Return Values Research Articles

Financial Feasibility and Sensitivity of Arabica Coffee Farming In Simalungun District, Sumatra Utara Province

Arabica coffee productivity in Simalungun Regency has the highest value, namely 1.25 tons/ha, among other arabica coffee producing districts in Sumatra Utara Province. However, the level of feasibility of return on investment made by farmers of arabica coffee has not been measured. The research method used to determine the feasibility and sensitivity of arabica coffee farming is Net B/C ratio, Gross B/C ratio, Profitability Ratio, Net Present Value and Internal Rate of Return. The results of the research show that arabica coffee farming is financially feasible based on the criteria of Net B/C Ratio (2.33), Gross B/C Ratio (1.38), Profitability Ratio (2.31), NPV (Rp. 23,194,329), and IRR (25.06%). The sensitivity of arabica coffee farming occurs if fertilizer and labor costs increase by 55% and production prices fall, then arabica coffee farming is not worth pursuing. Arabica coffee farming in Raya Huluan Village is financially feasible but farmers have not been able to independently cultivate arabica coffee properly. Therefore, farmers are given assistance on how to cultivate arabica coffee farming, types of fertilizer and dosage of fertilizer, timing of fertilizer application so that the economic life of arabica coffee is more than 10 years.

Consistent Earner Strategy Portofolio Saham Value-Glamour

This research aims to find empirical evidence through the evaluation of return and risk-adjusted performance in value and glamour stock portfolios formed with a consistent earner strategy. The research focuses on the Indonesia Stock Exchange (IDX), using the entire population of listed and actively traded stocks in the LQ-45 Index. Data sources include secondary data, consisting of company financial reports from 2016 to 2021 accessed through the websites of the Indonesia Stock Exchange, Yahoo Finance, and IpotNews. The research sample comprises companies included in the LQ-45 Index, selected through purposive sampling. The data analysis method involves quantitative analysis, using statistical tests such as independent sample tests with SPSS. The study's results indicate that the probability values for the average portfolio returns and portfolio risks for both value and glamour stocks are >0.05, suggesting no significant difference in the average return levels for each portfolio. In general, the research concludes that the Indonesian capital market fails to demonstrate the value investing anomaly phenomenon, and investors cannot expect consistent abnormal returns over the observation period. The study has crucial implications for understanding the efficiency of the capital market. The practical contribution of this research is expected to provide information and insights to market participants in making investment decisions, especially in the Indonesian capital market.

Redistributive policy and R&D-based growth

This study examines how redistributive policy that attempts to reduce inequality by taxing the bequests of the rich and redistributing the revenue to the poor affects economic growth in an overlapping generations model of R&D-based growth with both product development and process innovation. We show that such a policy simultaneously increases growth and reduces inequality in the long-run. When the market structure adjusts, partially reducing inequality in the short-run, the effect of redistributive policy on economic growth depends on the values of the social return to variety parameter. However, when the market structure adjusts fully in the longrun, the redistributive policy decreases the entry of new firms but raises economic growth and reduces inequality.

Proposed optimized energy plan for the largest island of South Korea based on full renewable energy resources

The current study's objective is to evaluate wind and solar energy and select the finest kind of energy systems having minimum levelized of energy systems by using Home Pro software for Jeju Island, the largest island in South Korea. Using Weibull and mean wind speed diagrams, the wind conditions in the initial section of this study are explained. To assess the wind potential of every area, size and form criteria are offered. It was found that two main wind directions were southeast or southwest, with southwest being more common. Finally, based on the wind conditions at each site and IEC recommendations, a set of five wind turbines that were best suited for each location were shortlisted. Each wind turbine's performance was assessed using technical criteria, that is, monthly energy production, annual energy production, and capacity factors. Similar to this, economic considerations such as the levelized cost of electricity, internal rate of return, payback period, and net present value were also made. A Hanjin model HJWT 87/2000 is best suitable for Jeju Island in the event of an off-shore wind farm, according to the findings. To explore the implications of modifying the hub height of the turbines on the economics of wind generating, a thorough economic sensitivity analysis is also included. The second section explains the solar potential of the Island. The average solar energy potential of Jeju Island is estimated to be 13.775 Mj·m2·day−1. To cover the energy demand and supply gap for Jaju Island, various types of local electricity generators and batteries have been studied for finding the optimal energy system for the island.

