Short-term Investment Research Articles

Effectiveness of Corporate Tax Incentives in Attracting Investments

Corporate tax incentives are widely used by developing nations to attract investments, stimulate economic activity, and drive industrial growth. This study investigates the effectiveness of these incentives in achieving their intended goals by analysing macroeconomic data from a diverse sample of developing economies over the past two decades. The research focuses on the relationship between tax policies and key investment indicators such as foreign direct investment (FDI), domestic capital formation, and economic growth metrics like GDP, employment, and productivity. Using a combination of panel data regression and time-series econometric techniques, the study identifies critical factors that mediate the success of tax incentives, including the quality of governance, infrastructure development, and ease of doing business. Preliminary findings suggest that while corporate tax incentives are effective in attracting short-term investments, their long-term impact on economic growth is contingent on broader economic and institutional frameworks. The analysis also highlights potential trade-offs, such as revenue loss and inequality, stemming from poorly designed tax policies. This paper contributes to the literature by providing empirical evidence on the conditional effectiveness of tax incentives and offering actionable policy recommendations. The findings aim to assist policymakers in designing balanced tax regimes that promote sustainable economic growth without undermining fiscal stability.

Investment Performance Analysis Of Debt Mutual Funds In India – A Quantitative Approach

Mutual funds are investments which allow the investor to have access to a wide range of securities. Among them the debt funds invest particularly in fixed income securities, which help the investor to balance the risk and return in his portfolio. Analysing any investment brings to light its current and future performance and its suitability to the investor. The study takes into consideration 15 schemes belonging to liquid funds, short term income funds and gilt funds. The performance is evaluated using Absolute Return, Standard deviation, beta, RSquared, Sharpe, Treynor and Jensen’s Alpha. The study concludes that the debt funds are more suitable for short term investments as the liquid and short-term funds are able to provide better risk adjusted returns. Moreover, the gilt funds are more prone to be affected by interest rate risk which will in turn lower the returns of the funds

Connectedness between green bonds, clean energy markets and carbon quota prices: Time and frequency dynamics

In this paper, we investigate the time and frequency dynamics of connectedness among green assets such as green bonds, clean energy markets, and carbon prices. Using daily price data, we explore return spillovers across these green financial markets by applying the novel framework on time and frequency dynamics proposed by Baruník and Krehlík (2018). This allows us to identify the direction of spillovers among our variables, and decompose the connectedness to differentiate between short-term and long-term return spillovers. Our results indicate that green bonds and carbon prices act as net receivers of shocks, but mainly in the short-term. We also observe a low level of connectedness among our clean energy markets across both low and high frequency bands, even during times of economic or political crisis. Additionally, there are periods in which connectedness between the clean energy assets is driven by the long-term. In periods of economic and political stability, carbon prices may also provide an interesting diversifying tool for short-term investors. Our results should be of interest for investors and portfolio managers who focus on green financial markets, by strengthening the notion that green financial markets can offer diversification opportunities, for both short-term and long-term investors. Policy makers could also benefit from our insights on conectedness in their work on short-term and long-term climate policies. This paper is the first to use this framework to investigate systematic risks within green financial markets.

Technology rhetoric and institutional ownership

Abstract This article compares actual R&D spend with the managerial rhetoric around technology and innovation contained within corporate disclosures of US-listed firms. We find that, whilst actual R&D spend and patents do not entice institutional investors to increase their stock holdings, firms that espouse technology and innovation in their corporate disclosures are quite successful in drawing in short-term investors. We frame this investor behaviour within the economics of expectation literature. While managers are incentivised to draw in capital, short-horizon investors are less likely to exert due diligence and are rather persuaded by a technology narrative—that is, a ‘gold rush’ effect. This explains our finding that when there is a sudden downturn with stock price crashes, short-term investors rush to withdraw their money from firms that ‘talk tech’. Our findings have implications for managerial rewards systems, especially when these encourage managerial hype.

Forecast of consumption of natural gas in U.S. based on time series analysis and ARIMA model

Natural gas is a widely used fossil fuel, playing a vital role in both industrial and economic sectors. As a widely used fossil fuel, the prediction of natural gas consumption is crucial for industrial and economics and hence many scholars have been researched on the topic. Due to the weather variation and the sensitivity of industrial demand, a precise consumption forecast is difficult. In the article, ARIMA model, a widely used model in time series analysis and forecasts would be considered in the prediction for consumption for future one year. It turns out that, in the next year, the consumption of natural gas in the coming year is stable and will stay at a still level and the overall trend of the series is increasing, with no significant short-term fluctuations. Therefore, the article suggested that long-term investment in industries related to natural gas is recommended. Besides, short-term investment is not suggested compared to the long-term due to the still level of the consumption within one year.

