Provide Investment Advice Research Articles

Comparison of Commercial Investment Value in the Food Industry

This article aims to provide investment advice to investors by comparing and analyzing four representative companies in the food industry. This article can help investors choose the most suitable stocks and gain more benefits. This article identified four representative companies and conducted data organization and financial analysis on them. Based on the results, the most suitable companies for investors to invest in were identified, along with their corresponding advantages and risks. This article analyzes and calculates the data released by the four major companies, and concludes that Starbucks (SBUX) is the most suitable stock for investors to choose because it has high investment returns and low investment risks. And the other three companies will all have some flaws to some extent. This article provides a method of analyzing data to find the most suitable stocks for investment, which can help investors make decisions, it can also help investors have the ability to distinguish between good and bad stocks themselves.

Research on Investment in China's Soybean Futures Market - Taking Soybean No.1 Futures Contract as an Example

The Chinese futures market has made significant breakthroughs in the past few years. As the operating mechanism and market norms of China's futures market gradually improve, the Chinese futures market is becoming increasingly active. Soybean futures prices have seasonal volatility, this has attracted a large number of investors, but most futures investors lack professional investment analysis skills. This article will provide investment advice for soybean futures investors, and assist them in making appropriate decisions in investment. This article mainly summarizes the market trend of Douyi Main Company in 2023. This article first conducts a market analysis of the price trend of Douyi Main Company over the past year, describing its price trend for the year. Subsequently, this article conducts a fundamental analysis of the soybean futures market, exploring how various influencing factors have an impact on the price trend of soybean futures in 2023. Subsequently, this article summarizes the influencing factors of soybean futures price fluctuations through fundamental analysis results, the influencing factors include the status of domestic soybean spot inventory in China, prices of alternative agricultural products, and international market prices of soybeans. Finally, this article conducts market prediction and investment value analysis based on fundamentals, and provides investment recommendations for investors, this article predicts that the fundamentals of soybean futures will remain bearish in 2024, and their prices may further decline. Therefore, this article suggests that investors can consider short-selling near-month contracts and closely monitor market changes to close positions at the appropriate time.

РОЗВИТОК ТА ІНСТИТУЦІЙНІ ТРАНСФОРМАЦІЇ ФОНДОВОГО РИНКУ УКРАЇНИ

The article examines the development and institutional transformations of the Ukrainian stock market. It has been confirmed that in Ukraine there is a pronounced bank-centric nature of the financial system by comparing indicators of the ratio of capitalization of listed companies and bank loans to Ukraine's GDP. It was determined that the Ukrainian stock market during the research period is constantly developing and transforming and attracts the attention of both domestic and foreign investors. Ukraine follows international standards in the field of exchange activity and works to improve the regulatory framework for market development. The most important institutional transformations in the domestic stock market under the influence of legislative changes are characterized. Separate quantitative aspects of the development of the domestic stock market for 2012-2022 were analyzed. It was noted that the transformations of the stock market were characterized not only by changes in the quantitative indicators of the development of the securities market of Ukraine, but also had a significant impact on the institutional, regulatory, intermediary, technical and information infrastructure of the domestic stock market. The most important directions of the transformation of the stock market of Ukraine, in particular of an institutional and digital nature, are substantiated. The key aspects of the transformation of the stock market related to digitalization processes are highlighted: electronic trading is a tool that allows you to trade securities online directly through electronic trading platforms; increasing transparency promotes quick and effective dissemination of information about companies, their financial condition and development prospects; the growing role of robot-advisors who can provide investment advice, analyze markets and predict risks; increasing the availability of services for small investors through digital platforms; changes in the structure of the market due to digital technologies lead to changes in the structure of the stock market, in particular, to an increase in the role of alternative trading platforms and a decrease in the importance of traditional exchanges. In the institutional environment, increased requirements for companies wishing to go through the listing procedure on the stock exchanges contributed to the exit of inefficient and fictitious issuers, ensuring a higher level of investor confidence in the market. However, we note that this has also led to a narrowing of the number of companies willing and able to meet these requirements, which may limit investment opportunities in the market.

Robo Advising and Investor Profiling

The rise of digital technology and artificial intelligence has led to a significant change in the way financial services are delivered. One such development is the emergence of robo advising, which is an automated investment advisory service that utilizes algorithms to provide investment advice and portfolio management to investors. Robo advisors gather information about clients’ preferences, financial situations, and future goals through questionnaires. Subsequently, they recommend ETF-based portfolios tailored to match the investor’s risk profile. However, these questionnaires often appear vague, and robo advisors seldom disclose the methodologies employed for investor profiling or asset allocation. This study aims to contribute by introducing an investor profiling method relying solely on investors’ relative risk aversion (RRA), which, in addition, allows for the determination of optimal allocations. We also show that, for the period under analysis and using the same ETF universe, our RRA portfolios consistently outperform those recommended by the Riskalyze platform, which may suffer from ultraconservadorism in terms of the proposed volatility.