Are Tahiti Limes Profitable in South Florida? A Deterministic and Stochastic Budget Analysis

ABSTRACTTahiti limes were an important fruit tree crop in South Florida until the late 1990s. Several factors contributed to the demise of the Florida lime industry, namely the impact of hurricane Andrew in 1992 and the arrival of Citrus Canker (CC) in 1995. The Florida lime industry was then eradicated in the early 2000s to protect the main commercial citrus industry from CC. This article focuses on the financial viability of reintroducing Tahiti lime production in South Florida. A total of 20 Tahiti lime scion/rootstock combinations were evaluated under endemic CC and Citrus Greening (CG) conditions. We created a deterministic and a stochastic budget to evaluate the feasibility of reintroducing Tahiti limes in South Florida that incorporated yields from experimental plots. We also implemented a financial analysis, that included net present value (NPV) and internal rate of return (IRR) estimations, for a 20-year period with the Tahiti lime/citrus macrophylla (TL/CM), the best performing scion/rootstock combination. Our findings indicated that Tahiti lime production in South Florida was not financially feasible; we obtained a negative NPV from both the deterministic and stochastic budgets. We conclude with a discussion of potential scenarios for the Tahiti lime industry in the US and on lessons for other crops that face similar production challenges.

Portfolio ownership in the excess return model at Indonesian stock exchange

<p>This research is to analyze and answer the phenomena of Foreign Portfolio Investment (FK), Global Risk (Rwf), Small minus Big (SmB), High minus Low (HmL), Win minus Lose (WmL) as determinants of Foreign Ownership (FO) which have implications for Excess Return (ER). The formula is to maximize the value of Excess Return through Portfolio Ownership, the object of research for companies on the Indonesia Stock Exchange. First results; an increase in FK can explain the impact on an increase in FO, these results confirm the prevailing theory. Other results are not like the existing theory, namely a decrease in SmB can explain the impact on a decrease in FO, while Rwf, HmL, and WmL cannot explain its effect on FO. Second result; the increase in HmL, WmL and FO can explain the impact of the increase in ER. Another thing FO can also explain its function as an intervening variable. Rwf can also explain the impact but it is not in line with the negative correlation theory. The FK has no impact on ER. These results are expected to help as a guide for foreign investors in the Indonesia Stock Exchange to obtain maximum excess returns.</p>

Penerapan Model Harga Opsi Black Scholes dalam Penentuan Premi Asuransi Jiwa Dwiguna Unit Link

Unit-linked life insurance is one of the most popular insurance products. This product connects the element of protection with investment assets in a product. Regarding option pricing, the Black Scholes model is one method that can be used. The advantage of this model is that it is a call option valuation model and is in great demand among financial associations because the option rate obtained from the calculation of this model is an accurate value. This research aims to determine the premium value of unit-linked endowment life insurance by applying the Black Scholes option pricing model. This research begins by selecting the stocks used and completing the information needed, including the insured's age, gender, insurance period, and life expectancy based on TMI in 2011. The return value and stock volatility can be calculated based on the stock data used. Furthermore, applying the Black Scholes option pricing model on customer data with male gender, age 25 years, a selected interest rate of 5.75%, and an insurance period of 5 years obtained a unit link insurance premium value of Rp123,058,412. The results showed that the Black Scholes option price model is determined by stock prices, interest rates, insurance periods, and volatility. When the longer period of insurance taken causes the premium value to be higher, and for different ages, with increasing age, the value of premiums paid will also increase.