Optimizing Short and Long Term Investment Returns Using Multi-Armed Slot Machine Algorithms

This study focuses on comparing the effectiveness of UCB, Thompson sampling and Epsilon-Greedy algorithms in multi-armed slot machine algorithms for short-term and long-term investment return optimization in financial markets. This analysis examines stock performance data from Tesla, General Motors, and Ford over specific periods: five years of weekly data (2019-2024) and six months of daily data (February to August 2024). From the results, it is shown that for long-term investments, Over the five-year period, Thompson Sampling outperformed UCB and Epsilon-Greedy algorithms in terms of stability and overall return, demonstrating a consistent upward trend with fewer fluctuations. For short-term investments, although the UCB algorithm performs similarly to the Thompson sampling algorithm, the returns in the UCB algorithm grow progressively slower as the timeline is lengthened. In the six-month daily data analysis, the Epsilon-Greedy algorithm excelled in capturing short-term gains due to its aggressive exploration mechanism, though it also showed higher volatility in response to market fluctuations, and the algorithm should be chosen to be able to keep up with the fluctuations in the stock market in real time, and the investor should take into account the cost of time as well as changes in the market in order to formulate an optimal investment strategy.The findings of this study will provide a practical type of approach to investors when developing investment strategies. Future research will explore other classes of new algorithms and consider more market factors so that they can be better adapted to the complex investment environment in the future.

Business analysis and investment recommendation of Nike Corp

With the development of the economy, people’s demand for their health and leisure activities is constantly increasing, which provides many opportunities for Nike’s international development. However, the fierce competition of competitors and the turbulence of the financial market have caused a certain negative impact on it. The study aims to focus on the brand’s competitiveness in the market, business model and development strategy to evaluate whether it has the potential for sustainable development in today’s market. The method mainly comes from some Nike stocks and analyses the revenue data. The data sources are mainly financial data, market data and consumer data. After this preliminary analysis and data collection, this research will write out the performance of the company, which will be reflected by brand influence, brand management and product innovation. Finally, some relevant investment suggestions will be given in the later paragraph of the article, which are generally divided into long-term, short-term and diversified investments.

Investor horizon, experience, and the disposition effect

The disposition effect, characterized by the tendency to sell winning assets too soon and hold onto losing assets for too long, is a widely documented phenomenon among investors. Using granular trade-level data, we examine the disposition effect among different categories of foreign institutional investors (FIIs) in the context of an emerging market. Using survival analyses over several years, we find that short-term investors are most prone to disposition effects, while long-term investors are least prone. We also find that experience, as indicated by cumulative years in the market and the volume of stocks traded, mitigates the disposition effects, but only among long-term FIIs. While FIIs exhibit higher disposition effects during crisis periods, this effect is mitigated by experience, particularly among long-term FIIs. Our findings suggest that accounting for heterogeneity in institutional investors, rather than treating them as a whole, is important for a better understanding of financial markets.

The Dual Leverage and Mechanism of ESG Information Disclosure on Investor Behavior

Abstract: With the global emphasis on sustainable development, ESG information disclosure has become a key factor for investors to assess corporate value and risk. The academic value of this paper lies in an in-depth analysis of the reverse effect, which is not mentioned in most literature. It stands from the perspective of investors' investment purposes and interests, the attitudes of long-term investors who desire sustainable development and short-term investors who only care about immediate returns in a short period when facing ESG information disclosure. On the other hand, there are negative impacts on investors due to reasons such as government policy standards or the level of corporate ESG information disclosure itself, which may also prevent investors from achieving their expected goals, leading to investment risks and ultimately investors may flow out of the company. At the same time, some external factors can also lead to a dual leverage effect, such as the economic slowdown caused by the pandemic.

The influence of deleveraging the excessive debt firms on investment efficiency

Under China's deleveraging policy scenario, this study analyzes the deleveraging effect of excessive leverage firms on investment efficiency and the influence of arbitrage risk on the deleveraging effect. The results show that deleverage lowers over-investment and, to some extent, alleviates under-investment. Deleverage can further bolster corporate performance while boosting investment efficiency. In addition, arbitrage risk in the capital market negatively moderates the impact of deleveraging on investment efficiency, specifically through the transaction cost mechanism. Arbitrage risk weakens the deleveraging effect on investment efficiency mainly through managerial catering to short-term investor sentiment. This study provides capital structure literature with new evidence by examining whether deleveraging to the firms’ expected capital structure influences investment efficiency. We also provide evidence that capital markets moderate the deleveraging effect by arbitrage risk.

Carry trade behavior by non-US banks

Carry trade behavior by banks is considered to lead their solvency and liquidity risks. This study examines the carry trade behavior of non-US banks by testing the dynamics of short-term US dollar bond issuances. We find that non-US banks, particularly those in advanced economies, issue a larger amount of US dollar bonds under favorable carry trade conditions. They also allocate the proceeds to short-term investment assets, suggesting their engagement in carry trade behavior. However, we do not consistently observe the same relationship between US dollar bond issuances and favorable carry trade conditions in emerging economies. This finding aligns with previous studies indicating that banks in emerging economies do not engage in carry trade behavior.

