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1 – 10 of over 45000Xiaoling Wu, Yichen Peng, Xiaofeng Liu and Jing Zhou
The purpose of this paper is to analyze the effects of private investor's fair preference on the governmental compensation mechanism based on the uncertainty of income for the…
Abstract
Purpose
The purpose of this paper is to analyze the effects of private investor's fair preference on the governmental compensation mechanism based on the uncertainty of income for the public-private-partnership (PPP) project.
Design/methodology/approach
Based on the governmental dilemma for the compensation of PPP project, a generalized compensation contract is designed by the combination of compensation before the event and compensation after the event. Then the private investor's claimed concession profit is taken as its fair reference point according to the idea of the BO model, and its fair utility function is established by improving the FS model. Thus the master-slave counter measure game is applied to conduct the behavior modeling for the governmental compensation contract design.
Findings
By analyzing the model given in this paper, some conclusions are obtained. First, the governmental optimal compensation contract is fair incentive for the private investor. Second, the private fair preference is not intuitively positive or negative related to the social efficiency of compensation. Only under some given conditions, the correlation will show the consistent effect. Third, the private fair behavior’s impact on the efficiency of compensation will become lower and lower as the social cost of compensation reduces. Fourth, the governmental effective compensation scheme should be carried out based on the different comparison scene of the private claimed portfolio profit and the expected revenue for the project.
Originality/value
This study analyzes the effects of private investor's fair preference on the validity of governmental generalized compensation contract of the PPP project for the first time; and the governmental generalized compensation contract designed in this study is a pioneering and exploratory attempt.
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Shalini Kalra Sahi, Nand Dhameja and Ashok Pratap Arora
The purpose of this paper is to illustrate the use of a post hoc predictive segmentation procedure to find out the variables that are the most important predictors of investor's…
Abstract
Purpose
The purpose of this paper is to illustrate the use of a post hoc predictive segmentation procedure to find out the variables that are the most important predictors of investor's preference for specific financial investment products.
Design/methodology/approach
The study considers various demographic, socio‐economic and psychographic variables for the purpose of understanding the investor's preferences. Using a sample of individual investors (n=377), a classification and regression tree (CART) methodology was used to determine whether psychographic variables were better predictors than demographic and socio‐economic variables for understanding an individual investor's preference for the investment alternatives.
Findings
The results showed that psychographic variables emerged as the most important predictors in the case of investment products with greater degree of risk, and the demographic and socio‐economic variables emerged as the most important for the investment instruments with lesser degree of risk. However, when the sample was divided based on occupation profile (government and non‐government), for both the fixed returns based instruments and the non‐fixed instruments, psychographic variables emerged as the most important predictors.
Practical implications
These results show the need for financial service providers to consider the psychographic variables along with demographic and socio‐economic variables, so as to better understand and advise the financial consumers. This would enable the financial service institutions to target their audience more sharply, so as to develop appropriate marketing strategies and further build the investor's trust.
Originality/value
This paper is a first of its kind to empirically identify the most important variable that determines the financial consumer's preference for investment products in India, using CART technique. This study contributes to furthering the understanding of investor behavior.
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Sangeeta Arora and Kanika Marwaha
The paper, an exploratory attempt, aims to analyze the perception of individual investors of stock market of Punjab towards investing in stocks vis-à-vis fixed deposits. For the…
Abstract
Purpose
The paper, an exploratory attempt, aims to analyze the perception of individual investors of stock market of Punjab towards investing in stocks vis-à-vis fixed deposits. For the purpose, the most and least influencing variables affecting the decisions of individual stock investors to invest in stocks and fixed deposits were gauged and the comparison for such variables influencing their preferences was conducted.
Design/methodology/approach
A pre-tested, well-structured questionnaire which was administered personally and the responses of 241 respondents were analyzed. The responses have been analyzed with the help of weighted average scores method used to identify the most and least influencing variables and paired sample t-test is applied to the data to identify if there exists any significant difference in the variables influencing the investment preferences for stocks (high-risk investment) vis-à-vis fixed deposits (low- and medium-risk investment).
Findings
High returns was found as the most important variable while investing in stocks and stability of income as the most important variable while investing in fixed deposits. Religious reason is the only variable found as the least influencing variable for individual investors in Punjab while investing in both avenues, i.e. stocks and fixed deposits. Statistically significant difference exists in perception of individual investors for 22 variables towards the preference for stocks vis-à-vis fixed deposits.
Practical implications
The current research will be helpful for financial service providers in understanding the investment preferences of the individual stock investors on the basis of variables influencing such preferences and suggest them investment options as per their perceptions and needs.
