of the unit root test show that some variables; Labour Force Participation rate (LPR), Private Domestic This study assessed problems of vertical integration among fish farmers in Rivers State, Nigeria. The paper looked at distribution of respondents’ socio-economic characteristics and problems of vertical integration among fish farmers in the study area. Data for the study was collected from 37 vertically integrated fish farmers that exist in the State. To analyze the data, collected descriptive statistics and Likert-type rating scale was used. The study revealed that the vertically integrated fish farmers were mostly within the range of 41-45 years, married having household size of 6-10 persons. The study revealed that the vertically integrated fish farmers were experienced, learned, and majored only as fish culture farmers. However, farmers complained of large capital required for starting, irregular electricity, sinking of local feed produced, poor drying of fish, and stressful activities of feed production, fingerling hatching and processing of fish. It was suggested that fish culture farmers should be provided with credit at low interest rate, up-to date knowledge in fish culture and extension services to enhance productivity.