A Descriptive Analysis on Effect of Corporate Governance on Investor’s Decision

Purpose: The article studies the impact of internal factors and external factors influencing an investor’s investment decision. Design/Methodology: The information for the study was obtained from secondary sources like journal papers, magazines and books. Findings: Human psychology has an internal role in investing choice, whereas corporate governance is an external influence. Corporate governance plays a major role in the investment decision-making process by revealing all elements of business information, but investors understand the information according to their own assessments and assumptions based on their psychology. As a result, a firm’s transparency hardly impacts in investment decisions, and it only works to a limited extent; the rest of the investment selection process is dominated by human behaviour. However, the firm is transparent, there is no guarantee that the investor will always act rationally when making a choice for investment. Originality/Value: Every investor should make rational decisions about their investments. Therefore, it is an investor’s responsibility to follow the information provided by the firm, although some investors fail to do so. As a result of investor psychology, investors’ investment decisions are beyond the reach of business transparency. The study implies that a behavioural survey will be useful in determining the factor influencing investors’ investing decisions. Type of Paper: Conceptual Paper

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

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.

Toward Agricultural Intersectionality? Farm Intergenerational Transfer at the Fringe. A Comparative Analysis of the Urban-Influenced Ontario's Greenbelt, Canada and Toulouse InterSCoT, France

Peri-urban agriculture can foster the resilience of metropolitan areas through the provision of local food and other multifunctional agricultural amenities and externalities. However, in peri-urban areas, farming is characterized by strong social uncertainties, which slow the intergenerational transfer of farm operations. In this article, we tackle the beliefs that underlie farmers' decision-making to identify planning opportunities that may support farm intergenerational transfers. The design of an institutionalist conceptual framework based on Keynesian uncertainty and Commonsian Futurity aims to analyze farmers' beliefs associated with farm intergenerational transfer dynamics. The dataset of this comparative analysis includes 41 interviews with farmers involved in animal, cash-crop, and horticulture farming in the urban-influenced Ontario's Greenbelt, Canada, and Toulouse InterSCoT, France, during which farmers designed a mental model of their investment decision-making. The results highlight the dominance of a capital-intensive farm model framed by a money-land-market nexus that slows farm structural change. The subsequent access inequalities, which are based on characteristics of farmers and their farm projects, support the idea of the existence of an agricultural intersectionality. The results also highlight the positive role of the institutional context; when farmers' beliefs are well-aligned with the beliefs that shape their institutional environment, the frictions that slow farm structural change in peri-urban areas are moderated by a shared vision of the future.

How to de-bias investment judgements–unpacking bias and possible remedies in a capital investment context

PurposeResearch on biases in investment decision-making is indubitably important; however, studies in this context are relatively scarce. Unpacking bias has received attention in the psychological literature yet very little attention from management accounting research. This bias suggests that the perceived probability that an event will occur generally increases when the event's description is unpacked into a disjunction of subevents. The authors hypothesize that for a capital investment decision context, managers' judgement of the probability of a future event depends on whether the event is described as one packed event or is unpacked into several disjoint subevents. Additionally, the authors propose that altering the format of the description of an event's occurrence from percentage values to relative frequencies reduces unpacking bias.Design/methodology/approachTo test the study’s hypotheses, the authors conducted two experiments based on a 3 × 2 mixed experimental design in which manager participants were asked to estimate the failure probabilities of technical systems in the context of an investment decision.FindingsThe authors provide evidence that unpacking bias occurs in an investment scenario, which can be characterized as a high-stakes decision context. Changing the format in which probabilities are presented from percentage values to relative frequencies significantly reduces the bias.Research limitations/implicationsAdditional instructions did not further reduce unpacking bias.Practical implicationsFor investment decisions under uncertainty, performance indicators in management templates should be presented in relative frequencies to improve managerial decision-making. The fact that the authors could not show an additional effect of instructions in management accounting reports indicates that it is challenging for management accountants to reduce the biased decision-making of managers by “teaching” them through the provision of instructions.Originality/valueThe authors contribute to accounting research by illustrating unpacking bias and by deriving a debiasing mechanism in a capital investment decision context.

Stock Investment Decision: The Effects of Personal Factors and Moderating Role of Years of Service

This paper aims to elaborate stock investment decision and to examine the impact of five influential factors as independent variables and the influence of years of investment as mediating variable. This paper is based on empirical study which involved 286 individual investors in Indonesia Stock Exchange using data from Riri et.al (2020). Structural equation modelling approach was used for estimating relationship between influential factors (e.g., personal financial needs, overconfidence, advocate recommendation, social relevance, and self or firm image) on stock investment decisions. The result found that decision on stock investment is determined by social relevance, overconfidence, personal financial need, and advocate recommendation significantly and positively. Years of Investment has played moderating role on relationship between for advocate recommendation and personal with stock investment decisions. Years of Investment is moderating variable to become a novelty this paper.

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

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.

An optimal Islamic investment decision in two-region economy: The case of Indonesia and Malaysia

In this work, the possibility of cross-border activities between two regions in the framework of the investment contract is viewed as optimal allocation problems. The problems of determining the optimal proportion of funds to be invested in liquidity and technology are analyzed in two different environments. In the first case, we consider a two-region and two-technology economy in which both regions possess the same productive technology or project, but a different stream of return. While in the second case, we examine an economy where two regions (i.e., Indonesia and Malaysia) hold different Islamic productive projects with identical returns. Allocation models are formulated in terms of investors’ expected utility maximization problem under budget constraints with respect to regional and sectoral shocks. It is revealed that optimal parameters for liquidity ratio, technological investment profile, and bank repayment are analytically characterized by the return of a more productive project and the proportion of impatient and patient investors in the region. Even though both cases employ different assumptions, they provide the same expressions of optimal parameters. The model suggests that cross-border Islamic investment activities between two regions might be realized, provided both regions hold productive projects with an identical stream of return. This paper also shows that by increasing the lower return of the project approaching the higher return, a room for inter-region investment can be created. An analytical framework of an investment contract in terms of optimal allocation model is provided.