Investment Process Research Articles

Business angel groups as collective action: an examination of the due diligence process

With the emergence of business angel groups, angel investing is increasingly an activity that is based on collective action. However, our understanding of the investment process of business angels is largely based on studies of angels who invest independently. This paper investigates the collective action practices of one UK business angel group – Henley Business Angels. We examine how the due diligence process is undertaken. This stage involves the verification of the information in the pitch and business plan and underpins the decision whether or not to make an investment. This stage in the investment process has attracted limited attention by researchers. We find that there is a lack of rigour in the due diligence that angels undertake. Further, the process involves limited collective action. Group members largely act on their own behalf in carrying out due diligence, generally investigating areas of interest or concern independently of other members. However, members typically do share and discuss information gleaned from their own due diligence process with other members in the group. Some members will also accept the due diligence of other members if it is outside of their own area of expertise or if they do not have the time to carry out the due diligence themselves.

Optimizing the Material Extrusion Process for Investment Casting Mould Production

This study investigates the optimization of the Material Extrusion (MEX) process for producing polylactic acid (PLA) patterns used in investment casting moulds, specifically targeting the casting of non-ferrous alloys such as brass. Key MEX process parameters—layer thickness, wall thickness, infill density, and post-processing with dichloromethane vapour for surface enhancement—were systematically analyzed for their impact on mould quality. Results indicate that an optimized combination of MEX parameters yields moulds with high dimensional accuracy, low surface roughness, and minimal pattern residue within the mould cavity. These optimized moulds were subsequently used in brass casting, with the final cast parts evaluated for dimensional precision and surface finish. The study concludes that PLA patterns manufactured via optimized MEX parameters provide a precise, cost-effective, and easy-to-implement solution for industry applications. Additionally, this process is environmentally friendly and presents clear advantages over other pattern-making methods, offering a sustainable alternative for producing complex metal parts with reduced environmental impact. The findings underscore the significant role of post-processing in enhancing mould quality and, consequently, the quality of the cast parts.

Economic growth and foreign direct investment in Asia: When investors imperfectly fulfil approved investment plans

Foreign direct investment (FDI) may represent an expansion in the domestic capital supply, which could thus increase GDP growth through the investment and consumption sectors and generate productivity increases. We examine this hypothesis by looking earlier in the investment process and use little-known data on FDI approvals from ten Asian countries that have routinely required advance approval of FDI and have also disclosed this data. We show that the approved FDI predicts actual FDI inflows, and that on average more FDI is approved than realized. The approved FDI is used to create an FDI commitment ratio and gap, which are thus absolute and relative measures of how FDI pledges are fulfilled. We then examine how the host economy is affected by the FDI commitment ratio and gap using an Arellano-Bond dynamic panel estimator to examine an unbalanced dataset spanning 1967–2022. We find GDP growth forecasts are significantly affected by both FDI measures. However, actual GDP growth is affected negatively by the FDI gap, with the effects strongest at the 3-year horizon. Thus, we show that FDI initially displaces domestic capital before expanding the domestic capital supply.

Do green certifications add value? Feedback from high-level stakeholders in the Spanish office market

The transition towards a decarbonized European economy by 2050 provides numerous opportunities for companies in the real estate sector to integrate sustainable actions into their assets. In the office industry, green certifications are designed to disclose how sustainable a building is and to enable comparison among peers. This paper uses semi-structured interviews with experts in real estate and sustainability to offer qualitative insights into the decision-making process behind the voluntary certification of office buildings with green certifications such as Leadership in Energy and Environmental Design -LEED- or Building Research Establishment Environmental Assessment Method -BREEAM-. It may shed light on emerging trends in the sustainable real estate market. The findings, separated into economic, social and technical dimensions, show deep, widespread implementation of green certifications in sustainability-sensitive demand and supply. They function as a discard or brown discount vector, rather than as a green premium. Expert commentary on how certifications influence asset values has been cautious, due to insufficient data. Furthermore, the benefits of green financing are disputed. Other vectors, such as carbon footprint and European taxonomy alignment, have gained relevance in investment and operational processes.

DOES CORRUPTION HAS A POSITIVE IMPACT ON ECONOMIC GROWTH?

