Investor Profile Research Articles

Institutional investment in addictive industries: an important commercial determinant of health.

The production of addictive commodities is subject to a range of commercial determinants. There has nevertheless been a gap in understanding how investments into addictive commodities may function as commercial determinants. Institutional investors can yield important financial power with their investment decisions. Many investors apply responsible investment (RI) policies to address environmental, social, and governance concerns. Negative screening is used to exclude certain sectors or companies from investment portfolios, mainly for ethical concerns. Negative screening also affects investment into tobacco and other addictive industries. This article investigates RI policies toward addictive industries among institutional investors that are signatories of the Tobacco-Free Finance Pledge (TFFP; N = 161). The TFFP is an initiative created in 2021 to de-normalize tobacco-related investments. The mixed-method study uses descriptive statistics to quantify the extent and scope of exclusion policies as well as institutional and geographical profiles of investors, and a qualitative analysis of the justifications for these exclusion policies. Some TFFP signatories apply negative screening to other addictive industries (gambling: 35%; alcohol: 24%; cannabis 12% of signatories). There are important differences in the applied exclusion thresholds, with only 47% of TFFP signatories applying a zero-tolerance policy to tobacco. Thresholds are higher for other addictive industries. Signatories also differ in terms of their geographical and investor profiles. Justifications pertaining to compliance with international standards and reputational risks were the most common. Addictive industries, such as tobacco, alcohol, gambling, and recreational cannabis, are increasingly excluded by investors. However, different understandings of RI influence how sector exclusions are implemented. Divesting from tobacco and other addictive industries is a crucial step toward a public health approach that prioritizes population health over financial profits. Prominent institutional investors are influential opinion leaders who can change the behavior of other investors and de-normalize controversial industries and reduce or prevent harm.

Method for Determining the Risk Profile of Investors Based on the Relationship of Two Stock Investing Problems

Method for Determining the Risk Profile of Investors Based on the Relationship of Two Stock Investing Problems

Analysis Of Profile And Growth Of Retail Government Bond Investors (Ori Bonds) From Ori001 To Ori015 Periods

Retail Government Bonds or ORI have become one of the investment instrument options officially launched by the Indonesian Government and protected by the law for Indonesian Citizens. With the existence of investment instruments issued by the government intended for the sustainability of the Indonesian economy, it is necessary to consider the involvement of Indonesian Citizens as investors in these Government Bonds. The purpose of this research is to determine the development and changes in the profile of ORI investors, both in terms of Demographic and Geographic classification, as the issuance of ORI progresses. The research method used is Descriptive Research through data analysis using Microsoft Excel and Google Spreadsheets as analytical tools. The results obtained through the analysis show that the profile of ORI investors in ORI001-ORI015 has experienced development during each issuance period, but no significant changes were found in the profile of ORI investors.

Analysis of Periodic and Seasonal Characteristics in Time Series: Taking the Dow Jones Industrial Average as an Example

The objective of this research is to conduct a comprehensive analysis of the Dow Jones Industrial Average (DJIA) with a focus on identifying cyclical and seasonal patterns observed in long-term time series data. In order to accurately predict future market trends, this research employs a combination of fundamental and advanced forecasting techniques, including mean, naive, snaive, drift, Holt, Holt-Winters, and ARIMA models. Furthermore, the research explores the impact of return ratios on market investment opportunities. Customized portfolio optimization strategies are developed based on the risk profiles of different investors, along with quantitative trading strategies that effectively manage market risks using the Capital Asset Pricing Model (CAPM). The research shows that the price of Dow Jones Industrial Index has a gradual upward trend, and its return rate has a certain periodicity and seasonality. The aim of this research is to provide valuable insights into the fundamental framework of the American stock market, enabling economists, investors, and policymakers to make informed decisions.

A STUDY ON PORTFOLIO MANAGEMENT SERVICE – WITH SPECIAL REFERENCE TO MOTILAL OSWAL

The study investigates Portfolio Management Services (PMS) with a specific focus on Motilal Oswal, a prominent entity in the financial services domain. PMS entails the provision of tailored investment portfolios designed to align with the unique objectives and risk profiles of individual investors. The study meticulously examines various dimensions of PMS offered by Motilal Oswal, encompassing features, performance metrics, risk mitigation strategies, and client satisfaction levels. Employing a comprehensive research methodology comprising both qualitative and quantitative analyses, the research endeavors to yield insights into the efficacy and efficiency of Motilal Oswal's PMS offerings. Through the collection and analysis of data from primary and secondary sources, including investor surveys, financial reports, and industry publications, this dissertation aims to contribute significantly to the existing body of knowledge surrounding PMS. Furthermore, it aspires to furnish valuable recommendations for investors seeking optimal portfolio management solutions and for financial institutions aiming to refine their PMS frameworks. By delving into the nuances of PMS, with a special emphasis on Motilal Oswal, this study not only seeks to enhance understanding but also aims to offer practical insights that can inform decision-making processes in the realm of investment management.