Impact of human resource characteristics of internal accounting system on post-earnings announcement drift: Evidence from Korea

When companies invest in their internal accounting personnel, investors place greater trust in disclosed earnings information and highly regard a company’s information transparency. This results in prompt investment decisions regarding the company. Consequently, earnings information will be immediately reflected in stock prices, thereby reducing stock price drift. The purpose of this study is to examine the impact of investments in establishing and operating internal accounting systems on investors’ responses to the mitigation of stock price drift. The study focused on firms listed on the Korea Exchange from 2011 to 2018 and constructed a regression model using the cumulative abnormal return following earnings disclosure dates for 30, 60, and 120 days as the dependent variable, with the characteristics of internal accounting personnel as independent variables. The analysis reveals that companies with many internal accounting personnel and position experts, such as accountants, within their internal accounting control systems, experience a significantly lower stock price drift. The coefficients of the interaction terms between internal accounting personnel characteristics and standardized unexpected earnings are positive and significant at the 1% level for all cumulative abnormal return values. The findings of the study indicate that as efficiency is secured, stemming from the scale of personnel managing internal accounting control systems and their expertise, market investors’ understanding and trust of accounting information also increase. Investors, as information users, react promptly to the earnings information disclosed by the company, leading to a decrease in stock price drift. AcknowledgmentsThis work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2021S1A5A8070518).

Environmental Management and Green Practices in the Construction Industry Across ASEAN Countries: A Comparative Study

The construction industry in Southeast Asian countries especially Association of Southeast Asian Nations receive substantial attention and investment for the high return value of the industry. This review aims to assess the environmental impact of the construction industry in ASEAN countries, analyzing current status, government policies, and innovative green materials and technologies to mitigate environmental effects and promote sustainability. It is important to note that construction industry is currently identified as one of the greatest waste production businesses which can cause adverse impacts and pollution to the environment that degrade the environmental quality. Construction and demolition wastes are emphasized and studied in the following context. The status and government policy on environmental management practices in ASEAN countries such as Malaysia, Vietnam and Singapore are reviewed and summarised in this article. Furthermore, green construction materials and green material technologies that are practised in ASEAN countries are examined throughout the study. The green materials include bamboo, recycled concrete aggregate, coconut husk and bagasse while the green material technologies include hydrogen energy, carbon capture and storage, and solar energy are discussed and evaluated with respective advantage and disadvantages.

Off‐policy correction algorithm for double Q network based on deep reinforcement learning

AbstractA deep reinforcement learning (DRL) method based on the deep deterministic policy gradient (DDPG) algorithm is proposed to address the problems of a mismatch between the needed training samples and the actual training samples during the training of intelligence, the overestimation and underestimation of the existence of Q‐values, and the insufficient dynamism of the intelligence policy exploration. This method introduces the Actor‐Critic Off‐Policy Correction (AC‐Off‐POC) reinforcement learning framework and an improved double Q‐value learning method, which enables the value function network in the target task to provide a more accurate evaluation of the policy network and converge to the optimal policy more quickly and stably to obtain higher value returns. The method is applied to multiple MuJoCo tasks on the Open AI Gym simulation platform. The experimental results show that it is better than the DDPG algorithm based solely on the different policy correction framework (AC‐Off‐POC) and the conventional DRL algorithm. The value of returns and stability of the double‐Q‐network off‐policy correction algorithm for the deep deterministic policy gradient (DCAOP‐DDPG) proposed by the authors are significantly higher than those of other DRL algorithms.

