Assessing The Impact Path of Air Quality On Enterprise R&D Investment: Empirical Evidences From Dual Perspectives of Investor Sentiment And Government Concern

The Government ◽

The Impact ◽

D Investment

Abstract Based on the data of Shanghai and Shenzhen A-share listed companies from 2015 to 2019, this paper studies the influence paths of air quality on R&D investment of listed companies from the perspectives of investor sentiment and government concern. It is found that, on the whole, air quality has a significant inhibitory effect on R&D investment. Air quality has a significant promoting effect on investor sentiment, which serves as a path to further restrain the R&D investment of listed companies. Air pollution is an effective concern for the government, and serves as a veil between air quality and R&D investment. Furthermore, this paper analyzes the heterogeneity of enterprises from the aspects of regional technology complexity, property right nature, whether it is a polluting enterprise or not, and whether it is a key regulated enterprise or not, and comes to relevant conclusions. This paper expands the research on air quality and enterprise R&D investment decision-making, which helps to clarify and improve the transmission mechanism and implementation effect of environmental protection policies.

Analyzing Manufacturer’s R&D Equilibrium in Defense Procurement

Key Engineering Materials ◽

10.4028/www.scientific.net/kem.474-476.1435 ◽

2011 ◽

Vol 474-476 ◽

pp. 1435-1439

Author(s):

Sheng Li Chen ◽

Xiao Dong Liu

Keyword(s):

Game Theory ◽

Decision Making ◽

Investment Decision ◽

Investment Decisions ◽

Defense Procurement ◽

Contest Theory ◽

Admission Criterion ◽

The Government ◽

D Investment

We formulate the model of R&D investment scale adjustment of defense procurement by applying game theory and contest theory and study the equilibrium of manufacturers’ R&D investment decision-making in defense procurement. We explore mainly the influence of valuation of monopolistic contract and differences among manufacturers’ abilities on investment. The conclusion shows that manufacturers’ investment equilibrium of R&D projects is what the government expects under certain conditions, however, manufacturers’ abilities effect on the investment equilibrium and makes it deviate from the government expectation. Therefore, the government must keep practically manufacturers’ anticipation about the monopolistic contact being consistent with government’s and set basic admission criterion to enable manufactures’ ability well-matched to induce the manufacturers’ investment decisions to the investment equilibrium that it desired.

Influence of investor sentiment and its antecedent on investment decision-making using partial least square technique

Management Research Review ◽

10.1108/mrr-06-2019-0254 ◽

2020 ◽

Vol 43 (11) ◽

pp. 1441-1459

Author(s):

Haritha P.H. ◽

Rashmi Uchil

Keyword(s):

Decision Making ◽

Social Interaction ◽

Stock Market ◽

Investment Decision ◽

Investor Sentiment ◽

Partial Least Square ◽

Individual Investors ◽

Content Type ◽

Purpose The purpose of this paper is to determine whether individual investor sentiment and its factors influence investment decision-making behavior in the Indian stock market. The study contributes to the novel conceptual framework that integrates the impact of investor sentiment and outlines the role of its factors (herding, media factor, advocate recommendation and social interaction) during the investment decision-making process. Design/methodology/approach In this paper, data were collected using a structured questionnaire survey from Indian individual investors. It uses self-reported sources of information collected via a survey of individual investors and estimated the linkage via path modeling. The collected data were analyzed using partial least square structural equation modeling to examine the relationship between the construct, namely, herding, media, advocate recommendation and social interaction with investor sentiment and investment decision-making. Findings The study shows that herding, media factor, advocate recommendation and social interaction significantly and positively influence the investor sentiment. Among all the factors, social interaction has the lowest influence on investor sentiment. The study also reveals that investor sentiment has a positive impact on investment decision-making. Practical implications The study provides valuable insights for the individual investors, financial advisors, policymakers and other stakeholders. Knowledge of behavioral finance would enhance the decision-making capabilities of individual investors in the stock market. Thus, the study calls for the need to increase awareness among Indian investors about behavioral finance and its usefulness in investment decision-making. The paper also sheds light upon the influence of investor sentiment and its antecedents on investment decision-making. The study confirms that the investor relies on their sentiment while making investment decisions. Hence, the stakeholders in the stock market should focus on investor sentiment and other psychological aspects of individual investors as well. Originality/value There are very few studies that deal with the behavioral aspects of individual investors in an emerging market context. The study mainly focuses on the antecedent of investor sentiment and its influence on investment decision-making in the Indian stock market. To the best of authors’ knowledge, the present study unique nature that examines the impact of the antecedent of investor sentiment which was not explored in the Indian context and investment decision-making of individual investors.

