Investment Returns Research Articles

Integrated Financial Strategies: Sinking Funds and Annuity Pricing in a Dynamic Market Environment

The study on "Integrated Financial Strategies: Sinking Funds and Annuity Pricing in a Dynamic Market Environment" seeks to investigate how sinking funds, annuity pricing, and dynamic market environments can be integrated within the context of integrated financial strategies. The study focuses on the following areas: (1) the application of actuarial tables and probability distributions to ascertain the proper values for annuities payments and sinking fund balances; (2) the role of the actuary science in sinking funding scheduling; (3) the effect of market factors, such as interest rates, inflation, and economic conditions, on the value and value of sinking investments; (4) the analysis of the relationship between market dynamics, including interest rates and time periods, and the value of a sinking asset, including the integration of the two financial instruments. The analysis revealed that changes in the interest rate and the number of periods directly influence the future value of the sinking assets. The integration of these financial instruments can help to optimize financial decision-making, enhance risk management, increase investment returns, improve financial planning, and lead to greater integration with other financial instruments, ultimately leading to better financial outcomes for both financial professionals and investors

Does financialization inhibit enterprise innovation? Analysis of innovation behavior of Chinese enterprises based on evolutionary game

Enterprise innovation remains a cornerstone of economic development, with the direct influence of financialization on enterprise innovation standing as a critical factor. In contrast with the existing research, this study constructs an evolutionary game model by utilizing the Cournot model to analyze the innovation behavior of enterprises, and analyzes the influence of financialization on enterprise innovation by incorporating investment returns, market competition, and demand scale into the research framework. In addition, this study selects the sample of the Chinese non-financial listed enterprises and using panel data for the period 2009 to 2021. Based on the findings from the empirical analysis, this study reveals that excessive financialization hinders innovation in Chinese enterprises. Additionally, an intermediary pathway involving 'financialization - investment returns - enterprise innovation' is identified as a transmission mechanism. The demand scale generated by innovation inversely correlates with the inhibitory effects of financialization on enterprise innovation behavior. Meanwhile, heightened market competition amplifies the inhibitory influence of financialization on innovation. This study provided valuable empirical evidence, facilitating the enhancement of enterprise innovation efficiency.

Impact of Fundamental Factors on Share Price of Non-life Insurance Companies in Nepal

The aim of this research is to ascertain the direction in which fundamental factors impact Nepali non-life insurance businesses' stock values. This paper examines all twelve Nepal Stock Exchange (NEPSE)-listed non-life insurance companies using a quantitative, analytical, and descriptive research methodology. Nepal Rastra Bank, the Ministry of Finance and the insurance firms' websites served as secondary sources of information. The results has indicated that two significant elements affecting stock prices are the Price-to-Earnings (P/E) Ratio and Earnings Per Share (EPS). The Market Price of Shares (MPS) and EPS have the most positive association (r = 0.606, p < 0.01), whereas the P/E Ratio and EPS have the least positive correlation (r = 0.400, p = 0.003). Dividend per share (DPS) and MPS do not have a statistically significant link (B = 0.738, p = 0.854), whereas book value per share (BVS) and MPS have a marginally significant but positive correlation (B = 1.874, p = 0.061). The stock prices of the organizations in Nepal are significantly influenced by the EPS and P/E ratios. These findings suggest that higher P/E and EPS ratios are associated with better returns for investors. While DPS has minimal effect on stock prices, governments should make accurate and transparent financial reporting a priority to help investors. This paper analyzes the financial variables influencing the pricing of Nepalese non-life insurance stocks and offers advice on investment strategy and policy development. Int. J. Soc. Sc. Manage. Vol. 11, Issue-3: 76-82.

Research on investment returns prediction based on machine learning

With the development of the Internet and the continuous improvement of the information disclosure mechanism of the securities market, individual investors have more and more ways to obtain investment information, including company research reports from analysts. However, analysts have mixed qualifications and publish a huge number of reports. For retail investors, how to analyze and distinguish these reports and make informed investment decisions based on them has become the key to profiting in a securities market where information is asymmetrical and risks and opportunities coexist. This is a priority that every retail investor should prioritize. In recent years, machine learning has become increasingly widely used in the financial sector, especially in the prediction of return on investment. In this work, a most advanced machine learning model Transformer is used, which is widely used in a variety of scenarios due to its advantages in processing sequence data. The Transformer model can effectively process and analyze large-scale financial time series data through the self-attention mechanism to capture subtle fluctuations and potential correlations in the market. We designed a Transformer-based architecture to combine multi-source data such as market macroeconomic indicators, stock trading data, and social sentiment analysis for comprehensive learning. Experimental results show that the model significantly improves the accuracy of investment return prediction and provides investors with efficient analysis tools.