Originality/value
This paper is a first of its kind to empirically compare the variables influencing the preferences for high-risk investments vis-à-vis low-risk investments of individual investors of Punjab, India and contributes to the understanding of the investor behaviour.
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Yaokuang Li, Li Ling, Juan Wu and Peng Li
– The paper is aimed to obtain a clear understanding of influence factors that can increase the possibility to be business angels (BA).
Abstract
Purpose
The paper is aimed to obtain a clear understanding of influence factors that can increase the possibility to be business angels (BA).
Design/methodology/approach
This study develops the 3A model in the Chinese context to design questionnaire, and 334 questionnaires are obtained via focus group sample and targeted snowball approach, and the multinomial logit analysis is used to test a serious of hypotheses.
Findings
The paper confirmed that the entrepreneurial experience and wealth are determinants of investment for potential BA, and the wealth have both directly and indirectly positive influence on investment activity through risk preference, namely that richer people prefer risk which impel them to invest as BA.
Research limitations/implications
There are two limitations in the paper: first, the macro environment in China has not been taken into consideration in the model; second, the source of the sample focuses on the developed cities in the middle and eastern of China, only reflect the characteristic of angels in these areas, which may somewhat diverges from the reality.
Practical implications
The paper would contribute to form the policy which could promote the development of angel investment in China.
Originality/value
This paper conducts a preliminary exploration of the factors that have impact on Chinese BA' investment activity based on current research.
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Yannick Thomas van Hierden, Timo Dietrich and Sharyn Rundle-Thiele
This study aims to demonstrate how banks can align their CSR investment to community needs and citizen preferences. A grounded theory inductive approach is applied to deliver a…
Abstract
Purpose
This study aims to demonstrate how banks can align their CSR investment to community needs and citizen preferences. A grounded theory inductive approach is applied to deliver a community-centred process that banks can apply to inform CSR investment decisions.
Design/methodology/approach
This study employed a sequential mixed-method research design to identify areas of need from the perspective of community leaders and members through depth interviews. Following thematic analysis, citizen preferences for eight priority areas were elicited using best-worst scaling (BWS).
Findings
Clear investment preferences emerged with citizens preferring six community investment causes, namely, (1) infrastructure, (2) crisis and prevention support, (3) community groups, (4) youth facilities and activities, (5) initiatives that support the local environment, and (6) physical activity promotion. The forming of community advisory committees emerged as one approach that banks could apply to ensure long-term citizen-centred CSR investment decisions.
Research limitations/implications
This study is limited to one community and one community bank and a small convenience, cross-sectional data sample.
Social implications
Community-oriented financial institutions should centre investment decisions on community need and citizen preferences ensuring investments made deliver the greatest societal benefit and community support for the banks is garnered.
Originality/value
This paper provides important contributions to improve the effectiveness of CSR initiatives, providing an inductive, methodological approach that financial institutions can follow to better align their CSR investment to community needs and preferences.
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Martin Philipp Steinhorst and Enno Bahrs
The purpose of this paper is to quantify the differences between the classical normative investment theory and alternative investment models of agricultural stakeholders’ choices…
Abstract
Purpose
The purpose of this paper is to quantify the differences between the classical normative investment theory and alternative investment models of agricultural stakeholders’ choices.
Design/methodology/approach
Farmers (n=1,024) and agricultural commodity traders (n=509) were asked to rank investment alternatives. Non-linear regressions were integrated into a Monotonic Analysis of Variance algorithm to analyze the investment rankings. The results reveal coefficients for classical constant discounting, hyperbolic discounting and a preference for a sequence model. Two information criteria indicate the models’ goodness of fit and allow a comparison of the investment rankings of different age groups.
Findings
Agribusiness stakeholders have preferences for sequences and could be willing to accept lower internal rates of return for monotone-distributed rewards.
Practical implications
The results are useful for state-aided agricultural investment policies and contractual relations within agribusiness.
Originality/value
To the author's knowledge, this paper is the first paper to analyze agricultural stakeholders’ preferences for sequences.
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Margarita Georgousopoulou, Max Chipulu, Udechukwu Ojiako and Johnnie Johnson
Current research in the area of risk management within small and medium-sized enterprises (SMEs) appears predisposed towards risk, predominantly dealing with the willingness of…
Abstract
Purpose
Current research in the area of risk management within small and medium-sized enterprises (SMEs) appears predisposed towards risk, predominantly dealing with the willingness of SMEs to take on losses. However, in this pilot study, the authors aim to focus on a different aspect of risk management in SMEs, namely the risk preferences. Risk preferences in this case are regarded as the willingness of SME proprietors to take on risks that are likely to lead to investment gains.
