WorldWideScience

Sample records for market investment appeared

  1. Gauging the investment potential of international real estate markets

    OpenAIRE

    Lee, Stephen L.

    2005-01-01

    Investing in real estate markets overseas means venturing into the unknown, where you meet unfamiliar political and economic environments, unstable currencies, strange cultures and languages, and so although the advantages of international diversification might appear attractive, the risks of international investment must not be overlooked. However, capital markets are becoming global markets, and commercial real estate markets are no exception, accordingly despite the difficulties posed by v...

  2. Investment in capital markets

    OpenAIRE

    Ledenyov, Dimitri O.; Ledenyov, Viktor O.

    2017-01-01

    Investment in Capital Markets creates a strategic vision on the financial capital investment in the capital markets with the aim to get an increased return premium in the short and long time periods. The book is written with a main goal to explain the pros and cons of the financial capital investment in the capital markets, discussing the sophisticated investment concepts and techniques in the simple understandable readable general format language. We would like to highlight the three interes...

  3. Prospecting for Sustainable Investment Possibilities in Financial Markets

    Directory of Open Access Journals (Sweden)

    Aleksandras Vytautas Rutkauskas

    2009-06-01

    Full Text Available The main objective of the paper is to analyse the author's proposed model, which is adequate for stock prices and currency exchange rates markets stochasticity, as well as discuss its application to investor's possibilities research in those markets. The paper is grounded on the hypothesis of stratification of stock profitability ratios, traded on the market. In other words, the concept of stratification means concentration into certain groups in risk-profitability plane. If the hypothesis proved overall, then a constructive scheme for investor's possibilities research in exchange and capital markets would appear, as well as efficient investment strategies would develop.

  4. Value Investing in the Stock Market of Thailand

    Directory of Open Access Journals (Sweden)

    Gerardo “Gerry” Alfonso Perez

    2017-11-01

    Full Text Available Value investment and growth investment have attracted a large amount of research in recent decades, but most of this research focuses on the U.S. and Europe. This article covers the Thai stock market which has very different characteristics compared to western markets and even South East Asian countries such as Indonesia or Malaysia. Among South East Asian countries, Thailand has one of the most dynamic capital markets. In order to see if some well-known trends in other markets exist in Thailand the performance of value and growth stocks in the Thai market were analyzed for a period of 17 years using existing style indexes (MSCI as well as creating portfolios using individual stocks. For this entire period, when using the indexes, returns are statistically significant superior for value stocks compared to growth stocks. However, when analyzing the performance of the market in any given calendar year from 1999 to 2016, the results are much more mixed with in fact growth stocks outperforming in several of those years. Interestingly, when building portfolios using criteria such as low P/E or low P/B the results are not statistically different. Suggesting perhaps that the classification into value or growth stocks is more complex than it would appear. One of the common assumptions of value investing is that those stocks outperform over long periods of time. It might well be that in the Thai case one year is not a long enough period for value stocks to outperform. While there have been some clear efforts over recent years to modernize the stock market of Thailand, it remains relatively underdeveloped, particularly when compared to markets such as the U.S. Hence, its behavior regarding value versus growth investment might be rather different.

  5. Power generation investment in electricity markets

    International Nuclear Information System (INIS)

    2003-01-01

    Most IEA countries are liberalizing their electricity markets, shifting the responsibility for financing new investment in power generation to private investors. No longer able to automatically pass on costs to consumers, and with future prices of electricity uncertain, investors face a much riskier environment for investment in electricity infrastructure. This report looks at how investors have responded to the need to internalize investment risk in power generation. While capital and total costs remain the parameters shaping investment choices, the value of technologies which can be installed quickly and operated flexibly is increasingly appreciated. Investors are also managing risk by greater use of contracting, by acquiring retail businesses, and through mergers with natural gas suppliers. While liberalization was supposed to limit government intervention in the electricity market, volatile electricity prices have put pressure on governments to intervene and limit such prices. This study looks at several cases of volatile prices in IEA countries' electricity markets, and finds that while market prices can be a sufficient incentive for new investment in peak capacity, government intervention into the market to limit prices may undermine such investment

  6. SENSITIVITY OF THE INVESTOR'S TOWARDS STOCK MARKET INVESTMENT

    OpenAIRE

    M. Jaya

    2017-01-01

    Investment in stock market has become a common phenomenon for all the individuals. The growth of stock market contributes to national economic growth only when this growth translates into increased mobilization of resources, return from investment, and minimizing the risk attached to stock market investment. This survey has been conducted to find out the stock market investment pattern and risk diversification of retail equity investors. A well structured questionnaire which is pilot teste...

  7. Renewable energy investment: Policy and market impacts

    International Nuclear Information System (INIS)

    Reuter, Wolf Heinrich; Szolgayová, Jana; Fuss, Sabine; Obersteiner, Michael

    2012-01-01

    Highlights: ► Feedback of decisions to the market: large companies can have an impact on prices in the market. ► Multiple uncertainties: analysis of uncertainties emanating from both markets and environment. ► Policy analysis: impact of uncertainty about the durability of feed-in tariffs. -- Abstract: The liberalization of electricity markets in recent years has enhanced competition among power-generating firms facing uncertain decisions of competitors and thus uncertain prices. At the same time, promoting renewable energy has been a key ingredient in energy policy seeking to de-carbonize the energy mix. Public incentives for companies to invest in renewable technologies range from feed-in tariffs, to investment subsidies, tax credits, portfolio requirements and certificate systems. We use a real options model in discrete time with lumpy multiple investments to analyze the decisions of an electricity producer to invest into new power generating capacity, to select the type of technology and to optimize its operation under price uncertainty and with market effects. We account for both the specific characteristics of renewables and the market effects of investment decisions. The prices are determined endogenously by the supply of electricity in the market and by exogenous electricity price uncertainty. The framework is used to analyze energy policy, as well as the reaction of producers to uncertainty in the political and regulatory framework. In this way, we are able to compare different policies to foster investment into renewables and analyze their impacts on the market.

  8. Managerial Challenges in Investment Market Research

    Directory of Open Access Journals (Sweden)

    Daniel Manaţe

    2012-12-01

    Full Text Available Since1860 the investment community beneficiated by the first structured approach regarding the ocean of data which every potential money supplier was flooded with. It was Henry Poor who leaded the new investment way and, later, was followed by noble successors like John Moody, Benjamin Graham, David Dodd or John Burr Williams. They founded what today is called the fundamental analysis. The continuous increase of the turbulence and complexity of the environment confronting global, regional or local investors enhanced the need for a better managerial approach within the investment process. This was John Murphy’s mastermind work of synthesis, the intermarket analysis. The essence of this managerial approach is to profit the most from the global market relationships between equities market, forex market, commodities market and credit market. Studying the interaction among these markets and deciding accordingly the in and outs positions on different financial instruments paid far better than strategies such as the naive „buy and hold” or the manipulative „buy on rumours - sell on news”.

  9. Sunk cost investments and market information

    DEFF Research Database (Denmark)

    Sørensen, Hans Eibe; Stieglitz, Nils

    2008-01-01

    This paper extends the strategic management literature on how firms' sunk cost investments and market orientation mutually shapes firm performance. Using data from 314 manufacturing firms, we decompose firms' sunk cost investments into industry-specific resources and firm-specific resources...... and investigate their effect on firm performance. Our results suggest that the salient components of a firm's market orientation - i.e. customer orientation and competitor orientation - have different effects on firms' performance as well as moderate the relationship between a firm's sunk cost investments and its...

  10. DIRECT INVESTMENT ON REGIONAL MARKETS

    Directory of Open Access Journals (Sweden)

    LIVIU NEAMŢU

    2013-08-01

    Full Text Available Foreign direct investment are that category of investments that allow participation in leadership andeffective control of the companies in which it invests. It's so new firms, as well as the establishment ofinternational operations of the company through expansion of existing operations. Typically, the companyincurred in a market that is confined to a distinct geographical area, but the limits of market changes. Thechange can be the result of higher management decisions on market opening and development of a newtechnology or product. Markets with a lower level of development are likely to attract a higher level of directinvestments than those in more developed countries. The specific reasons behind the decision of a company toinvest abroad are operating efficiency, reduce risk, market development and Government policy in the hostcountry. Transnational corporations are large conglomerates which consists of the parent company and itssubsidiaries/branches, both in the country of residence and abroad. Transnational corporations affect stronglyboth the production and the world of international economic relations. This influence is determined by themotivations of expansion that they promote. The expansion of transnational corporations has as satisfying"ambitions" of global expansion, and impulsionate getting supraprofiturilor. The strength of these structures isbased on maximizing profits.

  11. Investment Risks and Insurance in the Gold Market

    Directory of Open Access Journals (Sweden)

    Nikolay Megits

    2014-03-01

    Full Text Available Normal 0 false false false EN-US X-NONE X-NONE In this article we investigated the causes and features of investment risks in the gold market, studied the components of investment risks in this market, and analyzed the main methods of insuring those investment risks. In addition, we presented the methods and financial investment instruments used in gold operations and provided the conceptual analyses of investment risk in the gold market. Normal 0 false false false EN-US X-NONE X-NONE Normal 0 false false false EN-US X-NONE X-NONE Investments in liberalised power markets

    International Nuclear Information System (INIS)

    Grenaa Jensen, S.; Meibom, P.

    2005-01-01

    There is considerable uncertainty in the Nordic electricity system with respect to the long-term development in production capacity. The process towards liberalisation of the electricity sector started with a situation of a large capacity margin, but this margin is gradually vanishing. Since the potential investors in new production capacity are unaccustomed with investments under the new regime, it is unknown if and when investments will take place. The purpose of the present study is to analyze if and when investors choose to invest in new electricity production capacity depending on their existing portfolio of power producing units. Electricity price scenarios generated with a partial equilibrium model (Balmorel) are combined with a model of investment decisions. In this, various scenarios concerning the development in the Nordic power market, such as new transmission lines between neighbouring countries, more installed wind power, and changes in CO 2 emission trading costs, are used to investigate the consequences for investments in a natural gas fired, combined cycle power plant. The main result of the analysis is that new investments are highly sensitive to investors existing power production portfolio, as new production units affect the merit order in the power market, i.e. compete with the existing power plants. (au)

  12. Long-term dynamics of investment decisions in electricity markets with variable renewables development and adequacy objectives

    International Nuclear Information System (INIS)

    Petitet, Marie

    2016-01-01

    In liberalised electricity systems, power markets are expected to ensure the long-term coordination of investments in order to guarantee security of supply, sustainability and competitiveness. In the reference energy-only market, it relies on the ability of power markets - where the hourly price is aligned with the marginal cost of the system - to provide an adequate price-signal for investors. However, in practice, questions have been raised about its ability to trigger investments in Low-Carbon Technologies (LCT) including in particular Renewable Energy Sources of Electricity (RES-E), and its ability to ensure capacity adequacy. After a characterisation of these market failures, this dissertation tackles the two research topics within a methodological framework based on a System Dynamics model developed to simulate private investment decisions in power markets. First, the results show that substituting out-of-market support mechanisms for RES-E by market-based investments helped by the sole implementation of a carbon price appears as a feasible solution to trigger RES-E development providing that there is a political commitment on a high carbon price. Second, it also appears that the energy-only market with price cap is ineffective to ensure capacity adequacy in a context of mature markets with conventional thermal power plants under transition paths which involve a stable electricity demand thank to energy efficiency efforts and the exogenous development of RES-E thanks to support mechanisms in the absence of a high and fixed carbon price. Adding a capacity market or removing the price cap both bring benefits in terms of Loss Of Load Expectation (LOLE) and social welfare. Moreover, considering two various energy transition scenarios and different assumptions about the risk aversion of private investors, the capacity market is identified as the best option for regulators among the considered market designs. (author) [fr

  13. Cost vs. Market Value: The Case for Reporting Endowment Investments at Market Value.

    Science.gov (United States)

    Bland, Harold

    1992-01-01

    The difference between cost and market value of endowment investments is significant for many colleges and universities. These investments should always be reported at market value to provide relevant, comparable, consistent, and understandable financial information. Nonmanagement users of institutional financial statements prefer market rather…

  14. Farmers' involvement in capital markets investment as an alternative ...

    African Journals Online (AJOL)

    ... markets investment were significantly associated with their investment in the capital market. The study recommended that agricultural extension agents should be mobilised to develop and disseminate information on the capital markets to farmers. Stock brokers should also visit farmer groups for enlightenment campaigns.

  15. MANAGING RISK BY COORDINATING INVESTMENT, MARKETING, AND PRODUCTION STRATEGIES

    OpenAIRE

    Johnson, Donald A.; Boehlje, Michael

    1983-01-01

    This study of the farm firm integrates long run investment and financial decisions, and short-run production and marketing decisions into a single decision framework that includes both time and risk. The results suggest that the use of various strategies for managing market risks allow the entrepreneur to accept mores risk in investing and producing; and that an integrated analysis of production, marketing and investment-financing alternatives is essential to make accurate recommendations abo...

  16. Modeling strategic investment decisions in spatial markets

    International Nuclear Information System (INIS)

    Lorenczik, Stefan; Malischek, Raimund

    2014-01-01

    Markets for natural resources and commodities are often oligopolistic. In these markets, production capacities are key for strategic interaction between the oligopolists. We analyze how different market structures influence oligopolistic capacity investments and thereby affect supply, prices and rents in spatial natural resource markets using mathematical programing models. The models comprise an investment period and a supply period in which players compete in quantities. We compare three models, one perfect competition and two Cournot models, in which the product is either traded through long-term contracts or on spot markets in the supply period. Tractability and practicality of the approach are demonstrated in an application to the international metallurgical coal market. Results may vary substantially between the different models. The metallurgical coal market has recently made progress in moving away from long-term contracts and more towards spot market-based trade. Based on our results, we conclude that this regime switch is likely to raise consumer rents but lower producer rents. The total welfare differs only negligibly.

  17. Modeling strategic investment decisions in spatial markets

    Energy Technology Data Exchange (ETDEWEB)

    Lorenczik, Stefan; Malischek, Raimund [Koeln Univ. (Germany). Energiewirtschaftliches Inst.; Trueby, Johannes [International Energy Agency, 75 - Paris (France)

    2014-04-15

    Markets for natural resources and commodities are often oligopolistic. In these markets, production capacities are key for strategic interaction between the oligopolists. We analyze how different market structures influence oligopolistic capacity investments and thereby affect supply, prices and rents in spatial natural resource markets using mathematical programing models. The models comprise an investment period and a supply period in which players compete in quantities. We compare three models, one perfect competition and two Cournot models, in which the product is either traded through long-term contracts or on spot markets in the supply period. Tractability and practicality of the approach are demonstrated in an application to the international metallurgical coal market. Results may vary substantially between the different models. The metallurgical coal market has recently made progress in moving away from long-term contracts and more towards spot market-based trade. Based on our results, we conclude that this regime switch is likely to raise consumer rents but lower producer rents. The total welfare differs only negligibly.

  18. Critical issues in Investment, Production and Marketing of Moringa ...

    African Journals Online (AJOL)

    Critical issues in Investment, Production and Marketing of Moringa oleifera as an ... to enhance its large scale production, processing, marketing and investment as an industrial raw material in Nigeria. ... EMAIL FULL TEXT EMAIL FULL TEXT

  19. Investing in European market real property through reits

    Science.gov (United States)

    Adamuscin, A.

    2010-03-01

    For institutional and private investors, investing in real estate represents an attractive form of the consignment of their money. Real estate provides a regular source of income in the form of the rent from or interest on the credit provided. At the same time, real estate is a good investment instrument, because it provides diversified contributions and security against inflation for investors. In their efforts to diversify risk, investors are expressing growing interest in investing in the whole European Union. The success of Real Estate Investment Trusts (REITs) in the U.S. also opened the door for investing in this market for small investors, which is the reason for the development of this type of investment company in the European arena. One problem concerning the development of European real estate investment funds is the unsolved issue of the harmonization of the legislation and regulatory safety measures, which would enable the creation of a common market for new investment products in Europe.

  1. Impact of global investment processes on ukrainian share market

    Directory of Open Access Journals (Sweden)

    O.К. Zotsenko

    2015-03-01

    Full Text Available The paper investigates the effects of financial and investment processes on the Ukrainian share market. The research analyzed and estimated investment climate in Ukraine. The study highlights a comparison of the domestic share market with share markets of other countries. In terms of share capitalization of listed companies in the GDP determined that equity is the most developed in the USA and UK. Largest share markets with highest capitalization rate characterized. The regional distribution of the share market capitalization by continents are shown. The study of the dynamics of Ukrainian and global share indexes revealed that the Ukrainian share market indexes show a constant volatility and unpredictability. Correlation Ukrainian stock indexes with indexes in Europe, Russia and America is very weak, which is a very negative trend of the stock market of Ukraine. The key problems and risks of the domestic investments are defined which are consequences of downturn in the Ukrainian share market.

  2. Methodology of investment effectiveness evaluation in the local energy market

    Energy Technology Data Exchange (ETDEWEB)

    Kamrat, W.

    1999-07-01

    The paper presents issues of investment effectiveness evaluation in the local energy market. Results of research presented in the paper are mainly proposing a concept of a methodology which allows the evaluation of investment processes in regional power markets at the decision-making stage. In this respect, selecting a rational investment strategy is an important stage of the entire investment process. In view of criteria of various nature, the construction of a methodology of investment effectiveness bears an especially important meaning for a local decision-maker or investor. It is of particular significance to countries that are undergoing a transition from a centrally planned economy to a market economy. (orig.)

  3. Market conditions affecting energy efficiency investments

    International Nuclear Information System (INIS)

    Seabright, J.

    1996-01-01

    The global energy efficiency market is growing, due in part to energy sector and macroeconomic reforms and increased awareness of the environmental benefits of energy efficiency. Many countries have promoted open, competitive markets, thereby stimulating economic growth. They have reduced or removed subsidies on energy prices, and governments have initiated energy conservation programs that have spurred the wider adoption of energy efficiency technologies. The market outlook for energy efficiency is quite positive. The global market for end-use energy efficiency in the industrial, residential and commercial sectors is now estimated to total more than $34 billion per year. There is still enormous technical potential to implement energy conservation measures and to upgrade to the best available technologies for new investments. For many technologies, energy-efficient designs now represent less than 10--20% of new product sales. Thus, creating favorable market conditions should be a priority. There are a number of actions that can be taken to create favorable market conditions for investing in energy efficiency. Fostering a market-oriented energy sector will lead to energy prices that reflect the true cost of supply. Policy initiatives should address known market failures and should support energy efficiency initiatives. And market transformation for energy efficiency products and services can be facilitated by creating an institutional and legal structure that favors commercially-oriented entities

  4. Dynamics of Investment for Market-Oriented Farmers in Chile

    NARCIS (Netherlands)

    Reyes, A.; Kuyvenhoven, A.; Lensink, R.; Moll, H.A.J.

    2012-01-01

    Using panel data from a survey conducted in 2006 and 2008 of 177 market-oriented farmers in central Chile, we investigate investment under imperfect capital markets. Specifically we determine the impact of formal credit constraints on fixed investment. By controlling for endogeneity problems, we

  5. Oligopolistic concurrence and investment: application to electricity markets

    International Nuclear Information System (INIS)

    Meunier, G.

    2008-12-01

    This research aims at analysing investment strategies of firms which are in an oligopolistic situation. After a brief description of the physical characteristics of an electric system, the author describes the reforms and defines the problematic of an investment in electricity production within markets in imperfect concurrence. In a first part, the author analyses the heterogeneity (either exogenous or endogenous) and technology choices of oligopolistic firms. In case of an exogenous heterogeneity, he studies the impact of the number of firms on investment decisions. In the second part, the author examines the regulations introduced in industries in imperfect concurrence: electricity production by a public firm and interaction between emission allowance market and investment

  6. Taking risks in investing in the equity market: racial and ethnic differences.

    Science.gov (United States)

    Ozawa, M N; Lum, Y S

    2001-01-01

    Some policy makers and policy analysts have proposed that Social Security should be privatized to enable participants to achieve higher returns through investment in the stock market. How well individual retirees would fare financially under a privatized system largely depends on their decision to invest in the equity market, rather than in other types of investment vehicles. For that reason, it is important to investigate the degree to which minority people are currently investing in this market. This article presents the findings of a study that compared the investment behavior of black and Hispanic people aged 51 to 61 with the investment behavior of their white counterparts. The major findings indicate that black and Hispanic people: (a) are less likely to invest in the equity market than are white people, and (b) tend to invest smaller percentages of their assets in the equity market. Implications for policy are discussed.

  7. Investment in body image for self-definition results in greater vulnerability to the thin media than does investment in appearance management.

    Science.gov (United States)

    Ip, Karen; Jarry, Josée L

    2008-03-01

    This study investigated the effect of thin images according to two dimensions of body-image (BI) investment. Ninety-five females were classified as high or low investors based on the Appearance Schemas Inventory-Revised Self-Evaluative Salience (SES) and Motivational Salience (MS) subscales. Participants viewed advertisements portraying either the thin ideal or products. Results indicated that both women high in SES and MS reported lowered appearance self-esteem but greater BI importance following thin exposures. However, only the high SES group reported greater BI dissatisfaction and importance of current-ideal discrepancies after seeing thin images. Although highly invested women (regardless of their motivation for investment) are more responsive to thin media images than are women low in investment, those invested for self-definition are affected on more dimensions than are those invested for appearance management.

  8. Strategy of investment in electricity sources--Market value of a power plant and the electricity market

    Science.gov (United States)

    Bartnik, R.; Hnydiuk-Stefan, A.; Buryn, Z.

    2017-11-01

    This paper reports the results of the investment strategy analysis in different electricity sources. New methodology and theory of calculating the market value of the power plant and value of the electricity market supplied by it are presented. The financial gain forms the most important criteria in the assessment of an investment by an investor. An investment strategy has to involve a careful analysis of each considered project in order that the right decision and selection will be made while various components of the projects will be considered. The latter primarily includes the aspects of risk and uncertainty. Profitability of an investment in the electricity sources (as well as others) is offered by the measures applicable for the assessment of the economic effectiveness of an investment based on calculations e.g. power plant market value and the value of the electricity that is supplied by a power plant. The values of such measures decide on an investment strategy in the energy sources. This paper contains analysis of exemplary calculations results of power plant market value and the electricity market value supplied by it.

  9. ACCOUNTING SYSTEM OF THE MARKET OF UNIT INVESTMENT FUNDS

    Directory of Open Access Journals (Sweden)

    Olga A. Zhdanova

    2013-01-01

    Full Text Available Functions and interrelations of depositary, specialized depositary and registrar operating in the market of unit investment funds are presented and studied in the article. The conclusion is drawn on possibility of introduction of concept of accounting system in the market of unit investment funds.

  10. Prioritisation of Marketing Investments in Different Types of Marketing Functions

    DEFF Research Database (Denmark)

    Martensen, Anne; Mouritsen, Jan

    2015-01-01

    the company's results, but there is considerable variation in the composition of the roles within each type of marketing function, their use and impact on the company's results. The findings of this study indicate that marketing functions are heterogeneous, and the effect achieved from investing in any given...

  11. Contrarian Investment Philosophy in the American Stock Market

    DEFF Research Database (Denmark)

    Bondo Hansen, Kristian

    2015-01-01

    This paper contributes to the understanding of the role of crowds in the financial market by examining the historical origins and theoretical underpinnings of contrarian investment philosophy. Developed in non-scientific, practice-oriented ‘how to’ handbooks in 1920s and 1930s America, contrarian...... investment advice was aimed at so-called small investors rather than well-established market practitioners. Emerging out of late-nineteenth- and early-twentieth-century debates about public participation in the stock market, the contrarians expanded on a widely held (amongst financial writers) scepticism...... about the investment and speculation skills (or lack thereof) of the masses and adopted ideas from the theoretical discipline of crowd psychology, whereby they positioned the mass (i.e. the crowd) in opposition to the successful investor. I argue that despite its idiosyncrasies, the contrarians...

  12. Stock Market Performance and Pension Fund Investment Policy: Rebalancing, Free Float, or Market Timing

    NARCIS (Netherlands)

    Bikker, J.A.; Broeders, D.W.G.A; de Dreu, J.

    2007-01-01

    This paper is the first that examines the impact of stock market performance on the investment policy of pension funds. We find that stock market prices influence the asset allocation of Dutch pension funds in two ways. In the short term, outperformance of equities over bonds and other investment

  13. The investment strategy of commercial banks on the financial markets

    Directory of Open Access Journals (Sweden)

    Ercegovac Dajana

    2012-01-01

    Full Text Available In contemporary market conditions classical deposit-loan strategy is not enough anymore in order to ensure survival of the commercial banks on the financial market and to reach profit that is high enough. Besides the loan placements strategy, it is necessary to adopt an adequate investment strategy which will contribute to the profitability, liquidity and safety of gross asset portfolio. Commercial banks, unlike investment banks, invest smaller part of their resources into securities of diverse maturity on financial markets. However, with the harsh competition of banks and other non-banking institutions, significance of investment portfolio grows as an alternative that ensures additional sources of revenue, assures liquidity, diversification of placements and decreases risk exposure. Banks have at their disposal vast range of investment strategies that can be combined depending on their investment objectives and risk aversion, such as passive and active strategy, strategy of ladder, weights strategy etc. Therefore, the aim of this paper is to present the significance of investment portfolio in commercial banks and the basic management strategies of investment portfolio that can be used by commercial banks.

  14. Including investment risk in large-scale power market models

    DEFF Research Database (Denmark)

    Lemming, Jørgen Kjærgaard; Meibom, P.

    2003-01-01

    Long-term energy market models can be used to examine investments in production technologies, however, with market liberalisation it is crucial that such models include investment risks and investor behaviour. This paper analyses how the effect of investment risk on production technology selection...... can be included in large-scale partial equilibrium models of the power market. The analyses are divided into a part about risk measures appropriate for power market investors and a more technical part about the combination of a risk-adjustment model and a partial-equilibrium model. To illustrate...... the analyses quantitatively, a framework based on an iterative interaction between the equilibrium model and a separate risk-adjustment module was constructed. To illustrate the features of the proposed modelling approach we examined how uncertainty in demand and variable costs affects the optimal choice...

  15. Risk and investment management in liberalized electricity markets

    DEFF Research Database (Denmark)

    Lemming, Jacob Kjærgaard

    2005-01-01

    markets affects the nancial risk related to different decision problems within the areas of risk management and investments in liberalized electricity markets. Focus is on applied microeconomics and analyzes of the interplay between market design parameters and the technical characteristics...... of the electricity system. Theory, literature and introduction to speci c problem areas related to risk management and investments is provided in two separate introductory chapters. Contributions to research within specific problems areas is then subsequently provided by five research papers. The two topics...... are relatively broad, however the two chapters and ve papers all share analyzes of nancial risk in liberalized electricity markets as a common underlying theme. The risk management part of the thesis focusses on modelling and measurement of financial risk in electricity markets. Key topics are electricity price...

  16. Effect of business regulation on investment in emerging market economies

    Directory of Open Access Journals (Sweden)

    Birungi Korutaro

    2013-01-01

    Full Text Available This paper provides an empirical analysis of the business regulatory factors that influence investment in a selection of 29 emerging market economies. Both theoretical and empirical literature on the effect of the regulatory environment on investment is reviewed. A panel data analysis over the period 2003–2007 reveals that investment is influenced by secure property rights and the degree of business entry regulation. The results carry important policy implications for improving the investment climate of emerging market economies.

  17. Investment incentives in the Korean electricity market

    International Nuclear Information System (INIS)

    Park, Jung-Yeon; Ahn, Nam-Sung; Yoon, Yong-Beum; Koh, Kyung-Ho; Bunn, Derek W.

    2007-01-01

    This paper develops a model-based analysis of the effects of various capacity incentive systems on new investment in the Korean electricity market. The restructuring process in Korea allocated power generation to six firms, competing within a wholesale market, albeit strictly on a cost basis. Because of this cost-based pool, capacity payments were also introduced to encourage new investment. However, it is an open question whether the current fixed capacity payment scheme is enough to secure resource adequacy, and consideration is being given to alternative mechanisms such as the use of LOLP. Using a detailed market simulation model, based on system dynamics, we compare these approaches in terms of how they may influence the investors' decisions and thereby determine the system reserve margin. The simulation results suggest that there may be serious problems in staying with the current fixed capacity payments in order to achieve resource adequacy. In contrast, an LOLP-based capacity mechanism may, in the longer term, increase the reserve margin compared with a fixed capacity payment. More generally, this paper indicates how crucial the effective modeling of the investment behavior of the independent power producers is for adequate policy support, even if they only constitute a fringe in a substantially centrally influenced market

  18. Prioritising Investments in Marketing Activities to Improve Business Performance

    DEFF Research Database (Denmark)

    Martensen, Anne; Mouritsen, Jan

    2014-01-01

    The purpose of this study is to prioritise investments in marketing activities based on their effect on business performance (BP). On the basis of the European Foundation for Quality Management (EFQM) model adapted to a marketing context, four generic marketing activities are structured in two...... dimensions: (1) Small m: marketing strategy and marketing implementation and (2) big M: cross-functional coordination and innovation. Big M and small m interact and influence BP similarly. When considering investing in marketing activities to improve financial performance, the first priority is to recruit...... and retain competent employees and the second, to collect, disseminate and act upon market insight in the form of measurement of effectiveness and production of intelligence. These provide resources for the development of a customer-oriented marketing strategy that in turn helps innovation and cross...

  19. From Market Uncertainty to Policy Uncertainty for Investment in Power Generation: Real Options for NPP on Electricity Market

    International Nuclear Information System (INIS)

    Tomsic, Zeljko

    2014-01-01

    In the electricity sector, market participants must make decisions about capacity choice in a situation of radical uncertainty about future market conditions. Sector is normally characterised by non-storability and periodic and stochastic demand fluctuations. In these cases capacity determination is a decision for the long term, whereas production is adjusted in the short run. Capacities need to be installed well in advance (decision for investment even earlier because of long construction time and even longer in case of NPP to prepare all needed legal, financial and physical infrastructure), at times when firms face considerable demand and cost uncertainty when choosing their capacity. Paper looks on the main contributions in investment planning under uncertainty, in particular in the electricity market for capital intensive investments like NPP. The relationship between market and non-market factors (recent UK policy example) in determining investment signals in competitive electricity markets was analysed. Paper analyse the ability of competitive electricity markets to deliver the desired quantity and type of generation capacity and also investigates the variety of market imperfections operating in electricity generation and their impact on long-term dynamics for generation capacity, the most capital-intensive of the liberalised functions in the electricity supply industry. Paper analyses how price formation influences investment signals. Today, investment decisions are made by several operators that act independently. Number of factors (including market power, wholesale price volatility, lack of liquidity in the wholesale and financial market, policy and regulatory risks etc.) contribute to polluting the price signal and generating sub-optimal behaviour. Climate change policies can easily distort market signals, insulating renewables generation from market dynamics. This in turn reduces the proportion of the market that is effectively opened to competitive

  20. The role of appearance investment in the adjustment of women with breast cancer.

    Science.gov (United States)

    Moreira, Helena; Silva, Sónia; Canavarro, Maria Cristina

    2010-09-01

    Appearance investment can be considered an important factor in the explanation of individual differences in adjustment to breast cancer. This study aims to analyze the role of this variable on a set of adjustment outcomes, namely, quality of life (QOL), emotional adjustment (depression and anxiety) and fear of negative evaluations. The differential role of motivational salience facet of appearance investment (MS; the individual's efforts to be or feel attractive), conceptualized as a protective factor, and of self-evaluative salience facet (SES; the importance an individual places on physical appearance for their definition of self-worth), conceptualized as a vulnerability factor, is explored. This cross-sectional study included 117 Portuguese breast cancer patients (mean age=52.47; SD=8.81), on average 2.32 months (SD=2.17) post-diagnosis. Appearance investment was measured by the ASI-R; QOL by the WHOQOL-bref; emotional adjustment by the HADS; and fear of negative evaluations by the FNE (Portuguese versions). Several hierarchical multiple regressions were conducted for each outcome, using investment facets as a predictor variable. Both facets of investment contributed to the explanation of social (pappearance investment in the adjustment of breast cancer patients and added empirical support to SES-MS distinction. (c) 2010 John Wiley & Sons, Ltd.