The Relationship Between Oil Prices and Stock Prices of the European Renewable Energy Companies: A Vector Autoregressive Analysis

Abstract This article aims to examine the potential relationship between Brent crude oil futures prices and the index of the European renewable energy companies. After the overview of the European legislation and the most recent literature review on the topic, the article deploys a method of the Vector Autoregressive Model (VAR). The analysis includes weekly data over eight years (2015-2022). Our results indicate a positive correlation between Brent crude oil futures prices and the value of the European Renewable Energy Total Return (ERIX) index. The estimated bivariate VAR model indicates a statistically significant relationship, meaning that past values of the ERIX Index may be used to predict future Brent crude oil prices in the long run. Considering the most recent systemic disturbance in the world’s commodity market, future research should consider longer time series and possible relationships of other macroeconomic factors.

The Ordered Weighted Average Sector Liquid Return Index: A Method for Determining Financial Recovery from Sectoral Debt

The primary aim of this article is to demonstrate that using the average of ratios as a representative value for measuring the health of a sector does not constitute a valid procedure. After mathematically demonstrating this objective, the article will then focus on introducing a new index for estimating the potential debt return value for a sector or group of companies. Next, the article details the start of the process for creating a new index to improve investors’ understanding of the risk associated with a sector or a group of companies meeting short-term obligations based on assigned probabilities of future sales. Given that said value is intended to represent an indicator of expected liquid solvency, its construction will take treasury tensions into account. An Ordered Weighted Average type of aggregation function is used to aggregate the magnitudes in this scenario. Consequently, the second objective of the present work is the creation of this index, which provides an initial estimate of how much money can be recovered from a sector’s debt.

Do I slamic S tocks Outperform C onv entional S tocks During C risis Periods? A Global Comparison

Purpose: This study examines the performance of Islamic and Conventional stock indices during the Covid-19 pandemic crises. The aim of the study is to find the existence of safe havens in Islamic stock indices.
 Design/methodology/approach: The study uses mean and cumulative return values and the GARCH (1 1) model to examine the volatility performance of stock returns and the impact of Covid-19 on both indices.
 Findings: Our findings indicate that Islamic stock indices tend to outperform conventional indices during crisis periods, particularly in developing economies and in the short term. However, conventional stock indices exhibit stronger performance in the long run and post-crisis periods. Moreover, the study reveals that the effects of Covid-19 cases and deaths on both indices vary across countries. Additionally, Islamic stock returns demonstrate lower volatility compared to previous shocks and returns, whereas conventional indices experience higher volatility, particularly in developing countries. Therefore, the s tudy establishes that I slamic indices can serve as safe havens for investors in certain countries, but not universally.
 Research limitations/implications: The study can be extended and more effective by adding more crisis events and a number of years to examine long-term stock moments. The study can be helpful for investors in designing investment portfolios, especially in times of crisis where the majority of investors try to find safe havens for investment.
 Originality/value: This study is the first to examine the impact of recent crises on Islamic and conventional stock indices in the world's big stock markets. The study is also the first one to use the longest data period among the recent studies to differentiate the performance of Islamic and conventional indices.

Environmental contours of sea states by the I-FORM approach derived with the Burr-Lognormal statistical model

Environmental contours are constructed using the Inverse-First Order Reliability Method based on return periods of one and twenty years. The paper proposes the use of the Burr distribution to model the marginal distribution of long-term significant wave heights and uses the conditional approach, by combining this marginal with conditional log-normal distributions of peak wave periods. The resulting environmental contours constructed based on the implementation of the Burr-Lognormal model are compared with the contours constructed with the commonly applied Weibull-Lognormal model considered as the baseline. Statistical tests of fit are used, and they do not reject any of the two models being compared, indicating that both approaches are acceptable. The environmental contours from the newly implemented scheme are different from the ones of the reference approach, as expected. Return values obtained with both marginal distributions of significant wave heights show differences comparable to the ones reported in other comparisons of methods reported in the literature.

