Rational Investment Decisions Research Articles

Strategic investment management in the digital transformation of the economy of the Republic of Kazakhstan

The aims to analyse this issue in the context of the digitalisation of the socio-eco- nomic space of Kazakhstan's regions. The article examined the challenges and op- portunities of digitalisation for industrial enterprises. It emphasises the importance of making rational investment decisions under conditions of budget constraints. The article proposes a financing scheme for digital transformation projects using quasi- monetary and crypto-financial instruments to attract investment. It is concluded that the impact of cost savings and benefits of digital transformation of enterprises is directly reflected in the level of company capitalisation and its market value, and the financial system corresponding to the new technological cycle is a necessary condi- tion for financial sustainability.

The Behavioural Pattern of Investment in the Financial Market: A Study of the Individual Investors

Most financial theories are based on the assumption that everyone is logical and considers all available information before making decisions, which is not the case in reality. This study aims to analyse the behavioural determinants that drive the investment decision of individual investors in J&K. Non-probability convenience sampling was adopted; through which 392 responses from individual investors were gathered using a self-administered questionnaire. The t-test and ANOVA were used to determine the effect of demographics on investment behaviour (IB), whereas logistic regression was used to determine the impact of IB determinants on investment decision-making. The findings show that the investment decisions of investors in Jammu and Kashmir (J&K) are significantly influenced by age and occupation. The results also indicate that cognitive bias, investment goals and saving orientation have a substantial influence on IB but overconfidence, risk perception and decision influencers do not have any significant impact on the investment decision of individual investors in J&K. By gaining awareness of these determinants, investors can make more rational investment decisions, leading to enhanced market efficiency and achieving better outcomes in the financial market.

A STUDY ON INVESTMENT PATTERN OF WORKING WOMEN IN BENGALURU NORTH

Investors are not all the same, they differ in terms of things like expectations of returns, risk appetite, stability of income and so on. Working women significantly contribute to a nations savings by expanding household incomes, stimulating economic growth, and reducing reliance on social welfare. Their financial literacy and investment contribute to long-term stability, bolstering a nations economic resilience. Depending on their risk tolerance, investors invest their savings in all of those avenues. When making an investment decision, behavioural aspects, investor awareness level, risk attitude, investment habits, and common market understanding all play an important role in making a rational investment decision. KEYWORD: financial planning, investment pattern, investment behaviour

Comprehending the Crypto-Curious: How Investors and Inexperienced Potential Investors Perceive and Practice Cryptocurrency Trading

With the increasing popularity of cryptocurrency, many people are interested in cryptocurrency investments, but have so far hesitated. Many others have made investments without adequate preparation. To help interested investors improve their understanding of cryptocurrency and make rational investment decisions, it is important to study their concerns and motivations and to draw upon experienced investors’ experiences and practices. Therefore, we surveyed crypto investors and inexperienced potential investors interested in trading cryptocurrency (n = 395). Our results showed that extreme price volatility is the primary incentive and a substantial obstacle to market participation. Fraud risks, lack of personal funds, insufficient knowledge, and difficulty identifying credible information sources are also common barriers. Our findings highlight the need to build trustworthy exchange platforms and integrate educational features. Based on the reported concerns and experiences, we (1) identify learning components for new investors, and (2) formulate design recommendations for beginner-friendly exchange platforms.

App-Based Investment Platform and Investment Decision Making: A Study of Retail Investor Behavior in Indonesia

The significant growth of retail investors in Indonesia between 2020 and 2022 is partly attributable to technological advancements that have made it easier to access investments through a variety of applications. Previous studies in developing nations like Indonesia, India, and Pakistan suggested that perception biases have influence on retail investor decision making. However, given the capabilities of current investing applications like the display of historical stock/mutual fund price data, retail investors should ideally be able to make more rational investment decisions. This study employs partial least square structural equation modeling (PLS-SEM) to examine the role of overconfidence, representativeness, and loss aversion biases that affect rational investment decision making. As an application feature, historical price data serves as the moderating variable of the interaction between them. The result of this study indicates that overconfidence influences rational investment decision making in a positive and significant manner, while representativeness and loss aversion do not have a significant effect. Price historical data as application feature also does not have significant effect in moderating the relationship between them.