Empirical Analysis of New Energy Vehicle Industry Based on the CAPM Model

As the public’s concern for energy resources and environmental protection is gradually strengthening, the new energy vehicle industry has emerged as a prominent trend in the vehicle industry’s future development, and its great potential for development makes it a hot direction for financial investment. The topic of this paper concentrates on the empirical analysis of the new energy vehicle industry based on the CAPM model, so as to explore the investment opportunities and risks of the industry and provide investment advice for investors with different risk preferences. In this paper, 15 stocks representative of the new energy vehicle industry in China's A-share market are selected. The risk-free rate of return is the one-year Treasury bond interest rate, and the market index is the CSI 300 index. The time span of the data is from June 1, 2022 to December 30, 2022. The results of the research prove that most of the stocks in the new energy vehicle industry are characterized by high return and high risk, so risk-neutral or risk-loving investors may consider investing in the stocks in this industry. However, in general, the CAPM model is weak in explaining the excess returns of the stocks in this industry.

Machine learning and deep learning predictive models for the stock market

Accurately predicting the movement of stock prices can help people make more informed investment decisions and thus obtain higher returns. They can also assess market trends, develop investment strategies and provide investment advice. In this paper, we used 5 models including Random Forest, XGBoost, ANN, RNN, LSTM to predict and verify the fit of 3 companies (AMZN, BABA and MSFT). It is found that LSTM and random forest model can predict well in most cases. The development of the financial industry does have some shortcomings, and the future financial field will be a field full of challenges and opportunities, so some machine learning and deep learning methods can be used to solve the prediction and modeling problems of financial aspects such as the stock market.

A Comprehensive Analysis of Stock Investment Recommendations Based on the Liquor Industry: Risk, Profitability, and Ratio Perspectives

Focusing on the liquor industry, this study takes Kweichow Moutai Liquor Co., LTD., Shanxi Xinghuacun Fen Distillery Co., LTD., and Sichuan Tuopai Shed Liquor Co., LTD., as the objects, and provides targeted investment suggestions for different types of investors by analyzing risk, profitability, valuation and other indicators. The results show that Kweichow Moutai has an excellent performance in market value and ROA, which is suitable for index investment and ratio analysis investors. Shanxi Xinghuacun Fen Distillery attracts the attention of income investors with its high dividend rate; Sichuan Tuopai Shede Wine's low PE Ratio may attract value investors. Depending on the type of investment, we provide investment advice for index investors, ratio analysis investors, income investors, value investors, PEG investors, discounted cash flow investors, momentum investors, insider trading investors and share buyback investors. The results and analysis of this study can help investors more accurately evaluate the investment value of different liquor companies to meet their specific investment objectives and risk preferences.

A SMART SHARIAH-BASED DECISION-MAKING IN ISLAMIC FINTECH

This paper investigates the development of a robo advisor in Islamic fintech institutions that incorporates Shariah-based decision making. The WOS and Scopus databases were used to collect data from the literature review, which was conducted using multiple keywords. Shariah-based decision making is an important component of Islamic finance, and the creation of a shariah robo-advisor can assist investors in making investment decisions that are consistent with their values. Investment decisions and objectives should be aligned with shariah principles and the user's values. Shariah screening criteria entail identifying industries that are haram (forbidden) under Islamic law and industries that are halal (permissible). The algorithm for a shariah robo-advisor was designed to screen investments based on shariah principles and provide investment advice that aligns with the user's investment objectives while taking factors such as the company's source of income, the nature of the business, and the use of debt in the company's operations into account. By bringing the framework of shariah to the forefront of technology, and Islamic Finance studies through an interdisciplinary approach, it is not a fey subject. This analysis, on the other hand, revealed that proposing a new development of a shariah robo-advisor involves several important steps, including defining investment objectives, developing shariah screening criteria, designing the algorithm, testing the algorithm, and launching the robo-advisor from the Malaysian Islamic Fintech context was still unexplored and merited more attention, given its potential benefits.