The problem of corruption is a common problem and continues to this day in Indonesia. The level of corruption that does not improve causes losses and inefficiency in the economy. The high level of corruption has been an obstacle to economic progress and growth in Indonesia so far. This research aims to find out more about the impact of worsening corruption on foreign investment, the Rupiah exchange rate against the dollar, and economic growth. This research uses secondary data obtained from the central statistics agency for 16 years. Research data processing uses PLS. Based on the research results, it was found that the level of corruption affects the level of foreign investment and the Rupiah exchange rate against the Dollar but not economic growth. This research also found that foreign investment can mediate the relationship between the level of corruption and economic growth. In this research, it was found that the higher the level of corruption, the more foreign capital will enter. This is because countries with high levels of corruption have poor administrative systems so that by using bribes the investment process can run more easily. The greater the foreign capital that enters, the greater the capital in economic activities so that economic growth will increase. This is certainly not a good thing the Indonesian government needs to improve the quality of its bureaucracy so that corrupt practices do not get worse

MAP OF THE EARTH MASSES - ROLE IN THE INVESTMENT PROJECT

Map of the earth masses shows the essence of the vertical planning project by visualizing the anticipated displacement of the land masses within the boundaries of the property. It is the official document through which the designer can determine the amount of land masses for the purpose of their valuation [5]. The article examines the role of the cartogram and modern practices regarding its creation and use in the investment process.

The Nexus Between De‐Globalization and OFDI From Emerging Economies: Moderating Roles of Institution and Government

ABSTRACTThe recent wave of de‐globalization has slowed the outward foreign direct investment (OFDI) process globally, with varying effects across countries. Using panel data from 25 emerging economies between 1980 and 2018, we examine the impact of de‐globalization on OFDI. Our findings show that higher de‐globalization pressure from developed countries drives emerging economies to invest more globally. Threshold regressions reveal that this positive effect is significant only when a minimum GDP threshold is met. Moreover, better institutional quality and increased government involvement strengthen the positive impact of de‐globalization on OFDI.

Urban placemaking and the commercial property investor/developer

AbstractReal estate investment companies direct substantial capital flows into built environments and are significant urban place‐makers. Geographers have long been interested in the ‘urbanisation of capital’ but more recently attention has been directed towards the activities of specific property actors. Employing a firm‐level analysis, this paper presents a case study of Kiwi Property, a large‐scale property company with an investment portfolio exceeding $3 billion. The study charts its corporate and financial dynamics and examines examples of its speculative real estate developments. Employing a firm‐level analysis offers insights into complex and contingent investment processes shaping urban placemaking.

Contractual Forms of Investment in the Legislation and Practice of the Russian Federation

Introduction: the paper deals with the analysis of contractual forms of investment activity. The research attention is paid to various theories related to the legal nature of an investment agreement, the issues of divergence of existing definitions of an investment agreement as a legal category. Special attention is paid to the structure of the investment agreement, as well as its place in the system of civil contracts. It is argued that the correct qualification of the investment agreement plays a key role in ensuring high quality and rational legal regulation of the relevant relations. In the process of researching the investment agreement, the author differentiates by types and parties. The details of contractual obligations are given, taking into account investment schemes and depending on the types of investment projects. The purpose of the paper is to study the agreement regulating the relations of subjects of investment activity, the legal nature of the investment agreement, its qualifying features, types and parties. Methods: to achieve this goal, a systematic approach was used, as well as the general scientific (analysis, synthesis, formal logical, comparative, and temporal) and specific scientific (formal legal, comparative law) research methods. Results: the international practice of concluding and applying investment contracts (agreements) widely used to attract investments is studied. The interpretations of the investment agreement presented in the domestic and foreign specialized literature are compared. The place of the investment agreement in the system of civil contracts is determined. The approaches to the legal qualification of the investment agreement are studied. It is established that differentiation by types and parties of the investment agreement plays an important role in the development of the economy and business. Understanding the specifics of each type of agreement and the role of parties allows you to effectively organize the investment process and achieve your goals. The author analyzes various forms of investment, including the purchase of a business, participation in investment partnerships, investments in securities, as well as collective investments through joint-stock and mutual funds, concession agreements, and production sharing agreements. Conclusions: the conclusion is substantiated that it is advisable to establish the legal nature of each investment agreement in the process of its execution. The legal relations created by such an agreement are subject to the general principles of civil law and specialized standards of investment law. It is established that for the correct qualification of a specific contractual structure used in the investment sphere, it is advisable to rely on the positions formed in law enforcement practice on such an issue. It is proved that the investment agreement implies any agreements in which the investor participates. These agreements may include various types of civil contracts regulated by the Civil Code of the Russian Federation. Highlighting the main features that distinguish investing from other economic and business processes, the author argues that the best position would be the transfer of personal capital and the transfer of values (investments) to another party in order to make a profit in a certain period without a guarantee of success.