Rational or Impulsive? Early Backers’ Investment Behavior in Agri-Food Crowdfunding from 4P–4C Perspectives

Lack of funds and poor agricultural-product sales are the main problems that limit agricultural development, which can be well solved by agri-food crowdfunding. How to attract more backers to invest in the early stage of a project is extremely crucial for agri-food crowdfunding. Using a unique sample comprising 1,136 agri-food crowdfunding campaigns on Crowdfunding Net, among the most influential crowdfunding platforms in China, a model is constructed that includes the five dimensions of people, product, promotion, cost, and convenience. Drawing on the classic 4P and 4C marketing theories, multiple regression analysis is used to examine the mechanism through which a project’s presentation information influences the number of early backers. The results reveal that the factors in the three dimensions of people, product, and convenience positively impact the number of early backers in agri-food crowdfunding. In contrast, the cost-dimension factor is negatively related to the number of early backers. The promotion-dimension factors fail to pass the significance test. Additionally, the number of first-day backers partially moderates the effect of the initiator category, investment threshold, and lottery on the number of early backers. The effects of the trademark registration and number of reward categories on the number of early backers are completely moderated by the number of first-day backers. The evidence also shows that early backers’ rational investment decisions are based on reliable information and lucrative rewards. The research conclusions offer practical enlightenment for initiators, crowd-funding platforms, and regulators in the agri-food crowdfunding industry.

"Predicting the Movement of Stock Prices Using Technical Analysis Indicators": Applied Research in a Sample of the Shares of Iraqi Private Commercial Banks

The research aims to identify technical analysis indicators (simple moving average، relative strength index، estimation index)، and their impact on predicting the movement of stock prices for Iraqi private commercial banks، by examining the methods used in technical analysis and its various models, in general, and its indicators in particular. And the methods of benefiting from them in making the rational investment decision aimed at achieving rewarding returns in the financial markets, and diagnosing the obstacles and difficulties that the participants face in predicting stock prices، and proposing solutions and recommendations to overcome and overcome them from a scientific and practical perspective. As the research community consisted of Iraqi private commercial banks، which numbered (25) banks، while the research sample consisted of (7) banks with a rate of (28%) of the research community، the research used the analytical approach for the financial data in the period between (1/8 /2021-30/4/2022)، as the financial statements (closing prices) of the research sample banks were calculated by means of mathematical equations for technical indicators، and represented them in the form of graphs to clearly determine price trends and (buy and sell) signals. The research came out with a set of recommendations، the most important of which is the need for private Iraqi commercial banks to strengthen the position of technical analysis as a qualitative tool used to improve the investor's decision، and increase the ability to analyze and predict. Purpose، and urging academic authorities to shed more light on technical analysis by encouraging research and studies because of its great importance in the decision to invest in stocks in the future.

An application of Bayesian vector heterogeneous autoregressions to study network interlinkages of the crude oil and gold, stock, and cryptocurrency markets during the COVID-19 outbreak.

We investigate fat tails and network interconnections of crude oil, gold, stock, and cryptocurrency using seven Bayesian vector heterogeneous autoregression fashions. In this paper, we incorporate parameter uncertainty by using Bayesian VAR models for estimation. To make rational investment decisions, we decompose a network of financial assets and commodity prices into various time horizons to obtain essential insight and knowledge. During the short, medium, and long run, this paper differentiates dynamically between network interlinkages between these markets. We found some noteworthy results in our study. In the first place, network interlinkages exhibit remarkable differences over time. Interlinkages between networks are increased in the short term, medium term, and long term due to transient events occurring in markets during the study period. As a result of the ongoing COVID-19 epidemic, the long-term ties within the system are significantly impacted. Additionally, based on net directional linkages, each market's role shifts (from sending to receiving shock and vice versa) before the pre-COVID-19 pandemic course, whereas they remain persistent during COVID-19. Observations of short- and medium-term trends reveal that three markets, namely, crude oil, gold, and stock, receive shocks, which are transmitted to these markets by the cryptocurrency market. In terms of long-horizon measures, the results indicate that the gold and cryptocurrency markets persist as shock transmitters. Our findings are critical since policymakers can also design appropriate policies to reduce the vulnerabilities of such markets and prevent risk spread and instability.

투자자 심리지수와 투자자의 비합리성에 관한 연구

Previous studies in the field of behavioral finance suggest that investors’ irrational behavior induces the difference between stock price and fundamental value. Uninformed investors with cognitive biases tend to make irrational investment decisions, such as herding, overconfidence, and loss aversion, rather than rational investment decisions. To find that mispricing is caused by investors’ irrational behavior, many studies focus on suggesting investor sentiment indicators constructed using surveys, transaction data, and textual data. We systematically review the literature regarding investor sentiment indices depending on the type of data and discuss the limitations of each index. Based on such limitations, we suggest ways to improve the measurement of each sentiment indicator.

