Human Versus Machine: A Comparison of Robo-Analyst and Traditional Research Analyst Investment Recommendations

We provide the first comprehensive analysis of the properties of investment recommendations generated by “Robo-Analysts,” which are human-analyst-assisted computer programs conducting automated research analysis. Our results indicate that Robo-Analyst recommendations differ from those produced by traditional “human” research analysts across several important dimensions. First, Robo-Analysts produce a more balanced distribution of buy, hold, and sell recommendations than do human analysts and are less likely to recommend “glamour” stocks and firms with prospective investment banking business. Second, automation allows Robo-Analysts to revise their recommendations more frequently than human analysts and incorporate information from complex periodic filings. Third, while Robo-Analysts’ recommendations exhibit weak short-window return reactions, they have long-term investment value. Specifically, portfolios formed based on the buy recommendations of Robo-Analysts significantly outperform those of human analysts. Overall, our results suggest that automation in the sell-side research industry can benefit investors.

The Prospect of Investment Banking and Arbitration in the Space Economy

Morgan Stanley estimates that the global space industry could generate revenues of more than $1 trillion or more by 2040, up from over $400 billion currently. Do declining launch costs, technological advancements and a rising interest in the public sector make space the next trillion-dollar economy? The dynamics of the space sector has led wall street analysts to forecast that the space industry could become the next trillion-dollar industry by 2040. As of January 2018, the global space economy grew more than 8%, generating $414.75 billion in space activities.With unmanned scientific exploration, high levels of private funding advancement in technology the implications of investment for a more accessible, low cost into outer space is significant, with potential opportunities for improvement of the resources in space for profit-making and expansion of business concerns, the expanding interest of public sector migrate into the shift from private finding to public and herald the entrance of traditional finance There are fortunes and resources in the space economy which aids the activities of humans, as well as the bold exploration of countries to expand research and understand the limits use and the extent to the use in the space economy.This paper seeks to explore the prospects of investment banking activities in the growing space economy, seeing the growing development of exchange-traded funds already being explored in the space economy and the new regulations allowing Wall Street to do Venture Capital which expands the exploration of capital and buttresses the objective of raising capital by a major player, Space X which raised about $44 Billion and so grows the prospect of more banking activity. Furthermore, the possibilities that are inherent in the eventual proliferation of investment banking activities in the space industry will be addressed. In attempting to do justice to such a lofty idea, the universal need for funding in the world of business will be examined as a representation of the intersection between banking interests and space interests. The interplay of factors such as risk and understanding of business processes in the dynamics of any relationship between investment banking and the space industry will also be examined. The purpose of such analysis will be to afford an understanding of the role that investment banking has to play in the space industry, as an over text to the elements and characteristics of space activities that define the rate of the growth of the influence and applicability of investment banking to the peculiar needs and unique concerns associated with the pursuit of profitable business in the space economy. Lastly, this paper looks to give an account of the evolution of Space Dispute Arbitration, and how the existing legal mechanisms in force for directing arbitral awards have evolved in scope and flexibility since the first satellite launch. In general, and as a statement of fundamental purpose, this paper will attempt to provide a wide and sufficiently detailed representation of what the space industry is, the dynamics of space arbitration and how its resultant economic sector functions, in order to hypothesize on the part that investment banking has to play in its growth and in the maximization of its resultant profits for all shareholders involved.”

ENSURING STABLE ECONOMIC DEVELOPMENT THROUGH THE EFFICIENT FUNCTIONING OF THE BANKING SECTOR

The article explores ways to ensure stable economic development through the efficient functioning of the banking sector. The concept of stable development and efficiency of the banking system is revealed. The key principles of macroprudential and microprudential policy are analyzed and the main advantages of each of them are determined. The tools for implementing macroprudential policy to ensure sustainable economic development are described. The peculiarities of the application of rating assessment, the role of state-owned banks and investment banking as the most optimal measures to ensure economic development are outlined. Promising digital technologies in the banking system, which have a long-term strategic nature of development, are presented. It is confirmed that the development of the country’s economy depends on many factors of the internal organization of the microeconomic environment. Among the aspects of qualitatively increasing the competitiveness of the national economy, an important component is the emphasis on the policy of strengthening the efficiency of the market sector. The infrastructure of the market and financial sector consists of instruments of financial influence, as well as additional comprehensive measures aimed at creating a multi-channel system of various institutions and institutions, a structured real financial services sector given the overall stability of the banking system. The quality and efficiency of the financial sector can be determined, in particular, by the indicators of the peculiarities of the creation of market goods and services, which create an opportunity to create market relations at optimal prices. We concluded that the last important factor for the prospect of sustainable economic development through the efficient functioning of the banking system is the use of digital technologies, because the world is rapidly transitioning from traditional to digital economy, so the banking system must be transformed into modern realities using current innovative technologies. . Keywords: stable economic development, banking system, investment banking, rating assessment, macroprudential policy. JEL Classification O16, O29, G21 Formulas: 0; fig.: 0; tabl.: 7; bibl.: 12.

