scholarly journals Integrated Intellectual Investment Portfolio as an Efficient Instrument to Manage Personal Financial Investment

2022 ◽  
Vol 15 (1) ◽  
pp. 30
Author(s):  
Aleksandras Vytautas Rutkauskas ◽  
Viktorija Stasytytė
Keyword(s):  
Stock Markets ◽  
Historical Data ◽  
Investment Decision ◽  
Investment Model ◽  
German Market ◽  
Financial Investment ◽  
Market Intelligence ◽  
Investment Decision Making ◽  
The Usa ◽  
Global Stock Markets

The redistribution of resources in global stock markets is prevalent: the capital is transferred from one investor to another. Sometimes, earning a substantial return in the stock market seems complicated to implement for an individual investor. Investing contributes to the welfare of society and the wealth of citizens. This is why people should look for efficient ways to invest. Investment should become a natural part of personal finance management in the majority of households. For this reason, an investment model is developed where stocks are selected based only on market intelligence using historical data. The model helps find one or several stocks that generate the highest return on a separate step. Applying this model, experiments were performed with daily data from German, US, and UK stock markets. The possibility of obtaining higher than average returns in these markets has been noticed. In the German market, during the 97-day period, the authors obtained a 1.46 return, which implies a 2.31 annual return: in the USA market, a 2.37 return (7.93 annual return), and in the UK market, a 1.90 return (4.09 annual return). Thus, the proposed investment decision-making system could be an efficient tool for forming a sustainable individual or household portfolio. It can generate higher investment returns for an investor and, moreover, make the market more efficient by applying market intelligence and related historical data.

scholarly journals Does COVID-19 really make people risk aversion in investment decision-making?

2022 ◽  
Vol 132 ◽  
pp. 01021
Author(s):  
Muhammad Shadab Iqbal ◽  
Lin Li
Keyword(s):  
Decision Making ◽  
Risk Aversion ◽  
Behavior Analysis ◽  
Risk Behavior ◽  
Investment Decision ◽  
Household Finance ◽  
Financial Investment ◽  
Body Of Knowledge ◽  
Investment Decision Making ◽  
Economic Slowdown

The economic fallout from COVID-19 pandemic changes individuals’ investment perceptions and behaviors in a tremendous way. Consequently, investment decision-making has been affected as people have to adjust to the new environment. This study aims to study whether COVID-19 really make people risk aversion due to the economic slowdown. Our empirical results are analyzed from household finance data in U.S in July 2021. It is found that COVID-19 proximity, income, and occupation are positively associate with risking taking in investment decision-making, while age and family size are not. This study contributes to the newly emerged body of knowledge on post pandemic investment decision-making and risk behavior analysis and provide implications for financial investment institutions.

scholarly journals Importance of external environmental labour-related risk factors for financial investment decision-making

2002 ◽  
Vol 5 (3) ◽  
pp. 644-662
Author(s):  
J. H. Mostert ◽  
S. J. Steel ◽  
F J. Mostert
Keyword(s):  
Risk Factors ◽  
Insurance Industry ◽  
Investment Decision ◽  
Relevant Literature ◽  
Knowledge Worker ◽  
Work Force ◽  
Financial Investment ◽  
Investment Decision Making ◽  
Related Risk ◽  
Term Insurance

External environmental labour-related risk factors influence the relationship between management and the work force of an enterprise. It is therefore of prime importance to consider these labour-related risk actors in order to be able to take a comprehensive financial investment decision. The risk factors concerned come from the political, economic, social and technological environments. The views of the participating investment practitioners (who are active in the long-term insurance industry) regarding these aspects are analysed against the background of relevant literature. The responses with reference to these labour-related risks in manual and knowledge worker enterprises are presented simultaneously and significant similarities and differences are highlighted.

Investment Decision Making by Fishermen

1988 ◽  
Vol 45 (5) ◽  
pp. 782-796 ◽  
Author(s):  
Daniel E. Lane
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Formal Analysis ◽  
Investment Decisions ◽  
Planning Horizon ◽  
Investment Model ◽  
Commercial Fishing ◽  
Net Worth ◽  
Investment Decision Making ◽  
Dynamic Programming Problem

Individual fishermen make investment decisions in an environment which is competitive and highly variable from season to season. Extensive variability means that economic survival must be a primary consideration in the investment decision process. In this paper, fishermen's investment decisions are modelled as a probabilistic dynamic programming problem in discrete time. Fishermen are assumed to make rational decisions based on income expectations and subject to survivability conditions to maximize the net worth of the fishing enterprise at the end of a finite planning horizon. The formal analysis of the investment model is presented and the model is applied to trailer fishermen of the British Columbia commercial fishing fleet. The results present an accurate picture of actual investment decisions and provide valuable insights into the behavioral basis of investment decision making by fishermen. Understanding the investment decisions of fishermen has implications for planning and regulation in fisheries: insights gained into the key factors provide the basis for the development of strategic long-term policies that anticipate fishermen's behavior. The consequences will be a movement away from reactive, short-term policies which have characterized fisheries regulation to date.