Financial Knowledge of Women And its Impact on Investment Decision Making

This paper examines the financial literacy of women and their attitude on investment. The contribution of women all over the world is overwhelmingly increasing in their family, businesses and our society which is also being recognised. This content discussed below also attempts to highlight the role and identify investment decisions of both working and non-working women’s as regarded by different types of researches conducted worldwide. We will also come to know through this study, that women tend to have a very conservative attitude, lack of confidence, risk averse as well as lower levels of financial knowledge and they are also dependent on guidance from others because they are being one of the essential parts of our routine. Nowadays, financial literacy amongst women has tried to gain their attention for improving their personal investment and financial management decisions in our nation. Such knowledge helped their investment decisions and it positively and significantly influenced their behaviour to consider rational investment decisions. Through, this research we came to know how it continues to be an important factor and predictor of financial behaviour. Researcher had surveyed 196 women from different occupational sector to know the impact of financial knowledge of women on their investment decision making and concludes that there is a significant impact of “financial knowledge” of women on their investment decision making.

Stock Price Determinants Of Listed Banks And Financial Institutions In Nepal

Nepal Stock Exchange has strived to deliver an effective regulatory system and information transparency to acquire the confidence of the investors and convey the sufficient basis to analyze the data without anomalies. However, the investors in the stock market are still very few who are about negligible percent of total population in the nation. Government, banks, and financial institutions are not being able to play the prompt and desired role to create a stable share market with the expected outcome of the investors. Despite this, the investors have lack of knowledge both fundamental and technical regarding the capital market that causes them not to cut a good figure from the share market. The fundamental determinants and their types that affect the stock price are still matters of general thoughts in the existing stock market in Nepal. The several answers to the general thoughts become reliable references to the potential investors to make rational investment decisions. These all empower Nepal Stock Exchange authority and the administration of listed banks and financial institutions to skip any unexpected catastrophe, empower and control market strategies, strengthen the stock market industry. This research collected primary data using structured questionnaire from 111 respondents belonging to the market including investors, bankers, and experts of listed banks and financial institutions. It has used the analytical and descriptive research methodology to meet its prime objectives that were to identify determinants with their rank, of stock prices of listed banks and financial institutions listed in the Nepal Stock Exchange and deliver the ideas to the investors to consider the determinants for investment decision. It has observed the determinants of stock price of the banks and financial institutions as qualitative determinants and quantitative determinants. It has taken altogether 10 qualitative and 13 quantitative determinants including both specific and macroeconomic. In the research stock price and the determinants remained as dependent independent variables respectively. The result concluded that the goodwill, optimistic report of analysts, and positive views respectively are the major qualitative determinants with their ranks. Likewise, Dividend rate, earnings per share, and cash flow from operation respectively are the fundamental specific determinants with their rank. And the gross domestic product, interest rate, and inflation respectively with their rank are the major macroeconomic determinants. The recognition of the determinants and lack of analyzing experiences for investment decision on share have the great meaning for ensuring investors' investment to generate desirable profit and keep their existence in the stock market in Nepal.

Information shocks, market returns and volatility: a comparative analysis of developed equity markets in Asia.

This research explores the function of information shocks in equity returns and integrated volatility of emerging Asian markets using Swap Variance (SwV) approach on the period of 20years (Feb 2001-Feb 2020). It compares average monthly returns and volatility of shock periods with non-shock periods after separating negative and positive shocks. Findings reveal frequent occurrence of information shocks in all Asian developed equity markets with positive shocks than that of negative shocks. Moreover, highly volatile Asian developed markets earn higher returns during shocks periods, while markets with higher volatility and lower continuous returns are adversely affected during shocks periods. The ratio of total realized volatility and the average ratio of shocks volatility establish that shocks account for a considerable amount of volatility, and integrated volatility is higher during negative shocks phases. The study has implications for all stakeholders of financial markets for rational investment decisions.

