Search results

Purpose: The present study aims to test the Quadratic Programming model for Optimal Portfolio selection empirically.

Need for the Study: All the investors who buy financial products are motivated to obtain higher profits or, in other words, to maximise their returns. However, the high returns are often accompanied by higher risks, and avoiding such risks has become the primary concern for all investors. There is a great need for such a model to maximise profits and minimise risk, which can help design an investment portfolio with minimum risk and maximum return. The Quadratic Programming model is one such model which can be applied for selected shares to build an optimised portfolio.

Methodology: This study optimises the stock samples using a two-level screening of correlation coefficient and coefficient of variation. The monthly closing prices of the NSE-listed Indian pharmaceutical stocks from December 2019 to January 2022 have been used as sample data. The Lagrange Multiplier method is used to apply the model to achieve the optimal portfolio solution. Based on the market reality, the transaction costs have also been considered. The Quadratic programming model is further optimised to achieve the optimal portfolio for the select stocks.

Findings: The traditional portfolio theory and the modified quadratic model gives similar and consistent results. In other words, the modified quadratic model asserts the accuracy of the conventional portfolio model. The portfolio constructed in the present study gives a return much higher than the return of the benchmark portfolio of Nifty Fifty, indicating the usefulness of applying the Quadratic Programming model.

Practical Implications: The construction of an optimal portfolio using the traditional or modified Quadratic model can help investors make rational investment decisions for better returns with lower risks.

This study aims to contribute to the field of customer portfolio management by proposing a novel approach rooted in dialectic critical realism (DCR). DCR, as an ontological theory, enables a fundamental reimagining of customer portfolio management as a dialectic process. The conceptualized dialectic portfolio management is motivated by the concept of “absence”, akin to Hegelian “antithesis”, which highlights limitations, problems and tensions in portfolio management. In essence, “absence” serves as a diagnostic tool that directs portfolio actions towards resolving problems by pursuing a more comprehensive “totality”, similar to the Hegelian notion of “synthesis”.

This conceptual paper theorizes DCR in business marketing and customer portfolio management.

DCR conceptualizes customer portfolios as relational structures characterized by omissions and tensions. These issues are addressed through a dialectic synthesis aimed at achieving a more comprehensive “totality”. Consequently, DCR guides portfolio management to continually re-think the connections and distinctions that define a portfolio within its network context. This dialectic process is facilitated by a novel vocabulary that enhances the understanding of network and portfolio relations, incorporating concepts such as “intrapermeations”, “existential constitutions”, “intra-connections” and “intensive” and “extensive” portfolio practices.

This study aims to foster a fresh and process-oriented perspective on portfolio management, drawing inspiration from the growing demand for enriched dialectic theorizing within the realm of business marketing. The adoption of a dialectic process orientation based on DCR revolutionizes the comprehension of portfolio management by fundamentally reimagining the underlying ontological assumptions that underpin the existing body of literature on customer portfolios. Moreover, DCR asserts that ethical considerations are inextricably linked to human experiences and associated practices, emphasizing ethics as an integral component of customer portfolio management.

An alliance portfolio can help latecomer firms to acquire the necessary knowledge and resources to catch up with market leaders. However, how latecomer firms construct an alliance portfolio in terms of the nature of windows of opportunity has not been fully analyzed. This paper aims to explore how latecomer firms can build appropriate coalitions according to the nature of the window of opportunity to achieve technological catch-up in different catch-up phases.

Based on a longitudinal case study from 1984 to 2018 of Sunny Group, now a leading manufacturer of integrated optical components and products, this paper explores the process of technological catch-up of latecomer firms building different types of alliance portfolio in different windows of opportunity.

This paper finds that there is a sequence when latecomers build an alliance portfolio in the process of catch-up. When the uncertainty of opportunity increases, the governance mechanism of the alliance portfolio will change from contractual to equity-based. Also, latecomer firms build market-dominated and technology-dominated alliance portfolios to overcome their market and technology disadvantages, respectively.

These conclusions not only enrich the theory of latecomer catch-up from the perspective of windows of opportunity but also expand research on alliance portfolio processes from a temporal perspective.

The objective of this systematic literature review (SLR) is to explore the current state of research in the field of household finance (HF). This study aims to summarize the existing research to highlight the importance of household finance in a nation’s economy. By exploring all conceptual and applied implications of HF, this study projects directions for future research to develop a comprehensive understanding of the subject.

This SLR is based on 112 articles published in peer-reviewed journals between 2006 and 2020 (Table 3). The methodology comprises five steps, namely, formulation of research questions, identification of studies, their selection and evaluation, analyses and syntheses and presentation of results.

The findings of this study show that studies on HF are gradually increasing worldwide with the USA registering the highest number of published research on the topic during the period under scrutiny. Notwithstanding the increasing attention and research on HF, empirical research in emerging economies is lagging. Additionally, this study finds that HF structure presents a perfect setting to understand how households compose their financial portfolio, make financial decisions and what factors influence their decisions.

