The Factors Affecting the Investors’ Decisions: A Study on Nuclear Energy Investments

The aim of this study is to evaluate the indicators affecting the decision of investors in nuclear energy sector within the scope of behavioral economics. There are two different stages in the analysis process in this paper. First, after a detailed literature review, six different behavioral economics biases are selected as the criteria. Secondly, these factors are weighted for the nuclear energy investors. For this purpose, fuzzy DEMATEL methodology is used. The findings indicate that uncertainty avoidance and overconfidence bias are the most essential factors affecting the decision of investors. Similarly, the mental accounting bias and regret avoidance also have important impacts for this situation. However, loss aversion bias and lack of self-control have the lowest weights for the nuclear energy investors. Additionally, with respect to the impact relation map, it is concluded that uncertainty avoidance is the most influencing issue whereas overconfidence bias is identified as the most influenced factor. Our results suggest that that strategies should be implemented to decrease the anxiety of the nuclear energy investments. For this purpose, governments should take some actions to minimize the uncertainty in the market. For instance, providing loans with low interest rate can minimize interest rate risk. This will probably decrease the anxiety of the nuclear energy investors.

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Immunization Strategies for Funding Multiple Inflation-Linked Retirement Income Benefits

Risks ◽

10.3390/risks9040060 ◽

2021 ◽

Vol 9 (4) ◽

pp. 60

Author(s):

Cláudia Simões ◽

Luís Oliveira ◽

Jorge M. Bravo

Keyword(s):

Interest Rate ◽

Yield Curve ◽

Risk Measure ◽

Management Strategies ◽

Interest Rate Risk ◽

Insurance Companies ◽

Retirement Income ◽

Investment Strategies ◽

Immunization Strategies ◽

The Impact

Protecting against unexpected yield curve, inflation, and longevity shifts are some of the most critical issues institutional and private investors must solve when managing post-retirement income benefits. This paper empirically investigates the performance of alternative immunization strategies for funding targeted multiple liabilities that are fixed in timing but random in size (inflation-linked), i.e., that change stochastically according to consumer price or wage level indexes. The immunization procedure is based on a targeted minimax strategy considering the M-Absolute as the interest rate risk measure. We investigate to what extent the inflation-hedging properties of ILBs in asset liability management strategies targeted to immunize multiple liabilities of random size are superior to that of nominal bonds. We use two alternative datasets comprising daily closing prices for U.S. Treasuries and U.S. inflation-linked bonds from 2000 to 2018. The immunization performance is tested over 3-year and 5-year investment horizons, uses real and not simulated bond data and takes into consideration the impact of transaction costs in the performance of immunization strategies and in the selection of optimal investment strategies. The results show that the multiple liability immunization strategy using inflation-linked bonds outperforms the equivalent strategy using nominal bonds and is robust even in a nearly zero interest rate scenario. These results have important implications in the design and structuring of ALM liability-driven investment strategies, particularly for retirement income providers such as pension schemes or life insurance companies.

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Does the impact of the COVID-19 pandemic influence the FX? A note.

The Journal of Prediction Markets ◽

10.5750/jpm.v15i2.1865 ◽

2021 ◽

Vol 15 (2) ◽

Author(s):

Evangelos Vasileiou

Keyword(s):

Exchange Rate ◽

Interest Rate ◽

Economic Recession ◽

Interest Rate Risk ◽

Economic Consequences ◽

Domestic Currency ◽

Effective Response ◽

Policy Makers ◽

The Cost ◽

The Impact

This note shows that the effective response of a country in its battle against COVID-19 influences the exchange rate of its currency. Particularly, we examine the GBPUSD, AUDUSD and AUDGBP pairs of currency during the COVID-19 outbreak and the results show that the domestic currency of the country which documents more COVID-19 cases in each pair is depreciated against the foreign one. Therefore, a country which cannot effectively mitigate the impact of COVID-19 and whose currency is depreciated may present further economic consequences in the future. Such consequences extend beyond economic recession and may include sovereign and interest rate risk. These findings may be useful for policy makers in order to estimate the cost of the pandemic.

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The Effect of Risks on Banking Safety: Applied Study on Jordanian Traditional Banks (2005-2016)

International Journal of Economics and Finance ◽

10.5539/ijef.v9n9p102 ◽

2017 ◽

Vol 9 (9) ◽

pp. 102

Author(s):

Mohammad Abdel Mohsen Al-Afeef ◽

Atallah Hassan Al-Ta'ani

Keyword(s):

Interest Rate ◽

Credit Risk ◽

Commercial Banks ◽

Banking Sector ◽

Liquidity Risk ◽

Interest Rate Risk ◽

Bank Credit ◽

Applied Study ◽

Rate Risk ◽

The Impact

Banking sector is one of the most important sectors that support the sustainable economic development in Jordan, therefore this study aimed to test the impact of risks; (Liquidity risk, bank credit risk and interest rate risk) on the safety in the banking sector in the Jordanian commercial banks during the period 2005-2016.The results of the study showed that there is a statistically significant impact for each of liquidity risk and interest rate risk on the safety in the banking sector, and there isn't statistically significant impact for credit risk on the safety in the banking sector during the period of this study, and also find that the explanatory of model was 60.5%, which means that 39.5% due to other factors.

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Measuring Interest Rate Risk Considering Key Factors Affecting the Net Interest Margin (NIM) Ratio of Commercial Banks in Bangladesh

10.7176/ejbm/12-15-08 ◽

2020 ◽

Keyword(s):

Interest Rate ◽

Commercial Banks ◽

Interest Rate Risk ◽

Key Factors ◽

Factors Affecting ◽

Rate Risk ◽

Net Interest Margin ◽

Interest Margin

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THE IMPACT OF MACROECONOMIC INDICATORS UPON SME’S PROFITABILITY

Ekonomika ◽

10.15388/ekon.2012.0.883 ◽

2012 ◽

Vol 91 (3) ◽

pp. 117-128 ◽

Cited By ~ 7

Author(s):

Rokas Bekeris

Keyword(s):

Interest Rate ◽

Strong Correlation ◽

Financial Indicators ◽

Average Salary ◽

Macroeconomic Factors ◽

Monetary Base ◽

Factors Affecting ◽

Macroeconomic Indicators ◽

Macroeconomic Impact ◽

The Impact

Profitability is one of the most volatile company’s financial indicators: it is affected not only by internal but also by external, macro factors. Therefore, this research was aimed at evaluating the macroeconomic impact on SMEs’ profitability. The paper presents the model with the macroeconomic factors affecting the profitability of a SME, which includes the macroeconomic indicators such as population and firms’ number in a country, exports and imports, FDI, GDP, unemployment, inflation, taxes paid, average salary, and several others. The paper also deals with the dynamics of corporate profitability in Lithuania and shows a correlation between macro factors and corporate profitability. Most of the selected macroeconomic indicators such as inflation, average wages, the number of enterprises, the monetary base were found not to be statistically significant and had no strong correlation with corporate profitability. The VILIBOR interbank interest rate changes and the unemployment have the gretest impact on profitability.

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