Impact of hydrogen cells on economic efficiency and the environment according to renewable energy standards

Purpose: The research goal of the work is to determine the levels of profitability of hydrogen cells and their impact on the environment. The authors of the article answer the question under what boundary conditions there is an economic justification for the use of hydrogen cells in various branches of the economy while respecting environmental regulations and standardizing energy production by the principles of a sustainable economy. Design/methodology/approach: The research was carried out using economic measurement model methods. These methods allowed the authors to calculate the market value of the investment with the assumed boundary criteria and to determine the economic effectiveness of the analyzed research problem. Additionally, the authors analyzed the problems of the widespread use of hydrogen in terms of its storage in technical, technological and economic terms. Findings: Research has shown that it is possible to obtain up to 7% by weight. hydrogen relative to the mass of the metal. Carbon nanofibers may become the material of the future for making hydrogen tanks. The use of fuel cells brings many benefits: simple structure and operation, neutral impact on the environment, and low noise level. Moreover, hydrogen fuel cell technology allows for efficient operation for a long time and the possibility of high momentary overloads, which allows for considerable scalability and wide application with economic justification. Practical implications: The presented models have shown that the project of their implementation is fully economically justified and will allow investors to make a rational investment decision. Originality/value: The original contribution of this work is the implication of the data on real research models. This data allowed the authors to make calculations and indicate directions of improvement for the construction of innovative hydrogen cell solutions as part of the standardization of regulations on renewable energy sources in various sectors of the economy. Keywords: Hydrogen, hydrogen storage, fuel cells. Category of the paper: Research paper.

The implications of IFRS on the credit market: Evidence from the emerging market

Banks are usually assessed credit risk based on borrowers’ financial statements to monitor credit risk over the life of the lending contract (Beatty, 2008; Golubeva, 2020). Thus, this research examines the implications of mandatory International Financial Reporting Standards (IFRS) implementation on the rational investment decisions of lenders and borrowers in the emerging market (e.g., the Iraqi credit market). Quantitative data were collected, nearly 137000 credit/loan contracts and 500 debenture contracts of almost 750 individual companies. We separate the dataset into two periods, earlier and later IFRS implementation using interaction variables to extract other economic factors’ impact on loan contract stipulation. Even though enhancing the quality of financial statements is the most rational objective of IFRS adoption and implementation, the results show insignificant improvement. IFRS implementation has a limited effect in enhancing financial statements’ quality during the conversion period. This finding supports the view that economic advantages do not essentially contribute to the application of IFRS but depend on other considerations and the level of disclosure practices

A Study on Improvement Plans for a Local Financial Investment Project Evaluation System

This study aimed to summarize previous research on local financial investment reviews and the project evaluation method for rational investment decisions related appraising local financial investment projects. Measures were developed to quantify qualitative reviews, and new indicators were created. Lastly, academic and practical implications were considered, and a new evaluation system and sub-system for divisional investment projects were proposed based on these considerations. The results include a score table for each grade, with perfect scores set at 10 points for each element. A proposal for a new division was also made based on the classification of basic, intermediate, and optional investment projects. Taking the current division system into account, the proposal suggested the basic investment division, the intermediate investment first division, the intermediate investment second division, and the optional investment division. With this study, it is expected that investment screening can be conducted from a more objective and consistent standpoint, because it provides basic data for solving problems related to subjective screening standards, which have been seen as problematic.

Self-attribution and overconfidence in Colombo Stock Exchange

The physiological behaviors in Colombo Stock Exchange to be discovered as they cause to have market anomalies in which is not technically driven and there are compared to other countries. The purpose of this study is to observe whether overconfidence bias and self-attribution bias exist in Colombo Stock Exchange. This study utilises the Structural Equation Modeling to analyse the collected data by using a questionnaire survey from 418 active individual investors in Colombo Stock Exchange. Out of the three stages of rational decision-making theory, it is observed that evaluating alternatives contribute to overconfidence bias and self-attribution biased significantly. Therefore, it is evidenced that if the investors do not concern on demand identification and evaluating alternatives correctly, investors may be influenced to overconfidence bias and self-attribution bias that the investors in Colombo Stock Exchange follow the theory of rational decision-making which related to evaluating alternatives. According to the findings of this study, there is a mixed result of both rational and irrational investor behavior. Hence, the investors in Colombo Stock Exchange display an apparently both rational and irrational behaviors in making investment decision processes. The findings of this study are imperative to investors, investment advisors, and policy makers etc. to have rational investment decisions in the Colombo Stock Exchange.