The Skewed Playing Field between Private Equity and Family Ownership Hemmed in by Intra- and Inter-Country Tax Non-Neutralities

This article investigates the ownership and management dynamics of private equity investments and family-controlled holdings in the United Kingdom and Italy, and reveals a tax imbalance in their pursuit of corporate control over publicly listed firms. By employing an interdisciplinary approach and a quantitative case study analysis applied to corporate and tax planning, this article illustrates that whereas UK taxation favours private equity, Italy leans towards controlling families, highlighting its implications for the private equity industry’s competitiveness and family inter generational succession, both domestically and across borders. Hence, with no ex ante preference for a specific form of ownership model (family or private equity), the article sheds light on the impact of tax considerations on corporate control decisions, and therefore advocates for tax neutrality to level the playing field between family and private equity control. Last, the article observes a greater reliance on leverage in private equity corporate governance models compared to controlling families, suggesting that it is not the legal availability of a tax shelter (interest deductions) per se that prompts its use, but rather the controlling investor's profile that weighs on borrowing preferences.

Analyzing the Impact of COVID-19 on Short-Term Investment Behavior through Stochastic Oscillator Indicators

Abstract This research examines how the COVID-19 pandemic affects short-term investments, particularly focusing on the reliability of Stochastic Oscillator Indicators (SOI) used by investors. Utilizing an artificial intelligence learning prediction model, the study investigates the pandemic's impact on short-term investment strategies guided by SOI, comparing data from pre-pandemic and pandemic periods. The findings suggest that during the COVID-19 period, employing KD analysis with a nine-round turnover rate leads to higher forecast accuracy. Short-term investors tend to adopt a conservative approach, with higher turnover rates resulting in lower winning rates. Overall, the study challenges the notion that COVID-19 only affects medium and long-term investment habits, shedding light on its influence on daily investment profits and potentially increasing short-term profits for larger, conservative investors. Further research is warranted to explore the investor profile of conservative hedgers in more depth. Keywords: COVID-19, Stochastic Oscillator Indicators, Artificial Intelligence, Short-term Investors, Conservative Approach

Financial risk profiling of millennials

Purpose This study aims to assess the risk profile of millennial investors residing in the Delhi NCR region. In addition, the relationship between the risk profile and demographic traits of millennial investors was also analyzed. Design/methodology/approach Data was collected using a structured questionnaire segregated into two sections. In the first section, millennials were asked questions on socio-demographic factors, and the second section contained ten Likert-type statements to cover the multidimensionality of financial risk. Factor analysis and one-way ANOVA were used to analyze the primary data collected for this study. Findings The findings indicate that the risk profile of millennials is mainly affected by three factors: risk-taking capacity, risk attitude and risk propensity. Except for educational qualification and occupation, all other demographic features, such as age, gender, marital status, income and family size, seem to significantly influence the factors defining millennials' risk profile. Originality/value Uncertainty is inherent in any financial decision, and an investor’s willingness to deal with these variations determines their investment risk profile. To make sound financial decisions, it is mandatory to understand one’s risk profile. The awareness of millennials' distinctive risk profile will come in handy to financial stakeholders because they account for one-third of India’s population, and their financial decisions will shape the financial world for the decades to come.

A hybrid neuro fuzzy decision-making approach to the participants of derivatives market for fintech investors in emerging economies

The risk profiles of investors play an important role in the success of derivative products investments. It is also necessary to determine the appropriate investor profile according to the conditions of a country. This protects investors from major losses. Therefore, there is a strong need for a new study that analyzes the risk profiles of derivative products in emerging economies. This study aims to identify the most appropriate investor risk profile for derivative instruments in emerging economies. It constructs a novel decision-making model. In this model, the facial action coding system, quantum theory, spherical fuzzy sets, and multi-stepwise weight assessment ratio analysis (M-SWARA) methodology are integrated to minimize uncertainty in this process. First, three main participants of derivatives for financial technology investors are evaluated using the quantum spherical fuzzy M-SWARA technique. After that, seven emerging economies are ranked based on this performance using quantum spherical fuzzy technique for order of preference by similarity to ideal solution. The main contribution is that an appropriate investor profile is identified for financial derivative investments in emerging economies. One of the important originalities of this study is the development of a new technique called M-SWARA by making some improvements to the classical stepwise weight assessment ratio analysis method. It is concluded that hedging is the most appropriate purpose for making investments in derivative products in emerging economies. It is also identified that China has the greatest performance among the seven emerging economies regarding the appropriate purpose for making derivative investments. For the effective management of this problem in these countries, it is recommended to prevent the speculative use of derivative products with legal regulations.