This study is an SLR – an accurate and accepted method of reviewing available literature on a selected subject. However, the selection of inclusion and exclusion criteria depends on the researchers’ rationale which might lead to research bias. This should be considered an inherent limitation of SLR.

By synthesizing the contents of extant literature, this study presents important insights into HF. This study underlines the most discussed topics in the domain and identifies potential investigation areas. This study gives the knowledge of leading articles, authors and journals and informs scholars and academicians about the areas that need further investigation by portraying the complete picture of the subject in a systematic manner. Further, this study highlights that households make suboptimal financial decisions that affect their financial well-being. To reduce the adverse impacts of these decisions, policymakers and financial institutions must take steps to improve households’ use of formal financial markets. Household decisions can be reformed by enhancing consumers’ knowledge about financial products and services. Furthermore, households can be served better by offering customization in traditional financial products.

This study synthesizes the main findings of selected literature on HF. The expansion of studies on HF has generated the need to review the existing literature in a systematic manner. To the researchers’ best knowledge, this SLR is the first thorough study of available articles in the HF domain. This study presents the scope of future research by highlighting numerous aspects and functions of HF.

The existing literature offers various perspectives on integrating cryptocurrencies into investment portfolios; yet, there is a gap in understanding the behaviours, attitudes and cross-investment links of individual investors. This study, grounded in the modern portfolio theory and the random walk theory, aims to add empirical insights that are specific to the UK context. It explores four hypotheses related to the influence of socio-demographics, digital adoption, cross-investment behaviours and financial attitudes on cryptocurrency owners.

This study uses a logistic regression model with secondary data from the Financial Lives Survey 2020 to assess the factors impacting cryptocurrency ownership. A total of 29 variables are used, categorized into four groups aligned with the hypotheses. Additionally, hierarchical clustering analysis was conducted to further explore the cross-investment links.

The study reveals a significant lack of diversification among UK cryptocurrency investors, a pronounced inclination towards high-risk investments such as peer-to-peer lending and crowdfunding, and parallels with gambling behaviours, including financial dissatisfaction and a propensity for risk-taking. It highlights the influence of demographic traits, risk tolerance, technological literacy and emotional attitudes on cryptocurrency investment decisions.

This study provides valuable insights into cryptocurrency regulation and retail investor protection, underscoring the necessity for tailored financial education and a holistic regulatory approach for investment products with comparable risk levels, with the aim of minimizing regulatory arbitrage. It significantly enhances our understanding of the unique dynamics of cryptocurrency investments within the evolving financial landscape.

The purpose of this paper is to examine the nuanced effects of downstream complexity on supply chain resilience, based on portfolio theory and normal accident theory. Intelligent manufacturing is considered to clarify their boundary conditions.

The ordinary least squares regression was conducted, based on the data collected from 136 high-tech firms in China.

Horizontal downstream complexity has a positive effect on supply chain resilience significantly, while the negative impact of vertical downstream complexity on supply chain resilience is not significant. Contingently, intelligent manufacturing plays a negative moderating role in the relationship between horizontal downstream complexity and supply chain resilience, while it positively moderates the relationship between vertical downstream complexity and supply chain resilience.

This study disentangles the nuanced effects of both horizontal and vertical downstream complexity on supply chain resilience, based on portfolio theory and normal accident theory. It also clarifies their boundary conditions by considering the focal firm's intelligent manufacturing level as the contingent factor.

The aim of the study was to analyze the performance of Black-Litterman (BL) portfolios using a views estimation procedure that simulates investor forecasts based on technical analysis.

Ibovespa, S&P500, Bitcoin and interbank deposit rate (IDR) indexes were respectively considered proxies for the national, international, cryptocurrency and fixed income stock markets. Forecasts were made out of the sample aiming at incorporating them in the BL model, using several portfolio weighting methods from June 13, 2013 to August 30, 2022.

The Sharpe, Treynor and Omega ratios point out that the proposed model, considering only variable return assets, generates portfolios with performances superior to their traditionally calculated counterparts, with emphasis on the risk parity portfolio. Nonetheless, the inclusion of the IDR leads to performance losses, especially in scenarios with lower risk tolerance. And finally, given the impact of turnover, the naive portfolio was also detected as a viable alternative.

The results obtained can contribute to improve investors practices, specifically by validating both the performance improvement – when including foreign assets and cryptocurrencies –, and the application of the BL model for asset pricing.

The main contributions of the study are: performance analysis incorporating cryptocurrencies and international assets in an uncertain recent period; the use of a methodology to compute the views simulating the behavior of managers using technical analysis; and comparing the performance of portfolio management strategies based on the BL model, taking into account different levels of risk and uncertainty.