  1. 76 FR 32882 - New Markets Tax Credit Non-Real Estate Investments

    Science.gov (United States)

    2011-06-07

    ... New Markets Tax Credit Non-Real Estate Investments AGENCY: Internal Revenue Service (IRS), Treasury... proposed regulations modifying the new markets tax credit program to facilitate and encourage investments... claiming the new markets tax credit and businesses in low-income communities relying on the program. This...

  2. Mechanisms for efficient investments and optimal zones in regional power market

    Directory of Open Access Journals (Sweden)

    Andročec Ivan

    2014-01-01

    Full Text Available The paper is result of research different cross-border electricity trading mechanisms impact. Focus is on investments in generation and transmission power system facilities in regional market. Assumptions include efficient market coupling mechanism (with more bidding zones, use of additional investment indicators (like social welfare and congestion cost and security of supply issues (capacity mechanisms. There is discussion on cost benefits analysis for particular market participants and there is possibility of risk reduction for regional power system expansion. It is shown current state-of-the-art, problems and trends in solving some aspects of market integration and investment issues. In some cases smaller and well defined bidding areas are absolutely essential in order to ensure system security and economic efficiency. There is no single criterion for power system expansion but it is possible to use combination of incentive schemes and possible through one index for cross-border trade. Risk management for cross-border electricity trading through several areas needs to be upgraded with use of financial transmission rights like weighted average area prices, respectively. Regional power system security is closely associated with timely investments in energy supply in line with economic development and environmental needs. Security of supply indicator is deriving an estimation of security of supply improvement from the market based simulation results when a generation or transmission investment project is implemented. All researched makes market integration and investments in Europe more efficient and gives more correct signals to market participants in regional market.

  3. Electricity markets. Investment, performance and analysis

    International Nuclear Information System (INIS)

    Murray, B.

    1998-01-01

    The impact of deregulation on the theory and practice of investment appraisal is addressed in this comprehensive treatment of the restructuring of the electricity supply industry. Demonstrating that the classical approach to generation investment appraisal is no longer valid, a new approach is developed using three economic models to represent differing market conditions. Highlighting the impact on the organisation of the utilities and their suppliers, this book offers essential advice for survival in the deregulated environment worldwide. (author)

  4. The growth of nuclear investments in a market environment

    International Nuclear Information System (INIS)

    Finon, D.

    2006-01-01

    After a long period of low nuclear investments owing to major political and regulatory obstacles, the governments of industrialized countries are again looking at nuclear energy as a major political option addressing long term weather and energy security risks. But the liberalization of electrical industries currently adds a major requirement to that highly capitalistic type of investment perceives by investors as presenting specific risks. The reference competitive model is particularly incompatible with that type of investment in production for competing companies. But it is moving towards more investment-friendly structures. After indicating the specific requirements for nuclear investments in market environments, this article offers possible model adjustment options that could enable to boost such investments through drastic distancing: the development of long term electrical contracts, vertical and horizontal reintegration with a view to price - risk control and price - volume control, or the removal from the market of new nuclear productions through a purchase duty. (author)

  5. Developing Equity Culture and Partnerships in the Investment Market: a Study on Iran’s over the Counter Market

    Directory of Open Access Journals (Sweden)

    Mehdi SALEHI

    2012-03-01

    Full Text Available The equity culture has an effective role in developing investment market and represents economic development. In the current study, polling and questionnaire method was used to determine the approach of organizational stockholders and exchange stockbrokers to over the counter market (OTC role in developing partnerships and equity culture in the investment market of Iran. The results demonstrate that the statistical population deems the transparency of Iran’s OTC market favorable and that the OTC market has acceptable trading expenses for investors and company’s involvement. Also, in addition to adequate supporting and educational facilities in Iran’s OTC market, there is the potential for innovation and diversity in trading opportunities for investors and individuals and reduces investor’s risks for investment and involvement in the investment market. Also there is no significant dereference between the approaches of organizational shareholders and exchange stockbrokers with regards to the discussed variables.

  6. The impact of electricity market design upon investment under uncertainty: The effectiveness of capacity mechanisms

    International Nuclear Information System (INIS)

    Vries, Laurens de; Heijnen, Petra

    2008-01-01

    This paper presents an analysis of different market designs under uncertainty about the future growth rate of demand. Markets for electricity generation appear to be prone to an investment cycle due to their capital-intensiveness and the long lead time of new generation facilities. We tested the stability of different capacity mechanisms in the presence of uncertainty regarding the demand growth rate with a stochastic dynamic model. Investment decisions were assumed to maximize profit, based on an assumed growth rate of demand that was equal to the rolling average of the previous five years. All capacity mechanisms proved effective in reducing the tendency towards an investment cycle, but to different degrees. Interestingly, an oligopoly that is able to raise average prices by 10% would also be able to substantially reduce price volatility and decrease the risk of shortages by increasing the reserve margin. Benefits of such a strategy for the generating companies could be that it would deter new market entrants and stave off the political attention that shortages and price spikes would bring about. However, the benefits to consumers are compromised by the lack of economic efficiency and distributional effects of an oligopoly, while the stability of such an oligopolistic strategy can be questioned. The most attractive solution is a system of reliability contracts, which can be used to stabilize both investment and prices, while reducing market power and providing more efficient operational incentives to generating companies. (author)

  7. CHARACTERISTICS OF INVESTMENT PORTFOLIOS PASSIVE MANAGEMENT STRATEGY ON THE CAPITAL MARKET

    Directory of Open Access Journals (Sweden)

    MIHAELA SUDACEVSCHI

    2013-05-01

    Full Text Available The strategies of investment portfolios management on the capital market involves a range of transactions with different financial securities, aimed at optimizing the results. On a developed and efficient capital market, with a high liquidity level, portfolio management primarly depends on investor’s targeted level of return and the risk profile of the investor. Passive strategy of investment portfolios management is applied especially by risk aversion investors, who are taking into account all existing risks in the capital market and seeking to preserve the value of investments, rather than increasing its value. This strategy presume that the investor has no information about the prices and the return of securities that would make him to give to his investment portfolio a different structure from the structure of capital market portfolio. Therefore, he will seek a return level equal to the return on the market portfolio, minimizing the portfolio risk up to eliminating the specific risk.

  8. Market Power and Investment in Renewable Electricity Generation

    DEFF Research Database (Denmark)

    Ernstsen, Rune Ramsdal; Misir, Nihat

    while incurring lower investment costs. We additionally find that highly convex investment cost greatly diminishes the impact of market power on the investment decisions. Furthermore, for both the strategic firm and the social planner, fixed baseload generation is preferable during low installed...... approach to evaluate the investment decisions. In our paper we do not only focus on the differences in costs for different technologies but also on the differences in operation of those technologies and how those differences impact the optimal investment decisions. In our model, the one-time investment...... decision requires the determination of demand shock trigger level, choice of technology and level of optimal capacity. We specifically investigate how the investment triggers, optimal capacities and technology choices change with the changes to the investment cost function, demand uncertainty and the level...

  9. 76 FR 32880 - Encouraging New Markets Tax Credit Non-Real Estate Investments

    Science.gov (United States)

    2011-06-07

    ... Encouraging New Markets Tax Credit Non-Real Estate Investments AGENCY: Internal Revenue Service (IRS... markets tax credit. Specifically, this document invites comments from the public on how the new markets tax credit program may be amended to encourage non-real estate investments. The regulations will...

  10. Momentum Investment Strategy : (An Empirical Study of the Canadian Stock Market and the Swedish Stock Market)

    OpenAIRE

    Ludvigsson, Anita

    2008-01-01

    Abstract Market efficiency is a highly debated topic within the academic research field of finance. Several studies have presented that the return on stocks may be predictable by employing the momentum investment strategy, which contradicts the Efficient Market Hypothesis in exchange market. There is extensive international evidence, on an academic level that the momentum investment strategy yields positive abnormal returns when short-term periods are considered. This paper examines the profi...

  11. Market completeness. How options affect hedging and investments in the electricity sector

    International Nuclear Information System (INIS)

    Willems, Bert; Morbee, Joris

    2010-01-01

    The high volatility of electricity markets gives producers and retailers an incentive to hedge their exposure to electricity prices by buying and selling derivatives. This paper studies how welfare and investment incentives are affected when an increasing number of derivatives are introduced. It develops an equilibrium model of the electricity market with risk averse firms and a set of traded financial products, more specifically: a forward contract and an increasing number of options. We first show that aggregate welfare (the sum of individual firms' utility) increases with the number of derivatives offered, although most of the benefits are captured with one to three options. Secondly, power plant investments typically increase because additional derivatives enable better hedging of investments. However, the availability of derivatives sometimes leads to 'crowding-out' of physical investments because firms' limited risk-taking capabilities are being used to speculate on financial markets. Finally, we illustrate that players basing their investment decisions on risk-free probabilities inferred from market prices, may significantly overinvest when markets are not sufficiently complete. (author)

  12. The role of financial market performance in hospital capital investment.

    Science.gov (United States)

    Reiter, Kristin L; Song, Paula H

    2011-01-01

    Many not-for-profit hospitals hold large portfolios of financial investments, making them vulnerable to fluctuations in market performance. This article examines the association of bond and equity market performance with investment in property, plant, and equipment by 194 not-for-profit general hospitals in California over the period 1997 to 2006. The study combines retrospective panel data from the California Office of Statewide Health Planning and Development with year-end returns on the S&P 500 and ten-year US Treasury bonds. Using fixed-effects regression, we find a significant positive association between S&P 500 performance and hospitals' capital investment; investment is not correlated with ten-year Treasury bond performance.

  13. Trends in electricity markets and international investment in Mexico

    International Nuclear Information System (INIS)

    Bohigas, N.

    1999-01-01

    A review of current market trends in the energy sector around the world was presented. There is a global movement towards the restructuring of public utility companies. The Americas are opening new energy markets, integrating gas and electricity, privatising public utilities and making mass investments. Mexico has made a proposal to liberalize the market since extensive restructuring is needed to encourage foreign investment. Over the next ten years, energy needs are expected to reach 22,000 MW. Much of this paper focused on how Hydro-Quebec International would be a partner of choice in the Mexican energy market. Hydro-Quebec International is a wholly owned subsidiary of Hydro-Quebec. It has a wide range of expertise in hydroelectric power. The utility has completed more than 300 contracts in 80 countries. Their projects in Mexico include the ECOMEX NGV project which involves the construction of compressed stations, and the CLOROTEC project which includes the construction of a thermal generating station and cogeneration with a capacity of 105 MW. This paper also described the ideal conditions for investing as being political stability, a defined regulatory structure, an established legal system, complementary partners, and acceptable rate of return. It was determined that in order to promote a more favourable investment climate, Mexico must approve the structural reform proposed to the electrical sector

  14. Which Firms Follow the Market? An Analysis of Corporate Investment Decisions

    OpenAIRE

    Tor-Erik Bakke; Toni M. Whited

    2010-01-01

    We test whether stock market mispricing or private investor information in stock prices affects corporate investment. We develop an econometric methodology that disentangles stock-price movements that are relevant for investment from those that are not. We combine this decomposition with proxies for private information and mispricing to devise unbiased tests for the effects of mispricing and information on investment. We depart from much of the literature by finding that stock market misprici...

  15. The Stock Market, Profit and Investment

    OpenAIRE

    Olivier Blanchard; Changyong Rhee; Lawrence Summers

    1990-01-01

    Should managers, when making investment decisions, follow the signals given by the stock market even if those do not coincide with their own assessments of fundamental value? This paper reviews the theoretical arguments and examines the empirical evidence, constructing and using a new US time series of data on the q ratio from 1900 to 1988. We decompose q - - the ratio of the market value of corporate capital to its replacement cost - - into the product of two terms, reflecting "fundamentals"...

  16. Students Invest in the Stock Market

    Science.gov (United States)

    Parker, George O.

    1977-01-01

    How one teacher motivated students to learn about the stock market by allowing them to actually invest money. Class discussion covered inexpensive ways to buy stock, choosing securities, and buying and selling stock. Suggestions are offered for adapting this project for use at the secondary level. (TA)

  17. Efficient pricing and investment in electricity markets with intermittent resources

    International Nuclear Information System (INIS)

    Chao, Hung-po

    2011-01-01

    Facing growing technological and environmental challenges, the electricity industry needs effective pricing mechanism to promote efficient risk management and investment decisions. In a restructured electricity market with competitive wholesale prices and traditionally regulated retail rates, however, there are technical and institutional barriers that prevent dynamic pricing with price responsive demand. In regions with limited energy storage capacity, intermittent renewable resources present special challenges. This could adversely affect the effectiveness of public policies causing inefficient investments in energy technologies. In this paper, we present an updated economic model of pricing and investment in restructured electricity market and use the model in a simulation study for an initial assessment of renewable energy strategy and alternative pricing mechanisms. A key objective of the study is to shed light on the policy issues so that effective decisions can be made to improve efficiency. - Highlights: → Renewable resources present special challenges in regions with limited energy storage capacity. → This paper presents an updated economic model of pricing and investment in restructured electricity market. → A simulation study assesses renewable energy strategy and alternative pricing mechanisms. → The study results inform policy decisions to improve efficient investments in energy technologies.

  18. Capital Markets, Infrastructure Investment and Growth in the Asia Pacific Region

    Directory of Open Access Journals (Sweden)

    Michael Regan

    2017-02-01

    Full Text Available This paper examines the relationship between infrastructure investment activity, capital market development, the role of public institutions and economic development in the Asia Pacific. It adopts a review approach drawing on empirical evidence over recent decades. Infrastructure is shown to be an important asset class playing a central role in a nation’s output, growth, productivity and microeconomic performance. Infrastructure investment also requires investment and predictions of a widening gap in the future supply of infrastructure in the Asia Pacific will require new forms of capital from both traditional and new sources including wider use of private participation, institutional investment, asset recycling and revenue bonds. Capital market development is also necessary to raise long-term local currency finance and evidence suggests that progress with regional capital market integration is slow and a continuing reform agenda is required. The dividend for regional countries is the prospect of higher levels of economic growth with infrastructure investment, capital market development, and foreign direct investment shown to have a strong and positive association with growth. A crucial link in this association identified in the review is the part played by national and regional institutions in improving the efficiency with which infrastructure is managed and providing promising ground for further research where the importance of these links can be researched in greater depth.

  19. Application of the Value Averaging Investment Method on the US Stock Market

    Directory of Open Access Journals (Sweden)

    Martin Širůček

    2015-01-01

    Full Text Available The paper focuses on empirical testing and the use of the regular investment, particularly on the value averaging investment method on real data from the US stock market in the years 1990–2013. The 23-year period was chosen because of a consistently interesting situation in the market and so this regular investment method could be tested to see how it works in a bull (expansion period and a bear (recession period. The analysis is focused on results obtained by using this investment method from the viewpoint of return and risk on selected investment horizons (short-term 1 year, medium-term 5 years and long-term 10 years. The selected aim is reached by using the ratio between profit and risk. The revenue-risk profile is the ratio of the average annual profit rate measured for each investment by the internal rate of return and average annual risk expressed by selective standard deviation. The obtained results show that regular investment is suitable for a long investment horizon or the longer the investment horizon, the better the revenue-risk ratio (Sharpe ratio. According to the results obtained, specific investment recommendations are presented in the conclusion, e.g. if this investment method is suitable for a long investment period, if it is better to use value averaging for a growing, sinking or sluggish market, etc.

  20. Investments and price formation in a liberalized electric power market. Appendices

    International Nuclear Information System (INIS)

    Morthorst, P.E.

    2005-06-01

    How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

  1. Companies investments on Private Equity/Venture Capital market

    Directory of Open Access Journals (Sweden)

    Zbigniew Drewniak

    2009-12-01

    Full Text Available One of the investors on Private Equity/Venture Capital market are corporations. The share of companies in total funds raised by PE/VC funds is still on the very low level. Beside indirect investments, companies invest directly, creating special entities in one corporate structure. Capital gains are one of the advantages of these investments for companies. However, the companies have also other purposes like the acquirement and the development of new technologies, as well as the transfer of knowledge. The participation of PE/VC fund in the investment process results in the support for company expansion and the creation of company value.

  2. Challenges in the development of market-based pipeline investments

    International Nuclear Information System (INIS)

    Von Bassenheim, G.; Mohitpour, M.; Klaudt, D.; Jenkins, A.

    2000-01-01

    The challenges, risks and uncertainties that the natural gas industry faces in developing market-based pipeline projects were discussed. Market-based pipeline investments are fundamentally different from user-driven projects. Market-based projected involve finding enough energy users and linking them with a pipeline infrastructure to viable supplies of natural gas. Each unique project is developed individually and requires a strong corporate vision and support before it can be successfully implemented. The three phases of a pipeline investment include the business development phase, the project development phase, and the implementation/operations phase. Market-based companies will need a clear vision for long-term goals and the desire to succeed. The company will have to prepare a detailed strategy and policies that clearly define geographic areas of operations, risk tolerance, availability of capital and expected project performance. 3 refs., 3 tabs., 2 figs

  3. Energy market and investment - political economy of supply security in the market of energy

    International Nuclear Information System (INIS)

    Leban, R.

    2005-01-01

    A market structure that appears to be adapted to achieving a supply security purpose in the sectors of oil power and gas, is an organisation where upstream energy markets include industrial players of adequate sizes involved downstream and where futures exchanges prevail at prices translating anticipations on 'basics' since spot markets are more of adjustment markets. Policy weighs hugely on those markets. The extra competition lately instilled in the electrical and gas markets in developed countries results in no decrease, as complicated exchange rules need to be thought up and the market power needs to be monitored. Political intervention is also carried out in the name of environmental policies, in a strong interaction with the operation of the said markets and therefore with a not insignificant risk of disruption. The oil market is a highly political one, since the key to exchanges, i.e. access to primary resources, is played between producing countries and huge oil and gas companies close to consuming countries. There is a strong temptation in the electrical sector, to add security policies in order to prevail over the market. Gas, which is oil upstream and electrical downstream, requires, in consuming countries, a delicate balance of policies to support operators as buyers and to control the same operators as players of the gas- gas competition. The prognosis on the market's ability to provide safe supply efficiently to citizens if security policies are implemented is rather good in areas where demand is moderately growing and networks are developed. It is however not as good in areas where there are high needs for production and transport investments, i.e. in countries that are developing now, and will be...in Europe soon. (author)

  4. The Foreign Investment Risks of Chinese B Share Market

    OpenAIRE

    JIANG, MINCHANG

    2014-01-01

    The objective of this dissertation is to investigate and analyse the risks existing in Chinese B share market for foreign investment. Based on the brief history of B share market as well as background information such as characteristics of Chinese stock exchange, several areas of risks are identified as: macroeconomic risks, stock volatility and return including cross-impacts among market segmentations and different countries’ markets, financial market and currency risks, and finally the poli...

  5. Body image dissatisfaction in patients undergoing breast reconstruction: Examining the roles of breast symmetry and appearance investment.

    Science.gov (United States)

    Teo, Irene; Reece, Gregory P; Huang, Sheng-Cheng; Mahajan, Kanika; Andon, Johnny; Khanal, Pujjal; Sun, Clement; Nicklaus, Krista; Merchant, Fatima; Markey, Mia K; Fingeret, Michelle Cororve

    2018-03-01

    Reconstruction as part of treatment for breast cancer is aimed at mitigating body image concerns after mastectomy. Although algorithms have been developed to objectively assess breast reconstruction outcomes, associations between objectively quantified breast aesthetic appearance and patient-reported body image outcomes have not been examined. Further, the role of appearance investment in explaining a patient's body image is not well understood. We investigated the extent to which objectively quantified breast symmetry and patient-reported appearance investment were associated with body image dissatisfaction in patients undergoing cancer-related breast reconstruction. Breast cancer patients in different stages of reconstruction (n = 190) completed self-report measures of appearance investment and body image dissatisfaction. Vertical extent and horizontal extent symmetry values, which are indicators of breast symmetry, were calculated from clinical photographs. Associations among breast symmetry, appearance investment, body image dissatisfaction, and patient clinical factors were examined. Multi-variable regression was used to evaluate the extent to which symmetry and appearance investment were associated with body image dissatisfaction. Vertical extent symmetry, but not horizontal extent symmetry, was associated with body image dissatisfaction. Decreased vertical extent symmetry (β = -.19, P image dissatisfaction while controlling for clinical factors. Breast symmetry and patient appearance investment both significantly contribute to an understanding of patient-reported body image satisfaction during breast reconstruction treatment. Copyright © 2017 John Wiley & Sons, Ltd.

  6. How does market power affect the impact of large scale wind investment in 'energy only' wholesale electricity markets?

    International Nuclear Information System (INIS)

    Browne, Oliver; Poletti, Stephen; Young, David

    2015-01-01

    In the short run, it is well known that increasing wind penetration is likely to reduce spot market electricity prices due to the merit order effect. The long run effect is less clear because there will be a change in new capacity investment in response to the wind penetration. In this paper we examine the interaction between capacity investment, wind penetration and market power by first using a least-cost generation expansion model to simulate capacity investment with increasing amounts of wind generation, and then using a computer agent-based model to predict electricity prices in the presence of market power. We find the degree to which firms are able to exercise market power depends critically on the ratio of capacity to peak demand. For our preferred long run generation scenario we show market power increases for some periods as wind penetration increases however the merit order counteracts this with the results that prices overall remain flat. Returns to peakers increase significantly as wind penetration increases. The market power in turn leads to inefficient dispatch which is exacerbated with large amounts of wind generation. - Highlights: • Increasing investment in wind generation is analyzed using an agent based model. • In an energy only market, increased total capacity reduces market power. • Increasing wind penetration results in more market power in some periods. • Market power causes dispatch inefficiencies, which grow as wind capacity increases.

  7. Investments into plant replacements in a deregulated electricity market

    International Nuclear Information System (INIS)

    Elsaesser, R.F.

    2004-01-01

    The amendment to the Power Energy Act in April 1998 marked the complete deregulation of the electricity market in Germany. The debate is now beginning about ways and means to ensure new capital investments safeguarding the continuity of supply. The present power plant park has been characterized by a broad mix of primary energy sources and, admittedly, by some overcapacity as well. However, any further reduction of generating capacity will be at the expense of the continuity of supply. Although electricity prices in Germany are on the rise again after a clear drop, they have not yet reached a level sufficient for new investments. Only subsidized power plants are recovering their full costs. The question is for how long our economy is going to sustain this state of affairs. The balance among the energy policy goals of continuity of supply, environmental performance, and economic efficiency has been upset. In the period up until 2020, Germany alone will require approx. 37,000 MW of new generating capacity. Renewable and decentralized technologies alone do not constitute a sufficient and reliable alternative. However, there is the matter also of the practical feasibility of building the new power plants required. No experience is as yet available with re-investment cycles in the deregulated electricity market. Options are needed for a diversified structure of primary energy sources. There must be neither political definition of generating technologies nor exaggerated goals of environmental protection and climate protection. We advocate the free system of market prices and free access to the market. Major players able to guarantee sufficient security of investments are needed to cope with the challenges ahead. New investments with a life of thirty to forty years require a modicum of stability and realism in political framework conditions. (orig.)

  8. Investments and price formation in a liberalized electric power market. Appendices; Investering og prisdannelse pae et liberaliseret elmarked. Bilag

    Energy Technology Data Exchange (ETDEWEB)

    Morthorst, P.E.

    2005-05-01

    How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. The appendix volume of the project report contains detailed descriptions of the three models that are used: the Balmorel model, the investment model, and the MARS model. The Balmorel model is a partial equilibrium model that describes a coherent, international electric power system and combined heat and power system. The model was developed in 2000 through international co-operation with the aim to have a model for analysing international aspects in the Baltic area. The investment model analyses and models the investment decisions in a liberalized Nordic electric power market. It is an exogenous model constructed outside the Balmorel model but uses the price pictures from the Balmorel model as input. MARS (MARket Simulation) is Eltra's (a Danish electric power transmission company) market model for simulating prices, production, demand and exchanges in the power market. The model covers the Nordic countries (Nord Pool) and Northern Germany. (LN)

  9. Implementing transparency in an Eastern European office market: preparing Warsaw for global investments

    Directory of Open Access Journals (Sweden)

    Nadine Bitterer

    2012-11-01

    Full Text Available In the aftermath of an increasing integration of property and financial markets, the real estate industry is subject to soaring internationalization processes. Since international institutional investors appeared, transnational real estate investments have increased tremendously. In recent years, Central and Eastern European countries have been becoming more attractive to institutional investors and are therefore being integrated into international market structures. Within these countries, Warsaw emerged as the most dynamic and important real estate market. But what are the mechanisms and practices through which the real estate market of Warsaw becomes international? Which networks, intermediaries and frames are necessary to constitute a mature real estate market? The article argues that international real estate consultants are playing a crucial role in the underlying internationalization process. They are acting at the interface between investors, developers, construction companies and tenants and are therefore becoming a crucial hinge between real estate actors. With the example of the Warsaw real estate market we argue that international real estate consultancies are key drivers of the transformation process from a local to a global market. They transfer global knowledge, competence and practices and implement transparent and professional structures in the emerging Warsaw real estate market.

  10. Investment Restrictions and Contagion in Emerging Markets

    OpenAIRE

    Anna Ilyina

    2005-01-01

    The objectives of this paper are: (1) to analyze an optimal portfolio rebalancing by a fund manager in response to a "volatility shock" in one of the asset markets, under sufficiently realistic assumptions about the fund manager's performance criteria and investment restrictions; and (2) to analyze the sensitivity of the equilibrium price of an asset to shocks originating in other fundamentally unrelated asset markets for a given mix of common investors. The analysis confirms that certain com...

  11. Investment behaviour in the Nordic power market; Investeringsadferd i det nordiske kraftmarkedet

    Energy Technology Data Exchange (ETDEWEB)

    Ingeberg, K; Johannessen, A

    1995-11-15

    This report is the result of a preliminary project which defines the frames for an application for a main project within the research programme EFFEKT. The composition, extent and time for new investments in the Nordic power market will have decisive influence on the profits of Norwegian water power resources in the future. At the same time the process around investments is very complex and is affected by economic, technological and political conditions. The report examines important prime movers for new investments and how the investment behaviour in the Nordic power market can be analysed in a main project. 25 refs., 1 figure

  12. Investments and price formation in a liberalized electric power market

    International Nuclear Information System (INIS)

    Morthorst, P.E.

    2005-05-01

    How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. Using the Balmorel model, a basic scenario until the year 2020 is made which contains the present decisions about capacity extension only. Up to 2010 this basic scenario can be seen as a probable development. For the period 2010 to 2020, however, the calculations can primarily be seen as illustrations of how the prices may develop, provided that no further investments are made. Thus, for the period 2010 - 2020 it is a 'worst case' that has been analysed. In the basic scenario several cases for the year 2015 are analysed, among others the consequences of wet and dry years and an unusually cold winter. The project also analyses how the price development impacts the profitability of new investments in power capacity, depending on several exogenous events, like use of more wind power and the price on the carbon dioxide market. The analyses present three cases: 1) A single investor not owing other power plants, 2) a single investor owing a number of power plants in which case a new plant will compete with him self, 3) two competing investors investing in the same known power plants. In all cases investments are made in a natural gas combined cycle plant producing both electric power and heat. Furthermore, the investor's own possibility to time his investment has been

  13. On investment, uncertainty, and strategic interaction with applications in energy markets

    International Nuclear Information System (INIS)

    Murto, P.

    2003-01-01

    The thesis presents dynamic models on investment under uncertainty with the focus on strategic interaction and energy market applications. The uncertainty is modelled using stochastic processes as state variables. The specific questions analyzed include the effect of technological and revenue related uncertainties on the optimal timing of investment, the irreversibility in the choice between alternative investment projects with different degrees of uncertainty, and the effect of strategic interaction on the initiating of discrete investment projects, on the abandonment of a project, and on incremental capacity investments. The main methodological feature is the incorporation of game theoretic concepts in the theory of investment. It is argued that such an approach is often desirable in terms of real applications, because many industries are characterized by both uncertainty and strategic interaction between the firms. Besides extending the theory of investment, this line of work may be seen as an extension of the theory of industrial organization towards the direction that views market stability as one of the factors explaining rational behaviour of the firms. (orig.)

  14. Investments and price formation in a liberalized electric power market; Investering og prisdannelse pae et liberaliseret elmarked

    Energy Technology Data Exchange (ETDEWEB)

    Morthorst, P.E.

    2005-05-01

    How will the electric power prices in the Nordic electric power market develop if the generation capacity in the coming 10 to 15 years is increased considerably? And what are the conditions for investors to initiate new investments in power plants? Briefly speaking - these are the issues for the project that is reported in this report. The basis for the project has been the Nordic electric power market model and its capability to handle the future extension of the necessary generating capacity. The main issue in the project has been a quantitative analysis of what the prices in the Nordic electric power market will be in the future, depending on the size of new investments in the power generating capacity. Using the Balmorel model, a basic scenario until the year 2020 is made which contains the present decisions about capacity extension only. Up to 2010 this basic scenario can be seen as a probable development. For the period 2010 to 2020, however, the calculations can primarily be seen as illustrations of how the prices may develop, provided that no further investments are made. Thus, for the period 2010 - 2020 it is a 'worst case' that has been analysed. In the basic scenario several cases for the year 2015 are analysed, among others the consequences of wet and dry years and an unusually cold winter. The project also analyses how the price development impacts the profitability of new investments in power capacity, depending on several exogenous events, like use of more wind power and the price on the carbon dioxide market. The analyses present three cases: 1) A single investor not owing other power plants, 2) a single investor owing a number of power plants in which case a new plant will compete with him self, 3) two competing investors investing in the same known power plants. In all cases investments are made in a natural gas combined cycle plant producing both electric power and heat. Furthermore, the investor's own possibility to time his

  15. The market will take care of that. Real Investment Practices on the Deregulated Electricity Market; Det daer ordnar marknaden. Investeringspraktik paa den avreglerade marknaden

    Energy Technology Data Exchange (ETDEWEB)

    Roennborg, Petter (Univ. of Gothenburg, Goeteborg (Sweden). School of Business, Economics and Law)

    2009-06-15

    This dissertation deals with market actors' motives and the overall driving forces for undertaking real investments in electricity-generation facilities. Two factors induce interest in this subject. Firstly, the stationary electricity industry faces tremendous real-investment challenges. Secondly, these investments are to be undertaken within the institutional logic of the free market. Thus, the electricity company has to make decisions in a completely new setting. The market logic suggests that actors should maximize profits and respond to market price-signals. Most previous studies on real-investments in the stationary electricity industry apply this perspective. However, empirical research on real investments and organizational decisions-making, emphasizes that this is a normative perspective and it does not represent a valid description of reality when examining decision-making. Therefore, the purpose of the study is to empirically describe how the market- actors develop plausible argumentation and how they act, in practical real-investment situations, thereby enriching our understanding of motives and driving forces. Building on institutional theory, the undertaking of real-investments is considered as the result of a specific social practice, here called real-investment-practice. This theoretical perspective holds that three detailed elements constitute the real-investment-practice: one interpretative-oriented, one process-oriented, and one decision-oriented. Applying this perspective thus allows us to capture the contextual settings; the pattern of behavior characterizing the real-investments' course of events; and the application and the interpretation of analytical evaluation models. In line with this perspective, this PhD Thesis explores three questions: 1) How do the market actors construe the contextual settings, and how is the act of construing translated into real-investments in production capacity? 2) How do the market actors proceed in

  16. Investments in electricity generation in Croatian liberalized market: energy option

    International Nuclear Information System (INIS)

    Androcec, I.; Viskovic, A.; Slipac, G.

