Investment Size Research Articles

Impact of Tokenisation on Economics Demographics and Economics of Selected Crowdfunding Investments

The text analyzed data from two German crowdfunding investments issued by one initiator in the real estate industry, involving a total of 1,692 investors. One fund has a classical investment structure while the initiator used an innovative approach with a tokenised investment product based on the Ethereum blockchain technology in the second one. This paper tries to find the impact on the demographics of the funds and the profitabi lity for the initiator when making a structural change from a classical investment with a minimum investment size of EUR 1,000 to a tokenised investment structure with a mini mum investment of EUR 1. The results show no impact from tokenisation on the structure of the investors´ gender and only minor impact on the age of the investors. But the findings highlight that lowering the minimum investment to EUR 1 via tokenisation to attract more investors, diminishes the profit margin for the initiator substantially. Because every inves tor comes at an acquisition cost, only a certain number of loss-making small investments in relation to profitable high investments can be compensated. Since it is not possible to precisely determine the density distribution of investment sizes in advance to placing a new investment, it is recommended to give up the minimum investment size of EUR 1 to avoid the risk of attracting too many investors at a deficit, hence diminishing the profit margin of the funds.

Preventive investment, malfunctions and liability

In this paper we study the decision of a firm to undertake a one-time proactive preventive investment to limit the occurrence of future disruptions. The firm is operating in a market with uncertain demand, and its products are subject to a risk of malfunction. Malfunctions lead to direct costs, consisting of, e.g. legal fees, fines and additional costs. But they also make the product less attractive, affecting product demand. Moreover, the firm may be strictly or partially liable for these malfunctions. In order to take into account different levels of liability, we introduce a liability parameter. Our model takes these features into consideration, and we determine the optimal time and size of the preventive investment, depending on the liability rule, that maximize the value of a firm that is already in the market and has the option to invest in a preventive infrastructure. We then determine the liability rule that steers this investment decision in such a way that malfunction damage is minimized.

Impact of Islamic Banking Finance on Development of Real Investment

The main aim of this study is to investigate the extent of Islamic finance contribution in real investment promoting by focusing on the size of Islamic finance instruments such as Almodaraba, profitability, and participation and their impact on the development of real investment. The results show a strong positive relationship between Islamic finance contribution and the increase in real investment size. The profitability and participation have a strong positive effect on the increasing real investment size, but Almodaraba have a negative impact with the increasing real investment size. The study recommended increasing interest by Islamic banks in expanding the real investment base in order of its impact on the national economy, and the necessity of Islamic banks to diversify Islamic financing formulas.

How damaging are environmental policy targets in terms of welfare?

International environmental agreements can lead to the design of environmental policy targets for individual countries. One of the most timely examples are targets aiming at increasing the share of renewable energy production in the overall energy mix. To reach these targets, corresponding governments must stimulate the private sector to undertake sufficient investments in time. This paper studies the effect of a subsidy on the probability of reaching a policy target and on the resulting welfare. The subsidy in the form of a fixed price support accelerates investment and increases the investment size. As such it helps to reach a policy target in time, but also has its own effects on the total surplus, the latter being the sum of producer and consumer surplus. The paper defines a new measure, “the expected Total Surplus corresponding to the Policy Target” abbreviated by TSPT, which takes all these effects into account, including the penalty that is incurred upon not reaching the policy target. Based on the TSPT we determine the optimal subsidy size. We find that a policy target increases the optimal subsidy size. An international policy target can cause a tradeoff in the sense that a large investment is required to achieve the target, while at the same time such a large investment is bad in terms of total surplus. We also find that targets designed with earlier deadlines and intermediate levels of target sizes are more effective in motivating governments to reach the target with a high likelihood. A larger penalty can induce more subsidy support from the government, but always harms total surplus.