Beyond Compliance: How ESG Reporting Influences the Cost of Capital in UK Firms

This research examines the effect of ESG disclosure on the cost of capital for non-financial firms in the UK, indexed by the FTSE All-Share Index, during the period from 2014 to 2018. Using multivariate analysis with ordinary least squares (OLS), fixed effects, robust regression, and Tobit models, this research assesses the effect of ESG reporting, governance, and the cost of capital, including robustness checks using an alternative ESG indicator, the environmental pillar score. Contrary to expectations, ESG reporting is positively associated with the cost of capital. However, corporate governance moderates this relationship, weakening the positive correlation and reversing it to a negative association for firms with strong governance practices, consistent with the hypotheses. This research also finds that firm size, liquidity, profitability, and leverage, positively affect the cost of capital, while board size, independent board composition, audit committee independence, and auditor type do not significantly influence it. Notably, non-executive directors on the audit committee have a significant negative effect on the cost of capital. These findings are valuable for investors, companies, regulators, auditors, policymakers, and the academic and research community. Specifically, for investors, this study provides insights into how ESG disclosures can influence investment risks and returns, highlighting the importance of robust corporate governance. Companies can leverage these insights to enhance their governance practices and optimize their capital costs. Regulators and policymakers can use the findings to develop guidelines that encourage transparent ESG reporting and strong governance frameworks, thereby improving market stability and investor confidence. Auditors can utilize the results to better understand the effect of non-financial reporting on financial metrics, helping to provide more accurate audits and assessments. These findings inform investors, companies, regulators, auditors, and academia, in fostering a more sustainable and transparent financial environment.

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 Influencing Factors and Strategies of Art Collection Investment Decision

The realm of art collection holds an irreplaceable position in the long-standing cultural heritage, showcasing the taste and status of the holders from ancient nobility to modern high-net-worth individuals. However, with the development of economic globalization, art collection is not merely a symbol of identity, but also a hot investment target sought after by numerous investors. In recent years, the market value of the global art industry has rapidly climbed, making art gradually an essential component of diversified investment portfolios for investors. The development of the art market has sparked widespread attention from various sectors, prompting scholars and companies to explore, through scientific methods and data analysis, how to maximize the investment returns of art collection. However, art differs significantly from other investment tools in the financial market, involving not only the intrinsic value judgment of the art itself but also complex market environments and individual judgment and psychological expectations of investors. Its unpredictability and unique value assessment system make art collection investment more challenging and research-worthy compared to other types of investments.

Optimizing Financial Decision Support Systems with Machine LearningDriven Recommendations

Introduction: The research investigates the utility of cosine similarity as an innovative recommendation system designed to assist individuals in making financial choices tailored to their unique preferences and objectives. It embarks on an extensive analysis of diverse datasets encompassing a wide array of financial products, including investment portfolios, credit card offerings, insurance plans, personal loan options, and car loan packages. Each dataset undergoes meticulous feature extraction and preprocessing to optimize the accuracy of the cosine similarity model. Method: The research then applies cosine similarity to calculate the similarity scores between individual financial products, thereby producing personalized recommendations. These recommendations are predicated on a comprehensive spectrum of input variables. The outcomes of these case studies demonstrate the potency of cosine similarity as a foundation for the development of tailored financial guidance systems. Such recommendations empower individuals to make informed decisions that are intrinsically aligned with their distinctive financial aspirations. Results: Ridge and lasso regression algorithms are deployed to develop predictive models for assessing investment preferences and evaluating potential investment returns. Conclusion: The study highlights the necessity for financial institutions and advisory platforms to invest in data quality and algorithmic sophistication to enhance the efficacy and accuracy of these financial recommendations.