Asistensi: raising capital for innovation in health insurance, migrants and remittances

Learning outcomes After completion of this case study, students will be able to describe the funding path for start-ups, including the amounts and profiles of the usual investors or sources of funds, according to the moment in their life cycle and the characteristics of the initiative; highlight the challenges faced by start-up founders in weak entrepreneurial ecosystems and risky institutional environments; and argue in favor of or against different modes and typical instruments of venture capital (VC) investments in the early stages of new businesses, each of them different regarding dilutions, valuation potential, depth of negotiations and term sheets. Case overview/synopsis Asistensi, a technology and telemedicine start-up founded in 2020 in Venezuela by three entrepreneurs (Andrés Simón González-Silén, Luis Enrique Velásquez and Armando Baquero), raised US$3m in less than a year in a seed round in which it attracted the attention of professional VC funds such as Mountain Nazca, Alma Mundi Ventures and 468 Capital. Everything was set for launching operations in Mexico and the Dominican Republic in April 2021. However, a series of difficulties led to higher expenditure than planned, prompting the entrepreneurs to seek additional capital. The decision on the financial instrument to be associated with the potential valuation and shareholder dilution figures has been posed as a dilemma. Complexity academic level The case study focuses on understanding the start-up financing process. It can be used effectively in management- and finance-related subjects for graduate students taking introductory topics in entrepreneurship and entrepreneurial finance, as well as introductory executive education courses in entrepreneurship, entrepreneurial finance and VC. Supplementary materials Teaching notes are available for educators only. Subject code CSS3: Entrepreneurship

Familiarity bias in direct stock investment by individual investors

PurposeThis study examines the relationship between investors' familiarity bias, including the home bias and endowment bias, and their financial situations, expectations and personal characteristics.Design/methodology/approachUsing the 2019 Survey of Consumer Finances, the authors utilize an ordinary least squares regression to identify the presence of endowment bias and home bias in individual investors' direct stock holdings and use a Heckman selection model to examine determinants of the extent of endowment bias and home bias.FindingsThis study finds that investors with higher income and more education, men, non-white investors and people with greater risk tolerance are actually at a greater risk of endowment bias. This study also identifies a profile of investors that are more likely to have a home bias: with less financial sophistication, lower net worth, older, female, more risk-averse, with a positive expectation about the domestic economy and a relatively shorter investment horizon.Originality/valueThis paper is among the first to use US investors' directly reported stock holdings to examine the individual characteristics that are correlated with greater familiarity bias, providing financial professionals with information about how to allocate their limited time in providing education to a variety of clients.

How important is green awareness in energy investment decisions? An environmentally-based rebalancing portfolio study

This paper empirically studies the financial performance of energy asset allocation strategies under green and brown preferences. We assume that green investors and traditional or brown energy investors behave differently in their investment decisions. Thus, our optimal portfolio choice is developed in several steps for each energy investor profile and for each monthly rebalancing period. First, energy companies are screened based on Environmental (E) rating quartiles. We construct two categories formed via those companies rated above the first quartile, Q1, and below the third quartile, Q4. Second, for each category, a dynamic minimum variance (MV) problem is optimized based on univariate and multivariate GARCH models. Then, we assess the performance of the whole investment strategies posed. This paper contributes to the financial literature by providing evidence that not only does green investment help reduce the carbon footprint, but also that there is a risk-return spread between green and brown energy investment, adding value for the environmentally concerned investor.

Investor profiles


 
 
 Women in the United States face numerous financial challenges: They typically earn less than men do; they have greater probabilities of living in poverty; and they need substantial retirement funds, given their average longevity. Consequently, a comprehensive understanding of how women use investment advice to remedy these challenges is vital. However, the literature is largely mute on this issue. This study helps to fill this gap in the literature by evaluating two profiles of female investors through cluster analysis and logistic regression conducted on a large, nationally representative database collected recently. Predictors of seeking investment advice vary considerably across profiles.
 