Fintech: Exploring the Digital Transformation of Banking & Financial Services

Fintech has exploded since the Internet revolution. Today, fintech has given rise to numerous segments, and many financial technologies have gained wider application. Among which the most active fintech areas are: online payments via digital currency without the need for cash; P2P lending, which enables direct person-to-person lending without the use of intermediaries; robo-advice, which use algorithms to provide investment advice; and distributed ledger technology (DLT) blockchain. They are all widely used in some countries around the world, but have not yet undergone a complete replacement. These emerging financial technologies have undoubtedly revolutionary implications for traditional finance, providing new ideas for the development of the financial sector. The problems they generate deserve attention as well. This paper introduces the development history of these four financial technologies, compares them with the traditional way of operation in the financial field in which they applied, and analyzes the advantages and limitations of these financial technologies. Finally, reflections on the future of fintech development are presented.

Heuristic-driven biases as mental shortcuts in investment management activities: a qualitative study

PurposeThis study aims to use a qualitative approach to explore and clarify the mechanism by which heuristic-driven biases influence the decisions and performance of individual investors actively trading on the Pakistan Stock Exchange (PSX). It also aims to identify how to overcome the negative effect of heuristic-driven biases, so that finance practitioners can avoid the expensive errors which they cause.Design/methodology/approachThis study adopts an interpretative approach. Qualitative data was collected in semistructured interviews, in which the target population was asked open-ended questions. The sample consists of five brokers and/or investment strategists/advisors who maintain investors’ accounts or provide investment advice to investors on the PSX, who were selected on a convenient basis. The researchers analyzed the interview data thematically.FindingsThe results confirm that investors often use heuristics, causing several heuristic-driven biases when trading on the stock market, specifically, reliance on recognition-based heuristics, namely, alphabetical ordering of firm names, name memorability and name fluency, as well as cognitive heuristics, such as herding behavior, disposition effect, anchoring and adjustment, repetitiveness, overconfidence and availability biases. These lead investors to make suboptimal decisions relating to their investment management activities. Due to these heuristic-driven biases, investors trade excessively in the stock market, and their investment performance is adversely affected.Originality/valueThis study provides a practical framework to explore and clarify the mechanism by which heuristic-driven biases influence investment management activities. To the best of authors’ knowledge, the current study is the first to focus on links between heuristic-driven biases, investment decisions and performance using a qualitative approach. Furthermore, with the help of a qualitative approach, the investigators also highlight some factors causing an increased use of heuristic variables by investors and discuss practical approaches to overcoming the negative effects of heuristics factors, so that finance practitioners can avoid repeating the expensive errors which they cause, which also differentiates this study from others.

Research on the Investment Value of Growth Enterprise Market Stocks in China

To study the value investment of stocks, this paper randomly selects 30 stocks from China's Growth Enterprise stock market. Based on financial statement data disclosed by listed companies, firstly select relevant sixteen indicators that can reflect the companies' financial status from four aspects of solvency, risk status, operating condition, and profitability. Then construct the stock value investment index system by using the factor analysis of the principal component method. Extract four factors and calculate the factor scores of 30 listed companies. Finally, according to the results of factor analysis, using the k-means cluster analysis method, the stocks of 30 listed companies are divided into three categories: ordinary stocks, risk stocks, and potential stocks. The results show that the mediocre stocks in the GEM make up the majority, and there are fewer high-yield, high-risk and potential stocks. Provide investment advice based on the characteristics of investors to help investors reduce investment risks and maximize returns.

Terminkontrakte im ESG-Portfolio

Climate protection and sustainability are also becoming increasingly important for financial market participants. When providing investment advice and portfolio management, it is mandatory to determine the customer's sustainability preferences. Product manufacturers are also adapting their financial products to the recently enacted EU regulations, carry out product classifications and have to disclose how sustainable their products are. The rules are tailor-made for investments in securities, especially bonds and equities. Derivatives have hardly been dealt with, although the derivatives markets offer improved and expanded options for transforming risks, separating individual risk components and thus tradability and improved control options for financial risks. This paper examines the effects of the use of futures contracts in financial products on their sustainability (product categorization).

The Impact of Strict Cancellation of Public Events Policy on the Stock Market Globally During the COVID-19: An Event Study

<p>The article aims to evaluate the impact of cancellation of public events policy on the stock markets on a global scale. Three questions related to the policy would be researched. First, what are the patterns of the thirty countries’ abnormal returns during the event window? Second, how to explain the patterns of the average abnormal return and cumulative abnormal return of the sample during the event window? Third, does the strict cancellation of public events have a positive impact on the stock markets in terms of abnormal return? Researcher finds that the policy on aggregate has a negative impact on the stock markets among the thirty countries in the short term while a positive impact on the stock markets in the long term. The results indicate that the investors at first consider the policy would reduce economic activities so as to lead a negative effect on stock markets, but the policy has a great positive impact on restricting the growth of the confirmed cases due to COVID-19 which boosts the investors’ confidence on resumption of economic activities. Finally, the stock indices have a upward trend after the announcement of policy in the long term. The article can provide investment advice for investors when governments imposing the policy. The investors can invest in the stock indices on a global scale when there is a deep decrease in the stock markets due to the policy. Then it would earn a positive return around 20 days later.</p>