    2004-01-01

    The Republic of Croatia should have enough capacities built on its own territory to cover system's peak load at any time for ensuring a long-term reliability of its operation. According to annual increasing of electricity consumption and progressive shutdown of the oldest generating plants, the security of future electricity supply depends on new investments. The market, i.e. a competitive generation, is the driving force in the construction of new power plants. The main stimulus for the construction is the possibility of definite return of invested capital and enabling potential investors to realize the expected revenues (profit). The construction of generating capacities is subject of authorisation procedure or tendering procedure, by approval of the Energy Regulatory Council. The electricity market opening in Croatia is parallel process with establishment of regional energy market in South East Europe where the decision of investment in new power plant will be defined by regional investment priorities, all in the aspect of European Union enlargement. In those liberalisation conditions it is necessary to realize all possible energy options according to the Strategy of Energy Development of Republic of Croatia and to the regional energy market requirements or European Union Directives. New power plant will be realized, because of objective circumstances, through construction of gas power plant or coal power plant and possible nuclear power plant, and in much smaller size through construction of hydro power plants or power plants on renewable energy sources. The possibility of any energy option will be considered in view of: investment cost, operation and maintenance cost, fuel price, external costs, public influence, and through investor's risk. This paper is aiming to analyse the possibility of nuclear power plant construction in Croatia as well as in other small and medium electricity grids. Nuclear option will be comprehensively considered in technical

  17. INVESTMENT FUNDS ON ROMANIAN CAPITAL MARKET

    Directory of Open Access Journals (Sweden)

    Cristian GHEORGHE

    2014-05-01

    Full Text Available National laws governing collective investment undertakings were updated as a result of European secondary law modernization with a view to approximating the conditions of competition between those undertakings at Community level, while at the same time ensuring more effective and more uniform protection for unit-holders. Such coordination intended to facilitate the removal of the restrictions on the free movement of units of UCITS in the internal market. For the purposes of internal regulation UCITS means an undertaking: (a with the sole object of collective investment in transferable securities or in other liquid financial assets of capital raised from the public and which operate on the principle of risk-spreading; and (b with units which are, at the request of holders, repurchased or redeemed, directly or indirectly, out of those undertakings’ assets. The UCITS may be constituted in accordance with contract law (as common funds managed by management companies, trust law (as unit trusts, or statute (as investment companies. Key investor information should be provided as a specific document to investors, before the subscription of the UCITS, in order to help them to reach informed investment decisions. Investment funds enjoy in Romania a new regulatory framework: the contract of common society hosted by new Civil Code and the new Emergency Ordinance regarding UCITS.

  18. The returns and risks of investment portfolio in stock market crashes

    Science.gov (United States)

    Li, Jiang-Cheng; Long, Chao; Chen, Xiao-Dan

    2015-06-01

    The returns and risks of investment portfolio in stock market crashes are investigated by considering a theoretical model, based on a modified Heston model with a cubic nonlinearity, proposed by Spagnolo and Valenti. Through numerically simulating probability density function of returns and the mean escape time of the model, the results indicate that: (i) the maximum stability of returns is associated with the maximum dispersion of investment portfolio and an optimal stop-loss position; (ii) the maximum risks are related with a worst dispersion of investment portfolio and the risks of investment portfolio are enhanced by increasing stop-loss position. In addition, the good agreements between the theoretical result and real market data are found in the behaviors of the probability density function and the mean escape time.

  19. Investment with incomplete markets for risk: The need for long-term contracts

    International Nuclear Information System (INIS)

    Maere d’Aertrycke, Gauthier de; Ehrenmann, Andreas; Smeers, Yves

    2017-01-01

    Barring subsidies, investment in the power generation sector has come to an almost complete halt in the restructured European power sector. Market and regulatory failures such as the well known missing money (see )) but also normal market features such as risk, possibly also affected by market failures like market incompleteness are mentioned as common causes for the situation. This paper discusses incomplete risk trading and its impact on investment. The analysis applies computable stochastic equilibrium models on a simple market model of the Energy Only type. The paper first compares the cases of complete and fully incomplete markets (full risk trading and no risk trading). It continues by testing the impact of different risk trading contracts on both welfare and investment. We successively consider Contracts for Difference, Reliability Options with and without physical back up that we add to our Energy Only market model. We test the impact of market liquidity on the results. Finally, we compare these methods to a Forward Capacity Market that we also add to the energy only model. We complete the paper by interpretation of these results in terms of hurdle rate implied by these risk-trading situations. - Highlights: • Electricity market designs are discussed based on simulations reflecting risk aversion. • If financial markets are liquid then forward contracts can improve welfare substantially. • If markets cannot provide liquidity, then the welfare improvement is strongly diminished. • Capacity markets can serve as an alternative to contracts.

  20. Electricity market reforms: Institutional developments, investment dynamics and game modeling

    Science.gov (United States)

    Pineau, Pierre-Olivier

    The reform trend of the 1990's in electricity markets recreates, to some extent, the institutional framework from which they developed one century ago. Although these reforms do not endeavor to completely remove regulation, the basic objectives of deregulation dwell on limiting central and governmental control over the industry in order to promote free competition at all possible levels. To assess whether the electricity industry is or is not moving back to a 19th century structure is not the goal of this thesis. We will rather try to understand on what grounds deregulation reforms stand and review how different countries and large utilities have reacted to this trend. The special nature of electricity (non-storable basic good, centrally produced) creates different obstacles in the restructuring of electricity markets, compared to other industries like the airline or telecommunication ones. For example, the dominant positions of some utilities, the production structure and the importance of electricity in modern life could transform these reforms in a threatening move for consumers. Another specific issue arising from deregulation, now that national energy policy goals no longer rule the behavior of utilities, is how investment will be coordinated in the new market. A key element to keep in sight is the competition level targeted by these reforms. To which extent full competition can really occur in electricity markets remains an unanswered question. Indeed, the oligopolistic structure of the market could prevent such an outcome. An investigation of the investment dynamics in such a context seems therefore appropriate, and this will be an important theme of the thesis. This work offers an analysis of deregulated electricity markets and studies the oligopolistic market dynamics that could prevail in the new structure. Two complementary approaches are used for these purposes. The first is institutional and presents a thorough illustration of the economic arguments

  1. State-of-the-art research: optimal investment in market-based electric power systems

    Energy Technology Data Exchange (ETDEWEB)

    Hope, Einar; Skjeret, Frode

    2008-04-15

    The purpose of this state-of-the-art research paper is to surveying the literature on investment in market based electric power systems as a background for identifying and discussing some important issues in the optimal design and operation of such systems. A fundamental distinction has to be made between investment in the competitive part of the power system (generation and trading) on the one hand and the natural monopoly part (network infrastructure) on the other. The paper starts with a listing and discussion on market characteristics and properties of electric power and goes on to discussing performance criteria and potential sources of market failure for optimal electric power investment. After the literature survey there is a discussion of conditions under which optimal investment may occur. (author). 78 refs., figs

  2. 76 FR 39341 - Encouraging New Markets Tax Credit Non-Real Estate Investments; Correction

    Science.gov (United States)

    2011-07-06

    ... DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-114206-11] RIN 1545-BK21 Encouraging New Markets Tax Credit Non-Real Estate Investments; Correction AGENCY: Internal Revenue Service... how the new markets tax credit program may be amended to encourage non-real estate investments. FOR...

  3. The System of Investment Processes in the IT Service Market and the Methodical Foundations for the Governmental Regulation

    Directory of Open Access Journals (Sweden)

    Protsykevych Arsen I.

    2017-10-01

    Full Text Available It has been determined that investment processes in the IT market enable the development and efficient use of affordable investment resources to develop and ensure the competitiveness of market players. Different approaches to interpretation of essence of investment processes have been identified. It has been proven that in order to implement an effective public policy in the IT services market, investment process must be seen as a macroeconomic system of relationships in the formation, attraction and use of investments in the IT services market, implementation of investment projects by the IT business entities. With that, systematic approach to understanding investment process brings to the fore an awareness of its typology, which in turn affects the applied instruments and means of public investment policy in this sphere. It has been found that the characteristics of governmental regulation of investment processes in the market for IT services are first and foremost determined by the aspects of the market functioning, the selected objects of trade, the basic constituents of investment activity, and the institutional framework.

  4. Capacity investment and competition in decentralized electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Fehr, Nils-Henrik von der; Harbord, David Cameron

    1997-11-01

    With particular reference to the recently deregulated and market-based electricity industries in Norway, the UK and elsewhere the report analyses oligopoly entry and capacity investment decisions as a non-cooperative game in a decentralized electricity market. A two-stage game is considered, with multiple capacity types and uncertain demand, in which capacity decisions are made prior to spot-market, or price competition. Equilibrium outcomes for different pricing mechanisms or regulatory regimes are analysed. The following questions are dealt with in particular: Will industry capacity be sufficient to ensure adequate supply security? Does imperfect competition in the spot-market lead to an inefficient mix of base-load and peak-load technologies? How do different regulatory policies affect the market outcomes? 24 refs., 2 figs., 1 tab.

  5. Financial Investment Management: Testing the Market Model on the Romanian Capital Market during the Post Financial Crisis

    Directory of Open Access Journals (Sweden)

    Radu CIOBANU

    2011-06-01

    Full Text Available This article presents an analysis of the decision of investing in the capital market in Romania during 2009-2010, in the context of overcoming the global financial crisis. In the first part of the paper, we have made a brief presentation of the simplified model of market analysis introduced in the specialized literature by William Sharpe, the respective model representing the starting point in our study. The purpose of the present study is to emphasize how the evolutions of the financial securities rates listed on the Bucharest Stock Exchange could be explained based on the evolution of BET Romanian capital market index. Although the study over this phenomenon has begun in the middle of the last century, every day new studies appear that are either coming in addition to the already existing ones or are bringing a new approach regarding the financial theory. The novelty of the present study conducted by us resides in the highlighting of the evolutions of the financial securities rates during July 2009 – December 2010 periods. The second part of the paper presents the results of a study conducted on the Romanian capital market, emphasizing the correlations between the most important securities on the Romanian capital market, as parts of BET index and market index. The aim is to check whether during this period the evolution of the financial securities’ return can be explained more or less by the return of the capital market.

  6. Differences in decision-making criteria towards the return on marketing investment: A project business perspective

    OpenAIRE

    Smyth, H.; Lecoeuvre, L.

    2015-01-01

    Assessing the value of marketing to a business remains a thorny issue in theory and practice. Decision-making at the finance–marketing interface is under-researched, particularly for project businesses. Confronted by demands of accountability concerning the allocation of resources to meet competitive pressures, the paper examines the quality and extent of dialogue in investment decision-making. The return on investment (ROI) and marketing-specific investment (ROMI) are important factors at th...

  7. 77 FR 59544 - New Markets Tax Credit Non-Real Estate Investments

    Science.gov (United States)

    2012-09-28

    ... Markets Tax Credit Non-Real Estate Investments AGENCY: Internal Revenue Service (IRS), Treasury. ACTION... communities. The final regulations affect taxpayers claiming the new markets tax credit and businesses in low... 45D(a)(1), a taxpayer may claim a new markets tax credit on certain credit allowance dates described...

  8. Value Relevance of Investment Properties: Evidence from the Brazilian Capital Market

    Directory of Open Access Journals (Sweden)

    Ketlyn Alves Gonçalves

    2017-04-01

    Full Text Available This study investigates the relevance to the capital market of the assets recognized as investment properties of companies listed on the BM&F BOVESPA, in the period from 2011 to 2014. The research conducted was based on the Ohlson model (1995 and panel analysis was carried out using linear regression with POLS and Fixed and Random Effects estimators. Two hypothesis were made: (i that Earning and Equity generate accounting information relevant to investors; and (2 that Earning, Equity and Investment Property generate accounting information relevant to investors, assuming that investment properties have incremental effect on the relevance of this information relative only to earning and to equity. Both hypotheses were rejected, so it is concluded that Investment Property assets are not of value relevance in the determination of share price and do not influence the decision making of users of accounting information. The study adds to the limited literature on the value relevance of Investment Property, permitting a better understanding of the impact of accounting disclosures used by companies on their market value.

  9. Electricity market reforms : institutional developments, investment dynamics and game modeling (Finland)

    International Nuclear Information System (INIS)

    Pineau, P.-O.

    2001-01-01

    During the 1990s, there was a definite trend to reform the electric power industry from the way in which it operated a century ago. The reform does not try to totally remove regulation. Rather, the basic objective is to limit central and governmental control over the industry so that free competition can be encouraged at all possible levels. This thesis tried to understand the status of deregulatory reforms and reviews how different countries and large utilities have reacted to the trend. Electricity is particular in that it is a non-storable basic good that is centrally produced. Compared to other industries such as the airline or telecommunication industry, this special nature creates barriers in the restructuring of power markets. An issue that is emerging with deregulation is that national energy policy goals no longer determine the behaviour of utilities. This will impact on how investments will be coordinated in the new market. A major factor to keep in mind is the competition level sought by these reforms. It is not yet known to which extent full competition can really occur in electricity markets. The oligopolistic structure of the market may even prevent such an outcome. It is important to examine the investment dynamics in such a context. This was the primary theme of the thesis. The two complementary approaches used included an example of an institution and its economic arguments that support market reform. A detailed example of the reform process in the electricity market in Finland was presented. The second approach was more analytical and was based on the market equilibria that may occur as a result of market reform. A dynamic model of investment for the power market was again applied to the electricity market in Finland

  10. Electricity market reforms : institutional developments, investment dynamics and game modeling (Finland)

    Energy Technology Data Exchange (ETDEWEB)

    Pineau, P.-O.

    2001-07-01

    During the 1990s, there was a definite trend to reform the electric power industry from the way in which it operated a century ago. The reform does not try to totally remove regulation. Rather, the basic objective is to limit central and governmental control over the industry so that free competition can be encouraged at all possible levels. This thesis tried to understand the status of deregulatory reforms and reviews how different countries and large utilities have reacted to the trend. Electricity is particular in that it is a non-storable basic good that is centrally produced. Compared to other industries such as the airline or telecommunication industry, this special nature creates barriers in the restructuring of power markets. An issue that is emerging with deregulation is that national energy policy goals no longer determine the behaviour of utilities. This will impact on how investments will be coordinated in the new market. A major factor to keep in mind is the competition level sought by these reforms. It is not yet known to which extent full competition can really occur in electricity markets. The oligopolistic structure of the market may even prevent such an outcome. It is important to examine the investment dynamics in such a context. This was the primary theme of the thesis. The two complementary approaches used included an example of an institution and its economic arguments that support market reform. A detailed example of the reform process in the electricity market in Finland was presented. The second approach was more analytical and was based on the market equilibria that may occur as a result of market reform. A dynamic model of investment for the power market was again applied to the electricity market in Finland.

  11. Energy investments facing market risk and public policies

    International Nuclear Information System (INIS)

    Bobtcheff, C.

    2005-01-01

    The Annual meeting of the Energy Economist Association, held on June 15, 2005, was about the issue of investments in the energy sector. How can companies decide to invest in a project when there are increasing uncertainties, including as to future public policies and to energy market trends? The various speakers at the meeting stressed the significance of describing and gauging the risks specific to each industry as well as the assumptions that decision-making tools available to companies rely on (net value theory updated and actual option theory, inter alia). (author)

  12. The transfer and creation of knowledge within foreign invested R&D in emerging markets

    DEFF Research Database (Denmark)

    Søberg, Peder Veng

    2011-01-01

    for transfer - and creation of innovation related knowledge, within newly established foreign invested R&D units in emerging markets, in particular China and India. The paper utilizes extensive empirical data, collected in a holistic multiple case study, including three globally leading MNCs, originating from...... foreign invested R&D units in these countries. Implications, especially relevant for managers, working with newly established foreign invested R&D units in emerging markets, are outlined....

  13. Fractal Markets Hypothesis and the Global Financial Crisis: Scaling, Investment Horizons and Liquidity

    Czech Academy of Sciences Publication Activity Database

    Krištoufek, Ladislav

    2012-01-01

    Roč. 15, č. 6 (2012), 1250065-1-1250065-13 ISSN 0219-5259 R&D Projects: GA ČR GA402/09/0965 Grant - others:GA UK(CZ) 118310; SVV(CZ) 265 504 Institutional support: RVO:67985556 Keywords : fractal markets hypothesis * scaling * fractality * investment horizons * efficient markets hypothesis Subject RIV: AH - Economics Impact factor: 0.647, year: 2012 http://library.utia.cas.cz/separaty/2012/E/kristoufek-fractal markets hypothesis and the global financial crisis scaling investment horizons and liquidity.pdf

  14. Risks in global natural gas markets: Investment, hedging and trade

    International Nuclear Information System (INIS)

    Egging, Ruud; Holz, Franziska

    2016-01-01

    Recent supply security concerns in Europe have revived interest into the natural gas market. We investigate infrastructure investment and trade in an imperfect market structure for various possible risks for both supply and demand. We focus on three possible scenarios in a stochastic global gas market model: (i) transit of Russian gas via Ukraine that may be disrupted from 2020 on; (ii) natural gas intensity of electricity generation in OECD countries that may lead to higher or lower natural gas demand after 2025; and (iii) availability of shale gas around the globe after 2030. We illustrate how the timing of investments is affected by inter-temporal hedging behavior of market agents, such as when LNG capacity provides ex-ante flexibility or an ex-post fallback option if domestic or nearby pipeline supply sources are low. Moreover, we find that investment in LNG capacities is more determined by demand side pull – due to higher needs in electric power generation – than by supply side push, e.g. higher shale gas supplies needing an outlet. We focus on Europe, North America, and China that are the world's most important gas consuming and supplying regions. - Highlights: •We use the stochastic variant of the multi-period Global Gas Model. •We investigate the effects of uncertainty in Russian exports, demand, and shale gas. •We find that LNG is preferred as hedging option in anticipation of uncertain events. •Pipelines may be chosen as recourse decision after uncertain events realized. •China will dominate the global natural gas market regardless the scenario.

  15. Pension fund regulation: Unintended consequences of foreign investment restrictions in an emerging market economy

    Directory of Open Access Journals (Sweden)

    Coert Frederik Erasmus

    2016-12-01

    Full Text Available Retirement savings allow investors to earn income after retirement by saving while being part of the workforce. Retirement savings comprise the largest portion of retirement savings and should be safeguarded by effective regulation. To safeguard retirement savings, exposure to foreign asset investments is limited. However, in an emerging economy, limiting foreign asset investments, especially investment in developed markets, could hamper the potential investment returns due to the translation risk. To assess the effect of translation risk, a preservation provident fund was used in the present study to determine whether the returns of this preservation provident fund would be adversely affected by investment allocation regulation. The findings indicated how the translation effect affected the preservation provident fund, illustrating the adverse unintended consequences of investment regulation in emerging market economies. Consequently, regulators should reconsider the maximum allowed foreign asset investment in pension fund regulations to enhance investment returns from foreign asset investments

  16. Stock Market Liquidity and Investment Decisions of Non-Financial Quoted Companies in Nigeria

    Directory of Open Access Journals (Sweden)

    Rafiu Oyesola Salawu

    2016-01-01

    Full Text Available The study examined the impact of market liquidity on investment decision of 50 non-financial quoted companies in Nigeria between 2006 and 2012. The study employed secondary source of data collection. Data collected were analyzed using descriptive statistics and inferential statistics such as pool OLS and fixed effect model. The results showed that Size of the Firm (FS and Firms’ Age (FAGE were the only significant determinants of Return on Investment (ROI. The turnover ratio (TOR which is a proxy for market liquidity had positive but insignificant effect on ROI. Based on the above findings, the study concluded that for most of the companies operating in the non-financial sector of the Nigerian economy, the influence of market liquidity on investment decision is positive, but not significant. The study recommended that management should place more emphasis on the firm age and in particular firm size as they can be employed to predict the return on investment.

  17. CRITERIA FOR INVESTING IN THE MARKET FOR THE VISUAL ARTS

    Directory of Open Access Journals (Sweden)

    Elio Amílcar Farfán Torrelles

    2015-04-01

    Full Text Available The market in the visual arts develops a complex activity which requiring identify many key variables to establish valid investment criteria, as to obtain reasonable profits. This requires intentionality differentiate between investment purchase or collection. Then, fixing as the central axes of analysis to the work and the artist, is investigated and the trajectory of iconic and pop compared to identify the criteria that the buyer should consider when purchasing a work of visual art, and that due segmented to this economic activity, accurate to invest parameters are needed.

  18. Style investing: behavioral explanations of stock market anomalies

    OpenAIRE

    Wouters, T.

    2006-01-01

    Abstract PhD-project The aim of this thesis is to explore the mechanisms of style investing. My project consists of two parts, each with an individual goal: 1. The first objective will be to analyze the implications of the dynamics of value and growth strategies for the US stock market. 2. The second objective will be to find explanations for stock returns by introducing the effects of collective preferences of investors into the dynamics of stock markets. We introduce style popularity as an ...

  19. Essays on investing in stock and bond markets

    NARCIS (Netherlands)

    Kuiper, Ivo

    2017-01-01

    This Ph.D. thesis consists of three chapters about investing in stock and bond markets. The first chapter studies the financial market’s response to economic news as function of the economic environment by attributing the daily stock returns to its main drivers. The second chapter studies the cross

  20. Expanding Markets: Foreign Direct Investment as a Lesson in Economic Geography

    Science.gov (United States)

    Kalafsky, Ronald

    2012-01-01

    Firms face numerous challenges when looking to invest internationally, not the least of which includes understanding the business environment of a new market. Given the expansion and impacts of foreign direct investment (FDI), it has become increasingly important for students to understand and analyze the motivations, concerns, and strategies of…

  1. Sustainable Markets Investment Briefings: Investment Treaties

    Energy Technology Data Exchange (ETDEWEB)

    Cotula, Lorenzo

    2007-08-15

    This is the second of a series of briefings which discuss the sustainable development issues raised by legal arrangements for the protection of foreign investment. The briefings are based on legal research by IIED and its partners. The goal is to provide accessible but accurate information for human rights, development and environmental organisations working on issues raised by foreign investment in low- and middle-income countries. Briefing 2 explains how investment treaties between states work to protect and promote foreign investment.

  2. Livestock and Hides and Skins Marketing in Kenya: Problems and investment needs

    OpenAIRE

    Jabbar, Mohammad A.

    2002-01-01

    The paper briefly summarises the historical perspective on the development of livestock marketing in Kenya, current problems of livestock and hides and skins marketing, and recommends investment opportunities to improve the situation.

  3. Optimal Portfolio of Corporate Investment and Consumption Problem under Market Closure: Inflation Case

    Directory of Open Access Journals (Sweden)

    Zongyuan Huang

    2013-01-01

    Full Text Available We present the model of corporate optimal investment with consideration of the influence of inflation and the difference between the market opening and market closure. In our model, the investor has three market activities of his or her choice: investment in project A, investment in project B, and consumption. The optimal strategy for the investor is obtained using the Hamilton-Jacobi-Bellman equation which is derived using the dynamic programming principle. Further along, a specific case, the Hyperbolic Absolute Risk Aversion case, is discussed in detail, where the explicit optimal strategy can be obtained using a very simple and direct method. At the very end, we present some simulation results along with a brief analysis of the relationship between the optimal strategy and other factors.

  4. DEA investment strategy in the Brazilian stock market

    OpenAIRE

    Newton da Costa, Jr.; Marcus Lima; Edgar Lanzer; Ana Lopes

    2008-01-01

    This paper presents a multi-period investment strategy using Data Envelopment Analysis (DEA) in the Brazilian stock market. Results show that the returns based on the DEA strategy were superior to the returns of a Brazilian stock index in most of the 22 quarters analyzed, presenting a significant Jensen's alpha.

  5. Modeling and forecasting office investment markets in Central and Eastern Europe

    NARCIS (Netherlands)

    Hoefmans, M.P.; Janssen, I.I.; Chorus, C.G.

    2008-01-01

    Property markets in Central and Eastern Europe experienced turbulent developments since the collapse of the Soviet Union and the ensuing abolition of communism in the Central and Eastern European region. This paper examines the evolution of office investment markets in Prague, Budapest, Warsaw, and

  6. Electricity derivative markets: Investment valuation, production planning and hedging

    International Nuclear Information System (INIS)

    Naesaekkaelae, E.

    2005-01-01

    This thesis studies electricity derivative markets from a view point of an electricity producer. The traditionally used asset pricing methods, based on the no arbitrage principle, are extended to take into account electricity specific features: the non storability of electricity and the variability in the load process. The sources of uncertainty include electricity forward curve, prices of resources used to generate electricity, and the size of the future production. Also the effects of competitors' actions are considered. The thesis illustrates how the information in the derivative prices can be used in investment and production planning. In addition, the use of derivatives as a tool to stabilize electricity dependent cash flows is considered. The results indicate that the information about future electricity prices and their uncertainty, obtained from derivative markets, is important in investment analysis and production planning. (orig.)

  7. Electricity derivative markets: Investment valuation, production planning and hedging

    Energy Technology Data Exchange (ETDEWEB)

    Naesaekkaelae, E.

    2005-07-01

    This thesis studies electricity derivative markets from a view point of an electricity producer. The traditionally used asset pricing methods, based on the no arbitrage principle, are extended to take into account electricity specific features: the non storability of electricity and the variability in the load process. The sources of uncertainty include electricity forward curve, prices of resources used to generate electricity, and the size of the future production. Also the effects of competitors' actions are considered. The thesis illustrates how the information in the derivative prices can be used in investment and production planning. In addition, the use of derivatives as a tool to stabilize electricity dependent cash flows is considered. The results indicate that the information about future electricity prices and their uncertainty, obtained from derivative markets, is important in investment analysis and production planning. (orig.)

  8. ROMANIAN DEMOGRAPHIC FACTORS AND THE INVESTMENTS ON CAPITAL MARKET

    Directory of Open Access Journals (Sweden)

    Petric Ioana Ancuta

    2010-07-01

    Full Text Available The growing interest for investments in capital markets creates the need for studies focused on monitoring and analysing demographic environment in which the investors operate. Its analysis may represent a starting point for finding out opportunities and threats brought by environment for the evolution of Financial Investment Services Companies in Romania. Our paper starts from the assumption that the behaviour of the investor in financial services is influenced by the demographic factors. We focus on some of them, in a descriptive manner. Specifically, they are: monthly net average incomes, gender, age, employment rate and education level of the population. This study also presents a short case of a Financial Investment Services Company named Target Capital.

  9. Hydro investment analysis under new market conditions

    Energy Technology Data Exchange (ETDEWEB)

    Doorman, Gerard

    2010-07-01

    Full text: A future energy system with stronger coupling to Europe and with an increased share of non-regulated renewables will lead to increasing variability of the demand faced by the hydro system. In a market based system these variations will be reflected by larger daily price variations, both in the Elspot day ahead market, the Elbas intraday market and in the balancing market. With its unique regulation capabilities, hydro power will be very well positioned to handle these variations. However, existing model concepts for long term hydro scheduling were not developed for this framework, and do not take the new market conditions into account to a sufficient degree. Therefore hydro scheduling tools used for upgrading and investment analysis as well as analysing consequences of new environmental demands need adaptation to a finer temporal resolution, and to perform optimisation under varying constraints and uncertain input data for inflow and electricity prices. Focus is on investment analysis for a river system or power producer. Existing models can be grouped in the long-term (scheduling models with a time horizon up to 5 years) EOPS (Vansimtap), EOPS-ST (SimtapEffekt) and ProdRisk, and the shortterm scheduling models with a typical time horizon up to a few weeks, but focus on 1-2 days (SHOP and ID-SIM). A perfect tool in the present context would combine the properties of the long term stochastic optimisation models with the modelling details of SHOP and/or ID-SIM. However, this is probably not possible and simplifications will be necessary. Some important deficiencies in the present long term models are: Insufficiently realistic plant models in the relevant optimization models; Time delays are not handled; Handing of flexible / state dependent constraints; Handling of ramping constraints; Modelling of the cost of frequent regulations (wear and tear); Reserve markets As a result of these deficiencies the investment analysis does not adequately assess the value

  10. Spread of risk across financial markets: better to invest in the peripheries

    Science.gov (United States)

    Pozzi, F.; Di Matteo, T.; Aste, T.

    2013-04-01

    Risk is not uniformly spread across financial markets and this fact can be exploited to reduce investment risk contributing to improve global financial stability. We discuss how, by extracting the dependency structure of financial equities, a network approach can be used to build a well-diversified portfolio that effectively reduces investment risk. We find that investments in stocks that occupy peripheral, poorly connected regions in financial filtered networks, namely Minimum Spanning Trees and Planar Maximally Filtered Graphs, are most successful in diversifying, improving the ratio between returns' average and standard deviation, reducing the likelihood of negative returns, while keeping profits in line with the general market average even for small baskets of stocks. On the contrary, investments in subsets of central, highly connected stocks are characterized by greater risk and worse performance. This methodology has the added advantage of visualizing portfolio choices directly over the graphic layout of the network.

  11. Spread of risk across financial markets: better to invest in the peripheries.

    Science.gov (United States)

    Pozzi, F; Di Matteo, T; Aste, T

    2013-01-01

    Risk is not uniformly spread across financial markets and this fact can be exploited to reduce investment risk contributing to improve global financial stability. We discuss how, by extracting the dependency structure of financial equities, a network approach can be used to build a well-diversified portfolio that effectively reduces investment risk. We find that investments in stocks that occupy peripheral, poorly connected regions in financial filtered networks, namely Minimum Spanning Trees and Planar Maximally Filtered Graphs, are most successful in diversifying, improving the ratio between returns' average and standard deviation, reducing the likelihood of negative returns, while keeping profits in line with the general market average even for small baskets of stocks. On the contrary, investments in subsets of central, highly connected stocks are characterized by greater risk and worse performance. This methodology has the added advantage of visualizing portfolio choices directly over the graphic layout of the network.

  12. Style investing : behavioral explanations of stock market anomalies

    NARCIS (Netherlands)

    Wouters, T.