 

COGNITIVE AND SOCIODEMOGRAPHIC FACTORS AS BACKGROUND OF THE INVESTMENT DECISION

The study aims to analyze the relationships between behavioral and sociodemographic factors with the investment decision of Brazilian academics in business areas. In order to achieve the research objectives, descriptive research with a quantitative approach was used. The procedures used in the study were Survey survey research and Structural Equation Modeling (Structural Equation Modeling – SEM). The main results highlighted that academics have a positive perception about money, most of them save part of their monthly earnings. However, notice a significant portion that has an expense equivalent to the gain. As far as the results from the Structural Equation Model are concerned, all variables with the exception of salary are related to investment decisions. The exogenous variables curiosity/trust and socialization/family showed positive correlations in relation to investment decisions based on the investor profile. While risk aversion, education level and college period have a negative correlation with individuals' investment decisions. The study's contributions show how behavioral and sociodemographic factors interfere in individuals' investment decisions, in addition to demonstrating how knowledge can significantly act within individuals' everyday decisions. Factors such as socialization play a significant role in disseminating knowledge about finance among individuals

Investment Decision in Indonesia Stock Exchange: The Demographic of Environmental, Social, and Governance Investors

Current investment decisions in stocks need to consider environmental, social, and governance factors in their investment analysis, in addition to considering aspects of the level of return and risk. The study aims to analyze who invests in Environmental, Social, and Governance (ESG) that fits a particular profile and whether that profile differs significantly from that of ordinary investors. In this survey, 415 individual Indonesian investors were surveyed. Survey respondents include those who invest according to ESG principles and those who are not interested in ESG, to determine if there are demographic differences. The research method used in the research is to use analysis of variance (ANOVA). The paper finds that the ANOVA assumption on the test of homogeneity variance states that the independent variable group has the same variance. Age variable has a significant effect on investment decisions. Meanwhile, gender, education, experience, and amount of investment variables do not affect investment decisions in ESG and non-ESG stocks. The demographic profile of investors who invest in ESG stocks has a significant difference to investors who make decisions to invest in non-ESG stocks. This study contributes to investors considering ESG factors in their investment decisions, and companies must also run their operations more with ESG principles.

OBILJEŽJA NEFORMALNOG RIZIČNOG KAPITALA U ČEŠKOJ: KVANTITATIVNO ISTRAŽIVANJE

In this paper, the demographic and investment profiles of business angels operating in the Czech Republic are evaluated based on a sample of 78 angel investors. This is the first attempt to use data on investor activities from the Pitchbook database, which has become increasingly popular in academic research. Beyond the framework of descriptive statistical analysis, a multidimensional statistical investigation using cluster analysis was conducted. The results show that there are two groups of angel investors in the Czech Republic. The first group is represented by investors who predominantly have a large active portfolio, as well as the number of total completed investments. On the other hand, the second cluster is made up of investors who conduct a smaller number of investments and are also in the position of the founder of a start-up. Not surprisingly, there are two main locations of angel investors in the Czech Republic, Brno and Prague. Both categories of typical investors are united by some demographic characteristics; for example, the market is dominated by middle-aged men with a completed Master’s degree in Economics who invest in start-ups in the field of information and communication technologies. The main contribution of the paper consists in evaluating the demographic and investment profiles of angel investors operating in the Czech business environment. The results of the research have implications for upcoming research, the informal venture capital industry, and public policy beyond the Czech business environment, while developing tools for fostering an angel ecosystem. In today’s globalized world, the boundaries of angel investors are often blurred. Just as start-ups have ambitions to expand internationally, informal venture capitalists are increasingly making cross-border deals. From the perspective of both investee firms and policy makers, it is thus important to know the profiles of not only domestic but also foreign business angels, e.g. with regard to the setting of public support for foreign capital inflows.

The changing investor demographics of an emerging IPO market during the COVID-19 pandemic