Economic Assessment of Using Booster Pumps and Hydrant Sectoring in Pressurized Irrigation Networks (Case Study: Kostol Area, Egypt)

For pressurized irrigation networks, the pump station is usually designed to guarantee the required operation head at all hydrants. Such a design usually results in a considerable waste of energy. Significant energy saving may be achieved by using booster pumps at critical hydrants. However, this will increase total capital cost and reduces the net economic benefit. A lot of research work has been carried out to minimize energy consumption, but no comprehensive economic study is available, which includes booster pumps. In the current study, an economic analysis of using a booster pump is carried out. Additional energy savings may be realized by dividing the hydrants into sectors. Four different scenarios are investigated. The proposed methodology is applied to a drip irrigation network at Kostol area, Egypt. The total capital cost increased by about 15.90%. However, this increase can be recovered in about five years through energy saving. Annual energy consumption is reduced by up to 35.6%. It is well understood that these results are constrained by temporal and spatial variations of field data. However, accumulated experience gained by similar studies for different networks and varying costs will provide valuable guidelines for the designers. Research may be extended to include additional operation and maintenance costs, water costs, and crop return value.

Techno-Economic-Environmental Analysis of Sustainable Anionic Biosurfactant Production from Palm Fatty Acid Distillate.

Currently, there is increased interest in biosurfactants as a substitute for surfactants synthesized from petroleum due to their superior properties and biodegradability. Palm oil derivatives, which can be converted to various products, were selected for biosurfactant synthesis. This paper simulated the biosurfactant production process from palm fatty acid distillate, that is, methyl ester sulfonate (MES), alkyl sulfate, alkyl phosphate, and alkyl carboxylate. Aspen Plus software was used to estimate the thermodynamic properties of intermediate aliphatic organic acids, e.g., methyl ester sulfonic acid, fatty alcohol sulfuric acid, and fatty alcohol phosphoric acid. The chemical process equipment was designed and evaluated to be used in techno-economic analysis, with comparison to petroleum source surfactant production, that is, sodium dodecylbenzenesulfonate (SDBS). The total production cost of each biosurfactant was expressed in terms of minimum selling price. The profitability of each project was determined and compared using three economic indicators: net present value (NPV), payback period, and internal rate of return (IRR). The life cycle assessment methodology was then used to evaluate the environmental impact of surfactant production. The results showed that all surfactant production processes, except for alkyl phosphate, were attractive alternatives as the project yielded a positive value of NPV. The highest NPV of 13.1 million USD was obtained from the MES production process, while the maximum IRR of 79.81% and payback period of 1.49 years were obtained from the alkyl carboxylate production process at a capacity of 1 ton/h. However, the sulfate production process caused more environmental impact than the other two surfactants (MES and carboxylate) due to more CO2 emission per product unit at the level of 2.88 tons CO2/ton surfactant, which is also more than the SDBS surfactant production process that released 2.46 tons CO2/ton surfactant.

Exploring the potential of liquid organic hydrogen carrier (LOHC) system for efficient hydrogen storage and Transport: A Techno-Economic and energy analysis perspective

Despite its potential as an environmentally clean fuel and energy source, hydrogen storage and utilization has been significantly hampered by its extremely low volumetric density (0.08988 g/L at 1 atm), making it inefficient to store and transport. Therefore, liquid organic hydrogen carrier (LOHC) systems are being recently investigated as potential alternatives for hydrogen storage and transport. However, as a budding research area, the selection of a suitable LOHC, its deployment in hydrogen fuel stations, and its economic viability are not well established. Therefore, this study proposes a comprehensive investigation of four different LOHCs [Methylcyclohexane (MCH), Dibenzyltoluene (DBT), N-ethylcarbazole (NEC) and Naphthalene (NAP)] via Aspen HYSYS simulations. The LOHCs were compared and contrasted using their physiochemical properties, techno-economic analysis and heat network integration. The techno-economic analysis revealed that NAP-based hydrogen storage has the lowest cost among the LOHC options, while NEC shows the highest cost. However, when considering the breakeven point, the order changes to DBT, MCH, NAP, and NEC with 3, 3.8, 5.1 and 5.9, respectively. This result is attributed to the different hydrogen uptakes of the LOHCs, resulting in a longer breakeven period for NEC. Internal rate of return and net present value analysis also demonstrated the superior economic feasibility of the proposed systems. In terms of heat integration, the DBT process outperformed the other LOHCs as the most heat-efficient process with 80 % utility reduction, while the NEC process exhibited the lowest heat integration potential of 66.7 % utility reduction. Combining these findings with the physiochemical properties of the LOHCs, DBT emerges as the most attractive due to its favorable performance across multiple categories, such as toxicities, prices, energy consumptions, and material handling, using a spiderweb diagram.