A Comparative Examination of the Electricity Saving Potentials of Direct Residential PV Energy Use in European Countries

The increasing global penetration of photovoltaic (PV) technology creates not only enormous opportunities for clean energy production but also poses challenges that put energy systems to the test. Although there are many ways of dealing with the rising share of PV energy, most of these solutions require substantial funding, time, and effort to implement, which highlights the importance of solving some of the issues at their source, i.e., through the direct use of the electricity generated at PV power plants, many of which are owned and operated by households. In recent decades, PV technology has experienced an unprecedented growth in Europe due to a range of reasons, including the nations’ policies and supporting schemes. The goal of the present research was to determine the annual consumption of electricity per capita in the households of certain European countries and how much of this can be covered by the direct use of PV energy in the case of an on-grid PV system and to show what the annual potential of the direct use of PV energy is compared to the annual energy production of the PV systems. The significance and novelty of this research is justified by the lack of comparative scientific studies related to the annual potential of the direct household use of PV energy, which could alleviate some of the problems facing electricity networks with high shares of PV energy. The novel practical benefit of the study was determining, for the examined European countries, the extent to which direct household PV energy use could lower annual electricity consumption from the grid, in the case of on-grid PV systems of different capacities. In addition, these findings also provide information related to the grid’s macro-energy systems in terms of local network load effects related to given investment sizes.

Applying an extended investment model for enhancing supply chain performance

Purpose The purpose of this study is to verify whether the relationships between supply chain members can maximize supply chain efficiency by adopting an investment model that has been used in family psychology. Design/methodology/approach Information sharing was added as a link between commitment level and the independent variables of the investment model, and their effect on logistics performance in terms of supply chain operation was examined. The authors surveyed workers involved in supply chain-related work in Korea and collected 300 valid survey responses to verify the findings. The hypotheses were verified through structural equation model using SPSS 18.0 and AMOS 18.0. Findings This study academically revealed the impacts of intangible efficiency on performance. Satisfaction and investment size had a significant effect on information sharing, but not on the quality of alternatives. Information sharing had a positive effect on the commitment level. Finally, commitment level had a positive effect on logistics performance. Because the effects of satisfaction and investment size are proportional to the degree of information sharing, firms in a supply chain must consider their importance. Originality/value Owing to the complexity of today’s supply chains, the existing fragmentary method of analysis limits the evaluation of supply chain performance factors. Accordingly, based on an investment model that is rarely discussed in business administration, this study identified the link of antecedent variables in addition to direct variables that affect supply chain performance.

농촌 노인의 경제활동에 따른 건강 및 건강 투자 영향 분석

The purpose of this study is to theoretically and empirically analyze the effect of labor force participation of rural seniors on their health and health investment. The study suggests the health investment model of old people based on the Grossman model and investigates the correlation between their labor force and health variables by using the Korean Longitudinal Study of Ageing (KLoSA) and panel data analysis model. The empirical results show that health improves when the elderly live in rural areas or participate in the labor force. However, if the seniors living in rural areas participate in the labor force, the health improvement effect was offset. Further, if the rural seniors work, they are more likely to use medical services, but less likely to attend health activity programs than those who do not work. The lack of leisure time for working rural seniors can reduce the size of health investment and worsen the health gap between rural and urban elderly. The policy authorities need to make an effort to ensure health investment opportunities for the elderly in rural areas.

Modeling and Estimating the size of Foreign Direct Investment in Saudi Arabia ARIMA Model Approach

The Kingdom has put foreign investment in its priorities, and investment has become a major hub not only to enhance its vision, but also be an effective tool in the economic transformation process that is mainly based on attracting more foreign investment.