Robo-advisory services and investor protection

ABSTRACT Technological advancement has created the possibility of providing investment advice and managing funds without any, or with only limited, human intervention (so-called robo-advice). In this paper, it is argued that robo-advisory services offer additional protection to retail investors since they – contrary to execution only services provided by online brokers – require a suitability test. However, robo-advice also creates certain risks, in particular because of the lack of personal contact and the use of algorithms. Therefore, financial intermediaries offering robo-advisory services must clearly explain the concept of robo-advice, ask clear and sufficient questions, ensure their algorithms provide suitable advice and provide clear, comprehensible and not-misleading information. As far as enforcement is concerned, financial supervisors must be able to verify the algorithms used and retail investors suffering damages because of unsuitable investment advice must be entitled to compensation, without having to prove that the algorithm was flawed.

Financial literacy as a mediator of personal financial health during COVID-19: a structural equation modelling approach

The coronavirus disease 2019 (COVID-19) pandemic has become a global humanitarian challenge. This scourge has impacted people from all walks of life as well as every economic sector and activity, from travel to automotives, hotels to banking, and supply chain to retail. The pandemic has affected not only physical and mental health but also financial health. Studies have examined the pandemic's economic impact, but very few have examined its impact on personal finances. Efforts to contain the pandemic's spread, such as lockdowns, have resulted in suspended business operations throughout the world that have intensified joblessness. To prepare and protect people from such unforeseen situations, financial education and planning are necessary. We attempt to expand the evidence on this issue by applying a structural equation modelling approach to identify the mediating role of financial literacy programs in preparing and protecting household wealth against sudden worldwide setbacks. The research design is descriptive and exploratory using snowball sampling technique. The data was collected through an internet survey. In total, 400 survey responses were obtained. After testing the measurement model for key validity dimensions, the hypothesised causal relationships are examined in several path models. The results indicated that coronavirus awareness exerts a direct or indirect influence on the financial health of individuals through financial literacy. We conclude that financial literacy has a full mediating effect on the personal finance of individuals during the COVID-19 pandemic. The findings not only contributed to the need and understanding of financial literacy but also have managerial implications. Financial literacy programs provide investment advice and suggestions which are actionable and also work to help individuals to come out stronger in terms of knowledge and skill set when the COVID-19 crisis passes.

Financial literacy as a mediator of personal financial health during COVID-19: A structural equation modelling approach

The coronavirus disease 2019 (COVID-19) pandemic has become a global humanitarian challenge. This scourge has impacted people from all walks of life as well as every economic sector and activity, from travel to automotives, hotels to banking, and supply chain to retail. The pandemic has affected not only physical and mental health but also financial health. Studies have examined the pandemic’s economic impact, but very few have examined its impact on personal finances. Efforts to contain the pandemic’s spread, such as lockdowns, have resulted in suspended business operations throughout the world that have intensified joblessness. To prepare and protect people from such unforeseen situations, financial education and planning are necessary. We attempt to expand the evidence on this issue by applying a structural equation modelling approach to identify the mediating role of financial literacy programs in preparing and protecting household wealth against sudden worldwide setbacks. The research design is descriptive and exploratory using snowball sampling technique. The data was collected through an internet survey. In total, 400 survey responses were obtained. After testing the measurement model for key validity dimensions, the hypothesised causal relationships are examined in several path models. The results indicated that coronavirus awareness exerts a direct or indirect influence on the financial health of individuals through financial literacy. We conclude that financial literacy has a full mediating effect on the personal finance of individuals during the COVID-19 pandemic. The findings not only contributed to the need and understanding of financial literacy but also have managerial implications. Financial literacy programs provide investment advice and suggestions which are actionable and also work to help individuals to come out stronger in terms of knowledge and skill set when the COVID-19 crisis passes.

Lessons for and from COVID‐19 for investors and their advisors

COVID‐19 was a shock to financial markets. On March 23, 2020 the S&P 500 index had fallen by over 31% from its closing value on the first trading day of the year and the NASDAQ index fell nearly 25%. Volatility increased. The CBOE VIX Index and trading volume spiked in March and remained elevated. But by mid‐November, the S&P 500 index was above its beginning of the year value by 10% and the NASDAQ index was 30% above. During large market declines, history tells us that investors can be rewarded if they buy, while withstanding the urge to sell. Surveys of investors, as well as those who provide investment advice, suggest that these history lessons were known and those who followed them, were well‐served. However, the COVID‐19 pandemic reinforces these lessons for investors and their advisors when encountering the next large market decline.