Location and Brand Image Outshine Price in Homebuyer Decisions in Indonesia

General Background: The increasing population in Medan has led to a rising demand for housing, prompting competition among companies to provide secure and comfortable upper-middle-class residences. Specific Background: Citraland Helvetia serves as a case study to understand the dominant factors influencing consumer decisions in purchasing homes. This study specifically investigates whether price, location, promotion, brand image, and facilities significantly impact the purchase decisions at Citraland Helvetia. Knowledge Gap: Previous research has not conclusively identified which factors are most influential during the product launch phase for residential properties in this region. Aims: This study aims to identify the dominant factors affecting consumer purchasing decisions during the product launch of Citraland Helvetia, focusing on location, brand image, and price. Results: The study found that location and brand image are the two most influential factors in the decision-making process, while price has a significant impact but is not as dominant. Promotion and facilities also positively influence purchasing decisions. Novelty: The research provides empirical evidence highlighting the critical role of location and brand image over price during the initial launch phase, which contrasts with the common perception that price is the primary determinant. Implications: These findings suggest that developers should prioritize strategic location selection and strong brand image development to attract buyers. Enhancing these elements can lead to better consumer satisfaction and potentially higher investment returns. The study's insights can inform future urban development and marketing strategies in the housing sector, particularly in emerging urban areas like Medan. Highlights: Dominant Factors: Location and brand image drive home purchase decisions. Price Impact: Less significant during initial product launch phase. Strategic Focus: Prioritize location and brand image for buyer attraction. Keywords: Housing demand, Medan, Consumer decision, Location, Brand image

Rate of Return (RoR) and Return on Investment (RoI) of Indonesia and India

In the era of globalization and economic liberalization, cross-border investment has become the main strategy for developing countries to increase their economic growth and global competitiveness. This research aims to explore and compare RoR and RoI in Indonesia and India and identify key factors that influence the differences in RoR and RoI between the two countries. This research method uses literature study and conceptual analysis to collect and analyze data from various sources. The research results show that the comparison of RoR and RoI between Indonesia and India involves various factors such as macroeconomic conditions, infrastructure, political stability, investment regulations, labor market, market, and industry, as well as innovation and technology. The two countries show significant differences and similarities in these factors, which influence investment returns. Indonesia has relatively good political stability and a developed capital market, while India stands out in the technology sector and economic reform. However, challenges such as complex regulations, inadequate infrastructure, and fluctuations in currency exchange rates remain obstacles to achieving optimal ROI for investors.

A Study of the Impact of Investor Sentiment on Stock Investment Returns

This study examines the influence of investor sentiment on stock investment returns in China's rapidly developing yet volatile securities market. Utilizing principal component analysis, a comprehensive investor sentiment index is constructed from six key indicators. The dynamic relationship between investor sentiment and stock market return volatility is explored through a Vector Autoregression (VAR) model and Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models. The findings reveal a significant bidirectional correlation, with positive optimism exerting a greater impact on stock returns than negative pessimism. The findings of this study indicate that investor sentiment exhibits a heightened sensitivity to declining returns as opposed to rising ones, offering valuable insights for both investors and policymakers.

Portside-shipside interaction on shore-power installation: A perspective of tramp shipping deployment

Due to the high initial costs and the uncertain returns of investment, the efficient green technology in shipping industry, shore power (SP), is still in a developmental dark age, especially its installation at bulk terminals and ships. This study examines the factors influencing the SP installation for bulk terminals and ships, elucidates the impacting mechanisms of one party's installation on the investment returns of the other, and reveals the decisive role of fleet operations in the installation decisions of both parties and corresponding carbon emissions. Employing a dataset representing real-world shipping routes and cargo types, the ship-cargo matching and ships' port-of-calls within a planning horizon are optimized with the objective of maximizing the profit of tramp shipping business by taking SP installation and usage cost into account. Portside SP decision-making model is also conducted to estimate the revenue generated by portside SP usage, and guide portside installation decisions based on the cost-benefit ratio. Finally, recommendations are proposed for ship owner, port operator and government to collaboratively navigate through the dark age of SP development, supported by the further discussion regarding fuel-electricity price gap and port loading efficiency.

Nexus between investor returns of Nigerian deposit money banks and integrated reporting with the moderating role of profit after tax

Integrating reporting strives to address issues with corporate reporting procedures and hold businesses responsible for their local surroundings, as well as additional stakeholders impacted by their operations in producing returns for investors. This study employed Nigerian deposit money banks to examine whether investor returns with profit after tax and integrated reporting are statistically and significantly related. Ex post facto research methodology was applied. Purposive sampling was used to sample ten Nigerian deposit money banks. Data were taken from the annual reports of the chosen banks. The international integrated reporting framework of 2021 checklist was utilized to extract integrated reporting data using the unweighted content analysis method. The integrated reporting disclosure index was used as a proxy for integrated reporting. Market price per share, dividend per share, and price-earnings ratio were used as proxies for investor returns. Profit after tax was used as a moderating variable. The results indicate that with the moderating variable, which is Profit after tax, integrated reporting and price-earnings ratio are related to coefficients of 9.9585. Integrated reporting and dividend per share are related to coefficients of 3.151612. Integrated reporting and market price per share are related to coefficients of 36.7535. Dividend per share and integrated reporting disclosure are significantly related to p-values of 0.001. Market price per share and integrated reporting disclosure are significantly related to p-values of 0.002. This study concluded that integrated reporting and investor returns are statistically and significantly related to the moderating role of Profit after tax of Nigerian deposit money banks. AcknowledgmentThe involvement of those who helped make this study successful is acknowledged below. We appreciate your involvement.

