Social Environment and Healthy Investment Behavior: Joint Influence of Culture and Institution on China

The influence of the social environment on healthy investment behavior is a vital research topic. This paper focuses on foreign direct investment (FDI) as an important part of its broad impact in improving the level of capital circulation and diversifying the non-systemic risk of a single country portfolio. Using data from 35 countries on direct investment in China, we find that the impact of the social environment on healthy investment behavior is mainly reflected in investors’ resistance to cultural distance and their benefit compensation across institutional distance. In addition, their joint influence is still negative, dominated by cultural distance, which can still verify that institutional distance mitigates the negative effect of cultural distance on FDI. Therefore, in order to promote international healthy investment behavior, it is feasible to improve both the mitigation effect of the institution in the short term and promote the level of cultural exchange in the long term, according to the research results of this paper.

SYSTEMATIZATION OF FACTORS AND CRITERIA OF INVESTMENT ATTRACTIVENESS

In conditions when own resources are limited, enterprises need cash receipts from investors, which will serve as a necessary complement to their own funds. For this reason, at the present stage, the relevance of scientific research and practical development in the field of research of investment attractiveness of enterprises is increasing. However, the issue of assessing the investment attractiveness of an enterprise has not yet been fully considered; there is no single theoretical and methodological base, which is due to the lack of an accurate interpretation of the term "investment attractiveness of an enterprise" itself, as well as the methodology and methodology for its assessment. Thus, the relevance of the study is due to the need to analyze and systematize existing approaches to the study of investment attractiveness of enterprises. In economic studies, investment attractiveness is understood as a complex indicator characterizing the feasibility of investing in an economic entity. The investment attractiveness of the enterprise depends both on external factors characterizing the level of development of the industry and the region in which the enterprise in question is located, and on internal factors - the results of the enterprise itself. Thus, an assessment of the investment attractiveness of an enterprise can be carried out by various methods aimed at identifying positive and negative factors of influence. The investment attractiveness of the enterprise is characterized by a set of indicators of its activity, which determines for the investor the area of the desired values of investment behavior. Investment attractiveness has a number of basic aspects: scientific, technical, commercial, environmental, institutional, social, financial and investment. The conclusions presented in the scientific article are the initial stage in the study of this topic.

Analysis of Pre-existing Investment Behavior and Influence of Trading Apps

The last few years have seen a rise in trading apps, and Robinhood is one trading app that has attracted millennials. This paper explores trading apps such as Robinhood and their role in providing financial inclusion and safe trading opportunities. This paper discusses investment behavior in the status quo, explaining overconfidence, sociability, and the disposition effect. Investment behavior can include the behavioral biases and common notions investors utilize for trading. Furthermore, this paper assesses the design and business model of Robinhood. Five expert investors were interviewed (such as a professor and other MBA graduates from Wharton School of Business, financial experts from private equity firms in the US and Mexico, and a JP Morgan investment banking professional), and five casual investors were interviewed to understand their opinions on investment behavior, certain trading apps, common criticisms of stock trading, and solutions to these concerns. The findings led to the conclusion that investment behavior is harmful in the status quo. Results did indicate that Robinhood does promote at least some dangerous behavior through excessive active trading and is one example of a problematic trading app through the 4th Industrial Revolution, but trading apps can only amplify behavioral biases most retail investors already display.

How Power Influences Decision-Makers’ Investment Behavior in the Domains of Loss and Gain

We present a study (N = 645) investigating how power alters people’s propensity to take investment risks in a changing decision context of gains and losses and the intensity of their reactions to this experience. The results indicate that people in a state of power made more risky investment decisions than the control group regardless of prior gain or loss outcome, whereas people lacking power took less investment risk than the control group, regardless of previous outcomes. Moreover, people with power and those lacking power differed in their reactions to gains and losses, with the former reacting more to gains and the latter to losses.

Wealthy Private Investors and Socially Responsible Investing: The Influence of Reference Groups

Sustainable development requires a shift from traditionally invested assets to socially responsible investing (SRI), bringing together financial profits and social welfare. Private high-net-worth individuals (HNWIs) are critical for this shift as they control nearly half of global wealth. While we know little about HNWIs’ investment behavior, reference group theory suggests that their SRI engagement is influenced by their identification with and comparison to reference groups. We thus ask: how do reference groups influence the investment behavior of SRI-oriented HNWIs? To answer this question, we analyzed a unique qualitative data set of 55 semi-structured interviews with SRI-oriented HNWIs and industry experts. Our qualitative research found that, on the one hand, the family serves as a normative reference group that upholds the economic profit motive and directly shapes HNWIs to make financial gains from their investments at the expense of social welfare. On the other hand, fellow SRI-oriented HNWIs serve as a comparative reference group that does not impose any concrete requirements on social welfare performance, indirectly influencing SRI-oriented HNWIs to subordinate social concerns to financial profits. Our scholarly insights contribute to the SRI literature, reference group theory, and practice.

Effect of covid-19 on financial markets: Evidence from Pakistan, India and Italy

The novel corona virus called as covid-19 spread worldwide affecting the health and economic status of countries all over the globe. The major aim of this study was to analyze the stock prices during the covid-19 pandemic. The sample of the study is taken from 15 May to 15 June 2020, stock prices as well as the covid-19 confirmed cases of three countries Pakistan, India and Italy. This study has both practical and theoretical implications. Investment behavior, efficient market hypothesis and the prediction of stock prices during the anticipated 2nd wave of covid-19 are some of the main points this study has covered. Further study is needed to examine pre, mid and post lockdown impact on stock prices. This study applied simple regression model to examine the impact of covid-19 on financial markets from 15 May to 15 June 2020 in Pakistan, India & Italy. The study findings were intriguing. The study findings indicate that there is positive significant relation among these variables (Positive cases and stock prices) on that period of time (15 May to 15 June 2020 in Pakistan, India & Italy). This research suggests that covid-19 confirmed positive cases had significant impact on financial markets during 15 May to 15 June 2020 on these three stock indices of Pakistan, India and Italy (KSE-100, SENSEX & FTSE Italia).