    2006-01-01

    Abstract PhD-project The aim of this thesis is to explore the mechanisms of style investing. My project consists of two parts, each with an individual goal: 1. The first objective will be to analyze the implications of the dynamics of value and growth strategies for the US stock market. 2. The

  13. Electricity in Central Asia: Market and investment opportunity report

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2007-09-15

    This WEC report examines the vast interdependent electricity systems of the Central Asian states; Kazakhstan, Kyrgyzstan (Kyrgyz Republic), Tajikistan, Turkmenistan, and Uzbekistan. The report outlines the progress of market reform in this region and identifies the potential for investment opportunities.

  14. How are investment decisions in the steam coal market affected by demand uncertainty and buyer-side market power?

    Energy Technology Data Exchange (ETDEWEB)

    Paulus, Moritz

    2012-02-15

    During the last decade, China has evolved into the largest consumer by far and one of the largest importers of coal. The main driver for the increase in coal demand in China has been economic growth. Future Chinese growth rates, and therefore coal consumption and coal imports, are highly uncertain, which may affect profitability of new investments of international mining companies. Furthermore, China has actively employed an array of instruments to control coal trade flows in the last years. In this paper, we analyse the potential impact of increased Chinese coal import volatility and of potential exertion of Chinese market power on global mining investment decisions. For this purpose, we develop a multi-stage stochastic equilibrium model which is able to simulate investments under uncertainty and a monopolistic player in addition to a competitive fringe. We find that accounting for Chinese demand uncertainty yields significant costs for investors and also leads to a delay in investments. Additionally, the exertion of Chinese market power further reduces overall investment activity.

  15. How are investment decisions in the steam coal market affected by demand uncertainty and buyer-side market power?

    International Nuclear Information System (INIS)

    Paulus, Moritz

    2012-01-01

    During the last decade, China has evolved into the largest consumer by far and one of the largest importers of coal. The main driver for the increase in coal demand in China has been economic growth. Future Chinese growth rates, and therefore coal consumption and coal imports, are highly uncertain, which may affect profitability of new investments of international mining companies. Furthermore, China has actively employed an array of instruments to control coal trade flows in the last years. In this paper, we analyse the potential impact of increased Chinese coal import volatility and of potential exertion of Chinese market power on global mining investment decisions. For this purpose, we develop a multi-stage stochastic equilibrium model which is able to simulate investments under uncertainty and a monopolistic player in addition to a competitive fringe. We find that accounting for Chinese demand uncertainty yields significant costs for investors and also leads to a delay in investments. Additionally, the exertion of Chinese market power further reduces overall investment activity.

  16. Social Media Marketing as a tool for promoting the regional investment portals

    Directory of Open Access Journals (Sweden)

    Alisa Yu. Fadeyeva

    2016-01-01

    Full Text Available Objective to investigate the potential of Social Media Marketing as a tool for promoting regional investment portals in the information environment to identify the most effective ways of its implementation and to determine the level of mastering of this tool by the Russian regions. Methods general scientific methods observation comparison analysis induction deduction analogy classification. Results the analysis showed that today Social Media Marketing is an essential tool for interaction with the investment community and one of the most effective ways to promote the regional portal which allows to increase the knowledge of and loyalty to the brand to increase the targeted website traffic to increase the awareness of investors about the specific features of the portal and the regional development agenciesrsquo functioning to promptly receive information about the investment environment and to establish contacts with investors. At the same time the study of SMMactivity in the Russian regions revealed a very low level of quality of communication with investors through social networks. Scientific novelty for the first time the article investigates the significance and makes the comparative analysis of the Social Media Marketing channels with regard to investment promotion agencies as well as the results of the regional structures functioning for effective communication through social networks. Practical significance the main results of the research can be used by the regional investment agencies in order to promote their websites increase the quality of communication with investors and promote the investment attractiveness of the region as a whole. nbsp

  17. Foreign institutional investments in India: An empirical analysis of dynamic interactions with stock market return and volatility

    Directory of Open Access Journals (Sweden)

    Vaishali S. Dhingra

    2016-12-01

    Full Text Available This paper investigates interactions of foreign institutional investments with market returns and market volatility in India using both static and dynamic models based on daily data. The findings of both models show foreign investors as positive feedback traders while investing in the Indian market, and as negative feedback traders during their withdrawal. Using the impulse response functions based on vector autoregression, we find strong evidence that foreign institutional investments destabilise the market, particularly with selling activities, as they significantly increase the volatility.

  18. Petroleum marketing in Africa. Issues in pricing, taxation and investment

    International Nuclear Information System (INIS)

    Bhagavan, M.R.

    1999-01-01

    This four part book examines and compares the liberalised petroleum marketing in Kenya with petroleum marketing in Ethiopia which has just begun the transition from state control to liberalisation. The petroleum sub-sector in both countries is put into context, and petroleum pricing and taxation issues, financing, marketing issues and policy are reviewed, and policy recommendations for both countries are given. The comparative analysis of the Ethiopian and Kenyan situations presented highlights some lessons for sub-Saharan Africa. Information and statistics on petroleum, marketing, and investment in sub-Saharan Africa are given in the appendix. (UK)

  19. Investment prospects for geothermal power in El Salvador's electricity market

    International Nuclear Information System (INIS)

    Abraham, Jun

    2006-01-01

    A mixed-integer optimizing programming model was created to simulate capacity expansion for the electricity market in El Salvador. Various demand scenarios were constructed, under which capacity expansion alternatives were tested. Results showed that possible geothermal projects were able to meet the growing energy needs of El Salvador, while yielding relatively low prices for the end-user. A best case projection for 2020 showed an increased proportion of geothermal generation in the energy mix by 6% compared to the present mix. Much of the current generating plants and planned capacity are distanced from the load center, San Salvador. In order to meet the country's increasing demand, it was found that generating capacity investment should be accompanied by transmission upgrades. Even when current conditions were simulated, transmission congestion appeared to be present. Results from some expansion scenarios showed that transmission congestion increased nodal prices despite the addition of further generating capacity

  20. Investment prospects for geothermal power in El Salvador's electricity market

    International Nuclear Information System (INIS)

    Abraham, Jun

    2006-01-01

    A mixed-integer optimizing programming model was created to simulate capacity expansion for the electricity market in El Salvador. Various demand scenarios were constructed, under which capacity expansion alternatives were tested. Results showed that possible geothermal projects were able to meet the growing energy needs of El Salvador, while yielding relatively low prices for the end-user. A best case projection for 2020 showed an increased proportion of geothermal generation in the energy mix by 6% compared to the present mix. Much of the current generating plants and planned capacity are distanced from the load center, San Salvador. In order to meet the country's increasing demand, it was found that generating capacity investment should be accompanied by transmission upgrades. Even when current conditions were simulated, transmission congestion appeared to be present. Results from some expansion scenarios showed that transmission congestion increased nodal prices despite the addition of further generating capacity. (Author)

  1. Natural gas market review 2008 - optimising investments and ensuring security in a high-priced environment

    Energy Technology Data Exchange (ETDEWEB)

    NONE

    2008-09-18

    Over the last 18 months, natural gas prices have continued to rise steadily in all IEA markets. What are the causes of this steady upward trend? Unprecedented oil and coal prices which have encouraged power generators to switch to gas, together with tight supplies, demand for gas in new markets and delayed investments all played a role. Investment uncertainties, cost increases and delays remain major concerns in most gas markets and are continuing to constitute a threat to long-term security of supply. A massive expansion in LNG production is expected in the short term to 2012, but the lag in LNG investment beyond 2012 is a concern for all gas users in both IEA and non-IEA markets. Despite this tight market context, regional markets continue on their way to globalisation. This tendency seems irreversible, and it impacts even the most independent markets. Price linkages and other interactions between markets are becoming more pronounced. This publication addresses these major developments, assessing investment in natural gas projects (LNG, pipelines, upstream), escalating costs, the activities of international oil and gas companies, and gas demand in the power sector. In addition, the publication includes data and forecasts on OECD and non-OECD regions to 2015 and in-depth reviews of five OECD countries and regions including the European Union. It also provides analysis of 34 non-OECD countries in South America, the Middle East, Africa, and Asia, including a detailed assessment of the outlook for gas in Russia, as well as insights on new technologies to deliver gas to markets.

  2. DESIGN FOCUSED ORIENTATION PROCESSES FOR MANAGING INVESTMENT COMPANIES IN THE FOREIGN EXCHANGE MARKET

    Directory of Open Access Journals (Sweden)

    Анатолий Аркадьевич АНАТОЛЬЕВ

    2015-05-01

    Full Text Available This report examines the investment companies operating in the market Forex. Business process analysis showed the design direction of their activities. Dedicated two groups of projects of investment companies can position them as project-oriented organization.

  3. Product market competition and investments in cooperative R&D

    NARCIS (Netherlands)

    Hinloopen, J.; Vandekerckhove, J.

    2011-01-01

    Building on the framework developed by Qiu (1997) we investigate the influence of product market competition on incentives to invest in cooperative R&D. For that we disentangle the three components that make up the combined-profits externality. The strategic component is always negative and the size

  4. Probabilistic decision model of wind power investment and influence of green power market

    International Nuclear Information System (INIS)

    Gillenwater, Michael

    2013-01-01

    This paper presents results from a model of a representative wind power investor's decision making process using a Monte Carlo simulation of a project financial analysis. Data, in the form of probability distribution functions (PDFs) for key input variables were collected from interviews with investors and other professionals active in the U.S. wind power industry using a formal expert elicitation protocol. This study presents the first quantitative estimates of the effect of the U.S. voluntary Renewable Energy Certificate (REC) market on renewable energy generation. The results indicate that the investment decisions of wind power project developers in the United States are unlikely to have been altered by the voluntary REC market. The problem with the current voluntary REC market is that it does not offer developers a reliable risk-adjusted revenue stream. Consequently, the claims by U.S. green power retailers and promoters that voluntary market RECs result in additional wind power projects lack credibility. Even dramatic increases in voluntary market REC prices, in the absence of long-term contracts, were found to have only a small effect on investor behavior. - Highlights: • I use a formal expert elicitation to collect data from wind power investors. • I use a Monte Carlo model to look at the influence of Renewable Energy Certificates on investment. • Investment decisions are unlikely to have been altered by the voluntary REC market. • Claims that the U.S. green power market result in additional wind power lack credibility

  5. An Exploration of the Associations Among Multiple Aspects of Religiousness, Body Image, Eating Pathology, and Appearance Investment.

    Science.gov (United States)

    Goulet, Carol; Henrie, James; Szymanski, Lynda

    2017-04-01

    The purpose of this study was to investigate the influence of positive and negative aspects of religiousness on eating pathology, body satisfaction, and appearance investment beyond previously established variables (age, BMI, exercise frequency, weight stability, and self-esteem). Data collected from 168 adult females at a Catholic-affiliated university were analyzed using hierarchical linear regressions. As expected, some religiousness variables (spirituality and seeing one's body as having sacred qualities) were associated with eating pathology, body satisfaction, and appearance investment in potentially beneficial ways, and others (negative interaction with one's religious community) were associated in potentially harmful ways. Interestingly, greater religious meaning, or the importance of religion in one's life, was associated with greater eating pathology, and some variables (religious coping, participation in and support from one's religious community) expected to be associated with greater body satisfaction were unrelated. Results are discussed in terms of mechanisms through which the aspects of religiousness may influence body satisfaction, appearance investment, and eating pathology.

  6. THE SAVING AND INVESTING CONSUMER BEHAVIOR ANALYSES ON THE ROMANIAN FINANCIAL MARKET.

    Directory of Open Access Journals (Sweden)

    Tanase (Rosca Laura Daniela

    2011-12-01

    Full Text Available This article aims to provide an analysis of the saving and investing consumer behavior, that where researched in a time of changes after a severe financial crisis. The analyses purpose was to determine the reasons, or the way that the reasons would change, for buying different financial instruments, and also the way that the consumer perceives investing and saving. Different demographical characteristics and their influence on the financial behavior of the consumers were also studied. The investor behavior on the developed markets is being studied carefully for many years. The need to create financial products for each customer type, such as Generation Y, intensely investigated by various research teams, in different ways, resulting in different characteristics such as general proclivity to the marketing, advertising, consumerism, branding, environmental issues, fashion and even anxiety, begins to be felt also on the Romanian market. So, to better understand the actual degree of knowledge that the consumer have on the concepts of saving and investing and on that activities involved into this concepts is a very important step of the research. The research method is a survey based on a sample chosen with the simple random method undertaken in 2010. There were gathered 480 questionnaires. Research is not a statistical nationwide representative because of the lack of the financial and human capabilities. The developed questionnaire summarized 22 questions, in order to illustrate the way that saving and investing were seen, to see actual investing behavior and to measure the degree of trust given to the most known investing means. We expect that the methods of 'investing' that are most known and used to be bank deposits because in Romania the risk appetite is a low one. The people's appetite for saving activities we expect to be motivated by the need for purchasing consumer goods, and eventually buying a car or a house but not the desire to

  7. Financial innovation in the public real estate market : How to exploit arbitrage opportunities in public real estate pricing due to investment approach differences between the real estate market and the capital market

    OpenAIRE

    Gejler, Jacob

    2013-01-01

    As the stock market is volatile and often short-term, there is a high demand for safe investments outside the stock market and institutional investors like pension funds, insurance companies and asset managers are increasingly searching for low-risk investments that can deliver safe returns.   Alternative investments, like real estate, are a popular way to invest institutional capital. However, debates whether pension savers should have the right to transfer their pension capital without rest...

  8. Fair market value vs. net investment

    International Nuclear Information System (INIS)

    Lagassa, G.K.

    1991-01-01

    This paper reports that among the 300 some hydro electric power stations coming up for relicensing in the 1990s, some of them will certainly be taken over by the federal government or by competing license applications. Under prevailing interpretations of net investment value contained in the Federal Power Act, it is entirely likely that companies who lose a hydro station this way will go substantially uncompensated. Professional appraisal techniques for determining fair market value of property could produce substantially higher payments for lost hydro stations and may be a more appropriate standard for such applications

  9. Attracting foreign direct investment under high risk and volatility of international financial markets

    OpenAIRE

    PARTACHI Ion; ARVINTE Vitalie

    2009-01-01

    International financial crisis caused significant reduction of investment flows, especially to emerging markets, vulnerable to external shocks and foreign exchange rate fluctuations. Under these conditions, decision factors are pushed to adopt changes in investment strategies in order to maintain competitiveness in attracting foreign investments needed to stabilize economy and continue development programs. Under the conditions of incertitude and high risks emerging economies adopted differen...

  10. The Outlook for the Development of Investments Funds in the Republic of Croatia

    Directory of Open Access Journals (Sweden)

    Dijana Jurić

    2005-12-01

    Full Text Available During the nineties, investment funds recorded rapid development in most developed countries and became important agents on the financial markets. In the developing and transitional countries the investment funds industry, although it too has recorded accelerated rates of growth, is still essential lagging behind that of the developed countries. In Croatia the investment funds started developing with the appearance of the private investment funds; however, they did not, contrary to expectations, make a very significant contribution to the development of institutional investors on the capital market. The market is driven primarily by banking or financial conglomerates, which also dominate the investment fund industry. Today the Croatian investment fund market is a very enterprising and dynamic segment of the financial system and hence the establishment of adequate regulation and supervision as well as the development of the capital market must be the main determinants of its further growth and development.

  11. 76 FR 39343 - New Markets Tax Credit Non-Real Estate Investments; Correction

    Science.gov (United States)

    2011-07-06

    ... DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-101826-11] RIN 1545-BK04 New Markets Tax Credit Non-Real Estate Investments; Correction AGENCY: Internal Revenue Service (IRS... Tuesday, June 7, 2011 (76 FR 32882) modifying the new markets tax credit program to facilitate and...

  12. The volatility of stock market prices.

    Science.gov (United States)

    Shiller, R J

    1987-01-02

    If the volatility of stock market prices is to be understood in terms of the efficient markets hypothesis, then there should be evidence that true investment value changes through time sufficiently to justify the price changes. Three indicators of change in true investment value of the aggregate stock market in the United States from 1871 to 1986 are considered: changes in dividends, in real interest rates, and in a direct measure of intertemporal marginal rates of substitution. Although there are some ambiguities in interpreting the evidence, dividend changes appear to contribute very little toward justifying the observed historical volatility of stock prices. The other indicators contribute some, but still most of the volatility of stock market prices appears unexplained.

  13. Moral Behavior in Stock Markets: Islamic finance and socially responsible investment

    OpenAIRE

    Pitluck, Aaron Z.

    2008-01-01

    This paper addresses the puzzle of why the inclusion of non-financial social justice or religious criteria by professional fund managers has been so popular in Malaysia and yet has had to date relatively little influence in the United States stock market. Drawing from over 125 ethnographic interviews with financial workers in Malaysia, this paper argues that moral investment behavior in stock markets is shaped primarily by ‘market structure’ rather than by ‘mandates.’ In both countries man...

  14. The influence of financial market development on investment activities in a developing country

    Directory of Open Access Journals (Sweden)

    Shirley Malope

    2017-09-01

    Full Text Available Financial markets are considered developed if there is improvement in the size, activity, efficiency and stability of the financial system. The study looked at how financial development based on debt, stock, money and foreign markets affect investment. The Johansen cointegration and Vector Error Correction Model (VECM were used to estimate the short and long run relationship and test for the speed of adjustment. Granger causality test informed about direction of causality, variance decompositions and impulse response indicated effects of shocks. The Johansen cointegration test showed that the variables have a long run relationship. VECM showed that the speed of adjustment is about 13%, which means that variables will converge to equilibrium relatively quickly. The impulse response function indicated that financial market development indicators have short-run effects on investment in the first quarters after the initial shocks. Variance decomposition also indicated that specifically government bonds had greater effect in predicting future investments. The policy implications of these findings are for government to place greater priority on government bonds as its effect on investment is greater than other financial development proxies. Policies should focus on allowing greater risk diversification and improving the independence of the financial sector from government interference

  15. Price signals and investment incentives in wholesale electricity spot markets

    International Nuclear Information System (INIS)

    Vassilopoulos, Philippe

    2007-01-01

    We look at how prices from energy-only power markets can send the right signals and give the correct incentives for investments in production capacity. Through numerical simulations of spot prices over 2003-2005 we compare the investment signal sent by observed electricity prices in France and what would be competitive prices with an optimal mix and with the installed capacity. Observed prices tend to overestimate profitability for the base-load, making the signal too strong and underestimate profitability for the peak load, making the signal too weak. However, as a large share of consumers is still paying regulated tariffs, scarcity rents are capped. We simulate future prices for France for 2010 to 2020 to understand the incentives to invest. When the entry is free, the incentives to invest given by the future prices are consistent with the optimal mix including the interconnections and nuclear build is strong. With political or regulatory barriers to the construction of new power plants for new entrants (i.e. finding new sites), there are no incentives for the incumbent (that owns all existing base-load and peak load capacity) to add more nuclear capacity. In this situation, new entry would have to be coal or gas except if units are bid strategically to maintain profitability and market share. Moreover, it can also be profitable to limit prices and restrain entry in order to receive higher future revenues. When the base-load is less concentrated and instead of a dominant firm the nuclear capacity is divided into five (equal share) firms, the incentives to invest reappear and the threat of entry becomes more credible. (author) [fr

  16. RUSSIAN FINANCIAL MARKET AND COLLECTIVE INVESTMENT INSTITUTION PERFORMANCE PROBLEMS

    Directory of Open Access Journals (Sweden)

    V. B. Tchernikov

    2012-01-01

    Full Text Available Collective investment is practiced widely in the world, since considerable funds may be accumulated in this way, the risks being born by all the investors. In Russia, there are certain problems that do not make it possible to properly use the collective investment’s potential. The problems are described in detail and on basis of this analysis it is shown how current difficulties in the finance sphere could be overcome. Solution of performance problems faced by collective investment institutions in Russia depends both on the ways venture companies develop themselves and the rate market environment regulation mechanism is updated by the state.

  17. Art investment in South Africa: Portfolio diversification and art market efficiency

    Directory of Open Access Journals (Sweden)

    Ferdi Botha

    2016-09-01

    Full Text Available Art has been suggested as a good way to diversify investment portfolios during times of financial uncertainty. The argument is that art exhibits different risk and return characteristics to conventional investments in other asset classes. The new Citadel art price index offered the opportunity to test this theory in the South African context. Moreover, this paper tests whether art prices are efficient. The Citadel index uses the hedonic regression method with observations drawn from the top 100, 50 and 20 artists by sales volume, giving approximately 29 503 total auction observations. The Index consists of quarterly data from the period 2000Q1 to 2013Q3. A vector autoregression of the art price index, Johannesburg stock exchange all-share index, house price index, and South African government bond index were used. Results show that, when there are increased returns on the stock market in a preceding period and wealth increases, there is a change in the Citadel art price index in the same direction. No significant difference was found between the house price index and the art price index, or between the art and government bond price indices. The art market is also found to be inefficient, thereby exacerbating the risk of investing in art. Overall, the South African art market does not offer the opportunity to diversify portfolios dominated by either property, bonds, or shares.

  18. Investment Strategies of Different Holding Periods: Evidence from Stock Markets of Hong Kong, Korea, Shanghai, and Taiwan

    OpenAIRE

    Massoud Moslehpour; Munkh-Ulzii Batmunkh

    2013-01-01

    Although there is abundant research focusing on estimating the level of returns on stock market, there is a lack of studies examining the comparison of stock return movements for short-term and long-term investment in the Asian stock market. The present study examines return on investment of different holding periods among selected stock markets in Asia. Based on the trading performance of key indices and market capitalization value, Korean Stock Exchange (KRE), Shanghai Stock Exchange (SSE),...

  19. Association of market, mission, operational, and financial factors with hospitals' level of cash and security investments.

    Science.gov (United States)

    McCue, M J; Thompson, J M; Dodd-McCue, D

    Using a resource dependency framework and financial theory, this study assessed the market, mission, operational, and financial factors associated with the level of cash and security investments in hospitals. We ranked hospitals in the study sample based on their cash and security investments as a percentage of total assets: hospitals in the high cash/security investment category were in the top 25th percentile of all hospitals; those in the low cash/security investment group were in the bottom 25th percentile. Findings indicate that high cash/security investment hospitals are under either public or private nonprofit ownership and have greater market share. They also serve more complex cases, offer more technology services, generate greater profits, incur a more stable patient revenue base, and maintain less debt.

  20. Getting ready for the marriage market? The association between divorce risks and investments in attractive body mass among married Europeans.

    Science.gov (United States)

    Lundborg, Petter; Nystedt, Paul; Lindgren, Björn

    2007-07-01

    This article explores to what extent married middle-aged individuals in Europe are governed by the risk of experiencing divorce, when shaping their physical appearance. The main result is that divorce risks, proxied by national divorce rates, are negatively connected to body mass index (BMI) among married individuals but unrelated to BMI among singles. Hence, it seems that married people in societies where divorce risks are high are more inclined to invest in their outer appearance. One interpretation is that high divorce rates make married people prepare for a potential divorce and future return to the marriage market.

  1. Foreign direct investment in the financial sector of emerging market economies

    OpenAIRE

    Bank for International Settlements

    2004-01-01

    Executive summary Foreign participation in the financial sectors of emerging market economies (EMEs) increased rapidly during the 1990s. It has continued to expand so far in this decade, on balance – although its pace fell somewhat following problems in Argentina in 2002 and the global slowdown in mergers and acquisitions. While banks accounted for the majority of financial sector foreign direct investment (FSFDI), they were joined during this period by securities and investment firms. In a n...

  2. Investment Risk in the Context of Price Changes on the Real Estate and Stock Markets

    Directory of Open Access Journals (Sweden)

    Wolski Rafał

    2016-03-01

    Full Text Available The residential real estate market is thought to show a tendency for wide fluctuations in prices, as a result of which price bubbles appear. This element of risk has a direct bearing on investors interested in speculation and those seeking to meet their housing needs. Wide fluctuations in the values of real estate affect the investors’ financial situation in many ways, by determining the possibility of meeting one’s housing needs, reducing or sometimes raising creditworthiness, and by increasing investment risk measured by volatility. Omitting the obvious social dimension of the residential real estate market and concentrating on its financial aspects, the author of the article analyses to what degree wide swings in prices can be recognized as specific to this market. To this end, the volatility of prices in the stock market and in the secondary housing market in Poland is compared. An analysis is performed to establish which of them has higher average volatility measures or rates of return, i.e. which of them is more profitable or secure for investors. Statistical tests are used to find out whether average rates of return or measures of risk are equal or different between the two markets. The results of the research show that the secondary housing market and the stock market differ concerning cumulative average rates of return and standard deviations. In the first of them, they are respectively higher and lower.

  3. Corporate Governance and Its Impact on R&D Investment in Emerging Markets

    DEFF Research Database (Denmark)

    Rapp, Marc Steffen; A. Udoieva, Iuliia

    2017-01-01

    Corporate R&D activities are inherently risky but also difficult to monitor. Against this background, we examine the impact of ownership concentration and legal shareholder rights protection on corporate R&D investments in emerging markets. Based on a comprehensive sample of publicly listed firms...... shareholders to diversify their investment risks, is beneficial for corporate R&D and that this effect is intensified by more developed institutions....

  4. Value investing in emerging markets : local macroeconomic risk and extrapolation

    NARCIS (Netherlands)

    Kouwenberg, R.; Salomons, R.M.

    2003-01-01

    Our results confirm the profitability of value investing at the country level in emerging markets. A portfolio of countries with low price-to-book ratios significantly outperforms a portfolio of high price-to-book countries. Global risk factors cannot explain this outperformance. Next we measure a

  5. Evaluating the EU ETS impacts on profits, investments and prices of the Italian electricity market

    International Nuclear Information System (INIS)

    Bonenti, Francesca; Oggioni, Giorgia; Allevi, Elisabetta; Marangoni, Giacomo

    2013-01-01

    Climate change is a global issue, but actions to mitigate its development are regional. Europe has taken the leadership in the carbon emission policy by introducing the Emissions Trading Scheme (EU ETS), formerly regulated by Directive 2003/87/EC and since 2013 by Directive 2009/29/EC. This new Directive imposes a full auctioning system for allocating CO 2 allowances to the power sector and encourages the use of renewable energy sources. We investigate the economic impacts of the EU ETS on the Italian electricity market using a power generation expansion model. We adopt a technological representation of the energy market that also accounts for power exchanges with foreign countries and we assume that generators operate in different zones connected by interconnections with limited capacity. We study both an oligopolistic and a perfectly competitive behavior of Italian generators and we compare the corresponding outcomes under different EU ETS scenarios. Our analysis shows that, in perfect competition, generators generally invest more than in an oligopolistic framework, but in both market configurations, investments in Italy are mainly concentrated in fossil-fired plants, especially in 2020. This happens also when incentives are given to renewables. The developed models are implemented as complementarity problems and solved in GAMS using the PATH solver. - Highlights: • We evaluate the EU-ETS impacts on the Italian electricity market. • We model different EU-ETS scenarios and energy market organizations. • Generators can invest in new capacity. • Investments in CCGT plants are preferable to those in clean technologies. • Profits depend on market organization and on ETS allowance allocation policies

  6. Sustainable Markets Investment Briefings: Foreign investment contracts

    Energy Technology Data Exchange (ETDEWEB)

    Cotula, Lorenzo

    2007-08-15

    This is the fourth of a series of briefings which discuss the sustainable development issues raised by legal arrangements for the protection of foreign investment. The briefings are based on legal research by IIED and its partners. The goal is to provide accessible but accurate information for human rights, development and environmental organisations working on issues raised by foreign investment in low- and middle-income countries. Briefing 4 sets out some of the ways in which foreign investment contracts can impact on sustainable development.

  7. THE MEANING OF INVESTMENT FUNDS FOR THE DEVELOPEMENT OF THE STOCK MARKETS IN THE REPUBLIC OF MACEDONIA

    Directory of Open Access Journals (Sweden)

    Dragica Odzaklieska

    2009-11-01

    Full Text Available Investment funds are quite typical representatives of the group of young and efficient financial intermediaries on the money market. These financial institutions have been created as a result of the rapid development of stock markets in industrialized countries. As a matter of facts, in these countries investment funds overtook traditional instruments from other financial institutions. We can mention for example savings and credits from banks, pension plans and retirements from pension funds as well as assurance policies from assurance companies. Therefore the role of investment funds is to intermediate between the industry and people as investors and between companies and the public sector as issuers of long term securities. The object of this study is to analyze the meaning of these same investment funds on stock markets in transition countries and in particular in the Republic of Macedonia.

  8. Are Foreign Investments Replacing Domestic Investments? - Evidence from Finnish Manufacturing

    OpenAIRE

    Oksanen, Olli-Pekka

    2006-01-01

    This study analyses the relationship between firms’ foreign and domestic investments using a panel dataset containing 218 Finnish manufacturing firms during the years 1998-2002. The study examines whether foreign investments increase or decrease domestic investments and whether the effect varies between investments directed to developed markets or emerging markets. Financial constraints’ effect on the relationship is also investigated. The empirical part estimates an empirical investment equa...

  9. Wind power investment within a market environment

    International Nuclear Information System (INIS)

    Baringo, L.; Conejo, A.J.

    2011-01-01

    Highlights: → The interaction of a wind power investor and the pool is represented via an MPEC. → The considered electricity pool is cleared through a network constrained auction. → Uncertainty of load and wind production is characterized by a moderate number of scenarios. → The investment model can be recast as a mixed integer linear programming problem. → Large instances of the considered model are computationally tractable. - Abstract: Within an existing transmission network, this paper considers the problem of identifying the wind power plants to be built by a wind power investor to maximize its profit. For this analysis a future target year is considered and the loads at different buses are represented by stepwise load-duration curves. The stochastic nature of both load and wind is represented via scenarios. The considered electric energy system operates under a pool-market arrangement and each producer/consumer is paid/pays the Local Marginal Price (LMP) of the bus at which it is located. The higher the wind penetration is, the lower the resulting LMPs. To tackle this problem a stochastic bilevel model is proposed, whose upper-level represents the wind investment and operation decisions with the target of maximizing profits; and its lower-level represents the market clearing under differing load and wind conditions and provides LMPs. This model can be recast as a mixed-integer linear programming problem solvable using commercially available branch-and-cut solvers. The proposed model is illustrated using an example and two case studies.

  10. The Educational Asset Market: A Finance Perspective on Human Capital Investment

    DEFF Research Database (Denmark)

    Christiansen, Charlotte; Nielsen, Helena Skyt

    2002-01-01

    on type and level of education enables us to focus on the shared features between human capital and stock investments. An innovative finance-labor approach is applied to study the educational asset market. A risk-return trade-off is revealed which is not directly related to the length of education.......Like the stock market, the human capital market consists of a wide range of assets, i.e. educations. Each young individual chooses the educational asset that matches his preferred combination of risk and return in terms of future income. A unique register-based data set with exact information...

  11. Institutions and international investments: Evidence from China and other emerging markets

    NARCIS (Netherlands)

    Zhang, Y.

    2011-01-01

    This thesis empirically investigates the underlying factors that explain the new global trade and investment patterns. At the baseline level, three questions on the globalization process of emerging markets are addressed. First, what is the causal linkage among institutions, external trade and

  12. Wine industry market strategies. Case study: Lacerta Winery

    Directory of Open Access Journals (Sweden)

    NEACSU Nicoleta Andreea

    2017-01-01

    Full Text Available Wine market in Romania is in constant development. More and more manufacturers appear on the market, and the competition is increasingly fierce. Although it has an area of the largest planted with vines, Romania is not distinguished among major exporters. Using EU funds made available, new manufacturers appear who developed the premium wine sector. Among the investments carried out in recent years in this sector is Lacerta Winery, an Austrian investment, which sold the first wine under the brand Lacerta in 2011.