Strategic management of investment and innovation activities in the conditions of international integration

The article examines the problems of strategic management of investment and innovation activities in the conditions of international integration, which consist in creating mechanisms for the economic development of communities through increasing investment attractiveness, improving infrastructure, attracting investments for innovation and increasing the efficiency of resource use. The analysis of scientific publications on strategic management and innovation-investment activity was carried out, the need to increase the investment attractiveness of the enterprise, community, region of the country, etc. for investors, especially international level, infrastructure development and investment attraction for modern innovative implementations was confirmed. The analysis of studies showed the importance of investment and innovation activities for the economic development of the attractiveness of the enterprise, community, region of the country, etc. It is recognized that strategic planning is key to improving efficiency, competitiveness and attracting investment, especially from abroad. A combined approach was used to investigate the investment activity of the Merefa Territorial Community. The analysis showed that the community faces the problems of insufficient integration of investment and innovation processes and a low level of financial support for innovative projects. A SWOT analysis was used, which revealed the strengths of the community, such as the presence of industrial zones and transport links with the regional center, but also weaknesses, including the low level of export of products and the insufficient material and technical base of communal services. The plans and tasks of the Merefa Community for 2024 have been defined, among which the main priorities are to increase the level of investment attractiveness and financial support of innovative projects, as well as the expansion of international cooperation to ensure long-term sustainable development of the community.

Digitalization and management of global investment processes

The article substantiates that the appearance of digital technologies has made portfolio investments the main tool for increasing the national wealth of the world’s leading economies. The authors pay special attention to the place and role of Russia in modern global investment processes.

Responsible investing: Upside potential and downside protection?

Conventional risk proxies are measured assuming that investors have symmetric risk preferences, with upside and downside deviations from the expectation being equivalently undesirable. Responsible investors, however, have dual financial aims of enhancing upside potential while reducing downside risk by actively incorporating environmental, social, and governance (ESG) aspects into the investment process. We utilize a non-symmetric option pricing research design to test whether responsible investors could live up to their ambitions. We find that those who are simply Principles for Responsible Investment (PRI) members do not deliver the desirable asymmetric performance, while financial firms with highly rated responsible investment processes can actually achieve both aims for their own shareholders: enhancing upside potentials and protecting themselves from downside risks.

Impact of AI on Investment Decision and Financial Inclusion of Rural India: A Study on Young Rural Women Near Ranchi District

Abstract: The integration of Artificial Intelligence (AI) into the financial sector has revolutionized investment decision-making, offering a powerful tool to empower individuals in making informed choices about their financial future. This research paper explores the impact of AI on the investment decisions of rural consumers, shedding light on the transformative potential of AI in promoting financial inclusion in underserved regions. Rural consumers in emerging economies face unique challenges in accessing financial services and making sound investment decisions. The study aims to investigate how AI technologies, including machine learning algorithms and predictive analytics, can address these challenges by providing personalized investment advice, risk assessments, and portfolio optimization for rural consumers. It examines the key factors that influence the adoption and acceptance of AI-driven investment solutions among rural populations. Through a mixed-method research approach, including surveys, interviews, and data analysis, this paper analyses the application of AI in rural investment decision-making. It discusses the benefits of AI, such as improved risk management, increased financial literacy, and enhanced access to financial markets. Additionally, the research assesses potential concerns, including data privacy, ethical considerations, and the need for human oversight in AI-driven investment processes. The findings suggest that AI can bridge the financial literacy gap in rural areas and enhance the investment decision-making capabilities of rural consumers. However, this transformation requires a holistic approach, encompassing not only the development and deployment of AI technology but also regulatory frameworks and educational initiatives to ensure its responsible and equitable use. In conclusion, this research paper highlights the pivotal role of AI in democratizing access to financial opportunities for rural consumers, ultimately contributing to greater financial inclusion and economic growth in rural regions. It offers valuable insights for policymakers, financial institutions, and technology developers aiming to leverage AI to improve investment decisions and financial well-being for rural populations.