A STUDY OF ECONOMIC, SOCIAL, AND INSTITUTIONAL FACTORS AFFECTING THE ADOPTION OF THE HIGH-RANK WHEAT SEEDS

The aim of this research is to investigate the effect of economic, social and institutional factors on adoption within the national program for the propagation of high-rank seeds of wheat crop. 170 questionnaires were collected, 50% of them were participants in the program from Wasit and Babil governorates. Probabilistic regression models were used to know this effect, and the possibility of adopting Farmers of improved seeds produced from the national program for the multiplication of seeds of higher grades using the (ADOPT) program. The adoption rate was 0.12%, and the total number of adopters were 12 farmers, at a rate of 14.2%. Tobit model was estimated to find out the impact of the profitability of the dunum, capital, farm size, education, type of tenure, and the number of adoption cycles expressed by 1 in the case of adoption and 0 otherwise. It was found that the increase in the size of the farm and the profitability of the dunum by one unit, the probability of adoption will increase by 5.6 and 2.3, respectively. The results of the ADOPT analysis showed that after the first (5) passes after the launch of the program’s seeds and the farmers’ knowledge of its existence, the adoption rate is expected to reach about (90.9%) of farmers, and reaching the top of adoption, which reaches about (95%) of farmers, requires a period up to about (7.4) years. The size of the initial cost of the investment in relation to the potential annual returns from the use of the technology: The size of the initial investment is (low) cost, the seeds produced from the program had a lower cost than the imported seeds and are competitive with them in quality, purity, and desirable genetic characteristics , so the cost the initial investment for these seeds is small compared to the expected return from the seed output.

Coordination of cybersecurity risk management in the U.K. insurance sector

The increasing threat of cyberattacks has resulted in increased efforts by both the U.K. government and regulatory authorities to coordinate efforts to influence cybersecurity risk management practices in the U.K. insurance sector, focusing on cyber risk underwriters. This paper provides an evaluation of these arrangements. It first provides a descriptive overview of the key U.K. regulatory authorities and the evolution of their efforts over the past decade, as well as the scope for broader collaborations with industry and member-based associations and international organisations. It then evaluates the effectiveness of these efforts by providing a multi-method study of the incidence, nature and evolution of cost of data breaches, investment in computer systems and software intangible assets at risk of cyberattack, and a content analysis of annual reports of both U.K. regulators and a sample of U.K. insurers. The findings suggest that while both the total costs of data breaches and the size of investment in computer systems and software intangibles at risk of cyberattack have gradually increased over time, the degree of engagement with cyber as a reporting issue by both cyber insurers and financial regulators has not. It is concluded that while these efforts have been apparently successful in avoiding a large-scale, systemic cyberattack on the U.K. insurance industry, there are significant gaps and overlaps in the system of cyber regulatory oversight.

Skin in the Game: An Analysis of Venture Capital Investment in Dermatology from 2002 to 2021

Skin in the Game: An Analysis of Venture Capital Investment in Dermatology from 2002 to 2021

The determinants of foreign investment size: the role of parent firm advantage and cross-national distance

This study investigates the determinants of foreign investment size by considering the role of both parent firm advantage and cross-national distance. We first develop an economic model of foreign investment size. Building on this model and theories in international business, we derive hypotheses on the determinants of foreign investment size: it is positively related to parent firm-specific advantage, while it follows an inverted U-shape relationship with different dimensions of cross-national distances. Moreover, parent firm advantage and cross-national distance interact with each other to influence investment size. Our empirical analysis of Japanese firms' foreign direct investment (FDI) data from 1990 to 2009 supports our hypotheses. Our study contributes to the literature on FDI by examining an overlooked aspect of FDI: investment size. We also integrate economic model and international business theories to explain firm-level and country-level determinants of foreign investment size.

The Impact of the Business Model on the Size of Investments Received by a Startup at the Series A Stage in the US Market

Numerous studies have been devoted to the factors influencing the market success of startups. However, at early stages of startup development, obtaining investments is a priority. Nevertheless, the topic of the influence of various factors, specifically the choice of business model, on the amount of investment received by a startup remains underexplored. Therefore, the aim of this research is to assess the impact of the business model on the amount of investment received by a startup at the Series A stage. The hypothesis being put forward is that the business model patterns utilized by the startup impact the amount of investment received at the Series A stage. To achieve this goal and test the hypothesis, Student's t-test and Mann-Whitney test were applied to a sample of 2313. As a result of the study, the influence of the business model for different industries was revealed. Considering that different business models have varying effects on the amount of investment, models leading to an increase or decrease in investment size were identified for startup founders. The results of this article enable startups to compare their chosen model with those that allow for larger investments and to adjust their chosen strategy. Additionally, this study stands out due to the uniqueness of the methods applied within the scope of the issues covered in the article and the unique sample size in assessing the impact of the business model factor. The findings of this research serve as a catalyst for incorporating the business model factor into further studies dedicated to a comprehensive assessment of a startup's investment attractiveness and the creation of a machine learning model to predict the success of obtaining investments and the amount of investment a startup can expect.