  13. Transmission investment and planning in deregulated market environment : a literature survey (part 1)

    International Nuclear Information System (INIS)

    Wen, F.; Wu, F.F.

    2005-01-01

    This paper is the first half of a 2-part paper that provided details of a comprehensive survey of issues related to transmission investment and expansion planning in the electricity market. The lack of adequate transmission capacity has played an important role in recent power crises, and deregulation has had a significant impact on the investment and planning process of transmission systems. The main objective of transmission investment is to meet load demands as cheaply as possible. In a deregulated market, there is no longer centrally coordinated planning of new generation. Transmission planning is generally not coordinated with generation planning. There is considerable uncertainty with regard to transmission capacity requirements due to long lead times for transmission construction. Generating plants and transmission lines are built according to investor assessments and private interests, and current transmission systems were not designed to handle supply and demand patterns in competitive markets. It was recommended that new transmission plans should meet reliability requirements while minimizing expected unserved energy. It was concluded that reliability criteria must be redefined to account for the fact that transmission systems are more stressed under deregulation. Two popular financial transmission rights were also discussed, notably (1) point-to-point financial transmission rights (FTR); and (2) financial flowgate rights (FGR)

  14. Innovation in the web marketing programs of American convention and visitor bureaus

    DEFF Research Database (Denmark)

    Zach, Florian; Gretzel, Ulrike; Xiang, Zheng

    2010-01-01

    , and continuity of innovation in Web marketing efforts and the perceived contribution of this investment to the overall success of the bureau's Web marketing program. The findings indicate that American convention and visitor bureaus have invested substantially in their websites and continue redesigning them...... as new technology and Web marketing trends emerge. However, it appears that there is a substantial gap between bureau investments in innovative website features and related activities and their perceived contribution to overall Web marketing success....

  15. Real Estate Investment Trusts in the Developed Countries

    Directory of Open Access Journals (Sweden)

    Yulia A. Burkova

    2014-01-01

    Full Text Available In this article, performance of239 real estate investment trusts (REITs from 15 developed countries is analyzed according to their regional specific characteristics. This investment vehicle is rapidly spreading all over the world due to high returns it offers while being of low risk, and since the governments create special legislation. In 2013, there were around 30 countries where REITs can be created, so regional specifics of REITs' performance can be studied. USA has the oldest REITs market in the world with 133 trusts operating there. Popularity of American REITs is explained by the fact that they usually hold well diversified portfolios of property with stable income. This helped them rather successfully survive through the global economic crisis of2008-2010, but after that attracted close attention of institutional investors which has led to the creation of new bubble on the market. European REITs market has appeared recently, its development being slowed down by the recent crisis. The debt crisis and liquidity strain caused REITs lack of funds; economic downturn led to the reduction of trusts' returns, resulting in the outflow of the investment to the USA. In 2012, the recovery of the debt capital market reanimated the REITs market. REITs in the Asia-Pacific region are very risky thus offering a high riskpremium. Their returns are unstable and fluctuate in line with the global economic situation. After the crisis, REITs have been the most attractive investment vehicle on the market offering high yield.

  16. A proposal for investment recovery of FACTS devices in deregulated electricity markets

    International Nuclear Information System (INIS)

    Mithulananthan, Nadarajah; Acharya, Naresh

    2007-01-01

    The paper presents a methodology to quantify the benefits, in terms of monetary values, of FACTS devices when used in deregulated electricity market for congestion management. The proposed methodology is used in the proposal for investment recovery of FACTS devices. Despite the long history of development and mature technology, the practical installations of FACTS devices are still limited. The main reasons for few installations are high investment cost and lack of viable measures to quantify the long list of benefits offered by FACTS device. In this respect, the methodology proposed in the paper provides a promising solution. The proposed methodology is based on establishing pricing schemes with and without FACTS devices using OPF formulation. The volume of market with FACTS devices and the increase in surplus due to them forms the basis of quantifying their benefits. The pricing scheme does not destroy the incentive effect in short run and also makes possible the provision of merchant FACTS. The proposed concept was tested and validated with TCSC in five-bus test system. Result shows that, when TCSC is used to relieve congestion in the system and the investment on TCSC can be recovered. (author)

  17. The effect of social network site use on appearance investment and desire for cosmetic surgery among adolescent boys and girls

    NARCIS (Netherlands)

    de Vries, D.A.; Peter, J.; Nikken, P.; de Graaf, H.

    2014-01-01

    Although adolescents frequently use social network sites, little is known about whether the highly visual and self-presentation-centered character of such sites affects body-related outcomes such as investment in appearance and appearance-changing strategies. Due to gender differences in appearance

  18. The integrated North American electricity market : investment in electricity infrastructure and supply : a North American concern

    International Nuclear Information System (INIS)

    Egan, T.

    2006-03-01

    Electricity supply and infrastructure solutions for the United States and Canada were discussed along with the availability of fuel supply and the diversity of fuel sources. This document focuses on investment in transmission infrastructure in order to assure sustainable generation sources for both countries while addressing constraints along the border, which will allow for enhanced cross-border trade. The Canadian Electricity Association has proposed 3 areas of bi-national cooperation to promote effective investment in electricity infrastructure and supply in the North American market: (1) cooperation in enhancing electricity supply, (2) cooperation in enhancing transmission infrastructure, and (3) cooperation in addressing air quality issues and climate change. The report discussed electricity generation by fuel source in Canada and the United States; status of restructuring in Canada; as well as the economic and environmental benefits of an integrated market. It also discussed regulatory and policy matters affecting the investment environment. Last, it discussed the need for opportunities for investment in the North American market, distribution and demand side measures, and cooperation in enhancing transmission infrastructure. It was concluded that growing electricity demand in both the United States and Canada requires investment in electricity infrastructure and supply in the future. Resolving electricity infrastructure and supply needs must be an international concern, requiring the full engagement and cooperation of both countries. 1 tab, 2 figs

  19. DIRECTION OF INVESTMENTS AND SOURCES OF FUNDING ON HOTEL MARKET IN POLAND

    Directory of Open Access Journals (Sweden)

    Anna Semmerling

    2016-06-01

    Full Text Available Hotel market in Poland is related to trends on touristic market. This sector is developing dynamically, in Poland as in the whole world. In the years 2001-2014 numbers of hotels in Poland increased double. Most of new hotels are 4 and 5 stars. Important for new objects is building conference centres and SPA, which makes touristic season longer. Main source of finances hotel investments in Poland are own sources and EU funds. Crucial importance is the franchise. Forecasts for hotel market are really great. Till 2017 the count of tourists, who take advantage of hotels, should still increase.

  20. THE EFFECT OF REVENUE AND MARKET SEGMENTATION LEVEL TOWARDS VENTURE CAPITAL INVESTMENT IN MOBILE APPLICATION BUSINESS

    Directory of Open Access Journals (Sweden)

    Dennis Adrian

    2014-05-01

    Full Text Available The development of mobile applications has mushroomed in local and foreign industries. This provides a tremendous opportunity for developers. For technopreneur developer, the capital to run the business is one of the biggest problems despite the fact that they may have great competence in the field. The fact that the business has big potential market in Indonesia has invited investors from local and overseas to invest as venture capital. However, due to the lack of knowledge on building collaboration with the investors and on understanding the market and investor needs in a long term, the developer finds difficulties to grow its business and to compete with bigger competitors. The research intends to seek the influence in selecting the level of revenue and market segmentation to support the investment decisions in the business of mobile applications, so that the mobile application developer is able to monetize their business to attract investors to invest in the venture capital.

  1. Investment Returns and Economic Fundamentals in International Art Markets

    OpenAIRE

    Renneboog, L.D.R.; Spaenjers, C.

    2014-01-01

    Abstract: Works of art are neither easily tradable across borders, nor evaluated according to globally identical standards. We examine geographical segmentation and its effects on price formation and returns in the international art auction market. We find (i) a close connection between the country of sale and the type (e.g., nationality) of artworks sold; (ii) substantial international variation in average returns to art investments over the period 1971-2007; (iii) an impact of both global a...

  2. FOREIGN INVESTMENT INFLUENCE ON OWNERSHIP AND CONTROL IN JAPANESE FIRMS

    Directory of Open Access Journals (Sweden)

    Nistor Ioan Alin

    2010-12-01

    Full Text Available Corporate equity structure, whether is in a market-based system like US or a bank-based system like Japan is prone to changes due to foreign investment. Protection from outside investors varies greatly around these systems. Where protection is good, market-based systems flourish. These systems have certain advantages as they appear to foster innovation and to encourage the release of capital from declining industries. Bank-based systems may be better suited to established industries. These systems also help protect individuals from direct exposure to stock market risk. But, no matter the system, agency problems are inevitable. The paper looks at the past changes of the Japanese corporate ownership composition under the influence of foreign investment.

  3. Model of Risk Forewarn and Investment Decision in Stock Markets and Its Realization

    Institute of Scientific and Technical Information of China (English)

    ZOU Hui-wen; TANG Bing-yong; WANG Li-ping; XU Guang-wei

    2004-01-01

    Based on the discussion of characteristic and mechanism of the stock prices volatility in Chinese emerging stock markets, this research designs an index system for risk forewarn, and builds up an investment decision model based on the forewarn of the market risk signal. Then, on probing into the structure and function of the realization of the model, the paper presents the method of data interface.

  4. DEA-BASED INVESTMENT STRATEGY AND ITS APPLICATION IN THE CROATIAN STOCK MARKET

    Directory of Open Access Journals (Sweden)

    Margareta Gardijan

    2012-12-01

    Full Text Available This paper describes the DEA-based investment strategy for constructing of a stock portfolio in the Croatian stock market. The relative efficiency of the DMUs, which are in this case the selected stocks from Zagreb Stock Exchange, is obtained from the output oriented CCR and BCC models. The set of inputs consists of risk measures, namely return variance, Value at Risk (VaR and beta coefficient $(\\beta$, while monthly return represents an output. Following the „efficiency scores“, obtained from the models, we construct a portfolio of DEA-efficient stocks (DEA-portfolio. This portfolio can be modified over time according to changes of the DMU's efficiency scores. By comparing the returns of the EA-portfolio and the market return during the given time period, the applicability of the investment strategy based on a DEA methodology, as a strategy for achieving superior returns, is estimated.

  5. Investments

    CERN Document Server

    Bodie, Zvi

    2013-01-01

    The integrated solutions for Bodie, Kane, and Marcus' Investments set the standard for graduate/MBA investments textbooks. The unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The content places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts. McGraw-Hill's adaptive learning component, LearnSmart, provides assignable modules that help students master chapter core concepts and come to class more prepared. Bodie Investments' blend of practical and theoretical coverage combines with a complete digital solution to help your students achieve higher outcomes in the course

  6. Investment and deregulation in the electricity generation industry

    International Nuclear Information System (INIS)

    Peluchon, B.

    2007-12-01

    This work addresses the issue of investment in the electricity generation industry. As the analysis of many crisis which have affected electricity markets shows, there is a systematic under-investment in peak capacity. Electricity prices are not high enough to cover fixed costs of such generators, a phenomenon that has been dubbed 'missing money' in some recent papers (Stoft). The investment decisions of a duo-poly facing random demand are then compared to those of a public monopoly. The results are that no prices may be high enough to solve the 'missing money' problem, since the duo-poly is able to exercise market power in order to maximize his profit. This results systematically in fewer peak capacity in the duo-poly case than in the public monopoly case. This remains true in the case of a n-oligopoly. The necessity of designing a mechanism remunerating capacity is thus demonstrated. Capacity markets are then analysed in the light of those results. What appears is that operating reserves are a public good and, as such, prevents capacity markets to solve the 'missing money' problem. This casts a shadow on the pursuit of deregulation in the electricity industry. (author)

  7. An Exact Soultion for the Investment and Market Value of a Firm Facing Uncertainty, Adjustment Costs, and Irreversibility

    OpenAIRE

    Andrew B. Abel; Janice C. Eberly

    1993-01-01

    This paper derives closed-form solutions for the investment and market value, under uncertainty, of competitive firms with constant returns to scale production and convex costs of adjustment. Solutions are derived for the case of irreversible investment as well as for reversible investment. Optimal investment is a non-decreasing function of q, the shadow value of capital. The conditions of optimality imply that q cannot contain a bubble; thus, optimal investment depends only on fundamentals. ...

  8. Stereotypes of physical appearance and labor market chances

    OpenAIRE

    Arai, Mahmood; Gartell, Marie; Rödin, Magnus; Özcan, Gülay

    2016-01-01

    Using an experimental setup involving 436 case workers at the Swedish Public Employment Service (SPES) as subjects and the profile photographs and recorded voices of 75 jobseekers as treatments, we report results indicating that male case workers tend to favor jobseekers perceived as having a stereotypical Swedish appearance when they select candidates to be recommended for labor market programs (LMP). This bias represents a roughly 50-percent greater chance of being selected if you compare t...

  9. Shifting investments strategy from equity funds to money market funds – the case of Romanian open - end fund market during the financial crisis

    Directory of Open Access Journals (Sweden)

    Radu, I.

    2012-01-01

    Full Text Available Mutual funds are one of the key suppliers of liquidity in Romanian capital market. This paper uses quarterly data on Romanian open-end funds starting with 2006 until 2010. We find that significant negative flows (outflows were registered beginning with the end of 2007 (equity funds, during 2008 (equity funds, balanced funds, other funds and bond funds in the last 2 quarters of the year and from 2009 to 2010 (in the case of money market funds. There is evidence that the changing market conditions attract differently the incoming flows in these mutual funds. This is the reason why such perturbations affect investors’ confidence for these investment vehicles and impose the reorientation of the investment funds and of their investors to other alternatives in order to preserve their capital.

  10. Investment in the Western Hemisphere energy market

    International Nuclear Information System (INIS)

    Gillam, P.J.

    1991-01-01

    This paper reports that the main characteristics of Western Hemisphere energy markets are well known to those in the energy industry. The United States sits in the northern half of the hemisphere, importing more and more oil from the rest of the world. Brazil, with a market one-tenth of the size of the United Sates, sits in the southern half of the hemisphere, importing less and less oil from the rest of the world. Venezuela sits in the center with an eye to the future as a long-term player in the world petroleum industry. Venezuela has 6 or 7 percent of the world's known conventional petroleum reserves, plus an uncountable bitumen resource which is now being commercialized as Orimulsion, a low-emission substitute for coal. The United States is circled by major producing countries with smaller exports, such as Mexico and Canada, and there are smaller producing or consuming countries of which Colombia is the largest exporter and Argentian the largest importer. The United States dominates the numbers. Half of British Petroleum's (BP) investments have been in the energy industry of the Western Hemisphere. We are maintaining that proportion, but opportunities are becoming more difficult to find

  11. On how access to an insurance market affects investments in safety measures, based on the expected utility theory

    International Nuclear Information System (INIS)

    Bjorheim Abrahamsen, Eirik; Asche, Frank

    2011-01-01

    This paper focuses on how access to an insurance market should influence investments in safety measures in accordance with the ruling paradigm for decision-making under uncertainty-the expected utility theory. We show that access to an insurance market in most situations will influence investments in safety measures. For an expected utility maximizer, an overinvestment in safety measures is likely if access to an insurance market is ignored, while an underinvestment in safety measures is likely if insurance is purchased without paying attention to the possibility for reducing the probability and/or consequences of an accidental event by safety measures.

  12. Transmission investment and expansion planning in a restructured electricity market

    International Nuclear Information System (INIS)

    Wu, F.F; Wen, F.S.; Zheng, F.L.

    2006-01-01

    Transmission planning in a restructured electricity market becomes increasingly complicated. To bridge the gap between economic and engineering considerations, this survey paper suggests a framework to clarify the interactions among various economic and engineering issues by reviewing recent theoretical and practical progress in transmission investment and transmission planning methodology. Thus, the paper makes economic literature more accessible to the engineering community and engineering literature more accessible to the economic community interested in the subject. (author)

  13. Application of the Beta Coefficient in the Market of Direct residential Real Estate Investments

    Directory of Open Access Journals (Sweden)

    Wolski Rafał

    2014-07-01

    Full Text Available The beta coefficient is one of the most popular indices used in contemporary finances. Despite the fact that there are justified doubts connected with its application, it is currently difficult to imagine a situation in which the cost of capital would be calculated without the use of the CAPM model. Thus, an attempt at answering the question whether and to what degree beta may be used in the real estate market constitutes an interesting problem. This is because on the one hand, the formal structure suggests that beta should not be used for assets which are not included in the benchmark but, on the other hand, such a benchmark should, at least theoretically, contain all market assets. Therefore, a decision was made to have a closer look at this issue, with the analysis of the possibility of using the beta coefficient in the residential real estate market set as the objective. Using the database of prices in the direct real estate investment created by the NBP, a comparison was conducted with regard to features of undertaken investments on the basis of an analysis of systematic risk calculated using selected indices available on the Polish market.

  14. Investments

    CERN Document Server

    Bodie, Zvi; Marcus, Alan J.

    2017-01-01

    The integrated solutions for Bodie, Kane, and Marcus' Investments set the standard for graduate/MBA investments textbooks. The unifying theme is that security markets are nearly efficient, meaning that most securities are priced appropriately given their risk and return attributes. The content places greater emphasis on asset allocation and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts. Connect is the only integrated learning system that empowers students by continuously adapting to deliver precisely what they need, when they need it, and how they need it, so that your class time is more engaging and effective.

  15. Exa mining The Measurement Methods of Investment Properties of Real Estate Investment Trusts According to Turkish Accounting Standard 40: Investment Properties Standard

    Directory of Open Access Journals (Sweden)

    Emine Çına Bal

    2015-03-01

    Full Text Available Recently, the real estate industry has developed rapidly in Turkey. As an investment tool,investment in real estate became essential. Within the framework of the Capital Markets Law, organized by the Capital Markets Board of Turkey real estate investment trusts, real estate, real estate-based projects, and real estate capital market instruments by investing in a portfolio management company operating in the specific type. In this study, measurement methods of investment properties after recogn 31 real estate investment trust companies that traded in Borsa Istanbul is analyzed in order to examine the effect of policy selection on return on equity, return on asset and market to book value ratio of the companies’ financial statements and disclosures by using the nonparametric test of Mann-Whitney U Test. Non-consolidated financial statements and disclosures for 2013 of 21 real estate investment trust companies is included to the examination. Results of the test that is individually applied for each ratio show that the effect of policy selection on the ratios is statistically insignificant.

  16. FAVAR Analysis of Foreign Investment with Capital Market Predictors: Evidence on Nigerian and Selected African Stock Exchanges

    Directory of Open Access Journals (Sweden)

    David Umoru

    2018-03-01

    Full Text Available Econometrically, we analyzed role of selected African stock exchanges in welcoming FDI inflows by estimating time-varying factor augmented vector auto-regression (FAVAR model for 2006:Q1 to 2017:Q4. Our results support FDI being massively influenced by movements in two stock market predictors namely, stock market's size, that is, total market value of stock market's listed shares calculated by multiplying a stock market’s shares listed by current market price of one share and stock market liquidity which is total value of traded shares relative to the size of the economy. By empirical inference, African stock exchanges exhibit inordinate turnover ratio and so these markets are exceedingly liquid. Particularly, transactions at stock exchange are significant indicators for foreign investors and total market value of listed shares in stock markets is linked positively with FDI inflow into Africa. The empirical finding is that viable African stock exchanges are attractive indicator of market concentration and high investment profile in Africa. The study so remarked the requisite to advance the stock exchange in order to boost funds accumulation for investment drive. Also, African governments should project and implement stock market-friendly procedures acceptable to maximize welfares of spillover effects of FDI.

  17. Political Connections and Investment in Rural Vietnam

    DEFF Research Database (Denmark)

    Markussen, Thomas; Tarp, Finn

    This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers’ agricultural investment decisions. Our main result is that households significantly increase their investment in land improvement...... as a result of relatives moving into public office. Connections to office holders appear to be important for investment because they strengthen de facto land property rights and improve access to off-farm employment and to informal loans. The findings underline the importance of informal networks for economic...... behaviour in environments with developing institutions and markets. They also suggest the presence of an untapped potential for economic development: if households without connections could obtain equally strong property rights and access to credit and insurance as the well-connected households, investment...

  18. Investment Avenues

    Science.gov (United States)

    Jain, Priyanka

    2012-11-01

    Investors are a heterogeneous group, they may be large or small, rich or poor, expert or lay man and not all investors need equal degree of protection (Mayya, 1996). An investor has three objectives while investing his money, namely safety of invested money, liquidity position of invested money and return on investment. The return on investment may further be divided into capital gain and the rate of return on investment as interest or dividend. Among all investment options available, securities are considered the most challenging as well as rewarding. Securities include shares, debentures, derivatives, units of mutual funds, Government securities etc. An investor may be an individual or corporate legal entity investing funds with a view to derive maximum economic advantage from investment such as rate of return, capital appreciation, marketability, tax advantage and convenience of investment.The Capital market facilitates mobilization of savings of individuals and pools them into reservoir of capital which can be used for the economic development of a country. An efficient capital market is essential for raising capital by the corporate sector of the economy and for the protection of the interest of investors in corporate securities. There arises a need to strike a balance between raising of capital for economic development on one side and protection of investors on the other. Unless the interests of investors are protected, raising of capital, by corporates is not possible. Like, the primary objective of a senior citizenís asset allocation is the generation of regular income.

  19. Private Sector Investments from Small States in Emerging Markets: Can International Financial Institutions Help Handle the Risks?

    Directory of Open Access Journals (Sweden)

    Hilmar Þór Hilmarsson

    2008-12-01

    Full Text Available The private sector plays an important role in the economic reconstruction of emerging market economies, and international financial institutions (IFIs increasingly work in partnership with the private sector to increase economic growth and reduce poverty in those economies. IFIs, for example, offer: (i equity financing and/or loans for private sector projects, (ii investment guarantees against political risks (or non-commercial risks, (iii technical assistance, and (iv advisory services, etc. This article will briefly discuss the services that IFIs offer the private sector in emerging markets and cases in which these services could be useful for Icelandic companies. The institutions discussed are (i the World Bank Group, (ii the European Bank for Reconstruction and Development (EBRD, (iii the Asian Development Bank (AsDB, (iv the Inter-American Development Bank (IDB, and (v the African Development Bank (AfDB. A few Icelandic firms already have plans for relatively large projects in emerging market economies, especially in the energy sector, some of them in countries that could be classified as being risky. The ongoing economic crisis in Iceland will make project financing in emerging markets more problematic than before and therefore investments in partnership with international financial institutions could be an option that Icelandic firms will increasingly need to consider if they intend to invest abroad. However, increased private sector and IFI partnerships will not happen without government action. Iceland is a member of only two of the above-mentioned IFIs: the World Bank Group and the EBRD. The decision for Iceland to become member of the AsDB, IDB and AfDB rests solely with the government. Further government inaction in this area could become an impediment for foreign direct investment from Iceland to emerging markets and increase risks when the Icelandic private sector invests in those economies. Unnecessary risks might not only hurt

  20. Risk-averse portfolio selection of renewable electricity generator investments in Brazil: An optimised multi-market commercialisation strategy

    International Nuclear Information System (INIS)

    Maier, Sebastian; Street, Alexandre; McKinnon, Ken

    2016-01-01

    Investment decisions in renewable energy sources such as small hydro, wind power, biomass and solar are frequently made in the context of enormous uncertainty surrounding both intermittent generation and the highly volatile electricity spot prices that are used for clearing of trades. This paper presents a new portfolio-based approach for selecting long-term investments in small-scale renewable energy projects and matching contracts for the sale of the resulting electricity. Using this approach, we have formulated a stochastic optimisation model that maximises a holding company's risk-averse measure of value. Using an illustrative example representative of investment decisions within the Brazilian electricity system, we investigate the sensitivity of the optimised portfolio composition and commercialisation strategy to contract prices in the free contracting environment and to the decision maker's attitude towards risk. The numerical results demonstrate it is possible to reduce significantly financial risks, such as the price-quantity risk, not only by exploiting the complementarity of the considered renewable sources generation profiles, but also by selecting the optimal mix of commercialisation contracts from different markets. We find that the multi-market strategy generally results in appreciably higher optimal value than single-market strategies and can be applied to a wide range of renewable generators and contracts. - Highlights: • Gives a portfolio-based multi-market, multi-asset approach to renewable investment. • Details how to model currently used contract types in each of the Brazilian markets. • Presents a test case using realistic contract and real renewable data from Brazil. • Shows that the approach controls financial risks and boosts optimal values. • Explains how relative contract prices and attitude to risk affect optimal decisions.

  1. The Effects of Foreign Government Policies on the Location of U.S. Direct Investment Abroad

    Directory of Open Access Journals (Sweden)

    Kee Min

    2001-06-01

    Full Text Available Many argue about which policy and non-policy variables play an important role in influencing foreign direct investment decisions. This article contributes to this debate by considering the effects of foreign government policies on the location of U.S. direct investment abroad. The analysis used pooled cross-section and time series data for 44 countries over three time periods to examine the effects of different types of non-policy and policy variables, including market size, per capita income, country risks, tax rates, investment incentives, and investment regulations. This study found that a policy variable, investment regulation and two non-policy variables, market size and per capita income impact investment decision. A moderately strong effect is found in investment incentive policy, whereas country risks and tax rates turned out not to be strong factors in influencing U.S. investment locations. However, in the case of FDI in developing countries, country risk and tax rates appeared to be more important factors for the location of U.S. FDI than host countries' market size. Strong interaction effects between policy variable and market size are found, while less strong interaction is found between policy variable and per capita income. This study concludes that policy variables are also important factors along with non-policy factors and the determinants of FDI are not independently exerting an influence but jointly affecting U.S. investment locations.

  2. Generation Capacity Investments and High Levels of Renewables. The Impact of a German Capacity Market on Northwest Europe. Discussion paper

    Energy Technology Data Exchange (ETDEWEB)

    Ozdemir, O.; De Joode, J.; Koutstaal, P.R.; Van Hout, M. [ECN Policy Studies, Amsterdam (Netherlands)

    2013-05-15

    Presently, Northwest European centralised electricity markets are designed as 'energy-only' markets. In an energy-only market, the price received for electricity produced is set by the marginal generation unit. Potentially, the designs of these markets could leave the owners of these units with 'missing money': i.e. money that is required to recover investment cost. Further, increasing penetration of renewables could exacerbate this problem. Of all the different options available to tackle the 'missing money' problem, capacity mechanisms have attracted most of the attention in recent policy debates in Europe. This paper contributes to ongoing policy discussions by providing a quantitative analysis of the phenomena of 'missing money' and capacity mechanisms in Northwest Europe. Our analysis shows that in the case of energy-only markets with a much higher penetration of intermittent electricity sources such as wind and solar PV, the 'missing money' problem may be aggravated, because operating hours for peak and mid-merit order capacity will be considerably reduced. Furthermore, unilateral introduction of capacity mechanisms in integrated electricity markets can have considerable impacts on cross-border electricity flows and investment decisions. Stand-alone introduction of a capacity market in Germany will likely result in higher investments in Germany at the expense of lower investments outside Germany and an increase in net exports from Germany. A possible advantage of a unilateral capacity mechanism in Germany may be a reduction in super-peak prices in the larger market area. Thus, neighbouring countries may have the possibility to free ride on the increase in flexible capacity in Germany. However, this advantage is conditional and depends on sufficient availability of interconnection capacity necessary to be able to use this reserve capacity. Otherwise, security of supply might be more at risk if the German

  3. 76 FR 77454 - New Markets Tax Credit Non-Real Estate Investments; Hearing Cancellation

    Science.gov (United States)

    2011-12-13

    ... DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-128224-06] RIN 1545-BF80 New Markets Tax Credit Non-Real Estate Investments; Hearing Cancellation AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Cancellation of notice of public hearing on proposed rulemaking. SUMMARY...

  4. The age of markets: low oil and gas prices and the new competition for investment capital

    International Nuclear Information System (INIS)

    Morse, Edward L.

    1998-01-01

    This paper focuses on Iran's re-entry into the market for upstream capital to obtain the investment required to maintain current production capacity, the creation of a special contract to attract foreign investment, the impact of the US sanctions, and deals resulting from the opening-up of some offshore resources with buy-back contracts. The effects of the downturn in oil markets on Tehran's cash flow as well as foreign contractors' cash flow are reviewed, and the main concerns of the industry over the too short terms of the contract, the refusal of Iran to allow oil companies to book reserves, and the guaranteed rate of return are examined. The re-opening of Kuwait which does allow contractors to book reserves, the threat posed by Saudi Arabia if it reopens its hydrocarbon sector to foreign investment, and the potential difficulty for Iran to meet its expanded production targets are considered

  5. Stock prices and business investment

    OpenAIRE

    Yaron Leitner

    2007-01-01

    Is there a link between the stock market and business investment? Empirical evidence indicates that there is. A firm tends to invest more when its stock price increases, and it tends to invest less when the price falls. In “Stock Prices and Business Investment,” Yaron Leitner discusses existing research that explains this relationship. One question under consideration is whether the stock market actually improves investment decisions.

  6. Model-based investigation of the electricity market. Unit commitment and power plant investments

    International Nuclear Information System (INIS)

    Sun, Ninghong

    2013-01-01

    The German Federal Government published its energy concept in September 2010 with a description of the road into the era of renewable energies. Therefore, the future renewable energy installed in Germany is expected to consist mostly of wind and solar, which are subject to intermittency of supply and significant fluctuations. The growing portion of energy generation by fluctuating sources is turning to a big challenge for the power plant unit commitment and the investment decisions as well. In this thesis, a fundamental electricity market model with combined modeling of these two aspects is developed. This model is subsequently applied to the German electricity market to investigate what kind of power plant investments are indispensable, considering the steadily increasing portion of energy generation from fluctuating sources, to ensure a reliable energy supply in a cost-effective way in the future. In addition, current energy policy in Germany regarding the use of renewable energy and nuclear energy is analyzed.

  7. Effect of investments on fundamentals and market reaction on pre-operational and operational Brazilian companies for the period 2006-2012

    Directory of Open Access Journals (Sweden)

    Marco Antonio Pereira

    2016-03-01

    Full Text Available ABSTRACT This paper provides evidence on the market reaction to corporate investment decisions whose shareholder value is largely attributed to growth options. The exploratory research raised pre-operational companies and their operational pairs on the same economy segments. It had the purpose of investigating the existence of statistical differentiation from financial indicators that reflect the installed assets and growth assets, and then study the market reaction to changes in fixed assets as a signaling element about investment decisions. The formation process of operational assets and shareholder value almost exclusively dependent on asset growth stands out in the pre-operational companies. As a result, differentiation tests confirmed that the pre-operational companies had their value especially derived on growth options. The market reaction was particularly bigger in pre-operational companies with abnormal negative stock returns, while the operational companies had positive returns, which may indicate that the quality of the investment is judged based on the financial disclosure. Additionally, operational companies' investors await the disclosure to adjust their prices. We conclude that the results are consistent with the empirical evidence and the participants in financial markets to long-term capital formation investments should give that special attention.