The impact of an audit committee's independence and competence on investment decision: a study in Bahrain

Asian Journal of Accounting Research ◽

10.1108/ajar-02-2020-0008 ◽

2020 ◽

Vol 5 (2) ◽

pp. 299-313

Author(s):

Abdullah Al-Hadrami ◽

Ahmad Rafiki ◽

Adel Sarea

Keyword(s):

Decision Making ◽

Financial Reporting ◽

Internal Control ◽

Investment Decision ◽

Descriptive Analysis ◽

Listed Companies ◽

Financial Reports ◽

Content Type ◽

PurposeThis study aims to investigate the impact of the audit committee's (AC) independence and competence on the company's investment decision-making in Bahraini-listed companies.Design/methodology/approachA quantitative method is used, and crosssectional data are collected through a self-administered questionnaire survey. A stratified random sample technique is adopted with a total of 409 respondents from 39 listed companies. A descriptive analysis is used to identify the characteristics of the respondents, while the correlation analysis and linear regression analyses are used to test the model and explain the relationship between variables.FindingsIt is found that the AC independence and AC competence have a positive and significant influence on investment decision-making.Originality/valueThe AC’s independence and competence are importantly crucial for the decision-makers in improving the quality of financial reporting, internal control and audit. This may lead to the increase in investors' trust on financial reports and thereby making favorable investment decisions.

Impact of Heuristics on Investment Decisions: The Moderating Role of Locus of Control

Journal of Business and Social Sciences Research ◽

10.3126/jbssr.v5i1.30195 ◽

2020 ◽

Vol 5 (1) ◽

pp. 1-14

Author(s):

Jeetendra Dangol ◽

Rashmita Manandhar

Keyword(s):

Decision Making ◽

Locus Of Control ◽

Investment Decision ◽

Investment Decisions ◽

Sampling Procedure ◽

Moderating Effect ◽

Moderation Effect ◽

Overconfidence Bias ◽

This paper aims to assess the impact of heuristics on the investment decision by analysing the effect of four heuristic biases, i.e., representativeness, availability, anchoring and adjustment, and overconfidence bias on rationality of Nepalese investor's investment decision-making and also examines the moderating effect of the internal locus of control in between. The study used 391 respondents based on a convenient sampling procedure, and structured questionnaire survey. The study result indicates that there is a significant relationship between irrationality in investment decision-making and all four heuristic biases. In addition, the study also concludes that locus of control has significant moderating effect in the relationship between investment decisions and three heuristic biases, i.e., availability, representative and anchoring bias. However, the study documents no moderation effect in case of relationship with overconfidence bias.

The “Surge Phenomenon” of Macro Economy in Developing Countries from the Perspective of Tobacco Economy

Tobacco Regulatory Science ◽

10.18001/trs.7.4.1.19 ◽

2021 ◽

Vol 7 (4) ◽

pp. 663-673

Author(s):

Lulu Liu

Keyword(s):

Developing Countries ◽

Tobacco Industry ◽

Investment Decision ◽

Relevant Literature ◽

Economic Benefits ◽

Social Costs ◽

Advantages And Disadvantages ◽

The Social ◽

The Government ◽

Objectives: Starting from the tobacco economy, this paper studies the “surge phenomenon” of macro-economy in developing countries. Methods: This paper studies the impact of tobacco industry on Anhui economy by using the relevant theories of industrial economics, econometrics and regulatory economics, combined with the actual situation of tobacco industry. Based on the analysis of the overall development of tobacco industry, this paper empirically analyzes the relationship between tobacco industry and Anhui economic growth. This paper combs the relevant literature of the existing research results of this theory. Combined with the special fact that government investment accounts for a large proportion in China’s current economic construction, this paper redefines the hypothesis of the investor in the theory of principles. On this basis, the expected equilibrium results of enterprise investment decision-making under government led and market led modes are compared and analyzed by using incomplete information static game model. Results: When the output value of tobacco industry increases by 1%, it will drive the GDP to increase by 0.373%. Secondly, by comparing the economic benefits of tobacco with the social costs of tobacco, it is found that with the economic development, the social costs caused by tobacco increase year by year, but the economic benefits are slightly greater than the social costs. The difference between the two is also increasing year by year. Conclusion: In the context of tobacco control, we should fully consider the advantages and disadvantages of developing the tobacco industry. Under the excessive intervention of the government, the manifestation of the surge phenomenon is more intense, and the final consequence of overcapacity is more serious than that under the market-oriented mode..

Insider Trading Laws and Corporate Governance Impact on Investment Decision

iRASD Journal of Management ◽

10.52131/jom.2021.0302.0032 ◽

2021 ◽

Vol 3 (2) ◽

pp. 126-137

Author(s):

Sadaf Khan ◽

Ubaid Ur Rehman

Keyword(s):

Corporate Governance ◽

Insider Trading ◽

Positive Impact ◽

Investment Decision ◽

Investment Decisions ◽

Future Research ◽

Good Corporate Governance ◽

Governance Practices ◽

The Government ◽

This research aims to analyze the impact of insider trading laws and corporate governance on investment decisions. For this purpose, the data of 400 potential and actual investors employed who provided their feedback on a structured questionnaire. When the data is collected, it was cleaned. The normality of data and reliability of items were also checked and within limits. Simple Regression was applied to test hypotheses. It was concluded that the perception of insider trading laws and corporate governance have a positive impact on investment decisions. The study has wide implications and the government and corporation both can be beneficial from its insight and findings, and exercise good corporate governance practices and follow stringent insider trading laws. The study also paves the way for future research.