scholarly journals INVESTMENT DECISION MAKING TOWARDS INVESTING IN ISLAMIC UNIT TRUSTS AMONGST WOMEN

2021 ◽  
Vol 16 (Number 1) ◽  
pp. 43-54
Author(s):  
Nor Izzati Mohd Aziz ◽  
Salina Kassim
Keyword(s):  
Financial Literacy ◽  
Investment Decision ◽  
Risk Attitude ◽  
Sampling Technique ◽  
Men And Women ◽  
Financial Investment ◽  
Self Confidence ◽  
Investment Decision Making ◽  
Investment Volume ◽  
Unit Trust

The differences in skill expectations and knowledge are amongst factors that contribute to the variances when men and women choose financial products. Women are claimed to be risk averse, somewhat insecure, lacking self-confidence and interest in financial investment products. Nevertheless, the evolving working and educational environment has changed this stereotype, wherein women are increasingly more educated, knowledgeable, and are more exposed to investments. Gender equality between men and women in terms of the volume of investments has turned into a requirement that boosts economic growth with people being the most important factor to contribute through investing habit. This cannot be realised if only men are involved in investment. Financial institutions aim certain figures of targeted investment volume each year. As such, this study identified the factors of women investments, particularly in Islamic unit trusts. A total of 201 respondents were selected via the convenience sampling technique. The Likert scale questionnaires were analysed using SMART PLS software. As a result, several investment behaviours, including investment objectives, return expectations, awareness, and risk attitude, emerged as factors that influenced women investors to choose unit trusts. The study outcomes are beneficial in devising effective strategies that may attract women to invest in Islamic unit trust. Besides, certain agencies should conduct campaigns or seminars on financial literacy for this potential sector, so as to enhance their knowledge in investing in Islamic unit trusts.

scholarly journals Performance Evaluation of Stock Markets

2017 ◽  
Author(s):  
Alina Kvietkauskienė ◽  
Raimonda Martinkutė-Kaulienė
Keyword(s):  
Performance Evaluation ◽  
Stock Markets ◽  
Investment Decision ◽  
Three Dimension ◽  
Investment Portfolio ◽  
Market Selection ◽  
Investment Return ◽  
Investment Decision Making ◽  
Sustainable Investment ◽  
Selection For

The authors concentrate their attention on the performance evaluation of stock markets. The markets evaluation and selection is the important part of investment decision making. In order to develop a conceptual framework for investment decisions in financial markets, it is important to establish a logical model for market selection. The main purpose of the article – to propose the scheme of stock market evaluation and selection for investment portfolio formation. The authors propose the scheme, according to that, it is possible to analyse the issue of the market value and to select markets that may potentially generate a sustainable investment return for investor, taking into account that sustainable investment return is the stable investment return for a long period. According to the analysis of selected stock markets and their evaluation using three-dimension utility function, the authors identified the most stable markets to investors for investment portfolio formation.

Provident Fund Committee Investment at K.M. College

2018 ◽  
pp. 1-6
Author(s):  
Pushpender Kumar ◽  
Vijaya Sherry Chand
Keyword(s):  
Interest Rates ◽  
Investment Decision ◽  
Short Term ◽  
Financial Investment ◽  
Investment Plan ◽  
Market Interest Rate ◽  
Investment Decision Making ◽  
One Year ◽  
Near Future ◽  
Provident Fund

O.P. Sharma, Convener, Provident Fund (PF) Committee, Kirori Mal College, had to re-invest the amount to be received after the maturity of fixed deposits (FD) in Canara Bank, maturing on July 12, 2018 (INR 5.88 cr.) and on July 14, 2018 (INR 6.70 cr.). He wanted to reinvest the funds in bank FDs for more than a year but less than two years to earn the maximum interest possible, since the current market interest rate trends indicated a severe downfall of interest rates in the near future, but Ram Saran, Section Officer of the College, wanted to reinvest this money for less than one year since there would be a requirement of funds in the short term. However, given Saran's views, O. P. Sharma had to convince the committee members about the feasibility of his proposal for two-year FDs. The case will enable participants to identify the components of a financial investment decision making, investment analysis, evaluation of options and recommendation with the decision of investment plan.

scholarly journals Investigation of Variation between Risk Attitude and Investment Biases

2016 ◽  
Vol 1 (No. 1 Oct 2016) ◽  
pp. 57-80
Author(s):  
Cherie H Chen ◽  
Handley-Schachler Morrison
Keyword(s):  
Decision Making ◽  
Loss Aversion ◽  
Financial Risk ◽  
Experimental Approach ◽  
Investment Decision ◽  
Risk Attitude ◽  
Personality Profiles ◽  
Financial Investment ◽  
Investment Decision Making ◽  
Investment Behaviour

There is a palpable link between financial investment decision making and investors’ behaviour. Research into investors’ behaviour may prove useful in increasing our understanding of the extremely complex financial marketplace. In many cases, investors are unaware of their predisposition for error. And more often, an irrational investor is a dissatisfied investor, because biases usually undermine financial goals. By adopting an experimental approach, the researchers try to correlate established investor biases with the psychographic profiles of investors, to see whether specific risk personality profiles correlate with susceptibility to four biases: herding, endowment, loss aversion and framing. Many studies have focused on exploring the demographics of investment behavioural flaws, but very little attention has been paid to the risk attitude of investors and their actual investment behaviour. The findings of this study bridge two aspects of literature, being attitude to financial risk and behavioural investment biases.