Project ownership in public-private partnership (PPP) projects of Norway

Decisions regarding contractual arrangements and selecting a procurement method are two major aspects of Public-Private Partnership (PPP). Given project ownership as one of the core elements of contractual arrangements, this study employs Binary Logistic Regression (BLR) method to statistically investigate any potential link between project ownership and project size. BLR is a beneficial approach to examine type and significance of the connection between a dependent variable (project ownership) and a set of independent variables (investment size and contract duration). Utilizing a list of PPP projects in Norway, the results indicate that project ownership bears no connection with contract duration. However, the growth of investment size increases the probability of private ownership, except for road construction projects which are public-owned projects with large capital costs. Further studies regarding the implications of project ownership, e.g., risk, sustainability, are highlighted as the future directions in this context.

Formation of development programs with multi-purpose projects at ferrous metallurgy enterprises

The improvement of management mechanisms for the formation and calendar planning of development programs is the most important direction for improving the productivity (achievement of goals) and efficiency (reduction of the amount of resources consumed) of the activities of metallurgical companies. Currently, it is necessary to ensure the mobilization of companies’ assets to solve the tasks of their sustainable development. The task of forming a program for the development of a metallurgical enterprise (company) is considered. The program includes several different areas of development: improvement of existing business processes (sales, supply, production, repair of equipment, etc.), production technologies of various stages (production of coke, agglomerate, cast iron, steel, rolled products), implementation of digital transformation tasks, etc. Each of the directions of the development program contains projects described by effect, size of investments, changes in the expenditure items of operating budget related to the costs of operating those systems and processes that the project is aimed at improving, as well as an indicator describing the risk of project implementation. One of the directions of the development program may include multi-purpose projects, the implementation of which leads not only to changes in its own performance indicators, but also to changes in the performance indicators of projects of other (non-multi-purpose) directions of such development program. The case is considered when management of the development program includes the management of the overall budget and achievement of overall goal of the program (the maximum effect from implementation of all projects). At the same time, project risk management and changes in the operating budget are implemented at the level of project portfolio management of individual program areas (there are no restrictions on risks and changes in the operating budget common to the development program). The stated formalizations of the problems, their decomposition and composition schemes, and the developed procedures for solving individual subtasks are based on the provisions and methods of the theories of system analysis and a new section of discrete mathematics (network programming).

지방정부 지속가능발전 정책의 동태적 효과 분석: 세종시를 중심으로

The purpose of this study is to analyze the effects of the regional government’s sustainable development policies in Sejong City from the perspective of urban dynamics. Scenario analysis was conducted focusing on the main issues of sustainable development in Sejong City. As a result of analyzing changes in urban dynamics by applying different levels of investment in industry, social services, and SOC, it was found that the larger the investment size, the higher the attractiveness of the region in all scenarios. In particular, since SOC investment is closely related to the relocation of the National Assembly, which is a major issue in Sejong City, it is necessary to prioritize investment expansion. Despite several limitations, the results of this study are expected to contribute to the establishment of policy directions for sustainable development in Sejong City and the prioritization of policy implementation.

THE PUBLIC-PRIVATE PARTNERSHIPS IN THE VOCATIONAL EDUCATION AND TRAINING SYSTEM PARADIGMS: COMPARATIVE ANALYSIS

The article identifies the factors which influence changes in the public-private partnerships (PPPs) paradigm in the system of vocational and technical education (VET) took place. The study is based on a comparative analysis of the foreign experience of implementing PPPs in the VET system. The reasons for changing the paradigm of the state dictate to the publicprivate partnerships are clarified, and the sequence of transition to the paradigm of delegating bythe state to the private sector not only economic risks but also the authority to comply with public values is determined. The study revealed that the PPPs paradigm in the VET system was formed under the influence of the concept of the New Public Management, which over time transformed into the New Public Governance with an orientation to public values. The main provisions of PPPs paradigms in the VET system comparative analysis showed that changes have taken place in the status of the pupil (student) in the private partners’ role and in the state responsibility sphere. The new PPPs paradigm for VET main provisions evolution consequence was changing in: the scope of declared goals, the size of investments, planning horizon, economic efficiency, thenumber of involved partners, and the distribution of risks between private and public partners.The results of the study confirmed that the presence of a paradigm as a model for posing a problem is mandatory for the social sciences: after all, it narrows the circle of scientific research, provides a research methodology, tools, and determines the practice of scientific knowledge. The comparative analysis showed that the modern paradigm of scientific research, that is, the model for posing a problem and solving it in the VET system, is the introduction of PPPs with a focus on public values.