Financial literacy and investment returns: The moderating effect of education level

The purpose of this research is to explore the far-reaching implications of financial literacy for investment returns. Employing a large-scale sample survey in China during 2011 to 2021, we find strong evidence that financial literacy enhances investment returns. Moreover, this positive relationship is enlarged by the education level. This research highlights the importance of financial literacy and education in facilitating investment returns. The finding of this research provides valuable guidance for individuals and policymakers.

REGULATION OF THE LEGAL PRACTITIONERS’ FIDELITY FUND INVESTMENTS IN NAMIBIA

In the Namibian context, the Legal Practitioners’ Fidelity Fund is created by statute, and is administered by a board of control known as the Legal Practitioners’ Fidelity Fund Board of Control.1 In terms of the law, the Board of Control (the Board) has the mandate to invest moneys of the fund from time to time if, in the opinion of the Board, such funds are not immediately required for other purposes.2 Market failures are continuously experienced globally, and may lead to failed investments. This reality requires investors to take proper steps to ensure that their investments are sound. The soundness of an investment rests in the possibility of increasing investment returns and reducing possible risk of investment failure. The Legal Practitioners Act does not provide any steps to follow to guard against the failure of fidelity fund investments. The Act also fails to indicate the extent to which the Board or any other person may be held accountable for failed investments. The Rules of the Law Society of Namibia are equally silent on this matter. This article seeks to investigate the extent to which the Board may be held liable for any failed investments. The article also attempts to establish various steps that should be followed by the Board to prevent or avoid the failure of fidelity fund investments.

Does Contrarian Investing Beat the Conventional Strategies and the Index?

Traditional momentum strategies on the stock market are implemented in accordance with the efficient market hypothesis and involve making investments in accordance with market trends. However, this hypothesis has been repeatedly criticized by supporters of behavioral finance, who allow the irrational nature of investment decisions, which led to the emergence of contrarian investment strategies, based on the overreaction hypothesis and the reversal effect (over a longer horizon, loser stocks outperform winners), according to which investments are made in opposite direction to the market, involves buying the losing stocks and selling the winners. According to contrarian investment strategies, when buying shares, investors prefer a lower level of P/E ratios (Price – earnings ratio), which indicates the valuation multiple placed to the company’s market price vis-à-vis its net profits. The article examines the hypothesis that P/E ratio and contrarian investment are related, based on data for 2010–2022 for 50 shares of India, whose stock market is developing rapidly, examines the differences between the top ten P/E stocks and the bottom ten P/E stocks using inflation adjusted return on investment (ROI) to determine, whether or not, an investment in such stocks would generate sufficient returns to outpace inflation over a period of ten years. The article tests 3 hypotheses that investing in stocks with low P/E ratios in the Nifty 50 index (a live benchmark that illustrates how each industry contributes to India’s GDP) will generate higher returns than investing in stocks with high P/E ratios, over a long-term horizon (H1), inflation (Н2), the Nifty 50 index (Н3). The sources of data were finalized to be BSE Official Website, NSE Official Website, Yahoo Finance, Screener, Annual Reports, etc. The article calculates the profits for top 10 P/E stocks (conventional strategy) and bottom 10 P/E stocks (contrarian investing), and determining the returns from top 10 P/E stocks and the bottom 10 P/E stocks (when calculating for 10 years, the same steps were repeated: synchronously, once a year, both types of shares were bought at Purchase Price and sold a year later at Market Price). The calculations confirmed all 3 proposed hypotheses. Contrarian investing delivered returns of around 3.64 times the initial investment, whereas conventional investing produced returns of about 77.5% when comparing the top 10 P/E stocks to the bottom 10 P/E stocks in the Nifty 50 index. An outstanding return of 84.11%, which is a strong return when adjusted for inflation, was achieved using the contrarian strategy. As a result of the conventional strategy’s loss of 10.45% when adjusted for inflation, the study also shows that contrarian investing can assist an investor in hedging against inflation. This emphasizes how crucial it is to take a contrarian attitude when making stock market investments. At the same time, contrarian investment returns of 3.64 times the initial investment over this period surpass the benchmark Nifty 50 Index returns, which is 3.24 times.