PurposeThe last two years are characterized by record numbers of initial public offerings (IPOs), foreign investor abstinence and rising retail investor appetite in the Turkish stock market. This study aims to investigate whether retail investor dominance coupled with foreign investor aversion has significant impact on initial and short-term returns.Design/methodology/approachThe research covers the population of 188 companies going public at Borsa Istanbul from 2010 to the end of 2021. Three hypotheses are developed and tested by means of ordinary least squares and Tobit regressions to examine the association between investor allocations and returns. A new measure for retail investor trade size, average retail investment per capita (ARI) is utilized to explain the linkage between retail investor appetite and short-term returns. Two-stage least squares and Heckman selection regressions are employed for robustness tests to address potential endogeneity.FindingsPandemic IPOs provide significantly larger short-term returns than pre-pandemic IPOs measured up to one month. Underpricing during the pandemic is not significantly greater due to 10% daily price limit, which leads to a gradual release of retail investor appetite and increase in stock prices in the short term. Retail investors control 66% of the market during the pandemic compared to 35% before, while foreign institutional investor market share declines from 53% to 6%. Average retail investor number in an offering increases by 55.4-fold during the pandemic, resulting in substantially smaller allocations to the average individual investor. Greater returns during the pandemic are associated with smaller retail investment per capita, while domestic institutional investment is associated with lower returns as typically expected from institutional investors, although its significance disappears after controlling for potential endogeneity.Research limitations/implicationsThis study investigates returns up to one month. To better understand whether short-termism of retail investors and recent foreign investor aversion have detrimental effect on companies, and on the market as a whole, longer-term studies are needed. This is not possible at the current stage since not enough time has passed.Practical implicationsThis research is relevant to emerging market investors and companies due to the ongoing foreign investor aversion and fast-changing market conditions. The research cautions market participants against the short-termism of retail investors and urges policymakers to regain investors with longer investment horizons.Social implicationsMany newcomer retail investors are in the stock market due to lack of more profitable alternatives in Turkey. Although their participation is accompanied by larger short-term returns for the time being, the current momentum is unlikely to last long as the pandemic ends, and interest rates around the world begin to be raised. The study urges small investors to invest in a more informed manner and aim for longer time horizons, as it may not be possible to make a quick profit in the stock markets in the near future.Originality/valueThis is the first study to investigate changing investor profile in emerging markets and its impact on returns following pandemic declaration. The question is important because the investor composition affects the investment horizon in the market.

Putting people and planet ahead of profits: Nudges in Investor Profile Questionnaires

In light of the increasing concern about social and ecological crises facing humankind, this experimental study uses nudge theory to examine whether Investor Profile Questionnaires can be redesigned so that retail investors are nudged towards investments that place social and ecological returns ahead of financial returns, and away from investments that (merely) seek to maximize financial returns. Contrary to our predictions, our findings indicate that adding sustainability-oriented awareness and attitudinal nudges to Investor Profile Questionnaires did not result in participants decreasing the proportion of funds they invested in business-as-usual firms that focus primarily on maximizing financial returns. However, as predicted, the awareness and attitudinal nudges did increase the proportion of funds invested in firms that compromise financial returns in order to optimize social and ecological well-being. Moreover, investors’ attitudes towards sustainable investing were more positive after they received an action nudge versus (merely) an awareness nudge. Implications are discussed.

The Political Economy of Housing Investment in the Short‐Term Rental Market: Insights from Urban Portugal

AbstractShort‐term rentals (STRs) emerged as holiday accommodations, disrupting the hospitality industry in the decade before COVID‐19. Mainstream explanations for their growth revolved around digital tourism platforms like Airbnb as market disruptors and the sharing economy rationale. At the same time, critical scholars explored the capitalisation of greater rent gaps in urban central locations. However, these explanations are insufficient to explain the growth of STRs. We supplement them by building bridges between the urban political economy and the geographies of financialisation through the cases of Lisbon and Porto before the pandemic. The paper focuses on tourism‐induced housing investment, taking a closer look at the profile of investors in association with STR property managers in the context of the late‐entrepreneurial urban regime. We conclude that tourism development has allowed opportunities for housing financialisation through STR professionalisation, enhancing the allocation of interest‐bearing capital in tourism‐oriented real estate.

A Generative Adversarial Network for Financial Advisor Recruitment in Smart Crowdsourcing Platforms

Financial portfolio management is a very time-consuming task as it requires the continuous surveying of the market volatility. Investors need to hire potential financial advisors to manage portfolios on their behalf. Efficient hiring of financial advisors not only facilitates their cooperation with investors but also guarantees optimized portfolio returns and hence, optimized benefits for the two entities. In this paper, we propose to tackle the portfolio optimization problem by efficiently matching financial advisors to investors. To this end, we model the problem as an automated crowdsourcing platform to organize the cooperation between the different actors based on their features. The recruitment of financial advisors is performed using a Generative Adversarial Network (GAN) that extrapolates the problem to an image processing task where financial advisors’ features are encapsulated in gray-scale images. Hence, the GAN is trained to generate, based on an investor profile given as an input, the ’ideal’ financial advisor profile. Afterwards, we measure the level of similarity between the generated ideal profiles and the existing profiles in the crowdsourcing database to perform a low complexity, many-to-many investor-to-financial advisor matching. In the simulations, intensive tests were performed to show the convergence and effectiveness of the proposed GAN-based solution. We have shown that the proposed method achieves more than 17% of the average expected return compared to baseline approaches.