Technical and economic modeling of a trigeneration system with EF7 engine as a prime mover

In this paper, a comprehensive technical and economic modeling of a trigeneraion system based on a gas engine named EF7 is presented. The innovation is presenting a differential model with high accuracy which considers the effects of spark timing in half-load and full-load modes on the system technical performance, including specific fuel consumption, and the economic performance of the system, including fuel cost savings, investment payback period, net present value and internal rate of return.From economic viewpoint, at half-load condition and optimal spark timing (18° CA BTDC), the system will reach profitability after 8 years. From technical viewpoint, at half-load condition, the spark timing should be more advanced (24° CA BTDC) and the overall specific fuel consumption is 103.24 gr/kWh.But, at full-load mode and optimum ignition timing (18° CA BTDC), the economic performance has improved and with 10% inflation rate, the system can reach profitability after 4 years. Also, after 7 and 10 years, the profit values are $42,300 and $80,500, respectively and internal rate of return values of 22 and 26%, respectively. Also, from technical viewpoint, at full-load condition and optimal spark timing (22° CA BTDC) the minimum amount of overall specific fuel consumption is 110.42 gr/kWh.

Research on the Influencing Factors of Crowdfunding Project Financing Performance: Based on the Six Basic Theories of Finance

Crowdfunding has emerged as a popular method for financing innovative projects. This study examined the impact of six basic theories of finance on the success of Kickstarter crowdfunding projects in the creative and innova-tion categories, with a funding goal between $10,000 and $1,000,000. Col-lected data on a sample of 5,270 successfully funded projects and used web scraping techniques to extract the relevant information, along with conduct-ing interviews with the project creators to gather additional information. The six basic finance theories were operationalized as time value of money, risk and return, diversification, asset allocation, market efficiency, and behavior-al finance. Used a multiple regression model to analyze the data and found the time value of money, return, diversification, behavioral finance, and as-set allocation have a positive impact on the success of crowdfunding, while risk and market efficiency have a negative impact on the success of crowd-funding, albeit weak. This study contributes to the existing literature on crowdfunding and provides insights for project creators and investors on op-timising crowdfunding success.

Solar Cell Manufacturing Cost Analysis and its Impact to Solar Power Electricity Price in Indonesia

World energy consumption continues to increase, with a growth of 1,3% annually during 2011 - 2021. To deal with that situation, in 2021, Indonesia Electrity Stated-Own Company (PLN) issued a report about the electricity supply business plan (RUPTL) 2021-2030. The power plant projected to grow is solar photovoltaic (PV), reaching 4,6 GW within ten years. However, in reality, the achievement of developing solar power plants is still 0,02 GW. Several factors that caused low realization are the solar power plant component industry needs to be better developed, and the regulated electricity price based on Presidential Decree 112/2022 needs to be increased. This study aims to determine the cost structure of solar module manufacturing and the impact on electricity prices. The calculation method used is financial modeling with economic parameters such as Internal Rate of Return (IRR), payback period, and Net Present Value (NPV) as parameters for project feasibility. The results of this study show that the economic price of solar power plants in Indonesia is USD 0,149/kWh. Meanwhile, based on a sensitivity analysis using electricity prices based on Presidential Decree, reducing solar module costs up to 50% still does not make the project feasible.