Arbitral Settlement of Joint Infringement by Private Equity Funds

Based on the confidentiality and efficiency of arbitration, the dispute resolution method is often agreed as arbitration in the contracts involving private equity funds. The investment process of private equity funds often involves multi-layer nesting to avoid regulation and infringement of investors' rights and interests. Such infringement cases involve joint infringement by a majority of people, and it is difficult for investors to claim their rights through infringement lawsuits based on the exclusionary effect of a valid arbitration agreement on jurisdiction in the event that investors have signed a valid arbitration agreement. Due to the relativity of the arbitration agreement, the arbitral tribunal cannot break through the validity of the arbitration agreement to pursue the liability of other joint infringers when accepting the relevant case, and cannot resolve the dispute at once. If the validity of the arbitration agreement can be extended to other joint tortfeasors in the private equity fund, it will not only facilitate the investors to claim their rights and interests, but also improve the efficiency of dispute resolution.

Input-output-outcome innovation model: an analysis of the Brazilian manufacturing companies

PurposeThe objectives of this study are to identify which inputs are most relevant for development and successful introduction of product and process innovations and identify the impacts of these two types of innovation on the performance of Brazilian manufacturing companies.Design/methodology/approachThis study analyzes the relationships between input, output and outcome for a sample of 5,586 Brazilian manufacturing companies by using partial least squares structural equation modeling (PLS-SEM).FindingsThe results indicate that (1) product innovations are favored by internal resources, (2) process innovations are favored by external resources, (3) product innovations mainly affect a range of products offered by companies and (4) process innovations mainly affect performance in manufacturing capacity, flexibility and costs.Practical implicationsBy identifying the main efforts to improve the innovation performance and input-output-outcome relationships, the results can contribute to a better decision-making process for innovation investments and management in companies as well as for policymakers. The results are particularly relevant given that the Brazilian case can serve as a reference for other emerging countries.Originality/valueAnalyses of the innovation in input-output-outcome relationships were performed in a comprehensive way by using a set of variables for defining each construct. This allowed each construct to be better measured, which improved the understanding of the relationships between inputs and outcomes mediated by product and process innovations.

Некоторые основные проблемы экономического развития современной России

The work provides assessments of trends and factors of economic growth in modern Russia. The research was carried out on the basis of constructing econometric models using Rosstat data. Research results show that the main trends in economic development consisted of a decrease in the rate of economic growth and the rate of growth in labor productivity. The main factor of economic growth was the growth of labor productivity. There were no significant trends in changes in the growth rate of employment and the growth rate of accumulated fixed capital. The growth in labor productivity was achieved, to a large extent, due to an increase in the capital intensity of production. The basis for economic development was largely an ineffective archaic mechanism, the mechanism for the formation of an industrial economy. Employment growth had a negative impact on economic growth rates. The results obtained indicate that the most important factors of competitiveness and economic growth - human capital and new technologies - are insufficiently and ineffectively used. They did not ensure an increase in labor productivity due to investing in outdated technologies, attracting workers who do not have high qualifications, which is due to a decline in the quality of education and a reduction in the scale of scientific research and development. Education has largely lost its function of forming human capital. The research and development system does not sufficiently serve as a source of new technologies. The identified problems are obviously due to shortcomings in economic policy, shortcomings in financial management and investment processes, insufficient funding and ineffective management of the education system, research and development.

A Simulation-based Education Platform for Security Investments Through Culture and Knowledge Convergence