Understanding the confidence of agricultural producers in an emerging market

In this paper, we address the confidence of the agricultural producers in their prosperity as a driver of development. The agricultural sector development is highly dependent on short term investment decisions for sowing area, breeding, among others, which in turn is mediated by confidence. Agricultural producer confidence is continually measured in Argentina by CREA, a non-profit organisation composed of groups of producers spread across the country striving for innovation and best practices diffusion. We leverage this measurement methodology to propose a structural equation model to explain confidence by an exhaustive collection of factors affecting the business at company, sector or economy level, providing critical insight about the range of policies that would enable agriculture to grow. High regulation and tax burdens prevailing in the market during the past decades have been identified as relevant hindrance factors to confidence. On the enablers side are the respect for property rights and the organisation effectiveness actively fostered by CREA.

Predicting Turnover Rates for Short-Term Stock Index Investments Using Artificial Intelligence and Empirical Analysis

Abstract Short-term investments, particularly in stock index futures, have attracted significant interest among day traders seeking quick returns. However, consistently generating profits remains challenging due to suboptimal trading policies. To address this, our study explores the potential of artificial intelligence, specifically deep learning, in predicting optimal turnover rates for short-term stock index transactions. Through empirical methods and an extensive analysis of over 30,000 datasets, we examine the impact of turnover rates on prediction performance. Our findings highlight the substantial influence of higher turnover rates on day traders' profitability in short-term investments. Notably, our deep learning algorithm achieves an exceptional accuracy rate of 93.25% in predicting longer turnover rates. By elucidating the relationship between turnover rates and financial forecasting, this research offers a novel perspective to the existing literature. Traders can leverage these insights to make informed decisions, enhancing the potential for more consistent and profitable outcomes in their short-term investment strategies. Ultimately, this study empowers day traders with valuable knowledge, providing a pathway to navigate the challenges of achieving sustained success in short-term investments. Keywords: Short-term Investments, Stock Index Futures, Artificial Intelligence Techniques, Turnover Rates, Financial Forecasting.

Does share pledging affect corporate sustainability performance? Empirical evidence from an emerging market

Using data of Chinese A-share firms between 2010 and 2021, this paper examines whether and how share pledging affects corporate environmental, social, and governance (ESG) performance. We find that share pledging by major shareholders reduces corporate ESG performance, and this finding remains robust after various robustness tests, such as addressing endogeneity issues and using alternative measures. We also find that major shareholders' share pledging inhibits ESG performance by exacerbating short-term financial behaviors such as tunneling and earnings management and suppressing sustainable investments such as green innovation, social donations, and internal control. It suggests that firms with share pledging prioritize short-term financial activities and decrease investment in sustainable development. The heterogeneity tests show that investors focusing on long-term development, effective external monitoring, and internal governance could mitigate the negative impact of share pledging on sustainability performance. Furthermore, we find that the negative influence of share pledging on ESG performance occurs mainly in the sample in which the pledged funds are invested in entities other than the focal listed companies. Based on sustainable business development, this paper contributes to the literature on the economic consequences of share pledging. These findings are valuable and motivating for regulators and investors in their decision-making.

Managerial myopia and corporate credit spreads

Using bond issuance data from listed companies, we demonstrate that firms with myopic management face substantially higher credit spreads, a pattern with both strong statistical and economic significance across multiple robustness checks. Myopic management tends to imprudently allocate longer-term funds to short-term projects, potentially prompting investors to demand higher credit premiums. The rise in credit spreads observed only in long-term bond issuances further reinforces our argument. Inefficient investment decisions made by myopic management, characterized by excessive short-term investments and insufficient long-term investments, may also account for elevated credit spreads. While effective corporate governance and enhanced external monitoring can help alleviate the adverse impacts of managerial myopia on corporate credit spreads, intensified industry competition and increased uncertainty may exacerbate these challenges. Encouragingly, the elevated credit spreads could prompt myopic management to adjust their business strategies, thereby mitigating the worsening economic consequences for the corporate.

Impact of Financial Risk Tolerance on Reinvestment Intention and Investor’s Financial Well-Being: A Narcissistic Personality and Perceived Financial Transparency Approach

This study investigates the impact of monetary gamble tolerance on investment intentions among people, emphasizing the job of monetary information and personality traits. Utilizing a sample of 284 money students, we employed multinomial logistic regression analysis to explore what monetary information means for risk tolerance and investment choices. Our discoveries uncover that people characterized by elevated degrees of extraversion, suitability, openness to experience, and conscientiousness are more disposed to invest, with monetary gamble tolerance significantly mediating these relationships. Specifically, monetary gamble tolerance completely mediates the connection between neuroticism and long haul investment intentions, highlighting the psychological elements of investment conduct. Additionally, monetary information arose as a significant factor impacting short-term and long haul investment intentions, though it showed limited moderating effects between risk tolerance and investment purpose. These insights highlight the importance of improving monetary literacy and understanding personality traits to foster more educated investment choices. The implications of this research extend to monetary supervisors, institutions, and policymakers, emphasizing the need to promote monetary information and chance tolerance as pivotal components in empowering people to take part in investment activities.