  8. INVESTMENTS IN BONDS ON ROMANIA’S CAPITAL MARKET

    Directory of Open Access Journals (Sweden)

    ILIE RĂSCOLEAN

    2010-01-01

    Full Text Available Capital market, both the primary and secondary record financial transactions not only through property titles, but also issues debt securities, designed to attract monetary funds in the form of loans or medium term. Bonds are securities, consisting of a long-term debt on a company giving the holder of Bonds (Bondholders claim equal rights, corresponding nominal value of the bond. Bonds can be bought either in the public offering period, from banks or corporations Brokerage Financial Services Distributors, or from the stock through a brokerage firm by a procedure similar to that for action. Investing in bonds also entails risks, among which include the risk of default, interest rate risks and currency risks.

  9. Impact of Foreign Direct Investments on Unemployment in Emerging Market Economies: A Co-integration Analysis

    Directory of Open Access Journals (Sweden)

    Yilmaz Bayar

    2017-09-01

    Full Text Available Purpose: The goal of the paper is to investigate the long run effect of both foreign direct investments and domestic investments on the unemployment in 21 emerging economies over the period 1994-2014. Design/methodology/approach: The effect of domestic and foreign direct investments on unemployment was investigated via panel data analysis. First tests of cross-section dependence and homogeneity were conducted, and then the stationarity of the series was analyzed with Pesaran's (2007 CIPS unit root test. The long run relationship among the series was examined with Westerlund-Durbin-Hausman's (2008 co -integration test. Finally, we estimated the long run coefficients with the Augmented Mean Group (AMG estimator. Findings: The empirical findings revealed a co-integrating relationship among domestic investments, foreign direct investments, and unemployment. Furthermore, foreign direct investment inflows affected the unemployment positively in the long term, but domestic investments affected the unemployment negatively. Originality/value: This study can be considered as one of the early studies researching the long run interaction between domestic investments, foreign direct investments and unemployment for the sample of emerging market economies. Furthermore, the findings are very meaningful for policymakers in the design the economic policies for decreasing unemployment.

  10. Transmission investment in the Peruvian electricity market: Theory and applications

    International Nuclear Information System (INIS)

    Ruiz, Erix; Rosellón, Juan

    2012-01-01

    This research presents an application of the mechanism in (HRV) to promote electricity transmission network expansion in the Peruvian electricity transmission system known as SEIN (Sistema Eléctrico Interconectado Nacional). The HRV mechanism combines the merchant and regulatory approaches to promote investment into transmission grids. This mechanism gives incentives for efficient investment in expansion of the network by rebalancing over time the fixed and variable charges of a two-part tariff in the framework of a wholesale electricity market with locational pricing. The expansion of the network is carried out through the sale of Financial Transmission Rights (FTRs) for the congested lines. The mechanism is applied for 103 nodes of the SEIN using detailed characteristics of generators, nodes and transmission lines. Under Laspeyres weights and linear cost of expansion of transmission capacity, it is shown that prices converge to lower price levels as a result of increased transmission capacity.

  11. Integrated Marketing Communications (IMC) Variables That Influence Perceived Return on Investment (ROI) in Higher Education: Chief Marketing Officers' Perceptions

    Science.gov (United States)

    King, Adrienne L.

    2013-01-01

    This study examines the relationship of the level of Integrated Marketing Communications (IMC) implementation, level of open systems and change in state appropriations on perceived return on investment (ROI) in U.S. public higher education institutions (HEIs). Designed to provide HEI leaders with data to more accurately determine the best IMC…

  12. The Private School Market in Kuwait: A Field Study on Educational Investment Behavior of Kuwaiti Families

    Science.gov (United States)

    Alqahtani, Abdulmuhsen Ayedh

    2014-01-01

    The current study aims at exploring Kuwaiti families' educational investment behavior pursuant to the selection of a specific private school for their children from the private school market. Using the quantitative approach and the principles of marketing research, a survey was administered to a randomly selected sample of Kuwaiti families (n =…

  13. To assess the investment policy and investment activity of banks of Russia

    OpenAIRE

    Mandron V.; Buzaeva O.

    2016-01-01

    A priority to increase the profits of banks is investment operations in the stock market. Investment banking includes activities on raising capital using capital market instruments with the objective of capital appreciation. The article describes the investment objectives of the banks to improve their profitability, financial stability and enhance the effectiveness of the whole. The basic tools that enable banks to achieve the relevant objectives: profit, risk diversification, the maintenance...

  14. Development of Investment Activities of Commercial Insurance Companies in Slovak, Czech and Austrian Insurance Markets in 2004-2009

    Directory of Open Access Journals (Sweden)

    Marek Meheš

    2011-05-01

    Full Text Available The contribution deals with investments of commercial insurance companies operating in Slovak, Czech and Austrian insurance market in the period of 2004–2009. First of all, development of technical reserves volume as an important prerequisite of investing of commercial insurance companies will be characterized. After that, we evaluate financial placements and investment activities – ratio of total investments and technical reserves. We also present statistical tests by means of which we examine the existence of the relation between the volume of technical reserves and the volume of investments of commercial insurance companies.

  15. Social Impact Investment: Increasing Private Sector Investment to ...

    International Development Research Centre (IDRC) Digital Library (Canada)

    The social impact investment market is now global in scope and it is rapidly expanding in some ... of social impact investing to address environmental, social, and economic challenges. ... New project to improve water management in the Sahel.

  16. Challenges when electricity markets face the investment phase

    International Nuclear Information System (INIS)

    Finon, Dominique; Johnsen, Tor Arnt; Midttun, Atle

    2004-01-01

    Deregulation of electricity industry in Europe has tended to start with a grace period of energy surplus inherited from the previously expansive coordinated economies and further amplified by better resource utilisation from extended international trade. The regulatory challenge has therefore primarily been to allocate existing generation to consumers in an efficient way. However, as energy demand increases, due to economic growth, the challenge of providing new capacity surfaces. The Nordic region, which has been a pioneer in internationalising and deregulating electricity, is now approaching this stage, ahead of most of the rest of Europe. While the Nordic case is characterised by specificities related to hydropower it also raises the more general challenge of capacity expansion under a deregulated market economy. The article therefore discusses how the Nordic investment challenges of today shed light on more generic challenges that may become more general European challenges of tomorrow. In a final section, the article discusses policy options available to address the investment/price-hike challenge. The argument is put forward that recursion to some degree of coordinated governance might seem necessary if solutions are confined within large-scale technical systems. However, within the context of a small-scale decentralised technological development, one may be more confident of competitive solutions. (Author)

  17. German crowd-investing platforms: Literature review and survey

    Directory of Open Access Journals (Sweden)

    David Grundy

    2016-12-01

    Full Text Available This article presents a comprehensive overview of the current German crowd-investing market drawing on a data-set of 31 crowd-investing platforms including the analysis of 265 completed projects. While crowd-investing market still only represents a niche in the German venture capital market, there is potential for an increase in both market volume and in average project investment. The market share is distributed among a few crowd-investing platforms with high entry barriers for new platforms although platforms that specialise in certain sectors have managed to successfully enter the market. German crowd-investing platforms are found to promote mainly internet-based enterprises (36% followed by projects in real estate (24% and green projects (19%, with the median money raised 100,000 euro.

  18. Power plants investment decision-making in consideration of investment risk

    International Nuclear Information System (INIS)

    Oda, Junichiro; Matsuhashi, Ryuji; Yoshida, Yoshikuni; Takashima, Ryuta

    2005-01-01

    In this paper, we consider the investment risk of nuclear power plants using the real options approach. It is essential that the Japanese society evaluate the investment risk, because nuclear power plants are facing definite uncertainty and Japanese governments intend to promote and assist nuclear power plants through subsidies and policy actions. We assumed that the wholesale market prices of electricity constitute the definite uncertainty and that the wholesale market prices follow the geometric Brownian motion with drift. Using the Bellman equation and a lattice framework, we evaluated the value of investment opportunity, the value of equipment, and the critical prices that are optimal prices to invest in a nuclear power plant in the finite time horizon. This analysis shows that higher volatility of the wholesale market prices would give power companies lower incentive to construct electric power plants, particularly capital-intensive power plants. In order to deliberate and hold the Japanese governments accountable for the economics of nuclear power plants, multifaceted evaluation is needed. (author)

  19. Rating in the Assessment of Investment Property

    Directory of Open Access Journals (Sweden)

    Śmietana Katarzyna

    2014-07-01

    Full Text Available The implementation of rating procedures is associated with searching for tools that provide an objective and standardized assessment of investment risk. For this reason, rating is an important and often essential element of investment decision-making processes which determines the development of the capital market, including the real estate investment market. In the investment property market, not only does rating provide transparency of property risk, but it can also be used for real estate portfolio analysis, investment controlling, and the analysis of factors determining investment decisions (ESV 2012.

  20. Investment in exploration-production and refining 2013

    International Nuclear Information System (INIS)

    Hureau, Geoffroy; Serbutoviez, Sylvain; Silva, Constancio; Maisonnier, Guy

    2013-10-01

    IFPEN analyses in this study the 2013 evolution of global investment in the field of exploration-production and refining. 1 - Changes in oil and gas prices; 2 - Exploration production: a new year of growth: the increase in investments continues into 2013, exploration - Discoveries in 2013, 1978 - 2012: Investments - Production - Price; 3 - Main markets in the upstream oil equipment and services sector: introduction, drilling (Drilling activity, Number of wells drilled throughout the world, Number of onshore wells, Number of offshore wells, Drilling markets, equipment and services for wells, Onshore drilling market, Offshore drilling market, Fracking market); Geophysical market (Geophysical activity, Geophysical market); Offshore construction (Offshore construction activities, Fixed platforms (Jack-ups), Floating Platform Systems (FPS), Sub-sea constructions, Offshore construction market); Conclusion; 4 - Refining: looking for new equilibriums: falling excess capacity and regional disparities, recovery in capital spending in emerging countries, Asia is still the eldorado for investment in the downstream oil Sector (Continuing overcapacity in the medium-term, Differing investment strategies)

  1. Quantitative and experimental analysis of investment incentive mechanisms in electricity markets: short- and long-term analysis of actors' strategies

    International Nuclear Information System (INIS)

    Khalfallah, Mohamed Haikel

    2009-01-01

    In this thesis, we deal with the question of reliability of electricity system and particularly the problem of generation capacity adequacy in electricity markets, characterized by uncertain and volatile demand. This question is currently the object of many politics and economics debates in the European Commission of energy. It occurs within the context of de-regulations and reforms of liberalization operated in western countries. This deregulation was caused many shortages and crisis in many electricity markets in the world. Failures are caused by several factors such as, the presence of uncertainties on future demand and fuel prices, the risk-averse behavior of investors and the market power exercised by existing generators. They had led to high spot market prices and a fundamental imbalance between the steadily growing demand for power and the limited increases, due to the lack of investments, in generation capacities. Many mechanisms, additional to the energy market, that ensure an adequate incentive for investments and a stable and socially acceptable electricity prices have been proposed. In this work, we compare different investment incentive mechanisms, in terms of long-term capacity adequacy in an uncertain environment, cost effectiveness and the ability of reducing market power. In the literature, the problem of long-term system reliability has been largely studied in qualitative terms. A few works attempt to model the quantitative effects of those market designs. The contribution of this work is to propose a quantitative analysis based on dynamics models. Competition is considered by using the principles of game theory. Stochastic dynamic programming is used to deal with the stochastic environment of the market and mixed complementarity problem and variational inequality formulations are employed to find Nash equilibrium. In addition to the analytic analysis, an experimental study is carried out in order to include a larger diversity of strategy. The

  2. Performance of passive long term investments : A longitudinal study over the relative performance of emerging- and developed markets

    OpenAIRE

    Babar, Haseeb Zaman; Norberg, Johan

    2013-01-01

    The concept of emerging markets came to surface in early 1980 and constituted of only eight countries from the two continents of South America and Asia. The globalization of financial markets has since raised the importance of emerging capital markets. We take a quantitative approach to investigate the performance of emerging markets compared to developed markets. The aim of the study is to conclude if emerging markets offers investment value and if logic in portfolio theory can be used to im...

  3. Initial value sensitivity of the Chinese stock market and its relationship with the investment psychology

    Science.gov (United States)

    Ying, Shangjun; Li, Xiaojun; Zhong, Xiuqin

    2015-04-01

    This paper discusses the initial value sensitivity (IVS) of Chinese stock market, including the single stock market and the Chinese A-share stock market, with respect to real markets and evolving models. The aim is to explore the relationship between IVS of the Chinese A-share stock market and the investment psychology based on the evolving model of genetic cellular automaton (GCA). We find: (1) The Chinese stock market is sensitively dependent on the initial conditions. (2) The GCA model provides a considerable reliability in complexity simulation (e.g. the IVS). (3) The IVS of stock market is positively correlated with the imitation probability when the intensity of the imitation psychology reaches a certain threshold. The paper suggests that the government should seek to keep the imitation psychology under a certain level, otherwise it may induce severe fluctuation to the market.

  4. Banking behaviour after the lifecycle event of “moving in together”: An exploratory study of the role of marketing investments

    OpenAIRE

    B. LARIVIÈRE; D. VAN DEN POEL

    2007-01-01

    This study addresses an important issue for both managers and researchers: whether it is advantageous for financial services providers to invest in youth marketing. More specifically, the effectiveness of these investments is evaluated in terms of retention proneness once youngsters enter the lifecycle event of “moving in together”. The study identifies eight constructs of youth marketing and contrasts their impact against the best deal when youngsters decide to move in together and consequen...

  5. Impact of Competition on Mutual Fund Marketing Expenses

    Directory of Open Access Journals (Sweden)

    Sitikantha Parida

    2018-03-01

    Full Text Available In this paper, I study the impact of market competition on mutual fund marketing expenses. In a sample of US domestic equity mutual funds, I find that marketing expenses decrease with the competition. This effect is stronger for top-performing funds. These results are counterintuitive, as one would ordinarily expect funds to incur more marketing expenses in response to pressure from competing funds. However, these results support the narrative that mutual funds employ marketing to draw attention to their performance in a tournament-like market, where the top-performing funds (the winners are rewarded with disproportionately high new investments. Higher competition decreases the chances of each fund to outperform the others and adversely affect their ability to attract new investments, and the funds respond by decreasing marketing expenses. Thus, competition appears to have implications for investor search cost.

  6. Role of External Audit in Attracting Foreign Investment and in the Domestic Companies' Entering the IPO Market

    Directory of Open Access Journals (Sweden)

    Lubenchenko Olga Е.

    2016-01-01

    Full Text Available In this article, a way of attracting investors in the long-term perspective, namely: entering the IPO (Initial Public Offering markets by the domestic economic entities, has been considered. Also essence and objectives of IPO, advantages and disadvantages of holding the IPO have been determined. The main stages of the enterprises' entering the IPO market have been allocated: preparing for the IPO; entering the exchange; further statements by public company to investors. The key role of external auditors (auditing firms on the stages of preparing the enterprise to entering the IPO market has been defined, popular auditing services have been listed. Investment accounting methods have been examined. Reflection in accounting the profit and its distribution mechanism in terms of investor and issuer, depending on the method of investments accounting according to international accounting standards, have been considered.

  7. Competition in investment banking

    Directory of Open Access Journals (Sweden)

    Katrina Ellis

    2011-01-01

    Full Text Available We construct a comprehensive measure of overall investment banking competitiveness for follow-on offerings that aggregates the various dimensions of competition such as fees, pricing accuracy, analyst recommendations, distributional abilities, market making prowess, debt offering capabilities, and overall reputation. The measure allows us to incorporate trade-offs that investment banks may use in competing for new or established clients. We find that firms who switch to similar-quality underwriters enjoy more intense competition among investment banks which manifests in lower fees and more optimistic recommendations. Investment banks do compete vigorously for some clients, with the level of competition related to the likelihood of gaining or losing clients. Finally, investment banks not performing up to market norms are more likely to be dropped in the follow-on offering. In contrast, firms who seek a higher reputation underwriter face relatively non-competitive markets.

  8. STIMULATING THE ATTRACTION OF INVESTMENTS IN THE PROCESSING SECTOR – A NECESSITY IN THE CONTEXT OF EUROPEAN MILK MARKET LIBERALIZATION

    Directory of Open Access Journals (Sweden)

    Mariana GRODEA

    2014-12-01

    Full Text Available A main challenge for the players on the world dairy market is to efficiently respond to the changes of the local markets characteristics, in the context of an increasingly fierce competition for the raw milk obtained on the farms. From the analysis, it results that the performance of the Romanian milk sector is seriously affected by the excessive fragmentation of supply, which reveals the subsistence and semi-subsistence phenomenon that persists in the milk sector, as the main factor that constrains competitiveness growth. In reference to the volume of investments in the dairy processing sector, it results that this had a slow growth rate in the investigated period, the share in total investments in the food sector ranging from 7.8% (2000 to 16.9% (2011. The investments in agriculture in total investments accounted for 4.9% in the year 2012. In order to adapt to the competition on the European Single Market, the Romanian sector has to receive support through investments, in the conditions in which there is a favourable global conjuncture for the consumption of dairy products, in which their prices are expected to raise on the basis of the increasing demand of the development regions.

  9. Transmission investment and planning in deregulated market environment : a literature survey (part 2)

    International Nuclear Information System (INIS)

    Wen, F.; Wu, F.F.

    2005-01-01

    This paper is the second half of a 2-part paper that provided details of a comprehensive survey of issues related to transmission investment and expansion planning in the electricity market. Results of the survey suggested that transmission regulation is needed to provide a fair playing field for competition and to ensure that transmission networks are optimally expanded while also meeting reliability constraints. Regulations will create further incentives for cost reduction while ensuring that regulated firms have assurance of cost recovery. Transmission planning should be controlled or monitored by a government organization or regulator. Legislation is needed to ensure that regulatory authorities can enforce reliability criteria. Mandatory reliability standards and metrics for reliability services should be implemented. The economic benefits of transmission expansion in a deregulated market should be modelled using non-deterministic approaches. It was concluded that transmission expansion plans should be able to meet future transmission capacity requirements, secure returns on investment, and ensure reliability levels for customers. Various international transmission expansion plans were also provided. 38 refs

  10. STRATEGIC MOTIVATIONS OF AUSTRALIAN AND NEW ZEALAND MANUFACTURING FOREIGN DIRECT INVESTMENTS IN INTERNATIONAL MARKETS

    Directory of Open Access Journals (Sweden)

    Rizwan Tahir

    2011-07-01

    Full Text Available We empirically investigate how different location-specific variables and strategic motives influenced Australian and New Zealand (ANZ firms' ownership strategy choices in foreign markets between 1998 and 2008. This study is the first to analyse how strategic motives and ownership-specific, location-specific, and internalisation variables have influenced the ownership structure choices of ANZ firms in foreign markets. The results indicate that large market potential and low levels of cultural distance increase the probability that ANZ manufacturing firms will undertake wholly owned subsidiary (WOS ownership structures and market-seeking (MS and/or efficiency-seeking (ES foreign direct investment (FDI. Low exchange rate fluctuation increases the probability that ANZ manufacturing firms will undertake WOS-type risk reduction-seeking (RRS FDI.

  11. The social construction of real estate market risk. The case of a financial investments cluster in Mexico City

    Directory of Open Access Journals (Sweden)

    Louise David

    2012-11-01

    Full Text Available This article contributes to the study of the geographical concentration of financial investments in real estate markets. It demonstrates the social construction process at work in the evolution of real estate market risks. The objective is to highlight the conditions that allow or impede the implementation of ‘opportunistic’ and ‘conservative’ risk strategies. By analyzing the market entry of financial investors in the Cuautitlan industrial real estate market - an ‘emerging’ real estate market in Mexico City - this paper demonstrates that, due to the joint action of land developers, non-financial as well as financial real estate investors, this market moved from being ‘too risky’ to becoming an opportunistic market, and then a conservative one. There were two important phases in the transformation process. First, the contribution of land developers was fundamental to the transformation of the market from being too risky to being opportunistic from the perspective of financial investors. Two different types of land developers are evident: some are not willing to help financial investors’ entry in the market while others developed a business plan designed to facilitate financial investments. In the second phase of the market’s risks transformation, opportunistic financial investors enabled the conditions for the arrival of conservative financial investors, thanks to their presence in emerging markets and the diffusion of information.

  12. Comparative Analysis of Investment Decision Models

    Directory of Open Access Journals (Sweden)

    Ieva Kekytė

    2017-06-01

    Full Text Available Rapid development of financial markets resulted new challenges for both investors and investment issues. This increased demand for innovative, modern investment and portfolio management decisions adequate for market conditions. Financial market receives special attention, creating new models, includes financial risk management and investment decision support systems.Researchers recognize the need to deal with financial problems using models consistent with the reality and based on sophisticated quantitative analysis technique. Thus, role mathematical modeling in finance becomes important. This article deals with various investments decision-making models, which include forecasting, optimization, stochatic processes, artificial intelligence, etc., and become useful tools for investment decisions.

  13. Socially responsible investments in mutual funds

    Directory of Open Access Journals (Sweden)

    Funaru, M.

    2011-01-01

    Full Text Available This paper aims to add contribution to the socially responsible investments (from now on called “SRI” research by examining the significance of this type of investment in terms of ethical or financial prior behaviour. Using the sample of European market of socially responsible investments funds, we first explore the SRI market dimension compared to the global data on SRI. We also investigate whether the ethical recognition is more important rather than the financial performance. Applied to the European social responsible investment fund market, the paper investigates the difference between these two aspects of behaviour and underlies the importance of socially responsible investments in promoting a sustainable development.

  14. Solving Constrained Consumption-Investment Problems by Simulation of Artificial Market Strategies

    DEFF Research Database (Denmark)

    Bick, Björn; Kraft, Holger; Munk, Claus

    2013-01-01

    Utility-maximizing consumption and investment strategies in closed form are unknown for realistic settings involving portfolio constraints, incomplete markets, and potentially a high number of state variables. Standard numerical methods are hard to implement in such cases. We propose a numerical...... procedure that combines the abstract idea of artificial, unconstrained complete markets, well-known closed-form solutions in affine or quadratic return models, straightforward Monte Carlo simulation, and a standard iterative optimization routine. Our method provides an upper bound on the wealth......-equivalent loss compared to the unknown optimal strategy, and it facilitates our understanding of the economic forces at play by building on closed-form expressions for the strategies considered. We illustrate and test our method on the life-cycle problem of an individual who receives unspanned labor income...

  15. Social Investment, Economic Growth and Labor Market Performance: Case Study—Romania

    Directory of Open Access Journals (Sweden)

    Ramona Olivia Ștefănescu-Mihăilă

    2015-03-01

    Full Text Available A few years have passed since the financial crisis began with the bankruptcy of the American Lehman Brothers bank and few dare predict the moment when we will overcome the crisis. Chaotic human resource policy in the Romanian economy and complex taxation have lowered our chances to overcome it. Excessive income tax, massive layoffs, not always dictated by real needs in the private sector, hesitation in the government regarding the reorganization of an oversized public sector and the low productivity are only some obstacles in overcoming the crisis. People are a very important factor in the production process and in the success of a company. It is essential that modern organizations rethink their strategies, make long-term investments, and invest in people. Success and survival on the market greatly depend on the understanding of these facts and managers must be aware of their importance.

  16. GLOBAL TRENDS OF ALTERNATIVE INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Ivan LUCHIAN

    2016-08-01

    Full Text Available An alternative investment is an investment product other than the traditional investments of stocks, bonds, cash, or property. The term is a relatively loose one and includes tangible assets such as art, wine, antiques, coins, or stamps and some financial assets such as commodities, hedge funds, venture capital,and others. At the moment it was created a global industry opportunities for making investments in nontraditional form. The aim of this paper consists in demonstrating the possibilities of these investments. For this have been studied related main international markets, a fter then deducted world dominant trends. This article is concerned to present some details of alternative investments global market.

  17. Investment innovation trends: Factor-based investing

    Directory of Open Access Journals (Sweden)

    Sanja Centineo

    2017-05-01

    Full Text Available This article shows that it can take a long period of time until research knowledge finds its application in practice and get disseminated as innovation trend. Factor-based investing is such an example. Having its developing roots in the nineties, it took more than two decades until this approach was detected by the by investment community. The goal of this article is to recall the definition of factor investing, present its historical evolvement and motivate its recent break-through and current trend among investment practitioners (known also under the notion smart beta. It aims at familiarizing with this investment approach from a practical perspective and highlighting its diversifying benefits in a portfolio context with the potential to outperform the market on risk-adjusted basis.

  18. Shopping for clothes: Body satisfaction, appearance investment, and functions of clothing among female shoppers.

    Science.gov (United States)

    Tiggemann, Marika; Lacey, Catherine

    2009-09-01

    The present study aimed to investigate the link between clothing and body experience in women of different ages. Participants were 162 female clothes shoppers between the ages of 18 and 55 who completed questionnaire measures of body image, functions of clothing, self-esteem, and enjoyment of clothes shopping. It was found that clothing was worn primarily for assurance and fashion by women of all ages. On the other hand, BMI and body dissatisfaction were related to the use of clothing for camouflage purposes and to a more negative clothes shopping experience. Both components of appearance investment were related to choice of clothes for fashion and assurance. However, the self-evaluative salience component was negatively related, while the motivational salience was positively related, to enjoyment of clothes shopping. It was concluded that although clothing is an under-researched aspect of body image, it represents an important part of women's appearance management, whatever their age.

  19. Sustainable Markets Investment Briefings: Overview

    Energy Technology Data Exchange (ETDEWEB)

    Cotula, Lorenzo

    2007-08-15

    This is the first of a series of briefings which discuss the sustainable development issues raised by legal arrangements for the protection of foreign investment. The briefings are based on legal research by IIED and its partners. The goal is to provide accessible but accurate information for human rights, development and environmental organisations working on issues raised by foreign investment in low- and middle-income countries. Briefing 1 provides a general overview of key issues.

  20. Controlled-risk foreign investment strategy can boost yields.

    Science.gov (United States)

    Simms, R A

    2000-06-01

    Healthcare organizations that have invested in the U.S. stock market have enjoyed high returns in recent years. After such a performance, many investment managers see little reason to investigate overseas markets, believing that the U.S. market will continue to be profitable and economic uncertainties make overseas markets too risky. However, in 1999, markets in Europe, Australia, and the Far East outperformed the S&P 500 for the first time in five years. In addition, signs such as mounting price/earnings ratios may indicate that the U.S. stock market will be less profitable than it has been in recent years. Consequently, investment managers should revisit the idea of international investing.

  1. Keynes, investment, unemployment and expectations

    OpenAIRE

    Smith, Ron P.; Zoega, Gylfi

    2009-01-01

    In Keynes' General Theory, investment determines effective demand, which determines unemployment and the labour market plays a negligible role. In New Keynesian models, labour market institutions determine the natural rate of unemployment and the speed at which unemployment adjusts to it. Investment is mostly ignored as a key variable behind the problem of high unemployment, despite a strong empirical association between investment and unemployment. We discuss the evolution of the 'Keynesian'...

  2. Carbon market risks and rewards: Firm perceptions of CDM investment decisions in Brazil and India

    International Nuclear Information System (INIS)

    Hultman, Nathan E.; Pulver, Simone; Guimarães, Leticia; Deshmukh, Ranjit; Kane, Jennifer

    2012-01-01

    The carbon market experiences of Brazil and India represent policy success stories under several criteria. A careful evaluation, however, reveals challenges to market development that should be addressed in order to make the rollout of a post-2012 CDM more effective. We conducted firm-level interviews covering 82 CDM plants in the sugar and cement sectors in Brazil and India, focusing on how individual managers understood the potential benefits and risks of undertaking clean development mechanism (CDM) investments. Our results indicate that the CDM operates in a far more complex way in practice than that of simply adding a marginal increment to a project's internal rate of return. Our results indicate the following: first, although anticipated revenue played a central role in most managers' decisions to pursue CDM investments, there was no standard practice to account for financial benefits of CDM investments; second, some managers identified non-financial reputational factors as their primary motivation for pursuing CDM projects; and third, under fluctuating regulatory regimes with real immediate costs and uncertain CDM revenue, managers favored projects that often did not require carbon revenue to be viable. The post-2012 CDM architecture can benefit from incorporating these insights, and in particular reassess goals for strict additionality and mechanisms for achieving it.

  3. Volatility measurement with directional change in Chinese stock market: Statistical property and investment strategy

    Science.gov (United States)

    Ma, Junjun; Xiong, Xiong; He, Feng; Zhang, Wei

    2017-04-01

    The stock price fluctuation is studied in this paper with intrinsic time perspective. The event, directional change (DC) or overshoot, are considered as time scale of price time series. With this directional change law, its corresponding statistical properties and parameter estimation is tested in Chinese stock market. Furthermore, a directional change trading strategy is proposed for invest in the market portfolio in Chinese stock market, and both in-sample and out-of-sample performance are compared among the different method of model parameter estimation. We conclude that DC method can capture important fluctuations in Chinese stock market and gain profit due to the statistical property that average upturn overshoot size is bigger than average downturn directional change size. The optimal parameter of DC method is not fixed and we obtained 1.8% annual excess return with this DC-based trading strategy.

  4. Investment Strategy in a Closed Loop Supply Chain: The Case of a Market with Competition between Two Retailers

    Directory of Open Access Journals (Sweden)

    Sungwook Yoon

    2017-09-01

    Full Text Available To survive in the ceaseless cycle of competition, businesses have developed strategies to become sustainable. These strategies include reusing products, which can lead not only to the creation of economic benefits but also to improvements in a corporation’s social and environmental responsibility. Product reuse can also increase the profit earned on new products by compensating customers who bring in old products to buy new ones, as the ensuing remanufacturing process allows for the reuse of materials and thus drives down costs. As businesses have come to recognize these values, the marketing competition to retrieve used products from customers has intensified. This research focuses on identifying effective compensation strategies to determine the appropriate advertising investment and trade-in value in a market where two homogeneous retailers compete. Retailers advertise to secure more customers to trade in their used products and to generate more trade-in sales than competitors do. A retailer’s results may vary according to its competitor’s investment strategy, which makes it useful to employ information on past competitor investment patterns to plan future investment strategies. However, as competitors using one another’s information may intensify the competition, better investment results could be obtained by ignoring competitor investment information. Therefore, this study suggests four competition strategies that determine the advertisement costs and trade-in allowance spent by retailers and discusses the difference in the profits obtained by the retailers under each of the four strategies.

  5. Impact of Telecommunication Infrastructure, Market Size, Trade Openness and Labor Force on Foreign Direct Investment in ASEAN

    OpenAIRE

    Meidayati, Anis Wahyu

    2017-01-01

    AbstractForeign Direct Investment (FDI) in recent years has created a positive impact for ASEAN countries. FDI give spillover effects that directly contribute capital improvements, technological developments, and global market access, also skills and managerial transfers. In order to attract FDI inflow into country, ASEAN member countries need to know what factors which attract investment related to the needs of infrastructure types and other factors. The purpose of this study is examine the ...

