Short and/or long-term investment choice: Artificial intelligence analysis of the role of both or-ganizational and behavioral determinants

This paper shows empirically the impact of organizational and behavioral determinants on the CEO's investment horizon choice, using artificial intelligence explanatory methods. We apply our approach to 100 Saudi firms. We test the effect of three organizational determinants: ownership concentration, board independence, and CEO remuneration system; and three behavioral determinants: myopia, the locus of control and commitment, on the CEO's investment horizon choice. The study’s key finding is that executives' commitment bias is the most important variable in terms of modal value that affects firms' long-term investment choice. We also find a positive and significant relationship between myopia and long-term investment choice, whereas the lowliest determinant of the horizon choice is the locus of control. More generally, these results show that CEOs who are likely to be the most myopic may display long-term behavior with the existence of high cognitive involvement.

Strategi UMKM dalam meningkatkan pendapatan dimasa pandemi Covid-19 guna mempertahankan kelangsungan usaha di era revolusi industri 4.0 (studi pada UMKM makanan dan minuman di Kabupaten Pasuruan)

The purpose of this research is to find a strategy to increase MSME income during the COVID-19 pandemic to maintain business continuity in the era of the Industrial Revolution 4.0. The general goal is to increase the knowledge of MSME actors during the COVID-19 pandemic and increase the income of small and medium enterprises (MSMEs) for business continuity in Pasuruan Regency in the era of the Industrial Revolution 4.0. The method used in this study is a qualitative method using descriptive techniques, such as data reduction, data presentation, and concluding SWOT analysis. Informants in this survey are the Office of Cooperatives and Micro Enterprises and SMEs in Pasuruan Regency. The results showed that the Matrix Internal Factors (IFAS) and External Factors (EFAS) showed that MSMEs in the food and beverage business were located in cell V in identification, segment growth, investment choice, and specialization. The strategy that micro food and beverage businesses must be carried out in Pasuruan Regency to increase income to maintain their business in the face of the 4.0 industrial revolution. During the covid 19 pandemic, namely, on Strength Opportunity (SO), strategies used strength to take advantage of external opportunities were created.

Organization of Interaction Between Participants in the Investment Process on the Basis of a systematic Justification of Multi-criteria choice

The implementation of investment projects in Russia is associated with a lot of different problems caused by non-financial factors. The high degree of uncertainty of the investment situation, the lack of awareness and subjectivity of the decision-makers on the investment choice, the unreasonableness of the selection criteria, as well as the difficulties in the interaction of actors are due to the lack of systematic mechanisms for managing the investment process in the Russian economy as a whole. Together, they form a fairly voluminous complex of related problems. The article is devoted to the study of these problems and ways to solve them. It focuses on the mutual influence of the organization of interaction between participants in the investment process and investment choice procedures.Purpose: to develop proposals for the formation of mechanisms for interaction between stakeholders to ensure a systematic justification of the investment choice.Methods: in the preparation of this article, the methodology of applied system analysis and modeling is implemented, decision-making methods are used, including the Analytical Hierarchy Process.Results: the importance of the pre-investment stage of the investment process as the stage that generates most of the problems of stakeholders is argued. The approach to building system mechanisms of interaction of participants of the investment process at the pre-investment stage is justified. The schemes of such interaction and procedures for making investment decisions are proposed within the framework of the constructed modified model of multi-criteria investment choice. The formation of systemic mechanisms of interaction between participants in the investment process is carried out based on the need for a systematic justification of the multi-criteria choice of an investment project, taking into account the interests of all interested parties. The proposed methodology was developed through the development and modification of the Analytical Hierarchy Process by T. Saati and is aimed at improving the organization of the investment process and the implementation of investment choice based on generalized criteria of satisfaction, efficiency and effectiveness.Сonclusions and Relevance: the formation of system mechanisms of interaction of participants in the investment process at the pre-investment stage was carried out by developing a set of procedures that accompany the process of justifying a multi-criteria investment choice to achieve satisfaction, efficiency and effectiveness of the activities of all actors. The formation of system mechanisms of interaction of participants in the investment process allows to coordinate their interests, opportunities and limitations of the participants' activities, as well as to give the investment process purposefulness and manageability.

A DC Scheme to Maximize the Benefits of the Public Sector Employees Based on Behavioral Finance

This paper introduces DB and DC pension plans, reviews the literature of DC pension plans, and puts forward three application strategies: automatic registration default contribution rate and annual automatic growth contribution rate, the risk tolerance level of different employees was evaluated by questionnaire survey, and individual investment choice of employees with different risk tolerance.

University Students’ Preferences about Savings and Investments at Individual and National level in the 21st Century: The Case of Turkey

This paper aims to capture the favored both national and individual saving and investment perceptions of the Turkish youth. Also, the research contributes to the understanding of the common preferences of the youth and focuses on perceptions over their home country’s saving-investment decisions. We reason, it is important to evaluate views of the youth on national savings and investments as they will be both the decision-makers determining the economic and social policies of the near future and the ones that are directly impacted by these policies implemented today. For this purpose, a questionnaire is applied to randomly selected 550 university students in Turkey and the results are analyzed by the chi-square test. Accordingly, students have mostly preferred that investments should be primarily made to the education sector at national level while investment made for the social security system is placed on the last rank. In addition, education is the most important individual investment choice of participants. On the other hand, information technologies, energy, and agriculture are identified as the most significant investment areas, which could be potentially increased the global competitiveness of their home country. Another important outcome of this research is that students prefer to invest their individual savings in gold and real estate investments, respectively.

Investment Choice with Managerial Incentive Schemes

In this paper, we show that firms might get an additional strategic benefit from using marginal-cost-reducing investments in conjunction with strategic delegation. While both these instruments allow firms to “aggressively” participate in product market competition, we show that they act as substitutes or complements depending on whether they are chosen simultaneously or sequentially. Given that the use of such instruments is inseparably linked with a Prisoner’s Dilemma kind of situation, our analysis shows a way to mitigate at least to some extent such effects, through their simultaneous use. We find that the unique Nash equilibrium of the game with commitment comprises both players choosing the instruments simultaneously. In case the instruments are chosen without commitment, an asymmetric equilibrium is shown to exist in addition to the simultaneous protocol, yielding unequal payoffs.