Technical Analysis in Indian Stock Market with the special focus on Automobile Sector

Every investor always wishes to have a decent return on his/her investments because they invest the part of their income. Among the various schemes of investment, equity is considered the most rewarding even though it involves higher risk. In order to mitigate the risk and increase the return, investor need to get involved in analyzing the stocks on the basis of either technical or fundamental analysis. In this research, a study has been undertaken to analyze the equity shares of companies on the basis of technical analysis. By using the techniques appropriately, potential investors can take informed and rational investment decision. This study is conducted on the sample companies of automobile sector. Candlestick pattern and strategies are being explained in the research to help the potential investors. Keywords:- Risk ,return ,candlestick pattern

Investment Decisions and Financial Performance of Deposit Taking Savings and Credit Co-Operative Societies in Nairobi City County, Kenya

It is a requirement for Kenyan SACCOS to conform to regulations set by Sacco Societies Regulatory Authority (SASRA). Deposit Taking (DT) SACCOS are very instrumental towards the financial sector in serving an increasing number of rural and urban households. They are required to submit their statements of financial position, deposit returns statement, investments report, statement of liquidity and capital adequacy return reports. With varying degree of success, DT-SACCOS has invested in non-core business areas. This is especially true of DT-SACCOS which have liberalized their investment portfolios in the wake of competition from commercial banks. This study seeks to examine the impact of investment decisions on the financial performance of DT-SACCOS in Nairobi City County. The specific objectives of the study were to determine the effect of investment in real estate, lending to members for development, FOSA products and money and bond markets on the financial performance of DT-SACCOS in Nairobi City County. The significance of this research is to gain a better knowledge of the nature, breadth and extent to which investment decisions are to be of importance to DT-SACCOS performance. This examination is going to be based on agency, portfolio, liquidity preference and Tobin Q theory of investment. A causal research design of research and a target populace of 40 DT-SACCOS is going to be relied on. In terms of the sample size, all the 40 DT SACCOS are going to be studied. Secondary data matrices were used in collecting data from the finance managers. Adherence to the ethical considerations was also guaranteed at every stage. The study showed that: investment in real estate had an insignificant inverse effect (β= -257.42, p=0.369) on the financial performance of DT-SACCOS in Nairobi City County while investment in lending to members for development had significant positive effect (β=2141.85, p=0.044); investment in FOSA products had insignificant inverse effect (β= -45.86, p=0.617) while investment in money and bond markets had insignificant positive effect (β=547.61, p=0.255) on the financial performance of DT-SACCOS in Nairobi City County. To this effect, the study recommends that DT-SACCOS should increase their investment base on lending to members as they are basically aware of the formative intent of the co-operatives. This means that when more loans are issued to members of the co-operative, they first consider the gains they will get which emanates from these rational investment decisions for their development and hence the financial performance of the DT-SACCOS.

Do energy policies bring about corporate overinvestment? Empirical evidence from Chinese listed companies

In an era of profound changes in the global economic and industrial landscape, the ability of renewable energy policies to create new growth drivers is critical to achieving China's economic recovery in the post-COVID-19 period. Consequently, this paper empirically examines whether renewable energy policies bring about corporate overinvestment. Using corporate investment data and hand-curated information on energy firms from Chinese listed companies from 2007 to 2018, the results show that implementing renewable energy policies causes firms to overinvest. Renewable energy investment is more of a government-led industrial policy, reflecting how local governments increase their degree of intervention in firm investment, leading to overinvestment and better short-term firm performance. However, in the long run, the overinvestment encouraged by renewable energy policies will more negatively impact the economic performance of state-owned enterprises (SOEs). Moreover, when economic policy uncertainty is high, renewable energy policies can lead to a more pronounced tendency for firms to overinvest. Despite this trend, renewable energy policies do not significantly increase the likelihood of overinvestment among firms with high state-owned or equity concentration but instead allow firm operators to make more rational investment decisions. Thus, the government should formulate policies to regulate the investment process of enterprises and avoid distorting their investment behavior when providing financial support and preferential policies.

Investment Behavior and Trade Returns of Individual Investor: Mediating Role if Financial Literacy

The main objective of current study was to analyze the impact of representativeness and anchoring on the trade returns of individual investors with the mediating role of financial literacy. In this connection hypotheses were developed on the basis of behavioral finance literature. The data was collected on 5-point likert scale questionnaires which were adopted from various authors. The collected data was checked for reliability and correlation analysis and regression models were run. On the basis of results obtained from analysis the four hypotheses which were developed have been accepted. It was concluded that representativeness and anchoring has significant positive impact while the financial literacy has mediating impact on the trade returns of investors. It is recommended that more the financial literacy less risk of behavioral biases impact on investment thus investors should gain financial literacy for taking rational investment decision and good trade returns.