Using the Event Classifier System to Forecast the Stock Price: An Empirical Study of Taiwan Financial Market

2015 ◽  
Vol 764-765 ◽  
pp. 1400-1406
Author(s):  
Chien Hua Huang ◽  
Janq Lin Yo ◽  
An Pin Chen
Keyword(s):  
Empirical Study ◽  
Return On Investment ◽  
Stock Price ◽  
Investment Decision ◽  
Stock Index ◽  
Financial Investment ◽  
Classifier System ◽  
Transaction Model ◽  
Investment Decision Making ◽  
Decision Making System

This study was meant to construct an intelligent financial investment decision-making system capable of knowledge mining, performing assessments and evolving on its own based on event assessments by applying the classifier system in the artificial intelligence methodology. It is referred to as the Event Classifier System (ECS). In order to prove the feasibility and validity of the developed method and model, this study designed and developed the transaction model for event classifiers by creating the strategic modules for institutional investor’s holdings-related events and ex-right (dividend)-related events. Results of this empirical study show that the ECS established in this study had superior return on investment (ROI) performance than the Taiwan Weighted Stock Index for the same period of time.

Network, reputation, VC-financing: SME in Zhongguancun and Silicon Valley

2019 ◽  
Vol 14 (1) ◽  
pp. 113-134
Author(s):  
Anna Trunina ◽  
Xielin Liu ◽  
Muhammad Hafeez ◽  
Jian Chen ◽  
Swati Anindita Sarker
Keyword(s):  
Investment Decision ◽  
New Ventures ◽  
Silicon Valley ◽  
Quantitative Methodology ◽  
Content Type ◽  
Investment Decision Making ◽  
Operating Environments ◽  
National Comparison ◽  
The Usa ◽  
Network Strength

Purpose This paper aims to investigate if the collaboration intensity of the company with local and international stakeholders facilitates the attracting of venture capital (VC) financing. The reputation of the company was incorporated as a factor, which can potentially influence investment decision-making. The study also aims to make a cross-national comparison of new ventures financing in two innovation regions – Chinese Zhongguancun and American Silicon Valley. Design/methodology/approach Quantitative methodology involving data gathered from 176 venture-backed as well as non-venture backed SME located in Chinese Zhongguancun and American Silicon Valley was applied. The data has been gathered through a survey. A logistic regression model has been adopted to test the hypotheses and explore relationships among concerned variables. Findings The results spotlight that collaboration intensity with the company’s domestic stakeholders could enhance the attractiveness of the company for external investments. Collaboration intensity with foreign stakeholders increases the likelihood of acquiring financial support only for Chinese companies. For American companies, the reputation of their stakeholders did not show a significant effect. However, positive reputation acquired from the Chinese company’s stakeholders enhances the chance of getting funding and moderates the investment effect of collaboration intensity with domestic stakeholders. Originality/value This paper unfolds that the network strength and the reputation of the SME could play the role in getting VC investment. The results are shown in two different contexts (Silicon Valley in the USA and Zhongguancun in China), characterizing the completely different cultural, legal, institutional and operating environments.

scholarly journals INVESTMENT DECISION MAKING AMONG GULF INVESTORS: BEHAVIOURAL FINANCE PERSPECTIVE

2017 ◽  
Author(s):  
Bashar Yaser Almansour ◽  
Yaser Ahmad Arabyat
Keyword(s):  
Risk Taking ◽  
Psychological Factors ◽  
Investment Decision ◽  
Investment Decisions ◽  
Behavioural Finance ◽  
Financial Investment ◽  
Investment Decision Making ◽  
Familiarity Bias ◽  
Attribution Bias ◽  
The Impact

The rationality hypothesis has been a very popular topic among the academics. Being a widely accepted hypothesis as part of the traditional finance theories, an investor is deemed a rational agent and makes rational decisions by exhausting all available alternatives. However, recently, new behavioural finance theories have been gaining ground as many empirical findings, which have been left unanswered by the traditional theories, can be explained by these behavioural-approach based theories. This research examined the impact of psychological factors on risk-taking behaviour in investment decisions. In particular, this research considered the possible effects of psychological factors, namely herding, heuristics, prospect, market, self-attribution bias, and familiarity bias, in making investment decisions. The findings in this paper declared that risk-taking behaviour in investment is affected by herding factors, heuristics factors, prospect factors, market factors and self-attribution bias factors. The familiarity bias factors do not significantly affect risk-taking behaviour in financial investment. Keywords: Behavioural finance, Herding, Heuristics, Prospect, Market, Self-attribution bias, Familiarity bias

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