scholarly journals Assessing the Impact of Outbreaks on Malaysian Listed Property Companies in Mixed-Asset Portfolios

2021 ◽  
Vol 29 (3) ◽  
pp. 87-93
Author(s):  
Muhammad Najib Razali ◽  
Rohaya Abdul Jalil ◽  
Ahmad Faisal Shayuti
Keyword(s):  
Institutional Investors ◽  
Investment Decision ◽  
Point Of View ◽  
Decision Making Process ◽  
Health Crisis ◽  
Real Issue ◽  
Investment Decision Making ◽  
Property Companies ◽  
High Volatility ◽  
The Impact

Abstract This paper assesses the impact of outbreaks from the perspective of volatility of Malaysian Listed Property Companies in mixed-asset portfolios, concentrating on periods of time between outbreaks. The real issue of this study is the health crisis that has troubled institutional investors, as it has already significantly impacted the returns on investments. Investors need to be better informed on the impact of health outbreaks on investments in order to minimize their impact. To assess the impact of the outbreaks, the GARCH method has been employed to examine the dynamic volatility of listed property companies in mixed-asset portfolios. The volatility level will give investors better information from point of view of the dynamics of volatility of the Malaysian listed property companies’ performance within mixed-asset portfolios. The findings show that listed property companies demonstrate high volatility compared to other mixed-asset portfolios during the periods of outbreaks. This indicates Malaysian listed property companies were the most volatile investment in mixed-asset portfolios. This empirical study will contribute significantly to institutional investors, especially in terms of the investment decision-making process during outbreaks.

scholarly journals CEO Overconfidence and Corporate Governance in Affecting Australian Listed Construction and Property Firms’ Trading Activity

2021 ◽  
Vol 13 (19) ◽  
pp. 10920
Author(s):  
Mahmoud Hijjawi ◽  
Chyi Lin Lee ◽  
Jufri Marzuki
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Investment Decision ◽  
Decision Making Process ◽  
Real Estate Investment ◽  
Profound Impact ◽  
Construction Companies ◽  
Investment Decision Making ◽  
Corporate Governance Mechanisms ◽  
Property Companies

This paper aims to examine whether and to what extent overconfident CEOs affect Australian real estate investment trusts’ (A-REITs) property investment activities during their tenure as the CEO of A-REITs, covering the period 2000–2019. A-REITs’ property investment and disposal activities are separately modelled against CEOs shares in their companies (an indicator of CEO overconfidence), as well as other controlled variables. We found that around 68% of A-REIT CEOs are overconfident over the study period. However, our empirical results also indicated that CEO overconfidence did not have a profound impact on A-REITs’ investment activities, either property acquisitions or disposals. This could be explained by high corporate governance of A-REITs. Specifically, Australian construction and property companies are the leading market players in sustainability. As publicly quoted companies, listed property and construction companies, particularly A-REITs could be exposed to various managerial issues, including corporate CEO overconfidence and its influence on the investment decision-making process. However, this managerial issue could be minimized via an enhancement of corporate governance that is a key pillar of sustainability. The mitigation of corporate overconfidence and implementation of corporate governance mechanisms makes REITs more accountable to their investors. The implications of the findings have also been discussed.

The impact of regulatory risks of ESG integration on the sustainable development of power companies

2021 ◽  
Vol 17 (4) ◽  
pp. 624-648
Author(s):  
Irina V. ZENKINA
Keyword(s):  
Decision Making ◽  
Sustainable Development ◽  
Investment Decision ◽  
Investment Decisions ◽  
Decision Making Process ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Investment Decision Making ◽  
Development Concept ◽  
The Impact

Subject. The article focuses on modern trends in the integration of sustainable development drivers into the substantiation of investment decisions, related regulatory risks and their impact on the sustainable development of companies in the energy and fuel sector. Objectives. I study the global advancement of responsible investment through the sustainable development concept and determine how regulatory risks of the integration of environmental responsibility factors, social responsibility and administrative efficiency into the investment decision-making process on the sustainable development of power companies. Methods. The study relies upon the analysis and synthesis, detailed elaboration and generalization, comparison, abstraction, analogy, index method, systems, strategic and risk-based approaches. Results. The article demonstrates how the sustainable development concept currently evolves and is getting updated. I found the unstoppable evolution of the regulatory and legislative framework, which encourages sustainability projects, and business practice including ESG factors into the investment decision-making process. The article substantiates the role of the responsible investment mechanism and the impact of regulatory risks of ESG integration on the sustainable development of power companies. I show what results can be achieved by analyzing ESG performance of an oil and gas corporation via Thomson Reuters, which helps to assess ESG risks for the company, its investors, and other key stakeholders. Conclusions and Relevance. The integration of ESG factors into the investment decision-making process ensures the adequate awareness of investors, helps mitigate ESG risks, increases the reasonableness of decisions investors make, and raises the quality and completeness of ESG data disclosure in corporate reporting. Regulatory risks of the ESG integration stem from companies’ breaches in effective regulations and rules on ESG performance and result in negative legislative and economic consequences. Therefore, I make suggestions on the analysis of sustainability factors and indicators, which pursues the mitigation of ESG risks of power companies and their investors, and ensures the efficiency of investment decisions.

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

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 ◽  
Investment Decision Making ◽  
Overconfidence Bias ◽  
The Impact

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.

scholarly journals Research on Power Grid Investment Assistant Decision Model Adapting to Power Reform Situation

2020 ◽  
Vol 218 ◽  
pp. 02026
Author(s):  
Yidi Wan ◽  
Wei Xie ◽  
Haihong Du ◽  
Wenming Pan ◽  
Jianqing Li ◽  
...  
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Power Grid ◽  
Scale Structure ◽  
Leading Role ◽  
Investment Decision Making ◽  
Investment Structure ◽  
External Management ◽  
Power Grid Planning ◽  
The Impact

in order to thoroughly implement the new energy security strategy of “four revolutions and one cooperation”, meet the requirements of power grid planning and management of energy administration, realize the strategic objectives of State Grid Corporation of China, actively respond to the severe external economic situation, alleviate the impact of policy-based price reduction, and improve the performance of internal investment management, the company needs scientific front-end decision-making, improve the efficiency of investment decision-making, scientifically determine the investment scale, structure and timing, and play a strategic leading role in investment decision-making. Through the analysis of internal and external management requirements, this paper constructs an auxiliary decision-making model of power grid investment to support the determination of investment scale, structure and time sequence, to realize the reasonable investment scale calculation of provincial companies, the calculation of investment structure of different voltage levels and the optimization of project delivery under the condition of given investment scale, which comprehensively considers the external supervision, economic development and internal management objectives, so as to assist the prior investment decision-making, improve the input-output efficiency, effectively improve the Advisory decision-making ability of investment data, and meet the company’s investment decision-making needs.

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