Design/methodology/approach
Data is gathered via a combination of a survey questionnaire and a probability scenario toolset. The authors sampled a total of 150 SME proprietors operating in Greece. The data was analysed using a combination of regression models and binomial tests.
Findings
The results suggest that we cannot, as previous literature suggests, conclude that SME proprietors generally exhibit a negative risk preference.
Originality/value
In light of Greece's recent economic difficulty, and in acknowledgement of the critical role played by SMEs in the Greek economy, this study addresses a topical subject in entrepreneurship research: what are the factors determining investment risk preferences?
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Christopher D. Allport, John A. Brozovsky and William A. Kerler
Capital budgeting decisions frequently go awry. We investigate whether the party gathering the data utilizes persuasive communications when presenting the information to a…
Abstract
Capital budgeting decisions frequently go awry. We investigate whether the party gathering the data utilizes persuasive communications when presenting the information to a superior. Specifically, we analyze whether the information is framed differently depending on his or her opinion. Since prior research has shown that differential framing of the same information affects decisions this may be one contributor to capital budgeting failures. We found that participants did frame the information differently depending on whether they chose to accept or reject the project. Our control group, no decision required, was materially different from the reject group but not materially different from the accept group.
Lenahan O’Connell, Juita-Elena (Wie) Yusuf and Khairul Azfi Anuar
The purpose of this paper is to compare public preferences for investment and spending on non-automobile infrastructures (mass transit and bicycling) to preferences for new roads…
Abstract
Purpose
The purpose of this paper is to compare public preferences for investment and spending on non-automobile infrastructures (mass transit and bicycling) to preferences for new roads and the repair of current highways. The study explores the factors that explain preferences for non-automobile infrastructure using a three-factor model including self-interest (personal transportation benefits), concern for community-wide benefits (political beliefs), and concern for the economic impact. The study uses a case study of the urban context of the Hampton Roads region of Southeastern Virginia (USA).
Design/methodology/approach
The analysis uses data from a 2013 telephone survey of urban residents in the Hampton Roads area. Survey respondents were asked to identify their two investment priorities from four options: repairing existing roads, bridges, and tunnels; constructing new or expanding roads, bridges, and tunnels; expanding mass transit; and expanding bicycle routes and improving bike safety.
Findings
Repairing existing highway infrastructure is the most popular spending priority (66 percent of residents). There is as much support (46 percent) for investing in non-automobile infrastructure as for investing in new roads, bridges, and tunnels. Significant predictors of support for non-automobile infrastructure, using the three-factor model, are: length of commute time, self-identification as liberal, use of light rail, and a belief that light rail contributes to economic development.
Originality/value
The study examines public preferences for both non-traditional and traditional transportation infrastructure investments. It highlights the factors that contribute to public support for different transportation spending options.
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Shijuan Wang, Linzhong Liu, Jin Wen and Guangwei Wang
It is necessary to implement green supply chains. But green development needs to be gradual and coexist with ordinary products in the market. This paper aims to study the green…
Abstract
Purpose
It is necessary to implement green supply chains. But green development needs to be gradual and coexist with ordinary products in the market. This paper aims to study the green and ordinary product pricing and green decision-making under chain-to-chain competition.
Design/methodology/approach
This paper considers consumers' multiple preferences and takes two competitive supply chains with asymmetric channels as the research object. Through the construction of the game models involving different competitive situations, this paper studies the pricing, green decision-making and the supply chains' profits, and discusses the impact of consumer green preference, channel preference, green investment and competition on the decision-making and performance. Finally, this paper further studies the impact of the decision structure on the environmental and economic benefits of supply chains.
Findings
The results show that consumer green preference has an incentive effect on the green supply chain and also provides an opportunity for the regular supply chain to increase revenue. Specifically, consumers' preference for green online channels improves the product greenness, but its impact on the green retailer and regular supply chain depends on the green investment cost. Moreover, competition not only fosters product sustainability, but also improves supply chain performance. This paper also points out that the decentralization of the regular supply chain is conducive to the environmental attributes of the green product, while the environment-friendly structure of the green supply chain is different under different conditions. In addition, the profit of a supply chain under centralized decision is not always higher than that under decentralized decision.
Originality/value
The novelty of this paper is that it investigates the pricing of two heterogeneous alternative products and green decision-making for the green product under the competition between two supply chains with asymmetric channels, in which the green supply chain adopts dual channels and the regular supply chain adopts a single retail channel.
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