This Thing of Social Media!

This chapter is about social media and its networking platforms and how they can run or develop a business in the financial sector. As a platform economy, this sector ranges from shadow banks such as mutual funds, leasing companies, brokers, and credit insurance companies to other money market mutual funds. Nevertheless, recent studies in this sector have only focused on the money market, thus creating a vacuum of how social media can run or develop the banking sector through this platform. The social media platform has transformed drastically from being a place for just interaction to buying and selling, forcing many businesses to register on one or two of these media to take advantage of the ever-growing market potentials they offer. However, it also comes with its challenges. This chapter highlights how to manage this medium for a successful business. The study collected data online from bank clients who ever used this platform to transact financial business.

Conventional Versus Sharia Money Market Mutual Funds: Which Performs Better During the Covid-19 Pandemic?

This study aims to determine whether conventional money market mutual funds perform better than sharia money market mutual funds or vice versa during the COVID-19 pandemic in Indonesia. This research method is descriptive with a quantitative comparison approach. This study employed secondary data obtained from IDX, Indonesian Bank, and Pasar Dana website. The research employed the money market mutual funds data, Net Asset Value, BI 7 Days Repo rate during year 2020. Sharpe ratio utilized in this research to determine the money market mutual funds performance. Then, the result compared by using Independent sample T-test on SPSS. The result uncovers that in general the performance of conventional money market mutual funds performance superior the sharia money market mutual funds performance during covid-19 in Indonesia. However, both mutual funds average Sharpe ratio show the negative number during 2020. Moreover, there are no significant difference between conventional and sharia money market mutual funds returns during the period 2020. The high different return on the maximum return due to some conventional mutual fund perform exceptional during 2020.

MOTIVASI INVESTASI, FINANCIAL LITERACY, DAN PERSEPSI RESIKO PENGARUHNYA TERHADAP MINAT BERINVESTASI DI PASAR MODAL

Indonesia is one of the countries where financially most of the population continues to make short-term investments or save. If you look at the difference with some very developed countries, the investment is in the long term or investment. The existence of public understanding of financial management so that people are able to set aside a portion of the income earned in conducting investment activities. At present, there are many financial effects that exist both in the money market and in the capital market, for example in the money market such as savings and time deposits, while in the capital market there are securities such as bonds and shares from various companies or government owned. This study aims to determine investment motivation, financial literacy and risk perception of its influence on public investment interest in the capital market in Batam City. The population in this study is the sub-district of Sagulung, with 204 respondents as the sample in this study. The respondents in this study are people who are interested in investing in the capital market. The sampling technique used is purposive sampling. The analysis method used is SEM with the SmartPLS application. The results show that investment motivation has a positive and significant effect on investment interest, financial literacy has a positive and significant effect on investment interest, risk perception has a positive and significant effect on investment interest in Batam city

A Study on Investor’s Attitude Towards SBI and HDFC Mutual Fund in Coimbatore City

A Mutual Fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

The impact of the excess reserves of the banking sector on interest rates and money supply in Poland

In this monograph we aim to analyse the effects of leaving excess reserves in the banking sector by the central bank on the level and the variability of interest rates, as well as on money supply. To this end, we use mainly data for Poland, but in some cases, for robustness, also for a panel of Poland, the euro area, the Czech Republic and Hungary, as there had only been a limited variability in some policy variables in our sample for Poland. We estimate the parameters of GARCH, (P)VAR (vector autoregressive or panel vector autoregressive) and (panel) linear regression models. We find that excess reserves affect the level and the variability of an overnight money market interest rate. However, the variability of the overnight money market interest rate, shaped to a large extent by excess reserves, does not affect the level of longer-term interest rates, and we find little evidence of its impact on their variability. Neither do excess reserves translate into higher money supply. Our results imply that the current monetary policy operational framework in Poland is adequate to ensure the transmission of the central bank policy rate to money market interest rates. Furthermore, it appears unlikely that raising the amount of excess reserves left, as proposed by some policymakers, would affect money supply. Instead, it would lower the money multiplier and the overnight money market interest rate, as well as increase its volatility.

Analysis of the impact of central bank communications on money market indicators

Press releases on monetary policy play an important role in the communication policy of the central bank. These press releases explain key rate decisions and provide signals about the future direction of the central bank’s monetary policy. Information signals can influence the expectations of financial market participants and increase the predictability and effectiveness of monetary policy. There are not enough research papers dedicated to the text analysis of the Bank of Russia press releases and the assessment of information signals. Hence, this article examines the impact of information signals about monetary policy on the money market rate, term and credit spreads. First, we estimate latent Dirichlet allocation to determine the topics of information signals. Second, we use sentiment analysis to construct signals about easing or tightening of the monetary policy. Third, the impact of signals about the future monetary policy on the money market indicators is assessed using the exponential GARCH model. Empirical research has shown that signals of future monetary policy easing are associated with lower money market rates and term spreads, and an increase in the credit spread. The result proved to be resistant to various ways of vectorizing the text of press releases. The article was prepared as a part of the state assignment research of Russian Presidential Academy of National Economy and Public Administration.

Investment appraisal: Akwaaba university hostel projectInvestment appraisal: Akwaaba university hostel project

Learning outcomes After completing this case, students should be able to: identify and compute relevant cash flows in relation to a real estate project and compute the net present value (NPV). Determine the target return or cost of capital (by looking at historical economic indicators). Design or formulate a sensitivity analysis to determine the drivers of the project value. Evaluate real estate and other investments taking qualitative and quantitative factors into consideration. Demonstrate the computation of a break-even rate to determine the minimum or maximum revenue or cost required for a project to be viable. Case overview/synopsis This case study is about the Golden Beak Securities Pension Fund that wanted to invest in a Hostel Project in one of the universities in Ghana. Most universities in Ghana faced an acute shortage of on-campus accommodation. Also, the Government of Ghana, in 2017, implemented a programme to make Senior High School in Ghana free. This was expected to increase the number of students who will enter the existing universities. The project was therefore seen as strategic, as it would help ease the pressure of on-campus accommodation while providing diversification for the pension fund. As part of the investment committee’s (IC) quest to improve the skill set available to it, especially in relation to real estate investments, Esi Abebrese was appointed as one of the members of the IC of GSB. Her main task was to collect information on key macroeconomic variables, as well as granular information on project costs and revenues and conduct investment appraisal. Esi was scheduled to make a presentation to the IC on the 15th of October 2019 following which the Committee will debate and make a decision. The project had an estimated cost of GH¢52m with a total number of 3,424 student beds and ancillary facilities. Undertaking the project required moving funds from investments in money market securities with one of the banks in Ghana. The investments in the money market securities were currently yielding about 16% a year. The determination of the cost of capital was critical and Esi and Nana eventually settled on a long-term weighted average cost of capital of 14%. This was after considering the trend of inflation, monetary policy rates, treasury rates, stock market returns and a report on returns on commercial real estate properties in Ghana. An exit capitalisation rate of 20% was also estimated for the purposes of determining the value of the property at the end of the investment horizon. Esi also obtained estimates of cost and revenue for the project and proceeded to carry out a feasibility analysis on the project. This consisted of an NPV analysis and sensitivity analysis on various factors to determine the drivers of the project value. The IC had to take several factors (both quantitative and qualitative) into consideration before making a decision. Esi believed that these factors included the diversification of the fund’s assets, the return on investment, potential oversupply of hostel accommodation, the social responsibility of providing student accommodation and the impact of any prolonged shutdown of the university. Complexity academic level Masters/advanced undergraduate. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 1: Accounting and Finance.