Perspectives on Corporate, Social, and Employee Purpose among Investment Bankers: A Qualitative Research Study

There are increasing calls to re-establish the role and responsibility of banks towards society to repair trust and enhance financial stability. Through in-depth interviews with senior investment bankers, this study asks what bankers themselves think about the corporate (i.e. the industry’s core business), social (i.e. its moral responsibilities to wider society), and employee (i.e. bankers’ own feelings of purposefulness) purposes of the investment banking industry. Existing research tells us that there are significant reciprocal benefits to organisations, employees, and society at large when the three are aligned. The study’s findings suggest that while there have been important shifts in corporate and social purposes over time, bankers remain sceptical about their banks’ underlying motives and this has resulted in multiple disconnects. Perhaps surprising, the study finds that meaningful work that is also socially focused is something that investment bankers are seeking in some way. These insights should prompt banks to ensure that social purposes reflect and align with their corporate purposes; to move beyond rhetoric and virtue-signalling to action; and to help employees identify their contribution to it all.

ANALYSIS OF THE CONTRIBUTION OF INFORMATION TECHNOLOGY IN INVESTMENTS

This research paper is made with the view of analyzing the contributions of technology in investment sector. Furthermore it tries to answer the big questions like whether technology help to get higher returns from the investments in the stock market? or what is next in investing? or what is the role of technology in investment banking?.

ON THE REGULATION OF INVESTMENT BANKING IN RUSSIA

Analytical documents of the Bank of Russia and financial statements of large Russian banks indicate the growth in incomes from operations with securities within the gross share of revenues of commercial banks. In the world, there are cases of excessive activity of commercial banks in the security market (the Great Depression of 1929–1933 in the USA, default on state treasury bills in Russia on the 17th August 1998), which led to negative consequences for bank clients. The author analyzed peculiarities of investment transactions conducted by commercial banks in Russia. The author gives recommendations to reduce financial risks for the commercial banks’ customers and promote the attractiveness of the investment banking products. The author’s concept of regulation of banking activity in Russia consists of two directions: regulation of classical banking (income from lending operations exceeds income from operations in the securities market) and regulation of investment banking (the predominance of investment operations). The author justifies the necessity of the introduction of mandatory insurance of funds invested in equity securities of Russian issuers admitted to circulation on the Moscow Stock Exchange in the event of bankruptcy of issuers. The paper critically evaluates the recommendation of the Bank of Russia that professional participants in the securities market should not offer complex investment products to unqualified investors as this restricts the application of derivative securities for hedging financial risks. The author suggests the requirements for the equity capital of professional participants of the securities market and the methodology for calculating the equity capital separately for classical and investment banks.

A Study and Analysis of Investment Banking and Regional Development Among European Economy

Investment banks are financial intermediaries that specialize in the sale of securities and the issuance and underwriting of new shares to raise capital financing. Investment banking is a special segment of banking that assists individuals or organizations to raise capital in the main market. In the tea market, new securities are issued and act on behalf of customers, thus playing an important role in the secondary market. Investment banks undertake new debt or equity securities for all types of businesses, support the sale of securities, and facilitate mergers and acquisitions by institutional and individual investors. Investment banking organizations act as intermediaries between investors and capital markets. Investment banks are becoming important in European capital markets due to many factors including the perception of investment banks among investors and the various other functions implemented by investment banks. The research paper aims to show the role of investment banks in the current scenario. This study is descriptive in nature and uses auxiliary data. The study reveals the growth, development, function and role of investment banking in the European economy. The main objective of this investigation is to clarify how investment banks play a role in increasing a country’s resources and economic growth. It analyzes the various functions performed by investment banks. Investment banks connect the people who sell securities with their investors. Investment banks add liquidity to the market. Investment banks promote savings and investment and eliminate capital shortages. Mobilize small, scattered savings in the community so you can invest in productive businesses. He concluded that the role of investment banks in economic development is important.