Robo-Advising Risk Profiling through Content Analysis for Sustainable Development in the Hong Kong Financial Market

Nowadays, we mainly depend on financial consultants or advisors to conduct risk assessments for individual investors before providing them with any investment advice or recommendations. Individual investors should understand the risk level of their investment choices and their investment decisions should match their risk profile. This process is usually conducted in face-to-face meetings. However, during the recent coronavirus disease 2019 pandemic, which has seriously impacted daily life with social distancing, in order to maintain sustainability, contact-free advising, such as robo-advising, becomes more important. The aim of this paper was to assess customers’ risk in regards to investment and identify important risk factors needed to profile individual risk preferences, in order to prepare for robo-advising. Inductive content analysis is applied to classify 180 questions from 20 risk assessment questionnaires, sourced from banks and investment service providers, into different types. Then, the number of types is reduced by collapsing similar areas into broader higher order categories (the important risk factors). This paper also makes specific recommendations for the implementation of risk profiling in robo-advising.

A comparative analysis of Islamic unit trust portfolio using value at risk methodologies

Islamic unit trust is a sunrise industry in the Malaysian capital market over the last decades to fulfill the demand from its Muslim investors. Muslim investors are only willing to invest their capital if the investment does not conflict with their religious beliefs, namely Islam. Previously, most of the studies focused to evaluate the performance of unit trust funds relative to the market as a whole. Meanwhile, it is also important for investors to accurately measure their downside risk because it is closely related to their future losses. Thus, Value at Risk (VaR) concept was introduced to calculate monthly risk for an Islamic unit trust portfolio using the three standard approaches which are Delta Normal, Historical Simulation and Monte Carlo Simulation. Results show that Monte Carlo Simulation is the best method to quantify risk exposure as the average Mean Absolute Percentage Error (MAPE) is the lowest compared to the other two methods. The findings also highlight the importance of embedding risk into investment analyses and provide insights to investors who are considering Shariah-compliant equity funds as a potential income-generating instrument. Therefore, financial consultants or fund managers can make informed decisions in setting up a well-diversified unit trust fund’s portfolio for their Muslim investors by applying the concept of VaR and its methodologies.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI LITERASI KEUANGAN

This study is entitled Analysis Of Factors Affecting Financial Literation, Case Study Of As-Syafi’iyah Islamic University, Faculty Of Economics And Business Students, 2020. This study aims to determine the Factors Affecting Student Financial Literacy, these factors include gender, GPA, income of parents and work experience. The population in this study is the active students of the Faculty of Economics and Business of the As-Syafi’iyah Islamic University semester 4 to semester 8, probability sampling techniques, the number of samples used slovin formula. This study uses 232 questionnaires through Google form. The instrument test uses the validity and reliability test. The analytical method used is descriptive statistics, the classic assumption test, the multiple regression test, the multiple correlation coefficient of determination test and the T Test. The test results show that 1). Gender has a positive and significant effect on financial literacy 2). GPA has a positive and significant effect on financial literacy 3). Parents’ income has a positive and significant effect on financial literacy 4). Work Experience has a positive and significant effect on financial literacy. The suggestions from researchers Students can attend various financial literacy seminars, and can utilize social media to follow (follow) various social media accounts of financial institutions or financial consultants and for further researchers can also complement financial literacy variables by looking at their effects on financial attitudes and financial behavior.

IS FUTURE A RULE OF DIGITAL CURRENCY???

Digital Currency (DC) is a form of currency that is available in digital or electronic form and not in physical form. Digitalization has remodeled money and payments systems. Although digital money itself is not new to modern economies, digital currencies now facilitate spontaneous peer-to-peer transfers of value in a way that was formerly impossible. Digital currency has already materialized in a variety of contexts. Digital Currency is an extent put away in a dispersed database on the Internet. This study is toted with the objective to highlight the concept of digital currency, its various forms, evolution and growth, global impact, impact during COVID-19 and the future of digital currency. This is an historical descriptive study which flashes the opinions given by distinctive researchers and disparate financial consultants and central banks.

Financial Reporting and Shareholders’ Crave for Investment in Nigerian Listed Companies: The Earnings Management Question

This study examined the extent to which earnings management could be a factor in the higher value of stock in the Nigerian capital market, thereby being an inducement to invest in companies listed in the Nigerian Stock Exchange. The contemporary viewpoint of financial consultants, firm of auditors and academicians about the subject matter was sought. Interviews were granted, in conjunction with secondary data from the Security and Exchange Commission and the Nigerian Stock Exchange. A comprehensive research design which was garnished by the use of content analysis of relevant literature and theories was adopted. The findings of previous empirical studies were corroborated in the analysis from discussions with accounting professionals in the academia and audit firms. It was concluded that most investments in quoted companies are made as a result of earnings management mechanisms inherent in financial reports. It was recommended that the Financial Reporting Council of Nigeria and every stakeholder should act to ensure that corporate governance practice is actually achieved for sound financial reporting practice.

Do Investors’ Exhibit Cognitive Biases: Evidence From Indian Equity Market

The current article examines the influence of cognitive biases on the process of decision making among equity investors of India. The research is being directed by conducting a survey on a sample of 400 investors investing in Indian capital market. This study measures behavioural biases of individual investors' using a structured questionnaire as a research instrument of the study. By means of cross section data analysis, this analysis steadily provides evidence that behavioural biases adversely affect rational decision-making of an investor. This research indicates that a statistically significant relationship exists between behavioural biases among investors and the process of rational decision-making. The findings of the study are imperative to investors investing Indian capital market, brokers, financial consultants and investment advisors; responsible for managing assets and constructing portfolios for investment clients, as they can alter the investment decision by accessing the susceptibility of investors towards cognitive biases, which often lead to erroneous decision.