Cybersecurity is one of the most critical sectors of information systems and is considered a strategic priority for many Organizations. Information security investments are a crucial aspect of cybersecurity. However, it often happens that the economic decisions, which aim to improve information security, have poor efficiency. One reason is the lack of background on economics of the Chief Information Security Officers who are often not familiar with the evaluation of the non-technical aspects of security, e.g. economics. The other reason is the cultural gap between the different persons related to business management and administration. In this paper we present an interactive - simulation software designed to familiarize the aforementioned persons with information security investments. The software is actually a game that aims to boost learning for all the stakeholders who are involved in the investment process. Α better understanding of the processes, the technical, economic and human factors, along with the cultural convergence of the stakeholders will help boost the efficiency of investments. Design Science is used as the research method. The creative method, a brainstorming technique, is combined with the five steps of Design Science, i.e. explicate the problem, define the requirements, design and develop the artefact, demonstrate the artefact, and evaluate the artefact, to develop a process framework that will be able to cope with this problem. The artefact is an interactive-simulation platform in which a person could take the decision maker role and (a) deal with events that happen and (b) investigate different aspects of information security investment complexity. The evaluation of the artefact is made with a case study in the Industry, where real world data are used to feed the simulation and real-world decision makers play the game in order to better understand the different aspects of the problem and help us trim and enhance the functioning of the platform. Finally, limitations are elaborated and future work is also discussed.

The Impact of Responsible Investment on the Banking Performance in the small and medium Banks

The purpose of the study is to study the impact of responsible investment on the banking performance in the small and medium banks. This study used the secondary data by using 129 banks from 2018 t0 2023 and the OLS are utilised as a regression. The study utilized the statistical software STATA to test the relation among the variables. We found a positive and significant correlation between the responsible investments on the banking performance. Finally, appropriate recommendations were presented to improve the quality responsible investment on the banking performance in Asian Banks. The study concluded that the impact of investment on the performance of banks utilizing the statistical analysis program shows that there is a statistically important influence of investment on the bank performance of the financial institution. Hence, it is the responsibility of the institution to distinguish among the several investment options, with the goal of starting an investment construction in the institution that is composed and in accordance with the economic limits, and capable of enhancing its goals. In light of the findings extended, the study obtainable a number of references, the most significant of which is the essential for banks in specific and firms in overall to strengthen investment processes in the field of information technology payable to its significance in enhancing services and raising bank performance. The findings of the study will support decision-makers recognize the significance of investment part. The next are the most significant results. We find that the values of banks' investments are mostly from investments.

Próba aplikacji metod zarządczych celem optymalizacji kosztów budownictwa modułowego.

Nowadays, many management methods are used in the implementation of investment processes. Their common attribute is optimising the total cost of implementing an investment project by reducing all types of costs at each stage of the process. This is particularly important if the investment process is very complex since it is implemented according to the idea of modular construction. The aim of this study is to identify those modern management methods that improve the investment process by leading to the optimisation of the costs involved. These methods refer to the management process of the investment project (Agile Scrum Method, Kanban Method, Lean Construction Method) or directly to the management of the costs generated by the project (Activity-Based Costing). Together these methods will contribute to optimising the total cost of the project. Moreover, their applicability means they can be directly implemented or modified in any investment project that utilises modular construction. The features of the mentioned methods were identified and adapted to the specificity and requirements of the investment process in modular construction using the desk research method. As a result, it has been noticed that the use of management methods such as Agile Scrum, Lean Construction and ABC are crucial in the implementation of modular construction projects due to their ability to streamline processes, increase cost and time efficiency, and enable flexibility in the event of changing requirements.

Institutional Investors and the Fight Against Climate Change

ABSTRACTResearch Question/IssueThis article examines the role of institutional investors in the fight against climate change. We explain the institutional context, provide evidence highlighting institutional investors' bright and dark sides in this fight, and develop multiple ideas for future research.Research Findings/InsightsWe show that climate change has a significant impact on institutional investors. Simultaneously, we demonstrate that institutional investors can have a significant positive impact on fighting climate change, particularly if they actively engage with portfolio firms to reduce carbon emissions. For risk management reasons, this is in their own interest, and it is also in the interests of society.Theoretical/Academic ImplicationsWe highlight possible future research avenues on the link between institutional investors and climate change, emphasizing issues related to environmental, social, and governance (ESG) rating agencies, greenwashing, and the risk of a loss of trust in ESG products. Climate change constitutes one of the grand challenges of our time, and substantially more research on the role of finance is required.Practitioner/Policy ImplicationsClimate change imposes financial risks on institutional investors' portfolio firms, which must be actively addressed in the investment process. Nascent evidence indicates that markets have begun pricing these risks. Institutional investors can positively influence climate change by engaging portfolio firms on their emissions and simultaneously reducing climate transition risks.