European Option Based R&D Investment Decision Making under Uncertainties

Mathematical Problems in Engineering ◽

10.1155/2015/125796 ◽

2015 ◽

Vol 2015 ◽

pp. 1-6

Author(s):

Qing Miao ◽

Boyang Cao ◽

Minghui Jiang

Keyword(s):

Decision Making ◽

Research And Development ◽

Joint Venture ◽

Investment Decision ◽

Optimal Investment ◽

European Option ◽

Project Investment ◽

Research Joint Venture ◽

D Investment

This paper establishes the payoff models of the European option for research and development (R&D) projects with two enterprises in a research joint venture (RJV). The models are used to assess the timing and payoffs of the R&D project investment under quantified uncertainties. After the option game, the two enterprises can make optimal investment decision for the R&D project investment in the RJV.

R&D value of Chinese manufacturing listed companies

China Political Economy ◽

10.1108/cpe-10-2018-012 ◽

2018 ◽

Vol 1 (2) ◽

pp. 241-262

Author(s):

An Tongliang ◽

Wang Wenyi

Keyword(s):

Investor Sentiment ◽

Listed Companies ◽

Developed Countries ◽

Chinese Stock Market ◽

Content Type ◽

Enterprise Value ◽

Asset Value ◽

Value Model ◽

D Investment ◽

D Value

Purpose The way to measure the value of an enterprise’s R&D investments remains elusive for theoretical and empirical study on innovation economics. The paper aims to discuss this issue. Design/methodology/approach This paper expands the asset-value model pioneered by Griliches (1981) and applies it for the first time to the Chinese stock market to calculate the value of R&D investment instilled by Chinese manufacturing listed companies (CMLCs) from 2003 to 2014. Findings The authors find that: the assets-value model can better explain the enterprise value composition of CMLCs; with equal input, the value of R&D is higher than that of tangible assets, and lower than that of organizational assets; compared with the developed countries, the R&D value of CMLCs is lower; and the R&D value of CMLCs saw a downward trend from 2007 to 2014. Originality/value Furthermore, by rationally estimating the value of organizational assets and non-tradable shares, and innovatively introducing semi-annual momentum indicators from the perspective of behavioral finance to control the influence of investor sentiment on enterprise value, this paper tries to develop the asset-value model and provides a feasible solution to the problem of measuring the value of Chinese enterprises’ R&D investment.

Investor sentiment antecedents

Review of Behavioral Finance ◽

10.1108/rbf-07-2017-0068 ◽

2019 ◽

Vol 11 (1) ◽

pp. 36-54 ◽

Cited By ~ 1

Author(s):

Ranjan Dasgupta ◽

Rashmi Singh

Keyword(s):

Decision Making ◽

Stock Market ◽

Emerging Market ◽

Investment Decision ◽

Investor Sentiment ◽

Equation Modeling ◽

Content Type ◽

Retail Investors ◽

Specific Factors

PurposeThe determinants of investor sentiment based on stock market proxies are found in numbers in empirical studies. However, investor sentiment antecedents developed from primary survey measures by constructing an investor sentiment index (ISI) are not done till date. The purpose of this paper is to fill this research gap by first developing an ISI for the Indian retail investors and then examining the investor-specific, stock market-specific, macroeconomic and policy-specific factors’ individual impact on the investor sentiment.Design/methodology/approachFirst, the authors develop the ISI by using the mean scores of six statements as formulated based on popular direct investor sentiment surveys undertaken throughout the world. Then, the authors employ the structural equation modeling approach on the responses of 576 respondents on 40 statements (representing the index and four study hypotheses) collected in 2016 across the country.FindingsThe results show that investor- and stock market-specific factors are the major antecedents of investor sentiment for these investors. However, interestingly macroeconomic fundamentals and policy-specific factors have no role to play in driving their sentiment to invest in the stock market.Practical implicationsThe major implication of the results is that the Indian retail investors are showing a mixed approach of Bayesian and behavioral finance decision making. So, these implications can guide the investment consultants, regulators, other stakeholders in markets and overwhelmingly the retail investors to introspect their investment decision making across time horizons.Originality/valueThe formulation of ISI in an emerging market context and thereafter examining possible antecedents to influence retail investors in their investment decision making are not done till date. So, the study is unique in its research issue and findings and will have significant implication for the retail investors at least in emerging market contexts.