Regulatory focus and investment advisers' recommending behavior

PurposeThis study examines the effect of a regulatory-focused prime (i.e. a brochure with a picture and message) on the recommending behavior of investment advisers in the context of an investment decision.Design/methodology/approachThree experiments were conducted with 468 participants, mostly from the financial services industry. Study 1 examined the direct effect of a regulatory-focused prime on an investment adviser's recommending behavior, whereas Study 2 examined the moderating role of regulatory fit on such behavior. Study 3 validated the findings.FindingsThe results provide evidence that a message using visual and textual cues based on a promotion and prevention regulatory focus may trigger a preference in an investment adviser's product recommendation. A promotion (prevention)-focused framed message will trigger the recommendation of an investment plan with a higher but riskier (safe and stable) potential return. However, when the same prime is presented with details of a performance incentive scheme, the effect of the prime is reduced when there is a regulatory nonfit between the prime and the message relating to the performance incentive scheme.Practical implicationsThe findings highlight the importance of understanding how regulatory-focused stimuli may subconsciously influence the recommendation of investment advisers as heuristics used in decision-making, thereby influencing their clients' investment decisions.Originality/valuePast studies have focused on how regulatory-focused visual and message cues influence consumer decision-making. This study provides empirical evidence regarding the influence of regulatory-focused prime on an investment adviser's behavior when providing investment advice.

Financial literacy as a mediator of personal financial health during COVID-19: A structural equation modelling approach

The coronavirus disease 2019 (COVID-19) pandemic has become a global humanitarian challenge. This scourge has impacted people from all walks of life as well as every economic sector and activity, from travel to automotives, hotels to banking, and supply chain to retail. The pandemic has affected not only physical and mental health but also financial health. Studies have examined the pandemic’s economic impact, but very few have examined its impact on personal finances. Efforts to contain the pandemic’s spread, such as lockdowns, have resulted in suspended business operations throughout the world that have intensified joblessness. To prepare and protect people from such unforeseen situations, financial education and planning are necessary. We attempt to expand the evidence on this issue by applying a structural equation modelling approach to identify the mediating role of financial literacy programs in preparing and protecting household wealth against sudden worldwide setbacks. The research design is descriptive and exploratory using snowball sampling technique. The data was collected through an internet survey. In total, 400 survey responses were obtained. After testing the measurement model for key validity dimensions, the hypothesised causal relationships are examined in several path models. The results indicated that coronavirus awareness exerts a direct or indirect influence on the financial health of individuals through financial literacy. We conclude that financial literacy has a full mediating effect on the personal finance of individuals during the COVID-19 pandemic. The findings not only contributed to the need and understanding of financial literacy but also have managerial implications. Financial literacy programs provide investment advice and suggestions which are actionable and also work to help individuals to come out stronger in terms of knowledge and skill set when the COVID-19 crisis passes.

Financial literacy as a mediator of personal financial health during COVID-19: A structural equation modelling approach

The coronavirus disease 2019 (COVID-19) pandemic has become a global humanitarian challenge. This scourge has impacted people from all walks of life as well as every economic sector and activity, from travel to automotives, hotels to banking, and supply chain to retail. The pandemic has affected not only physical and mental health but also financial health. Studies have examined the pandemic’s economic impact, but very few have examined its impact on personal finances. Efforts to contain the pandemic’s spread, such as lockdowns, have resulted in suspended business operations throughout the world that have intensified joblessness. To prepare and protect people from such unforeseen situations, financial education and planning are necessary. We attempt to expand the evidence on this issue by applying a structural equation modelling approach to identify the mediating role of financial literacy programs in preparing and protecting household wealth against sudden worldwide setbacks. The research design is descriptive and exploratory using snowball sampling technique. The data was collected through an internet survey. In total, 400 survey responses were obtained. After testing the measurement model for key validity dimensions, the hypothesised causal relationships are examined in several path models. The results indicated that coronavirus awareness exerts a direct or indirect influence on the financial health of individuals through financial literacy. We conclude that financial literacy has a full mediating effect on the personal finance of individuals during the COVID-19 pandemic. The findings not only contributed to the need and understanding of financial literacy but also have managerial implications. Financial literacy programs provide investment advice and suggestions which are actionable and also work to help individuals to come out stronger in terms of knowledge and skill set when the COVID-19 crisis passes.