PREPARING THE ASEAN ECONOMIC COMMUNITY (MEA) WITH THE DEVELOPMENT STRATEGY OF SMALL AND MEDIUM ENTERPRISES (UMKM) TO GET BUSINESS CREDIT IN KELURAHAN CIBADUYUT BANDUNG

From the results of interviews and preliminary observations that the development of Small and Medium Enterprises is essentially a shared responsibility between the government and society. In order to support the empowerment and development of Micro, Small and Medium Enterprises, especially in encouraging the distribution of credit to Micro, Small and Medium Enterprises in Cibaduyut Urban Village, for the development of Micro, Small and Medium Enterprises in Cibaduyut Village, Bandung, the strategies included in the first Bank Partner Financial Consultants in fostering and mentoring Micro Small Enterprises and Medium prospects who apply for business loans; second, socializing profit sharing or venture capital financing; third Increasing the participation of credit guarantee institutions for Micro, Small and Medium Enterprises and prospects who are faced with collateral requirements. It is expected that with the implementation of the above strategies, Micro, Small and Medium Enterprises will no longer experience difficulties in the submission of business capital loans from Credit Distribution Agencies. From each solution above, it is building and mentoring Micro and Small and Medium Enterprises, prospects who will apply for business loans. The results of the study showed that the community in the Cibaduyut Village with the optimization of the role of the Bank Partner Financial Consultant (KKMB), the requirements and procedures established by the credit channeling institutions, were no longer an obstacle for Micro and Small Businesses in obtaining business capital loans. The success of this approach will be seen from the increasing number of bankable Micro, Small and Medium Enterprises and obtaining business capital loans, and having a Bank Partner Financial Consultant (KKMB) operating on a business (mutually beneficial) basis so that it can finance itself.

Saving and Investment Pattern: Assessment and Prospects

Relevance: This study is conducted to look into the investor rationality by examining the pattern of saving and investment in the city of Jammu situated in Jammu and Kashmir, India. Research Objective: The objective of this study is to see the association of saving and income; reasons for saving; and preferences of investors for different investment instruments through administering the structured questionnaire. Methodology: Respondents are conveniently selected based on judgment. One -Way ANOVA, ANCOVA, and MANOVA are used to identify and understand the patterns of saving and investment and underlying triggers for the same. Findings: A relationship between saving and income is found, after controlling for the effects of variables, namely, age, gender, and occupation. Likewise, the impact of gender on financial literacy and awareness is found. This study also finds that people prefer safe and liquid investments with tax benefits, higher returns, and fewer lock-in-periods. Implications: The outcome will help financial consultants and investment managers to know more about the psyche and the level of financial literacy of people, and thus to help them in their objective of garnering funds and invest at a significant level and, finally helping in the capital formation.

The impact of demonetization on Indian firms’ performance: does company’s age make a difference?

The main aim of this paper is to evaluate the impact of demonetization on Indian firm’s quarterly financial performance before and after demonetization period (March-December, 2017), and to find out if companies’ age helps to face financial disruption. Four variables, which are net sales, total income, net profit after tax, and earnings per share, were taken as proxies for analyzing the quarterly financial performance of 2,892 companies listed on Bombay Stock Exchange (BSE), National Stock Exchange (NSE), and Calcutta Stock Exchange (CSE). Nonparametric test, particularly Wilcoxon Matched-Pairs Signed Rank Test and Kruskal-Wallis one-way analysis of variance, were applied in analyzing the data. Results reveal that there is a statistically significant difference between the financial performance before and after demonetization at 5% level of significance. It was also found that the decrease/increase in the financial performance of all the firms was affected by the demonetization process, irrespective of their ages. The findings could be useful for financial managers and financial consultants, as they would be able to focus on the issues that matter most at the time of financial disruption.

Adoption of International Financial Reporting Standard in Nigerian: The Good, the Bad and the Ugly

This paper examines the mandatory adoption of IFRS in Nigeria that started since January, 2012; and how far the Nigerian government via the Financial Reporting Council has gone in the transition of Nigerian local GAAP (SAS) to International GAAP (IFRS).The study examined and identified the benefits that Nigeria and Nigerians gained so far as a result of convergence into IFRS; the bottlenecks that paralyze the full percentage of the transition as well examined the techniques taken by Nigeria in making sure a smooth, successful and amicable implementation of the three stages of convergence.In the course of this study the study observed vividly that Nigeria has gained a lot from the convergence because most of its local financial expertise are now turned into International expertise as well as International financial consultants, thus, convergence has increase the level of employment in the country.The main drawbacks of the transition is amendments of Nigerian tax laws, because tax laws are among the most complicated laws in accounting arena; weak compliance and enforcement mechanisms by Financial Reporting Council. As a manner of recommendation, for Nigerian government to gain more from dividend of convergence there is need to increase the time period for the on-going transition because implementation of certain requirements of International Standards like IFRS successfully should be in a gradual and careful process not just three years, because convergence to IFRS is not just an Accounting and Taxation exercises but a total and complete transition that requires every stakeholders concerned to learn a new technical language as well as new modes of working with a new standard.