Expediting battery investment returns for residential customers utilising spot price-aware local energy exchanges

This paper presents a local energy exchange mechanism to benefit residential customers and retailers under variable wholesale market spot prices. To do so, a peer-to-peer (P2P) trading-enabled local energy market (LEM) is proposed to facilitate frequent energy transactions among participants. The proposed LEM mechanism considers market operational constraints and maximises electricity cost reductions. Further, the proposed LEM optimises the customers' investment return for battery energy storage systems (BESSs) and minimises retailers’ financial losses during higher spot prices in the wholesale market. Finally, a case study is demonstrated using real-world Australian data in which P2P trading is performed between interested buyers and sellers. Two scenarios with high and low wholesale market spot prices are analysed comprehensively considering five metrics such as solar-to-spot (STS); solar-to-load (STL); forward buy contract (FBC)-to-load (FBC-L); spot-to-load (Short); and FBC-to-spot (Long). The simulation results reveal that the customers reap substantial benefits from the proposed LEM in contrast with business-as-usual (BAU), allowing them to expedite BESS investment returns. Also, the proposed LEM helps a retailer decrease the effect of higher spot prices by reducing its unexpected financial losses while improving self-consumption and self-sufficiency in the local energy network.

Factors that Influence the Profits of Takaful Companies in Indonesia and Malaysia

Islamic Financial Institutions were established as an application of Muslims' understanding of several principles in Islamic economic law and are developing every year. Takaful contributed 2 percent of total sharia financial assets in 2021; however, in 2019–2020, the development of takaful assets decreased compared to the previous year due to the COVID-19 pandemic. There are several factors that influence profit instability in takaful industry. This study will examine the factors that influence the level of profit in takaful in Indonesia and Malaysia throughout 2017–2022, acquired a sample of 11 firms and obtained secondary data for this study from the official websites of Bank Negara Malaysia (BNM) and the Financial Services Authority (OJK). Utilizing methods for quantitative research, specifically a purposive sampling approach and panel data regression modeling. The research results show that the variables premium, return on investment, risk-based capital, and claims expenses have a major favorable impact on takaful profitability, while liquidity has a major negative impact on the same. Simultaneously, the premium variables, investment returns, risk-based capital, liquidity, and claims costs simultaneously influence the profitability of takaful.

Beyond Numbers: Exploring Factors Influencing Company Value In Indonesian Consumer Goods (2018-2022)

This study analyzed Indonesian consumer goods' business value determinants (2018-2022) using numerical methods, focusing on the impact of key variables like debt-to-equity ratio, total asset turnover, logarithm of assets, and return on equity. The research investigated the influence of these factors on companies listed on the Indonesian Stock Exchange, revealing significant effects of debt-to-equity ratio and total asset turnover on return on equity and subsequently on price-to-book value. The logarithm of assets directly affected return on equity but had no impact on price-to-book value. Regression analysis, measured by R-Square and Q-Square values, demonstrated the variables' impact on cost-to-book value and return on equity. The study confirmed that financial leverage and asset utilization significantly affect enterprise value, highlighting the importance of effective financial management in optimizing investment returns in Indonesia's consumer goods sector.

A Postmortem of Financial Frauds: The 5S Approach

"Modern world, saturated with innovations and digital technologies, opens numerous opportunities for development and convenience. However, along with these opportunities, the likelihood of becoming a target of fraud rises. Financial crimes are becoming more pronounced and sophisticated, utilizing new technical and social methods of influence. With these changes, existing risks, including fraud risk, have significantly increased. In spite of extensive endeavors to eliminate fraudulent actions, apparently fraud in its different forms persists and is escalating in both occurrence and magnitude. Identifying fraud schemes is a crucial aspect of fraud detection. Detecting fraud risks at an early stage can bolster investor protection, enhance investment returns, prevent costly legal battles, and promote efficient operation. This study concentrates on the various facets of fraud. It examines the pre and post-effects of fraud. It also involves extensive research on the available literature on financial and non-financial frauds and has come out with a conceptual model that helps to give an overall 360-degree view of the concept of fraud. This work gives a theoretical insight into fraud. It reveals a five-part comprehensive approach termed as the 5S approach to analyze and view the concept of fraud, namely the Segregation of fraud, Schemes used to commit these frauds, Stimulus for committing these types of frauds, the Significant Consequences or the resultant effects of fraud and finally the ways of reducing or countering these frauds or the specific remedies to negate or overcome these frauds."