Implementation of Risk Analysis using Monte Carlo Simulation on Electricity Investment Decision Making : Case Study: Steam and Combined Cycle Power Plant Development in Indonesia by PT Pembangkitan Jawa-Bali

Navigation safety improving investment aims at mitigating risk and improving safety of shipping system, while decision-makers’ attitudes toward the uncertainty of shipping safety possess a characteristic of “bounded rationality.” To study the tendency of shipping safety investment decision-making with different risk perception and appetite, a decision-making method based on cumulative prospect theory is proposed in this article. First, we extract the decision attributes through analyzing the factors affecting shipping safety investment. Then, according to cumulative prospect theory, the value function and the probability weighting function for calculating cumulative prospect values of shipping investment attributes are given. Under the risk-based multi-attribute group decision-making framework, linear programming model and projection method are introduced to aggregate the weights of attributes and decision-makers, respectively. Furthermore, through a case study, the proposed methodology is utilized in Three Gorges Dam area, and the desirable safety investment scheme is determined from a set of candidate alternatives. The case study shows not only validity and feasibility of the decision-making approach but also the mechanism of shipping safety investment decision-making with consideration of the behavior characteristics of decision-makers such as reference dependence, risk appetite distortion, and loss aversion.

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The Role of Structural Context in Making Business Sense of Investments for Sustainability–A Case Study

Sustainability ◽

10.3390/su12177006 ◽

2020 ◽

Vol 12 (17) ◽

pp. 7006

Author(s):

Josefine Rasmussen

Keyword(s):

Decision Making ◽

Energy Efficiency ◽

Investment Decision ◽

Sustainable Manufacturing ◽

Manufacturing Companies ◽

Improve Energy Efficiency ◽

Structural Context ◽

Investment Decision Making

Energy efficiency is an important means for sustainable manufacturing. One action for manufacturing companies to improve energy efficiency is through investments. While these investments often are profitable, opportunities remain unexploited. This paper explores the structural context of the investment decision-making process by examining the associated activities, procedures, and the role of information. While the structural context may limit complex investments that do not fit predefined rules and controls, such as energy efficiency and other sustainability-related investments, it remains a scarcely studied aspect of investment decision-making for energy efficiency investments. Method-wise, the paper is based on a case study of a major investment at a pulp and paper company, motivated and justified based on productivity, strategic, energy, and sustainability rationales. The paper contributes with illustrating how configurations of internal investment activities and procedures may be crucial for sustainability-related investments to pass through the investment process. Moreover, the configuration of activities and procedures is also indicated as influential for the way in which an investment is executed. Hence, for energy efficiency and other sustainability-related investments to make business sense constitutes more than achieving desirable payback periods; the structural context should be considered.

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Differences In Intrinsic Value With Stock Market Prices Using The Price Earning Ratio (Per) Approach As An Investment Decision Making Indicator (Case Study Of Manufacturing Companies In Indonesia Period 2016 - 2017)

Aptisi Transactions On Technopreneurship (ATT) ◽

10.34306/att.v1i1.61 ◽

2019 ◽

Vol 1 (1) ◽

pp. 82-92

Author(s):

Ardy Indra Lekso Wibowo Putra ◽

Aditya Dwiansyah Putra ◽

Murni Sari Dewi ◽

Denny Oktavina Radianto

Keyword(s):

Decision Making ◽

Stock Market ◽

Stock Price ◽

Stock Exchange ◽

Intrinsic Value ◽

Investment Decision ◽

Manufacturing Companies ◽

Market Prices ◽

Investment Decision Making

An investor must be able to consider all kinds of steps that will be taken or that will be carried out, assessing stocks - shares that will provide optimal benefits in making an investment decision. By analyzing the intrinsic value of the price of a company's stock, investors can assess the fairness of the stock price. The method used to analize intrinsic value is fundamental analysis using the Price Earning Ratio (PER) approach. The samples to be taken in this research are manufacturing companies in Indonesia which are listed on the Indonesia Stock Exchange (IDX) for the period 2016 - 2017 with certain criteria. The results of this research will show that the shares of companies listed are in overvalued, undervalued or correctly valued conditions. So investors can decide to buy, hold or sell their shares.

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ANALISIS FUNDAMENTAL DALAM PENGAMBILAN KEPUTUSAN INVESTASI SAHAM PERUSAHAAN PERKEBUNAN PERIODE 2008-2015

Journal of Business Management Education (JBME) ◽

10.17509/jbme.v2i3.5979 ◽

2017 ◽

Vol 2 (3) ◽

pp. 40-48

Author(s):

Irma Dwi Pratiwi ◽

Nugraha Nugraha

Keyword(s):

Decision Making ◽

Stock Exchange ◽

Investment Decision ◽

Total Sample ◽

Fundamental Analysis ◽

Stock Investment ◽

Investment Decision Making ◽

Analysis Technique ◽

The Difference

Objective – For fundamental analysis and to know the description of Earning Per Share and Price Earning Ratio as a basis for consideration in decision making of stock investment in plantations sub-sector period 2008-2015.Design/methodology/approach – This type of research is descriptive method with a total sample of 7 metal and allied sub-sector companies listed on the Indonesian Stock Exchange. The analysis technique used is fundamental analysis with EPS and PER approaches. The design of this research is the method of time series design with a period of research for 8 years.Findings – Based on the results of fundamental analysis with EPS and PER approach can effectively assist investors in assesing the company’s stock on making decision of stock investment in plantations sub sector.Originality/value – The difference in this study lies in the object of research, study time, measuring tools, literature used, the theory used and the results of research. Keywords: Fundamental analysis, Investment Decision Making, Stocks, Earning Per Share (EPS), Price Earning Ratio (PER), Intrinsic ValueArticle Type: Case Study

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Environmental, Social, and Governance Investment in Emerging Markets: A Case Study of Firms in Southeast Asia

WIMAYA ◽

10.33005/wimaya.v2i01.43 ◽

2021 ◽

Vol 2 (01) ◽

pp. 8-16

Author(s):

Upalat Korwatanasakul ◽

Adam Majoe

Keyword(s):

Decision Making ◽

Content Analysis ◽

Emerging Markets ◽

Southeast Asia ◽

Investment Decision ◽

Decision Making Process ◽

Investment Decision Making ◽

Sustainability Reports ◽

Asean Countries

This study examines the current situation of environmental, social, and governance (ESG) investment in Association of Southeast Asian Nations (ASEAN) countries. Based on a purposive sampling, our sample includes 143 leading firms from 10 ASEAN countries. By intensively reviewing firms’ multiyear annual and sustainability reports, we utilize content analysis to identify the characteristics of ESG firms (firms considering ESG factors in their investment decision-making process). Our result shows that ESG firms, on average, have higher profitability. Moreover, ESG investment helps lower costs and boost revenue and profits. However, ESG investment has only been implicitly and unsystematically implemented in ASEAN firms.

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