  6. Investment Strategies Used as Spectroscopy of Financial Markets Reveal New Stylized Facts

    Science.gov (United States)

    Zhou, Wei-Xing; Mu, Guo-Hua; Chen, Wei; Sornette, Didier

    2011-01-01

    We propose a new set of stylized facts quantifying the structure of financial markets. The key idea is to study the combined structure of both investment strategies and prices in order to open a qualitatively new level of understanding of financial and economic markets. We study the detailed order flow on the Shenzhen Stock Exchange of China for the whole year of 2003. This enormous dataset allows us to compare (i) a closed national market (A-shares) with an international market (B-shares), (ii) individuals and institutions, and (iii) real traders to random strategies with respect to timing that share otherwise all other characteristics. We find in general that more trading results in smaller net return due to trading frictions, with the exception that the net return is independent of the trading frequency for A-share individual traders. We unveiled quantitative power laws with non-trivial exponents, that quantify the deterioration of performance with frequency and with holding period of the strategies used by traders. Random strategies are found to perform much better than real ones, both for winners and losers. Surprising large arbitrage opportunities exist, especially when using zero-intelligence strategies. This is a diagnostic of possible inefficiencies of these financial markets. PMID:21935403

  7. Investment strategies used as spectroscopy of financial markets reveal new stylized facts.

    Science.gov (United States)

    Zhou, Wei-Xing; Mu, Guo-Hua; Chen, Wei; Sornette, Didier

    2011-01-01

    We propose a new set of stylized facts quantifying the structure of financial markets. The key idea is to study the combined structure of both investment strategies and prices in order to open a qualitatively new level of understanding of financial and economic markets. We study the detailed order flow on the Shenzhen Stock Exchange of China for the whole year of 2003. This enormous dataset allows us to compare (i) a closed national market (A-shares) with an international market (B-shares), (ii) individuals and institutions, and (iii) real traders to random strategies with respect to timing that share otherwise all other characteristics. We find in general that more trading results in smaller net return due to trading frictions, with the exception that the net return is independent of the trading frequency for A-share individual traders. We unveiled quantitative power laws with non-trivial exponents, that quantify the deterioration of performance with frequency and with holding period of the strategies used by traders. Random strategies are found to perform much better than real ones, both for winners and losers. Surprising large arbitrage opportunities exist, especially when using zero-intelligence strategies. This is a diagnostic of possible inefficiencies of these financial markets.

  8. Investment strategies used as spectroscopy of financial markets reveal new stylized facts.

    Directory of Open Access Journals (Sweden)

    Wei-Xing Zhou

    Full Text Available We propose a new set of stylized facts quantifying the structure of financial markets. The key idea is to study the combined structure of both investment strategies and prices in order to open a qualitatively new level of understanding of financial and economic markets. We study the detailed order flow on the Shenzhen Stock Exchange of China for the whole year of 2003. This enormous dataset allows us to compare (i a closed national market (A-shares with an international market (B-shares, (ii individuals and institutions, and (iii real traders to random strategies with respect to timing that share otherwise all other characteristics. We find in general that more trading results in smaller net return due to trading frictions, with the exception that the net return is independent of the trading frequency for A-share individual traders. We unveiled quantitative power laws with non-trivial exponents, that quantify the deterioration of performance with frequency and with holding period of the strategies used by traders. Random strategies are found to perform much better than real ones, both for winners and losers. Surprising large arbitrage opportunities exist, especially when using zero-intelligence strategies. This is a diagnostic of possible inefficiencies of these financial markets.

  9. Environmental investment funds. Investing into the future. Umweltfonds. Investieren in die Zukunft

    Energy Technology Data Exchange (ETDEWEB)

    Homolka, W [Bayerische Hypotheken- und Wechsel-Bank AG, Muenchen (Germany)

    1990-01-01

    The book wants to show that ecologically oriented and socially responsible investment has so far been underrated as a criterion of choice for finance decisions. Environmental investment funds offer the chance to make important investments into the future and the development of new technologies and methods of production, provided the openness of their claim is appreciated which is to go for anything that will improve our environment. Such confidence in the positive forces of the market is adequately rewarded, as international examples show. Environmental investment funds are a form of finance management for far-sighted investors and who are committed to the environment. The author presents the bases of ethic-ecologically oriented fund investment, reports experience abroad, and gives a current overview of the situation, nationally and internationally, in this sector of the finance market. (orig./HSCH).

  10. Gas-to-power market and investment incentive for enhancing generation capacity: An analysis of Ghana's electricity sector

    International Nuclear Information System (INIS)

    Fritsch, Jorik; Poudineh, Rahmatallah

    2016-01-01

    Ghana's electricity generation capacity is currently insufficient to meet demand, making power outages and load shedding common. The resulting impact is potentially devastating for the country's growth prospects. Traditionally, lack of an affordable and reliable fuel supply for power generation, coupled with ineffective institutions and an unfavourable investment climate, have resulted in Ghana's electricity sector performing poorly. In light of the 2007 discovery of natural gas reserves in Ghanaian waters, this paper examines whether domestic gas could advance the performance of the electricity sector, and if so, how. The results of our analysis show that utilization of gas reserves in Ghana's gas-to-power market is an economically superior strategy compared to an export-oriented utilization scheme. The lack of an effective regulatory framework for investment, skill shortages, and an inefficient electricity pricing structure continue to be the main constraining factors. Our analysis also considers possible approaches to modification of the electricity tariff in order to send the right signal to potential investors in generation capacity, without compromising the affordability of power supply. - Highlights: •We examine if domestic gas can improve the Ghanaian electricity sector performance. •We compare domestic gas-to-power market utilisation versus gas export. •It shows that gas-to-power market is more economical compared to gas export. •Ineffective investment regime, skill shortage and inefficient tariffs are barriers.

  11. Financing investment in environmentally sound technologies: Foreign direct investment versus foreign debt finance

    International Nuclear Information System (INIS)

    Anyangah, Joshua Okeyo

    2010-01-01

    This paper develops a screening model to examine the relationship between alternative sources of private capital and investment in environmentally sound technologies (ESTs). In the model, a polluter (agent) must secure investment funds from the international financial markets in order to upgrade its production and abatement technology. The requisite capital can be obtained via either market loans (debt finance) or foreign direct investment (FDI). Under debt finance, the foreign financier supplies only capital and the relationship between the two parties is more 'arms-length'. By contrast, under FDI, the investor delivers both capital and managerial skills. We use the model to derive the implications of debt finance for optimal investment decisions and compare them to those obtained under FDI. Investment incentives are more pronounced under debt finance. (author)

  12. The integration of Chinese and European renewable energy markets: The role of Chinese foreign direct investments

    International Nuclear Information System (INIS)

    Lv, Ping; Spigarelli, Francesca

    2015-01-01

    In the renewable energy (RE) sectors, foreign direct investments are becoming an important mean of regional integration between China and Europe, as a result of the combined effect of Europe–China dialog on energy issues; Chinese energy policy; and Chinese Go Global policy. Using a firm level data set from the Chinese Ministry of Commerce, we perform an analysis on location choice by Chinese RE firms from 2004 to 2013, within Europe. We depict a map of “where to where” (home province vs. host country) and “who to where” (firm level characteristics vs. host country), to find out how characteristics of home and host regions affecting the integration of Chinese and European RE markets. Main results are the following. Investment pairs in RE sectors reflect a duality: firms tend to seek countries with similar institutional environment, compared with their origin regions. Countries with weak and immature institutions are attractive for immature and inexperienced Chinese firms. Main features of Chinese investors are the following: private, non-listed firms, entering through greenfield, focusing on sales. Market-seeking investors tend to enter countries with both well-developed institutional environment and industry development base. R&D-oriented investments are more likely to flow to countries with well-developed institutional environment. -- Highlights: •A map of Where to Where of Chinese investments in Europe is depicted. •Characteristics of home and host regions affect Chinese integration in Europe. •Investment pairs in renewable energy sectors reflect a duality. •Chinese firms localize in EU countries with similar institutional environment. •Through a Who to Where analysis, key features of Chinese investors are outlined

  13. Determinants of Foreign Institutional Investors’ Investment in India

    Directory of Open Access Journals (Sweden)

    Manjinder KAUR

    2010-11-01

    Full Text Available The present study aims at exploring the determinants of Foreign Institutional Investors’ (FIIs investment in India. Returns on Indian stock market have positive impact whereas US stock market returns have no significant influence on FIIs investment to India. Stock market risk has negative influence on FIIs inflows to India. Market capitalization and stock market turnover of India have significant positive influence only in short-run. Among macroeconomic determinants, economic growth of India has positive impact on FIIs investment both in long-run and shortrun. But all other macroeconomic factors have significant influence only in long-run like inflation in US has positive influence whereas inflation in India has negative influence on FIIs investment. Further, US interest rate has adverse impact on FIIs investment while liberalization policies of India exhibited significant contribution to FIIs inflows. Study concludes that FIIs inflows in India are determined by both stock market characteristics and macroeconomic factors.

  14. The timing of pollution abatement investments and the business cycle. An international comparison

    Energy Technology Data Exchange (ETDEWEB)

    Bouman, M. [Department of Economics, Faculty of Economics and Econometrics, University of Amsterdam, Amsterdam (Netherlands); Hofkes, M.W. [Department of Economics, Faculty of Economics and Econometrics, Vrije Universiteit Amsterdam, Amsterdam (Netherlands)

    1995-12-31

    A simple equilibrium business-cycle model for an economy with both clean- and dirty-producing plants is developed. The authors derive that the optimal timing of cleaning the production process is during a slowdown of the economy. Due to external effects and market failures the timing of pollution abatement investments is not expected to be optimal in the real world. We test the optimality of the timing of those investments with data for Germany, the Netherlands and the U.S.A. It appears that for more than 25 percent of the sectors pollution abatement investments show counter-cyclical behaviour, while in only one sector these investments are pro-cyclical. 1 tab., 3 appendices, 10 refs.

  15. The timing of pollution abatement investments and the business cycle. An international comparison

    International Nuclear Information System (INIS)

    Bouman, M.; Hofkes, M.W.

    1995-01-01

    A simple equilibrium business-cycle model for an economy with both clean- and dirty-producing plants is developed. The authors derive that the optimal timing of cleaning the production process is during a slowdown of the economy. Due to external effects and market failures the timing of pollution abatement investments is not expected to be optimal in the real world. We test the optimality of the timing of those investments with data for Germany, the Netherlands and the U.S.A. It appears that for more than 25 percent of the sectors pollution abatement investments show counter-cyclical behaviour, while in only one sector these investments are pro-cyclical. 1 tab., 3 appendices, 10 refs

  16. Factor investing based on Musharakah principle

    Science.gov (United States)

    Simon, Shahril; Omar, Mohd; Lazam, Norazliani Md; Amin, Mohd Nazrul Mohd

    2015-10-01

    Shariah stock investing has become a widely discussed topic in financial industry as part of today's investment strategy. The strategy primarily applies market capitalization allocations. However, some researchers have argued that market capitalization weighting is inherently flawed and have advocated replacing market capitalization allocations with factor allocations. In this paper, we discuss the rationale for factor investing based on Musharakah principle. The essential elements or factors of Musharakah principle such as business sector, management capability, profitability growth and capital efficiency are embedded in the Shariah-compliant stock. We then transform these factors into indexation for better analysis and performance measurement. Investment universe for this research covers Malaysian stocks for the period of January 2009 to December 2013. We found out that these factor indexes have historically earned excess returns over market capitalization weighted indexes and experienced higher Sharpe Ratios.

  17. DEA-BASED INVESTMENT STRATEGY AND ITS APPLICATION IN THE CROATIAN STOCK MARKET

    OpenAIRE

    Margareta Gardijan; Vedran Kojić

    2012-01-01

    This paper describes the DEA-based investment strategy for constructing of a stock portfolio in the Croatian stock market. The relative efficiency of the DMUs, which are in this case the selected stocks from Zagreb Stock Exchange, is obtained from the output oriented CCR and BCC models. The set of inputs consists of risk measures, namely return variance, Value at Risk (VaR) and beta coefficient $(\\beta)$, while monthly return represents an output. Following the „efficiency scores“, obtained f...

  18. The economical efficiency of private investments in higher education in Russia

    Directory of Open Access Journals (Sweden)

    Elena Maksyutina

    2011-12-01

    Full Text Available The article investigates the economical efficiency of investments in higher education in modern conditions of Russia. The beginning of the article includes a characteristic of the existing empiric research concerning the efficiency of investments in human capital assets. Further the author of the article introduces the results of pay off calculation of private investments in higher education. The result of the research was that in modern conditions of Russia investments in higher education are exceedingly advantageous. High norms of higher education feedback and short period of pay off of these investments explain the reasons of continuously growing demand for it on the part of the population, especially young people. The article proves that the level of population education in Russia is quite high, however accumulated human capital asset is used insufficiently effective. Many people with higher education are forced to take jobs not requiring higher education.  Sharp shift in educational behavior of Russian people raises new demands to labor market. Graduates of higher educational institutions, appearing on a labor market, form qualitatively different demands towards it. But tempo of Russian economics development today can not provide job positions for all graduates of higher educational institutions. That is why structural change of economics is needed.

  19. THE PROBLEM OF REGULATING THE MARKET OF COLLECTIVE INVESTMENTS IN RUSSIA IN CONDITIONS OF FINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    N. Redko

    2016-01-01

    Full Text Available At the moment the Bank of Russia became the megaregulator of the fi nancial market of Russia that opens new opportunities and prospects for development on the one hand, with another - there is a full monopolization of control and supervision of its participants. The author of article describes actual problems of regulation of the market of collective investments, relying on the existing practice of activity of management companies. Analyzing a situation from the point of view of protection of interests of the investor, and also for development of this sector of economy he suggests to shift focus in regulation. The main attention, in his opinion, needs to be turned on involvement of the experts conducting practicians and analysts in the sphere of professional and trust management for development of optimal solutions of the existing problems of the fi nancial market, and also for creation of the transparent and healthy economic environment of his activity. Aiming efforts at the development of innovative instruments of collective investment, it is possible to make signifi cant progress in overcoming of the crisis phenomena in fi nancial sector of economy

  20. INVESTMENT CLIMATE OF KAZAKHSTAN: CURRENT STATUS AND PROSPECTS

    Directory of Open Access Journals (Sweden)

    Madina Abugalievna TEMIRBULATOVA

    2015-07-01

    Full Text Available Agriculture still remains a little attractive to most of investors. Modern investment into agrarian sector of Kazakhstan and growth of its investment appeal restrains an acute shortage of financial resources, poorly developed material base, low solvent demand of the population therefore growth of investments is one of major factors of ensuring economic development of agriculture in general, improvement of quality of life of the population of the village, updating of regional technical and technological base, fixed assets in agriculture. In this regard special relevance researches on improvement of mechanisms of attraction of investments into agrarian sector of economy and methods of increase of investment appeal of agriculture for the purpose of ensuring its sustainable economic development. If to consider already created interstate unions, in this plan it is expedient to consider relationship between Romania and Kazakhstan. Kazakhstan and Romania will develop in common electronic decisions in education, medicine and agriculture. In Kazakhstan communications with inclusion of the earth in market the turn appears need for new financial instruments as mortgage valuable issue papers (bonds. The proposed Мodel of land - mortgage lending will be the main way to increase the investment attractiveness Republic of Kazakhstan.

  1. Behavioral economics perspective on foreign direct investment in emerging markets: The case on Bosnia and Herzegovina

    Directory of Open Access Journals (Sweden)

    Amra Halaba

    2016-08-01

    Full Text Available The growing field of behavioral economics (BE has revolutionized the way we look at economic behavior at micro and macro levels. Importance of foreign direct investment (FDI appeals for analysis of decisions made regarding it to be assessed from expanding view of BE. This research provides overview of previous studies and focuses on the case of Bosnia and Herzegovina (B&H as representative of emerging markets to investigate motivations for investing into this country by temporarily present foreign companies. Empirical analysis was based on the questionnaire that was disseminated among foreign investors to B&H. Questionnaire contained motivations for investing in B&H, where examined motivation factors were divided in two groups; namely irrational and rational ones. Choice of methodology was narrowed due to moderate sample size, but consisting of quality the sample members. In order to analyze data, descriptive statistics, correlation analysis and regression analysis were used. By regressing two groups of predictors on annual amount of foreign investments to B&H, it was shown that the highest motivation for investing was business instinct.

  2. Barriers to investment in emerging power markets

    Energy Technology Data Exchange (ETDEWEB)

    Beardsworth, Jr, J J [Hunton and Williams, Richmond, VA (United States)

    1994-12-31

    Investing in private power projects in developing countries is a very different issue from investment in the US or the UK. There are many investment barriers not present in developed nations. Firstly investment barriers need to be identified. Trouble may be encountered with legal authorization; the regulatory framework; government guarantees; fuel supply security; lender protection; labour laws and local commercial restrictions such as profits repatriation, currency convertibility, and taxes. Political barriers may also be encountered in the form of: government commitments and support; funding sources; political unrest; religion; and relationships with other countries. Investment barriers may be minimised by persuading the government to remove any legal barriers; the contract has then to be agreed. Factors in a successful contract include: power purchase agreements; fuel agreements; and implementation agreements. It is vital to have a source of information on local rules and customs, by working with local companies and employing local attorneys.

  3. The use of the sustainable investment against the broad market one. A first test in the Mexican stock market

    Directory of Open Access Journals (Sweden)

    Oscar De la Torre

    2016-09-01

    Full Text Available The present paper studies the mean–variance efficiency of the sustainable investment (SI practice in Mexico by proving the existence of a statistical equality in the performance levels of the IPC sustainability (IPCS index against the broad market IPCcomp one. Using daily standard deviation and Sharpe ratio levels from November 2008 to August 2013, along with variance ratio and a one-factor CAPM spanning tests, our results showed that the SI strategy in Mexico is as mean–variance efficient as the broad market one, being a good substitute of the latter in the long term. Our results also refuted the assumption of a loss of mean–variance efficiency in the sustainable subset due to a lower diversification.

  4. Real Silver and Its Investment and Business Options

    Directory of Open Access Journals (Sweden)

    Novotný Josef

    2016-06-01

    Full Text Available The article deals with investment and business opportunities offered by silver. Silver is the metal used in industry and for investing at financial markets. The main problem related to this real commodity is the issue of “the undervaluation” of its investment options, if compared to gold. If considering silver as the investment option, its investment potential is significantly enhanced by its industrial usage. The aim of this paper is to highlight business and investment opportunities for both professionals and non professional investors at the commodity markets. The price growth of this investment and industrial metal can generate profits for the investors. And on the other hand, industries which cannot do without silver in their production may efficiently utilize the knowledge of setting up its price at the markets.

  5. Investment Timing When External Financing Is Costly

    DEFF Research Database (Denmark)

    Hirth, Stefan; Uhrig-Homburg, Marliese

    2010-01-01

    This paper analyzes the investment timing of firms facing two dimensions of financing constraints: Liquidity constraints and capital market frictions inducing financing costs. We show that liquidity constraints are not sufficient to explain voluntary investment delay. However, when additionally...... considering financing costs, we can explain both voluntary delay and acceleration of investment. More precisely, we find that investment thresholds are U-shaped in liquid funds. For high-liquidity firms, investment thresholds are decreasing (i.e. accelerated investment takes place) in either dimension...... of financing constraint. In contrast, investment thresholds are increasing (i.e. investment is further delayed) in either form of financing constraint for low-liquidity firms. For intermediate levels of liquidity, investment thresholds are U-shaped in market frictions....

  6. FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING?

    Directory of Open Access Journals (Sweden)

    George BOROVAS

    2012-12-01

    Full Text Available The present paper reviews two fundamental investing paradigms, which have had a substantial impact on the manner investors tend to develop their own strategies. specifically, the study elaborates on efficient market hypothesis (emh, which, despite remaining most prominent and popular until the 1990s, is considered rather controversial and often disputed, and the theory of behavioural finance, which has increasingly been implemented in financial institutions. based on an extensive survey of behavioural finance and emh literature, the study demonstrates, despite any assertions, the inherent irrationality of the theory of efficient market, and discusses the potential reasons for its recent decline, arguing in favor of its replacement or co-existence with behavioural finance. in addition, the study highlights that the theory of behavioural finance, which endorses human behavioral and psychological attitudes, should become the theoretical framework for successful and profitable investing.

  7. IPO underpricing and audit quality: Evidence from the alternative investment market in the UK

    Directory of Open Access Journals (Sweden)

    Mohammad Muflih Alhadab

    2016-08-01

    Full Text Available This paper aims to investigate the relationship between audit quality and IPO underpricing for IPO firms that went public on the Alternative Investment Market (AIM of the London Stock Exchange in the UK. Prior research has examined this relationship; however, there has been no work investigates this relation for IPO firms that went public on the AIM market. Based on a sample of 413 IPOs, the findings of the current study reassure prior literature that high quality auditors are associated with a lower level of IPO underpricing. The findings show that high quality audit firms help to reduce the level of information asymmetry around the IPO and, therefore, this leads to reduce the level of IPO underpricing. Further, size, liquidity ratio, and high litigation industries are found to contribute the IPO underpricing on the AIM market.

  8. Promote Long-term Low-risk Investment

    Institute of Scientific and Technical Information of China (English)

    2006-01-01

    How do you pick stocks in China? Which sectors in the Ashare market have the greatest investment potential? What problems would China's stock market face if the economy contracts? These are questions Xinhua Finance's Money Journal recently put to the man responsible for Franklin Templeton Investments' fund management business in China,India and Brazil. Stephen H. Dover, Managing Director and International Chief Investment Officer for Franklin Templeton Advisors, the largest listed fund management company...

  9. Profit Opportunities For You With Mass Market Paperbacks. Invest More of Your Efforts in Mass Market Paperbacks--They Are The Right Product At The Right Time

    Science.gov (United States)

    Marshall, William K.

    1975-01-01

    Identifies reasons for increasing the size of a college store's mass market paperback display and inventory; and identifies some selling and promotional tips to increase the return on this investment in capital and space. (Author/PG)

  10. 7 CFR 1221.115 - Investment of funds.

    Science.gov (United States)

    2010-01-01

    ... Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (MARKETING... INFORMATION ORDER Sorghum Promotion, Research, and Information Order Sorghum Promotion, Research, and Information Board § 1221.115 Investment of funds. The Board may invest, pending disbursement, funds it...

  11. ECONOMIC AND SOCIAL EFFICIENCY OF PROPERTY INVESTMENTS

    Directory of Open Access Journals (Sweden)

    Florina Oana Virlanuta

    2014-03-01

    Full Text Available Investments play a key part within the goods and services industry, consumerism and community as well. The effects generated by any investment project substantiate this statement, regardless the sector of activity in which they are implemented. In the current market economy, economic efficiency indicators are playing an important role in assessing and analyzing an investment project since due to these indicators, the investor can become aware of the most important aspects they need to respond promptly. In this respect, we conducted a market analysis of real estate investments in Romania, highlighting economic and social efficiency of property investments.

  12. Analysis of stage-investing strategy in equity financing market

    Institute of Scientific and Technical Information of China (English)

    XUN Minghui

    2007-01-01

    Stage-investing strategy is a primary measure to mitigate asymmetric information during equity investment. This paper attempts to investigate the problem faced by equity investors wishing to make optimal investment decision under stage-investing strategy.A serial investment-decision making model will be designed to help investors to take the best choice.

  13. The sustainable development effects of investment by emerging-market multinationals: Shaping beneficial outcomes for home and host country

    NARCIS (Netherlands)

    Hendriks, G. (Guus)

    2017-01-01

    textabstractEmerging-market multinational enterprises (EMNEs) play an increasingly important role as investors in developing economies. When certain conditions are met, their foreign investment can contribute to host-country progress towards the Sustainable Development Goals (SDGs). Moreover,

  14. Volume Flexibility and Capacity Investment : A Real Options Approach

    OpenAIRE

    Wen, X.; Kort, P.M.; Talman, A.J.J.

    2015-01-01

    Abstract: This paper considers the investment decision of a firm where it has to decide about the timing and capacity. We obtain that in a fast-growing market, right after investment the firm produces below capacity, where the utilization rate (the proportion of capacity that is used for production right after the investment) increases with market uncertainty for a very big market trend, and shows no monotonicity for a moderately large market trend. On the other hand, we get that, for a slowl...

  15. Value-creating investment strategies to manage risk from structural market uncertainties: Switching and compound options in (V)HTR technologies - HTR2008-58157

    International Nuclear Information System (INIS)

    Lauferts, U.; Halbe, C.; Van Heek, A.

    2008-01-01

    To measure the value of a technology investment under uncertainty with standard techniques like net present value (NPV) or return on investment (ROI) will often uncover the difficulty to present convincing business case. Projected cash flows are inefficient or the discount rate chosen to compensate for the risk is so high, that it is disagreeable to the investor s requirements. Decision making and feasibility studies have to look beyond traditional analysis to reveal the strategic value of a technology investment. Here, a Real Option Analysis (ROA) offers a powerful alternative to standard discounted cash-flow (DCF) methodology by risk-adjusting the cash flow along the decision path rather than risk adjusting the discount rate. Within the GEN IV initiative attention is brought not only towards better sustainability, but also to broader industrial application and improved financing. Especially the HTR design is full of strategic optionalities: The high temperature output facilitates penetration into other non-electricity energy markets like industrial process heat applications and the hydrogen market. The flexibility to switch output in markets with multi-source uncertainties reduces downside risk and creates an additional value of over 50% with regard to the Net Present Value without flexibility. The supplement value of deploying a modular (V)HTR design adds over 100% to the project value using real option evaluation tools. Focus of this paper was to quantify the strategic value that comes along a) with the modular design; a design that offers managerial flexibility adapting a step-by-step investment strategy to the actual market demand and b) with the option to switch between two modes of operation, namely electricity and hydrogen production. We will demonstrate that the effect of uncertain electricity prices can be dampened down with a modular HTR design. By using a real option approach, we view the project as a series of compound options - each option depending

  16. The Impact of Foreign Direct Investment (FDI on the Environment: Market Perspectives and Evidence from China

    Directory of Open Access Journals (Sweden)

    Jiajia Zheng

    2017-03-01

    Full Text Available Foreign direct investment (FDI may have a positive effect on the level of pollution in host countries, as described by the pollution haven hypothesis (PHH. However, this kind of effect may depend on the economic conditions in host countries. In this study, we conduct research on the FDI’s effect on China’s CO2 emissions during the market-oriented reform. The results are as follows. Firstly, FDI directly promotes China’s CO2 emissions. Secondly, with market-oriented reform, this positive effect from FDI is lowering year by year, which indicates that the market-oriented reform could alleviate the positive effect of FDI on China’s CO2 emissions. Thirdly, as China’s market-oriented reform was implemented gradually from experimental zones to the whole country, regional market development is uneven, and as such so is FDI’s effect on local CO2 emissions. Provinces in the eastern area generally evidenced higher market development and lower CO2 emissions from FDI, while four provinces in west area evidenced both lower market development and higher CO2 emissions from FDI.

  17. Real Time Investments with Adequate Portfolio Theory

    Directory of Open Access Journals (Sweden)

    Alina Kvietkauskienė

    2015-02-01

    Full Text Available The objective of this paper is to identify investment decision makingschemes using the adequate portfolio model. This approach can be employed to project investment in stocks, using the opportunities offered by the markets and investor intelligence. It was decided to use adequate portfolio theory for investment decision making, simulation of financial markets, and optimisation of utility function. The main conclusion of article suggests investigating return on individual portfolio level. Real investment is a way to make sure of the soundness of applicable strategies.

  18. Further Development of the Nordic Electricity Market - a Common Solution for Investments in Transmission, Congestion Management and Peak Load Capacity

    International Nuclear Information System (INIS)

    Granstroem, Per-Olof

    2005-06-01

    The Nordic market fits well into place as a regional market in the over all European development, and it is therefore necessary to change the perspectives from a national one to a common Nordic approach. Despite the fact that the Nordic market is seen as a success, significant further improvements for customers and society can be made through deeper Nordic integration. The ongoing work on the Nordic electricity market within the Nordic Council of Ministers is therefore very welcomed and the Nordel report 'Enhancing Efficient Functioning of the Nordic Electricity Market' constitutes a good basis material for the further development of the market. There is a need to accelerate the pace of the harmonisation process, by making a clear timetable and prioritisation for the further work. Key issues for the next step are: Harmonisation of the legal framework and hence intensified co-operation among the Nordic governments; Implementation of the five known transmission investments, including a cost-benefit analysis; A more precise definition of the TSO responsibilities and core businesses, including operational reserves a prerequisite for further work on, e.g. the peak load issue; Initiation of cost-benefit analysis concerning future transmission investments; Guaranteed cross border capacity for market players; An analysis on settlement of imbalances and how this is affecting the peak load issue

  19. THE MARKET OF ELECTRICAL POWER MUTUAL INVESTMENT FUNDS IN THE CONDITIONS OF REFORM OF ELECTRICAL POWER BRANCH OF RUSSIA

    Directory of Open Access Journals (Sweden)

    Olga A. Zhdanova

    2015-01-01

    Full Text Available In article the quantitative and qualitativeanalysis of the Russian market of electrical power mutual investment funds (Mutual funds is carried out, problems andprospects of its development in modernconditions are revealed.

  20. A prospect theory explanation of the disposition to trade losing investments for less than market price.

    Science.gov (United States)

    Johnstone, D J

    2002-06-01

    Investors have a proven general reluctance to realize losses. The theory of "mental accounting" suggests that losses are easier to accept when mentally integrated with either preceding losses or with compensatory gains. Mental integration is made easier when a failed asset is exchanged against a new, apparently profitable, acquisition. The alternative is to sell the existing asset on the open market before re-investing the proceeds as desired. This is emotionally less appealing than "rolling over" a losing investment into a new venture by way of an asset trade. The psychological benefits of exchanging rather than selling a failed asset come at a cost. It is typical of trade-in arrangements, e.g., where one trades an old car against a new one, that the effective sale price of the existing asset is less than current market value. Acceptance of this low price adds to the investor's total monetary loss on the existing asset but is essential to an overall package deal apart from which that asset would often remain belatedly unsold.

  1. Can capital markets create incentives for pollution control?

    International Nuclear Information System (INIS)

    Lanoie, Paul; Roy, Maite; Laplante, Benoit

    1998-01-01

    It has been observed that upon trading-off the costs and benefits of pollution control, profit-maximizing firms may choose not to invest their resources in pollution abatement since the expected penalty imposed by regulators falls considerably short of the investment cost. Regulators have recently embarked on a deliberate strategy to release information to markets (investors and consumers) regarding firms' environmental performance in order to enhance incentives for pollution control. In this paper, we analyze the role that capital markets may play to create such incentives. Evidence drawn from American and Canadian studies indicates that capital markets react to the release of information, and that large polluters are affected more significantly by such release than smaller polluters. This result appears to be a function of the regulator's willingness to undertake strong enforcement actions as well as the possibility for capital markets to rank and compare firms with respect to their environmental performance

  2. Financial and Investment Sources on the Web.

    Science.gov (United States)

    Raeder, Aggi

    1997-01-01

    Discusses print and World Wide Web resources on personal finance, investments, and other business information and provides an annotated bibliography of investment and the stock market sites: meta sites, stock quotes, market news, data and analysis, brokerage firms, and sites for beginning investors. Includes addresses. (PEN)

  3. South Africa’s Financial Development and its Role in Investment

    Directory of Open Access Journals (Sweden)

    Muyambiri Brian

    2018-01-01

    Full Text Available This study investigates the impact of financial development on investment in South Africa between 1976 and 2014. The model estimated is based on the flexible accelerator investment model. Composite indices for bank-based and market-based financial development indicators are used as explanatory variables. The estimated model postulates that both bank-based financial development and market-based financial development have an acceleratorenhancing effect on investment. Results show that market-based financial development has a positive impact on investment in the long run, while bank-based financial development has a negative effect in the short run. Implications are that, for South Africa, market-based financial development has a positive accelerator-enhancing effect on investment in the long run. In contrast, bank-based financial development is found to have a negative accelerator enhancing effect on investment in the short run.