The Effect of the RMAT Designation on Biotechnology Stock Prices, Drug Development Timelines and Outcomes: An Empirical Analysis

This research examines the impact of the U.S. FDA's Regenerative Medicine Advanced Therapy (RMAT) designation on biotechnology and small pharmaceutical companies, focusing on both stock price reactions and drug development timelines. The research employs an event-study methodology to analyze share price movements following RMAT announcements and evaluates the long-term product development outcomes for these companies. Findings reveal that while RMAT designation leads to an initial short-term stock price increase of approximately 8.11% within five days, this optimism diminishes over time, with long-term trends showing a decline in stock value. Furthermore, products under RMAT designation exhibited longer development timelines compared to non-RMAT therapies, raising questions about the designation's effectiveness in accelerating product availability. The study underscores the complex implications of RMAT for stakeholders, emphasizing the need for strategic planning and further regulatory refinement to better align short-term investor expectations with long-term product development realities.

The Impact of Low Workplace Support During Pregnancy on Surgeon Distress and Career Dissatisfaction.

To describe the impact of lack of workplace support (LOWS) for obstetric health on surgeon distress and career satisfaction. Although most pregnant surgeons desire clinical duty reductions to mitigate obstetric risk, few modify their schedules due to low workplace support. US surgeons with at least one live birth completed an electronic survey. LOWS during pregnancy was defined as (1) disagreeing that colleagues/leadership were supportive of obstetric-mandated bedrest; (2) feeling unable to reduce clinical duties despite health concerns due to risk of financial penalties, requirement to make up missed call shifts, being perceived as "weak", burdening colleagues, or accommodations being denied by the workplace. Multivariate logistic regression determined the association between LOWS and burnout, low quality of life, plans to leave clinical practice or to reduce work hours, and likelihood of recommending a surgical career to one's child. Of 557 surgeons, the 360 (64.6%) who reported LOWS during pregnancy were more likely to report burnout (OR:2.57; 95%CI:1.60-4.13), low quality of life (OR:1.57; 95%CI:1.02-2.41), a desire to leave their practice (OR:2.74; 95%CI: 1.36-5.49), plans to reduce clinical hours in the next year (OR:4.25; 95%CI:1.82-9.90), and were less likely to recommend their career to their child (OR:0.44; 95%CI:0.28-0.70). LOWS for maternal-fetal health concerns is associated with burnout, low quality of life, and career dissatisfaction. The work environment is a modifiable factor requiring system-level interventions to limit clinical work during pregnancy and provide fair compensation for covering surgeons. Supporting surgeons during pregnancy is a short-term investment with long-term implications for improving longevity and diversity of the workforce.

Minimum wage standards and corporate short-term and long-term investment preferences

This paper examines the impact of minimum wage levels in the regions where companies are located on their short-term and long-term investment preferences, using listed companies in China as the research subjects and combining micro corporate data with regional level data. The results show that higher minimum wage levels in the regions where companies are located have a significant inhibitory effect on their short-term investments, but not on their long-term investments. Further analysis shows that inhibitory effect of minimum wage levels on short-term investment by enterprises is mainly evident in non-state-owned enterprises and enterprises in regions with lower resource endowments.

Analysis of Investment in Equity: Value or Growth Investing?

Mr. TVK Vivek Kumar, Managing Partner at Bestpals Research and Advisory LLP, was searching for investment opportunities during the lockdown period following COVID-19. The stock markets witnessed a crash and most stocks were trading at decade-low prices. Mr. Kumar identified this as an opportunity for investment and wealth creation. He started scanning the stocks related to different sectors like Retail, Fast Moving Consumer Goods, E-commerce, and soon discovered the agricultural equipment and machinery sector stocks may offer attractive opportunities. He collected data related to the agricultural machinery sector and details of Indian companies operating in the Agricultural Machinery and Farm equipment sector. After reviewing the company profiles, he concluded that Escorts Ltd. and VST Tillers Tractors Ltd. were less diversified companies that mostly focused on manufacturing agricultural equipment. Upon analyzing the financial performance of the two companies, he was unable to decide which of these two companies for investments had the potential to deliver better returns. The goal was to identify Value or Growth stocks for a short-term investment horizon of 12–18 months, as he had no idea what the long-term outlook might be in the post-COVID-19 era.