Keeping in view the robust growth of Islamic banking around the globe, this study aims to comparatively analyze the association between liquidity creation and liquidity risk for Islamic banks (IBANs) and conventional banks (CBANs) in Pakistan and Malaysia over a period of 2004–2021. The moderating role of bank loan concentration on the aforementioned relationship is also studied.

Regression estimation methods such as fixed effect, random effect and generalized least square are deployed for obtaining results. Liquidity creation Burger Bouwman measure (cat fat and noncat fat) and Basel-III liquidity risk measure (liquidity coverage ratio) are also used.

The results give us insight that liquidity creation is positively and significantly related to liquidity risk in both IBANs and CBANs of Pakistan and Malaysia. This relationship has been moderated negatively (reversed) and significantly by credit concentration showing the importance of risk management and loan portfolio concentration.

It is analyzed that during the process of liquidity creation, IBANs in Pakistan faced more liquidity risk for both on and off-balance sheet transactions in the presence of moderation of loan concentration than IBANs in Malaysia necessitating strategic policy-making for important aspects of liquidity risk management and loan concentration while creating liquidity.

Such studies comparing IBANs and CBANs comparison keeping in view liquidity creation, liquidity risk and loan concentration are either limited or nonexistent.

The purpose of this paper is to investigate the potential of NFTs in revolutionizing innovation management and information systems. Innovations done by firms are blatantly used by other firms to develop cheap knock-off. This leads to huge economic loses to the firm investing in research and development activities. Firms are in need of trusted, immutable and verifiable means of storing information which cannot be used by others, even if publically available without their consent. Non-fungible tokens (NFTs) appear to be one such solution to this problem that has recently attracted a lot of investor interest. Using NFTs the information is tokenized and is stored in a secure manner.

Through this scoping review, the authors investigate the influence of NFTs towards the innovation management from the dual aspects of management and information systems. This scoping review is underpinned by the five-stage framework by Arksey and O’Malley. The five stages of Arksey and O’Malley’s framework were used in this analysis to classify the literature through five stages of identifying the initial research questions; locating relevant studies; study selection; charting the data; and compiling, summarizing and reporting the results.

This study suggests that NFTs on the blockchain have significant potential to revolutionize innovation management and information systems. Theoretical frameworks used in investigating the role of digital tokens in blockchain management are mainly based on contracts, diversity theory, portfolio theory and faking likelihood theory. The study reveals gaps in the literature, particularly in the under-researched areas of behavioural psychology and social psychology theories. The appropriate regulation and regulation authority for different types of digital tokens are required. The study also presents archetypes that represent patterns in the current landscape of blockchain tokens, which have significant potential for future research and practical applications.

This study is unique in its approach to assessing the future of NFTs in the field of innovation and information management. While many existing reviews have focused on describing the progress and development of NFTs in the past, this study takes a forward-looking perspective and projects the future potential of NFTs. This innovative approach allows for a deeper understanding of the potential impact of NFTs in various fields such as entrepreneurship, innovation management and tokenomics. Therefore, this study contributes to the literature on NFTs by providing insights and recommendations for future research and practical applications.

This research mainly intends to ascertain the stimulus of investor investment tendencies on the amount of capital investment in the share market.

Utilizing a sample of 477 individual investors who actively trade on the Bangladesh capital market, this empirical study was conducted. The objective of this examination is to ascertain the investment trading behavior of retail investors in the Bangladesh capital market using multiple regression, hypothesis testing and correlation analysis.

The coefficients of market categories, preferred share price ranges and investment source reveal negative predictor correlations; all predictors are statistically significant, with the exception of investment source. Positive predictive correlations exist between investor category, financial literacy degree, investment duration, emotional tolerance level, risk consideration, investment monitoring activities, internal sentiment and correct investment selection. Except for risk consideration and investment monitoring activities, all components have statistically significant predictions. The quantity of capital invested in the stock market is heavily influenced by the investment duration, preferred share price ranges, investor type, emotional toleration level and decision-making accuracy level.

This investigation was conducted exclusively with Bangladeshi individual stockholders. Therefore, the existing study can be extended to institutional investors and conceivably to other divisions. It is possible to conduct this similar study internationally. And the query can enlarge with more sample size and use a more sophisticated econometric model. Despite that the outcomes of this study help the regulatory authorities to arrange more informative seminars and consciousness programs.

The conclusions have practical implications since they empower investors to modify their portfolios based on elements including share price ranges, investment horizons and emotional stability. To improve chances of success and reach financial objectives, they stress the significance of bettering financial understanding, active monitoring and risk analysis. Results can also be enhanced by distributing ownership over a number of market sectors and price points. The results highlight the value of patience and giving potential returns enough time.

This study on the trading behavior of investors in Bangladesh is unique and based on field study, and the findings of this study will deliver information to the stakeholders of the capital market regarding the investors’ trading behavior belonging to different categories, financial literacy level, investment duration, emotional tolerance level and internal feeling.