Insider Ownership and Real Earnings Management in Indian Companies

The present study aims to examine, and to test the monitoring effect of institutional investment on, the relationship between insider ownership and real earnings management in Indian companies. The study examines the non-linear association between insider ownership and real earnings management using a sample of listed non-financial companies in the Indian market from 2011 to 2018. The study used pooled data OLS regression and Quantile regression. The findings reveal significant non-linear U-shaped relationship between insider ownership and real earnings management and that the large-size institutional investment makes such non-linear relationship insignificant. Contribution of the present study to the literature is two-fold. First, it proves the differential impact of the size of insider ownership on real earnings management. It indicates that firms having large-size insider ownership have greater scope for real earnings management, underscoring the need for the more scrutiny of reported earnings by the outsider shareholders. Second, it proves significant positive effect of the size of institutional investment in constraining the entrenchment by the insider owners. It signals that firms with large-size institutional investment have better quality of financial reporting and also contribute to efficient price discovery in the capital markets.

Strategic investment under uncertainty in a triopoly market: Timing and capacity choice

This paper analyzes investment decisions under uncertainty in a triopoly market. We determine the investment timing and the investment size of the firms under the condition that firms hold an asymmetric cost structure. We build on Shibata (European Journal of Operational Research, 2016) who solves this problem with exogenous investment size. He finds that the firm with the lowest cost does not always enter the market as the first investor. However, we obtain that, when extending the analysis for capacity choice, the firm with the lowest cost always enters first in the triopoly market. The designed algorithm, which employs the bisection method at several steps to solve this model, is of value of its own as it can be more generally applied to investment problems in markets with several firms and multiple investment opportunities.

Management of Non-current Assets and Capital Investments in Enterprises of the Agro-industrial Sector: A Case Study of Ukraine

In the article we proved that, in the modern conditions of doing business in Ukraine, there is a high specific weight of operating non-current assets in the non-current assets of agricultural enterprises, which is caused by their production direction and sale of products in wholesale lots. In order to study the formed trend, the polynomial trend line of the specific weight of operating non-current assets in the composition of non-current assets of agricultural enterprises in Ukraine is displayed. The features of non-current asset management in agriculture are determined by certain features regarding their use, which include the slowness of capital movement, uneven loading, the irrationality of formation, and low liquidity. In the article, we established that the value of long-term biological assets of agricultural enterprises of Ukraine increased during the research period. However, at the same time, there was a simultaneous reduction in the specific weight of these assets, both as part of the total assets of enterprises and as part of non-current assets. That is, it can be concluded that the increase in the value of biological assets in agricultural enterprises is caused solely by the increase in prices for finished products and an increase in their cost price. Based on the results of the study, it was established that during the analyzed period, investments in the agricultural sector had a growing trend for a long time. Drop in investments that occurred in 2020-2021 was due to the crisis impact of the COVID-19 pandemic, which resulted in a general reduction in investment activity in the markets. According to the results of the analysis of the relationship between the size of capital investments and the level of profitability of enterprises in the agrarian sector of Ukraine, such interdependence was found in the studied period for medium-sized and small agricultural enterprises. According to the results of our research, cartograms of the grouping of regions of Ukraine by the specific weight of capital investments in tangible and intangible non-current assets of the agricultural industry of Ukraine in January-December 2020 were built, which allows realizing the visualization of the presentation of the obtained scientific results. In addition, from the research results we obtained, we can draw a conclusion about the high attractiveness of medium-sized enterprises in the agrarian sector as an object for capital investment.