  4. Investment in Exploration-Production and Refining - 2016

    International Nuclear Information System (INIS)

    Maisonnier, Guy; Hureau, Geoffroy; Serbutoviez, Sylvain; Silva, Constancio

    2017-03-01

    IFPEN analyses in this study the 2016 evolution of global investment in the field of exploration-production and refining: - Trends in oil and gas prices; - Investment in exploration/production: in sharp decline for the second consecutive year - the first time this has happened since 1986; - The global drilling market; - Geophysical: global activity and markets; - Offshore construction: market and business; - A significant reduction in refining projects (atmospheric distillation and conversion)

  5. Carbon markets and low-carbon investment in emerging economies: A synthesis of parallel workshops in Brazil and India

    International Nuclear Information System (INIS)

    Hultman, Nathan E.; Pulver, Simone; Pacca, Sergio; Saran, Samir; Powell, Lydia; Romeiro, Viviane; Benney, Tabitha

    2011-01-01

    While policy experiments targeted at energy and innovation transitions have not been deployed consistently across all countries, market mechanisms such as carbon pricing have been tested over the past decade in disparate development contexts, and therefore provide some opportunities for analysis. This brief communication reports on two parallel workshops recently held in Sao Paulo, Brazil and New Delhi, India to address questions of how well these carbon pricing policies have worked in affecting corporate decisions to invest in low-carbon technology. Convening practitioners and scholars from multiple countries, the workshops elicited participants' perspectives on business investment decisions under international carbon markets in emerging economies across multiple energy-intensive sectors. We review the resulting perspectives on low-carbon policies and present guidance on a research agenda that could clarify how international and national policies could help encourage both energy transitions and energy innovations in emerging economies.

  6. Investment and deregulation in the electricity generation industry; Investissement et dereglementation dans le secteur electrique

    Energy Technology Data Exchange (ETDEWEB)

    Peluchon, B

    2007-12-15

    This work addresses the issue of investment in the electricity generation industry. As the analysis of many crisis which have affected electricity markets shows, there is a systematic under-investment in peak capacity. Electricity prices are not high enough to cover fixed costs of such generators, a phenomenon that has been dubbed 'missing money' in some recent papers (Stoft). The investment decisions of a duo-poly facing random demand are then compared to those of a public monopoly. The results are that no prices may be high enough to solve the 'missing money' problem, since the duo-poly is able to exercise market power in order to maximize his profit. This results systematically in fewer peak capacity in the duo-poly case than in the public monopoly case. This remains true in the case of a n-oligopoly. The necessity of designing a mechanism remunerating capacity is thus demonstrated. Capacity markets are then analysed in the light of those results. What appears is that operating reserves are a public good and, as such, prevents capacity markets to solve the 'missing money' problem. This casts a shadow on the pursuit of deregulation in the electricity industry. (author)

  7. Government Strategic Support for Investment Activity

    Science.gov (United States)

    Turekulova, Assiya N.; Mukhambetova, Lyazzat K.; Doshan, Almagul S.; Issabekov, Baurzhan N.; Chimgentbayeva, Gulbakyt K.; Turegeldinova, Aliya Zh.

    2016-01-01

    When system risks are high most investors choose to exit the market; however, there are some contrarian investors who opt to make investments. The authors analyzed the main goals of the investment process and measures that should be provided by the government to stimulate investments and innovation especially by means of investment banking. The…

  8. The evolution of investments decision mode in China's telecommunication

    Institute of Scientific and Technical Information of China (English)

    ZHANG Ai-hua; ZHAO Lian-qiang; SHU Hua-ying

    2007-01-01

    This essay analyzes the data of Chinese telecommunication market, telecommunication investments and investment benefits over the past 20 years. On the basis of these data, the essay reviews Chinese changing telecommunication policies and discusses the major events in the course of China's telecommunication development. It is argued that telecommunication policies, regime backgrounds and market demand characteristics have a significant impact on investment decision mode in telecommunication industry. The evolution of network investments decision mode in China's telecommunication has corresponded to the transformation of these key factors. Considering the special events in the development of Chinese telecommunication as divisions, the essay discusses three stages of the evolution of investments decision mode in China's telecommunication. With the firm environment and problems that Chinese telecommunication operators have been facing since 2000 analyzed. it is demonstrated that Chinese telecommunication operators should change their mode of investment decision into the "profit-oriented investment decision mode" in order to achieve a high growth performance in the capital market,. This investment decision mode will result in increase of the investment profit with limited investment capital. The main procedure of profit-oriented investment decision mode is set out, which is abstracted to a mathematical model eventually.

  9. Smart Beta Equity Investing Through Calm and Storm

    NARCIS (Netherlands)

    Boudt, Kris; Darras, Joakim; Ha Nguyen, Giang; Peeters, Benedict

    2015-01-01

    Smart beta portfolios typically achieve a superior diversification than the benchmark market capitalization-weighted portfolio, but remain vulnerable to broad market downturns. We examine tactical investment decision rules to switch timely between equity and cash investments based on an underlying

  10. Inflation Protected Investment Strategies

    Directory of Open Access Journals (Sweden)

    Mirco Mahlstedt

    2016-03-01

    Full Text Available In this paper, a dynamic inflation-protected investment strategy is presented, which is based on traditional asset classes and Markov-switching models. Different stock market, as well as inflation regimes are identified, and within those regimes, the inflation hedging potential of stocks, bonds, real estate, commodities and gold are investigated. Within each regime, we determine optimal investment portfolios driven by the investment idea of protection from losses due to changing inflation if inflation is rising or high, but decoupling the performance from inflation if inflation is low. The results clearly indicate that these asset classes behave differently in different stock market and inflation regimes. Whereas in the long-run, we agree with the general opinion in the literature that stocks and bonds are a suitable hedge against inflation, we observe for short time horizons that the hedging potential of each asset class, especially of real estate and commodities, depend strongly on the state of the current market environment. Thus, our approach provides a possible explanation for different statements in the literature regarding the inflation hedging properties of these asset classes. A dynamic inflation-protected investment strategy is developed, which combines inflation protection and upside potential. This strategy outperforms standard buy-and-hold strategies, as well as the well-known 1 N -portfolio.

  11. Capacity adequacy in power markets facing energy transition: A comparison of scarcity pricing and capacity mechanism

    International Nuclear Information System (INIS)

    Petitet, Marie; Finon, Dominique; Janssen, Tanguy

    2017-01-01

    This article analyses how a capacity mechanism can address security of supply objectives in a power market undergoing an energy transition that combines energy efficiency efforts to stabilise demand and a rapid increase in the proportion of renewables. To analyse this situation, power markets are simulated over the long term with a System Dynamics model integrating new investment and closure decisions. This last trait is relevant to studying investment in power generation in mature markets undergoing policy shocks. The energy-only market design with a price cap, with and without a capacity mechanism, is compared to scarcity pricing in two investment behaviour scenarios with and without risk aversion. The results show that the three market designs lead to different levels of risk for peaking unit investment and results thus differ according to which risk aversion hypothesis is adopted. Assuming a risk-neutral investor, the results indicate that compared to an energy-only market with a price cap at 3 000 €/MWh, an energy-only market with scarcity pricing and the market design with a capacity mechanism are two efficient options to reach similar levels of load loss. But under the hypothesis of risk aversion, the results highlight the advantage of the capacity mechanism over scarcity pricing. - Highlights: • Investment decisions in electricity markets are simulated by a System Dynamics model. • Capacity mechanism enhances capacity adequacy compared to the energy-only market. • With no risk aversion, capacity mechanism or scarcity pricing provide similar results. • With risk aversion, capacity mechanism appears to be the preferable market design.

  12. Carbon price instead of support schemes: wind power investments by the electricity market

    International Nuclear Information System (INIS)

    Petitet, Marie; Finon, Dominique; Janssen, Tanguy

    2014-10-01

    In this paper we study the development of wind power by the electricity market without any usual support scheme which is aimed at subsidizing non mature renewables, with the sole incentive of a significant carbon price. Long term electricity market and investment decisions simulation by system dynamics modelling is used to trace the electricity generation mix evolution over a 20-year period in a pure thermal system. A range of stable carbon price, as a tax could be, is tested in order to determine the value above which wind power development by market forces becomes economically possible. Not only economic competitiveness in terms of cost price, but also profitability against traditional fossil fuel technologies are necessary for a market-driven development of wind power. Results stress that wind power is really profitable for investors only if the carbon price is very significantly higher than the price required for making wind power MWh's cost price competitive with CCGT and coal-fired plants on the simplistic basis of levelized costs. In this context, the market-driven development of wind power seems only possible if there is a strong commitment to climate policy, reflected by the preference for a stable and high carbon price rather than a fuzzy price of an emission trading scheme. Besides, results show that market-driven development of wind power would require a sky-rocketing carbon price if the initial technology mix includes a share of nuclear plants even with a moratorium on new nuclear development. (authors)

  13. INVESTMENT FUNDS IN ROMANIA

    Directory of Open Access Journals (Sweden)

    COPIL CRINA ANGELA

    2013-07-01

    Full Text Available I chose this topic because my goal was to capture in detail all aspects of the evolution of investment funds under the influence of factors leading to globalization of the banking financial market. Main motivation was that I proposed to present in an original manner the concept of investment in mutual funds by the thoroughness of the following points: the different types of investment funds from Romania, the advantages, the risks and the specific costs of the investment in mutual funds and the effects of the financial crisis on the industry of the investment funds on the national level. The financial crisis and the risk of infecting the global economy affected the taste of risk of the investors and their request for the investment fund, determining the orientation of the investors to the funds with a lower risk – the diversified funds, the funds of bonds and the monetary funds. I considered important the theoretical approach of the concept of investments in investment funds because they are a barometer of the macro economical stability, in case the economical increase is positive on the macro economical level the investments in investments funds are increasing too. In Romania the market of the mutual funds is at an incipient level, but with potential and perspectives of development. Due to the bankruptcy of FNI in the beginning of the years 2000 and due to the absence of a clear legislation regarding the calculation of the unitary value of the net asset and the control of the activity developed by the investment funds, the development of the industry of the investment funds had to fight against the crisis of credibility generated by these events. The convergence of the Romanian economy to the European standards will attract also a modification of the structure of the financial investments of the individuals, by an increase of the investments in funds. In the world the investment funds are preferred by the investors for their advantages

  14. Investment Strategy and Efficiency of Investment Activity of European Insurers

    Directory of Open Access Journals (Sweden)

    Zhabynets Olga Yo.

    2014-02-01

    Full Text Available The article studies investment strategy and efficiency of investment activity of European insurance companies. In particular, it analyses the share of investments of insurance companies of Europe in GDP, investment portfolio of European insurers and its structure, contribution of insurance companies – leaders of investment activity – into the European investment portfolio. It studies influence of the financial crisis upon investment strategy of European insurers and analyses efficiency of investment activity of European insurers in risk insurance and life insurance. The article proves that investment business models of insurance companies are capable of resisting crisis phenomena more efficiently than other financial institutions. It marks out that measures of insurance companies that are directed at increase of profitability of investments require from them both significant expenditures on creation of the system of investment risk management and open access to different categories of financial assets and markets, which influences the general risk level, taken upon by an insurance company. The author draws a conclusion that, taking into account recent developments, European insurers should focus on equity and investment risk management, finding new possibilities for their (investments growth and also adaptation of new systems and operations for solution of these important tasks.

  15. Investment in exploration-production and refining 2015

    International Nuclear Information System (INIS)

    Maisonnier, G.; Hureau, G.; Serbutoviez, S.; Silva, C.

    2016-01-01

    IFPEN analyses in this study the 2015 evolution of global investment in the field of exploration-production and refining: - Changes in oil and gas prices; - Investment in Exploration/Production: the end of an upward cycle; - Drilling and the global drilling market, upstream activities and markets; - 2015, a breath of fresh air for refining

  16. Investment under uncertainty : Timing and capacity optimization

    NARCIS (Netherlands)

    Wen, Xingang

    2017-01-01

    This thesis consists of three chapters on analyzing the optimal investment timing and investment capacity for the firm(s) undertaking irreversible investment in an uncertain environment. Chapter 2 studies the investment decision of a monopoly firm when it can adjust output quantity in a market with

  17. Relationship Service Marketing and Investment in Financial Market of Iran

    OpenAIRE

    Mehrdad Alipour; Reza Ahmadi; Hamed Abasi Nami

    2012-01-01

    In competitive world, having expertise, knowledge and marketing experience for financial market activities, especially brokerage firms has proven inevitable. This should be accompanied by performing marketing operations along with intermediary roles and carrying on the daily transactions of shares in the Tehran stock exchange market. The current study aims investigating the level of marketing knowledge used in stock exchange market, identifying the reasons behind deficient use of the marketin...

  18. Investment opportunities in an increasingly competitive environment

    International Nuclear Information System (INIS)

    Webb, Martin

    1999-01-01

    Four topic areas are considered: (1) The global context for energy investments, (2) Strategic investments in the gas chain, (3) Conventional and changing approaches to investing in gas and power, (4) New areas of opportunity. The presentation considers the challenging global context for investments and the current oil price outlook and more specifically the backdrop to the growth in demand for gas and its increasing availability and the implications of factors such as energy market liberalization. It notes the regional nature of gas and power markets and considers the issue of stranded supply and demand. It identifies an increasing trend towards investments up and down the gas chain by both traditional and new players and explores BP Amoco's own corporate response. The presentation then briefly reviews four major gas investments which BP Amoco has either already taken or is considering. It then discusses investments in gas to power and the growing environmental agenda, which is bringing a range of new and non-traditional investment opportunities

  19. Investment opportunities in an increasingly competitive environment

    Energy Technology Data Exchange (ETDEWEB)

    Webb, Martin

    1999-07-01

    Four topic areas are considered: (1) The global context for energy investments, (2) Strategic investments in the gas chain, (3) Conventional and changing approaches to investing in gas and power, (4) New areas of opportunity. The presentation considers the challenging global context for investments and the current oil price outlook and more specifically the backdrop to the growth in demand for gas and its increasing availability and the implications of factors such as energy market liberalization. It notes the regional nature of gas and power markets and considers the issue of stranded supply and demand. It identifies an increasing trend towards investments up and down the gas chain by both traditional and new players and explores BP Amoco's own corporate response. The presentation then briefly reviews four major gas investments which BP Amoco has either already taken or is considering. It then discusses investments in gas to power and the growing environmental agenda, which is bringing a range of new and non-traditional investment opportunities.

  20. ONLINE PROMOTION OF FINANCIAL INVESTMENT SERVICES COMPANIES

    Directory of Open Access Journals (Sweden)

    Ioana Ancuta Iancu

    2016-12-01

    Full Text Available When we think about promotion in financial investment services companies, we have to consider, not only the offline or traditional type of promotion (personal communication, advertising, sales promotion, public relations and organization identity but online promotion as well. Due to the fact that for more and more people, Internet represents the most important mean of communication, financial investment services companies marketing specialists have a variety of tools at hand. In this study we will describe the most important online promotion tools, like: E-mail Marketing, advertising, search engines, networks socialization, M-Marketing and promotion through web pages. Specific methods of online promotion enable real-time knowledge of the investor’s behavior and can also address to them most effectively. The purpose of this theoretical study is to increase the rate of knowledge and usage of online marketing, in a very conservatory sector of the financial market: Financial Investment Services Companies Marketing. By promoting online a company, a product or a service the marketing specialists can target specific customer, segments and quantify results, which is almost impossible on such a scale and with such precision by traditional methods of promotion. Based on the literature and our own experience, methods were taken up and adapted in financial investment services companies. We show the present state of online marketing, make proposals and describe difficulties which can be encountered when an e-marketing strategy is made. The conclusion of our study is that more and more companies use online tools in their marketing strategies. There is a change in attitude by the Financial Investment Services Companies web pages: from a reserved one in 2010 to one open to innovation in 2015; we believe that SSIF Broker is an illustrative example in this regard. Instead, our opinion is that Search Engine Optimization should be used more by SSIF Broker

  1. Benchmarking Investments in Advancement: Results of the Inaugural CASE Advancement Investment Metrics Study (AIMS). CASE White Paper

    Science.gov (United States)

    Kroll, Juidith A.

    2012-01-01

    The inaugural Advancement Investment Metrics Study, or AIMS, benchmarked investments and staffing in each of the advancement disciplines (advancement services, alumni relations, communications and marketing, fundraising and advancement management) as well as the return on the investment in fundraising specifically. This white paper reports on the…

  2. Do generation firms in restructured electricity markets have incentives to support social-welfare-improving transmission investments?

    International Nuclear Information System (INIS)

    Sauma, Enzo E.; Oren, Shmuel S.

    2009-01-01

    This paper examines the incentives that generation firms have in restructured electricity markets for supporting long-term transmission investments. In particular, we study whether generation firms, which arguably play a dominant role in the restructured electricity markets, have the incentives to fund or support incremental social-welfare-improving transmission investments. We examine this question in a two-node network and explore how such incentives are affected by the ownership of financial transmission rights (FTRs) by generation firms. In the analyzed two-node network, we show both (1) that the net exporter generation firm has the correct incentives to increase the transmission capacity incrementally up to a certain level and (2) that, although a policy that allocates FTRs to the net exporter generation firm can be desirable from a social point of view, such a policy would dilute the net-importer-generation-firm's incentives to support transmission expansion. Moreover, if all FTRs were allocated or auctioned off to the net exporter generation firm, then it is possible to increase both consumer surplus and social welfare while keeping the net exporter generation firm revenue neutral. (author)

  3. ASSIMILATION OF INVESTMENT POTENTIAL OF INSURANCE COMPANIES THROUGH GOVERNMENT SECURITIES

    Directory of Open Access Journals (Sweden)

    Angela TIMUS

    2017-02-01

    Full Text Available Investments in fixed capital and human capital represent a reliable way to the economicdevelopment of the Republic of Moldova. The acceleration of investments can be achieved through anactive and viable financial market. The stimulation of institutional investors and of the process ofsecurities issuing and trading is a strategic development tool for the country. The purpose of the study isto analyze insurance companies as institutional investors and to present opportunities for investment instate securities. Markowitz and Sharpe’s theories of efficient investment portfolios selection based onprofitability and risk formed the theoretical and methodological framework. The research is based on datafrom the National Commission for Financial Markets, on the reports of Moldova’s Ministry of Financeand on the statistics from National Bank a National Bureau of Statistics. For secondary analysis, datareports from international organization such as OECD and Insurance Europe and International MonetaryFund have been used. The study was conducted by classical methods of the economic and financialanalysis. The results of research have shown that government securities are the most profitable of allsecurities issued on the primary financial market in the Republic of Moldova. In recent years, interestrates at the state securities are extremely attractive, more attractive than returns on investment in otherareas. State securities are the safest investment because the guarantor of this investment is government.That is why state securities are a very attractive investment area for insurance companies. The stimulationof the investment activity in the state can be achieved by using the primary market of governmentsecurities as an investment tool for capitalization of the investment potential of the insurance market.

  4. Marketized State Ownership and Foreign Expansion of Emerging Market Multinationals

    DEFF Research Database (Denmark)

    Li, Ming Hua; Cui, Lin; Lu, Jiangyong

    2017-01-01

    direct investment. We argue that firms with marketized state ownership may derive institutional competitive advantages from their dual responsiveness to shifting global market conditions and home government expectations which has a positive impact on their foreign investment decisions. However...

  5. Stalked by the Market: Market Populism as Curriculum.

    Science.gov (United States)

    Roberston, Heather-Jane

    2003-01-01

    Questions value of high school curriculum unit titled "Investing in Your Future," designed by Canadian investment industry to teach students about the stock market and how to invest in it. (Contains 21 references.) (PKP)

  6. Strategic market approach for entering the Indian solar water pump market : plan the marketing strategy for solar off-grid applications

    OpenAIRE

    Almanasreh, Khalil

    2011-01-01

    This study examines the strategic market approach for investing in solar water pumps market (SWP) in India, and Punjab state as a business case. The main research question is: What is an appropriate strategic market approach to invest in solar water pump market in India? The study focuses on the marketing strategy and strategic planning to enter the Indian market. The thesis follows the qualitative study design where the data was collected by observing the market and interviewing main sta...

  7. RISKS ASSOCIATED WITH INVESTMENTS IN STRUCTURED INVESTMENT PRODUCTS, SELECTION CRITERIA OF SIP`S

    Directory of Open Access Journals (Sweden)

    Ignatyuk Aleksandr Sergeevich

    2013-05-01

    Full Text Available Purpose To identify and classify the major risks affecting on the structured investment products, to submit proposals to limit their impact. Methodology The work is based on a studying of the practice of investments in structured investment products, detection and investigation of sources of market risk of structured investment products. Results Structured investment products, as any other investment product, has a significant set of risks that could affect to a large extent on its evaluation and determine the behavior of the investor. Financial engineers have the ability to control most of these risks, as well as to limit their impact. Thus, the structured investment product, unlike most classic investment instruments can provide investors with highly transparent mechanism to determining the ratio of investment risk and potential income. Practical implications The results can be used in a scientific investigation of the phenomenon of structured investment products, as well as practical work on the formation of the structured products by investment banks and brokerage firms.

  8. Foreign direct investments into French real estate

    OpenAIRE

    BRIZARD, Arthur

    2013-01-01

    The purpose of this thesis is to draw the global trend of Foreign Direct Investments (FDI) in the French real estate market since 2008 and to understand foreign investors’ behavior and the incentives which urge them to invest in French property market. This study relies on the numerous yearly reports released by consulting and real estate companies and gives an overview of FDI since 2008. From a legal point of view, the French property market is extremely organized. Acquiring, holding and sel...

  9. Sustainable Markets Investment Briefings: the regulatory taking doctrine

    Energy Technology Data Exchange (ETDEWEB)

    Cotula, Lorenzo

    2007-08-15

    This is the third of a series of briefings which discuss the sustainable development issues raised by legal arrangements for the protection of foreign investment. The briefings are based on legal research by IIED and its partners. The goal is to provide accessible but accurate information for human rights, development and environmental organisations working on issues raised by foreign investment in low- and middle-income countries. Briefing 3 introduces one of the most controversial legal doctrines of investment law – 'regulatory taking' – and sets out its implications for sustainable development.

  10. Electricity investments and nuclear development: investment choice modeling based on value creation

    International Nuclear Information System (INIS)

    Tehrani, B.S.; Bocquer, J.C.; Tomoda, T.

    2014-01-01

    While nuclear power may experience a technological breakthrough in Europe with Generation IV nuclear reactors within 2040, several events could question this possibility such as the Fukushima accident, the climate issues and the electricity market liberalization. This paper aims at analyzing investment choices in power generation capacities in the European scope, using simple DSM-inspired approaches. The power company and interacting stake holders in the investment choice process are considered as a complex system, and dependencies between investment drivers associated with each stake holder are studied. Focusing on the value for the power company, the compatibility of each power company with each of considered technologies is assessed through a Domain Mapping Matrix, including not only technical drivers, but also associated policy and market drivers. Technology preferences are modeled for main European companies in a set of scenarios, these preferences being then used to explore trends in generation mix. (authors)

  11. R and D investment of electricity-generating firms following industry restructuring

    International Nuclear Information System (INIS)

    Kim, Jihwan; Kim, Yeonbae; Flacher, David

    2012-01-01

    Since electricity market restructuring, questions over adequate levels of R and D investments persisted. Using an unbalanced panel data of 70 electricity-generating firms across 15 Organisations of Economic Co-operation and Development countries from 1990 to 2008, this paper empirically examines the impacts of entry liberalization (allowing third party access, establishing a wholesale market, and deregulating a retail market), vertical unbundling, privatization, and firm size on R and D investments. Entry liberalization is associated with a decline in R and D investment. Establishing a wholesale market exhibits the greatest negative effects on R and D investment. Regulated TPA and retail market deregulation also decrease R and D. The effect of privatization is not independently salient but interacts with a wholesale pool to lower R and D investments. Large firms spend more on R and D investment than small firms. Results indicate that the restructuring of the electricity industry reduces R and D investment, which may be detrimental to the reliability and the efficiency of the electricity system as well as to the creation and maintenance of the innovation capabilities necessary to address demand and environmental concerns. - Highlights: ► Entry liberalization decreases R and D outlays of electricity generating utilities. ► Establishment of a wholesale market leads to a substantial decline in R and D spending. ► Private ownership interacts with entry liberalization to lower R and D investment.

  12. Supply assurance in the electricity market. Is the investment dilemma the result of inefficient market design?; Versorgungssicherheit auf Elektrizitaetsmaerkten. Investitionsdilemma durch ineffizientes Marktdesign?

    Energy Technology Data Exchange (ETDEWEB)

    Buedenbender, Martin [Muenster Univ. (Germany). Inst. fuer Genossenschaftswesen; Janssen, Matthias; Wobben, Magnus [Muenster Univ. (Germany). Lehrstuhl Volkswirtschaftstheorie

    2009-03-15

    This article addresses the investment dilemma in the area of power generation, which in insufficiently designed, liberalized power markets leads macroeconomically to undesirably low levels of energy supply security. The prime causes for this dilemma in the German power market are rooted first in damages for suppliers which are limited in cases of generation capacity-induced power failures and second in the time delay between the final trading opportunity and the actual power delivery. The latter inhibits the ability to individually balance unexpected changes in rates of power generation and discharge at any time. Furthermore, the following factors contribute to an intensification of the dilemma: insufficient end user participation in the wholesale market, a lack of single end user cut-off options, as well as time lags in the construction of generation capacities combined with various market uncertainties. Potential approaches to a sustainable improvement of supply security include on the one hand an increase in liquidity of intraday trading to align market clearing and power delivery as closely as possible. The promotion of direct marketing for renewable energy along with other strategies will lead to such an improvement. On the other hand, end users' utilization of smart meters should be enhanced. Thus, peak load could be moderated and allows for the inclusion of end users' willingness to pay into the wholesale market. (orig.)

  13. Combination of real options and game-theoretic approach in investment analysis

    Science.gov (United States)

    Arasteh, Abdollah

    2016-09-01

    Investments in technology create a large amount of capital investments by major companies. Assessing such investment projects is identified as critical to the efficient assignment of resources. Viewing investment projects as real options, this paper expands a method for assessing technology investment decisions in the linkage existence of uncertainty and competition. It combines the game-theoretic models of strategic market interactions with a real options approach. Several key characteristics underlie the model. First, our study shows how investment strategies rely on competitive interactions. Under the force of competition, firms hurry to exercise their options early. The resulting "hurry equilibrium" destroys the option value of waiting and involves violent investment behavior. Second, we get best investment policies and critical investment entrances. This suggests that integrating will be unavoidable in some information product markets. The model creates some new intuitions into the forces that shape market behavior as noticed in the information technology industry. It can be used to specify best investment policies for technology innovations and adoptions, multistage R&D, and investment projects in information technology.

  14. PRIVATE EQUITY INVESTMENTS IN HUNGARY AND THEFINANCIAL CRISIS

    Directory of Open Access Journals (Sweden)

    Jeno Konecsny

    2013-01-01

    Full Text Available The Hungarian private equity market reacted quite sensitively to the 2008-2009financial crisis. Although not in an equaldegree and in the same year, but all ofthe market’s fundraising, investmentand exit segment suffered a decline.However, the distrustful economic environment also affected negatively thetraditional financial sources, making it more complicated to obtain bank loans. Asa result of this moderate credit supply, private equity and venture capitalinvestments became relatively more valuable. This was further strengthened bythe appearance and launch of the so-called hybrid funds in 2010.Although the paper focuses on the investment segment of the Hungarian privateequity market, as an introduction we also describe briefly Hungary’s macroenvironment in the recent years. The rest of the paper analyse private equityinvestments from different aspects.

  15. Evaluating the application of different pricing regimes and low carbon investments in the European electricity market

    International Nuclear Information System (INIS)

    Oggioni, Giorgia; Smeers, Yves

    2012-01-01

    The EU-ETS is the first measure initiated by the EU to contribute to the decarbonization of the European energy sector. It is a cap and trade system that requires industries participating to the program to procure allowances to cover their emissions. Electricity Intensive Industries (EIIs) have complained that the system put their European plants at disadvantage compared to facilities located outside the EU. They have asked for actions to mitigate this effect; one of them is to have access to long term contracts with electricity suppliers, ideally with those operating carbon free plants. This paper presents and illustrates a method for assessing the impact of this measure on EIIs participating to the EU cap and trade system. We model a power market segmented in two consumer groups EIIs and the rest of the market (N-EIIs). These two groups are subject to different price regimes: EIIs purchase electricity from dedicated base-load power plants at average cost price, while N-EIIs are supplied at marginal cost. The French Exeltium and the Belgian Blue Sky consortia are existing examples of this market organization. The expanse of the territories that can be covered by these systems depends on the organization of transmission organization and on national energy position relative to carbon free generation. We examine two different types of long term average cost based contracts that differ by the organization of transmission and study their impact under different national energy policies. We formulate the problem of operations and investment in this market as a spatial equilibrium model where generators can invest in new capacity subject to different regional constraints. Transmission is organized according to a “flow based” approach as foreseen by Regulatory Authorities and Transmission System Operators in Europe. We also examine the impact of nuclear policies. CO 2 emission allowances are auctioned and tradable. We describe the models and discuss their policy

  16. Impact of investments in training and advertising on the market value relevance of a company's intangibles: The effect of the economic crisis in Spain

    Directory of Open Access Journals (Sweden)

    Lidia García-Zambrano

    2018-01-01

    The relevance of our paper for academics and practitioners should be noted, as there were no previous similar studies in Spain relating investments in these types of intangibles and market value using IBEX-35 companies. Practitioners likewise need to consider the positive effect on competitiveness of investment in competencies (human and relational competencies.

  17. CONCEPTUAL APPROACHES TO FORMING MECHANISM OF INVESTMENT SAFETY REALIZATION

    Directory of Open Access Journals (Sweden)

    Vladimir Talover

    2016-11-01

    realizing investment safety are determined on the basis of the suggested concept. Criteria assessment of the national economy investment safety should include assessment of: ratio of the national and foreign investments; assurance of the enlarged recreation; level of economy restructuring and re-equipping; level of accumulated resources; level of financing scientific-technical sphere. Low level of investment safety is explained by the lack of wide range of investment objects and imperfection of investment mechanisms, as well as the lack of developed investment market. Practical implications. The suggested conceptual statements concerning formation of the mechanism of realizing investment safety determine unity in the system of economic interests and participants of the investment sphere, as well as solving collisions that appear between them. The priority directions of the state policy in assuring investment safety should become the following: creating favourable macroeconomic and entrepreneurial environment, promoting development of business, protecting owners and strengthening efficiency and transparency of the use of state finances. Value/originality. The suggested conceptual principles of forming efficient mechanism of investment safety give the reason for forming an appropriate system of indicators and allow determining prospects and threads to the investment safety level in the real time.

  18. Does the Sustainable PPI Investments Promote Financial Market’s Sustainable Development?

    Directory of Open Access Journals (Sweden)

    Tong Fu

    2016-01-01

    Full Text Available Since the late 1980s, most developing countries adopt a policy of attracting investments for Private Participation in Infrastructure (PPI projects. With a perspective of sustainability, this paper offers a first attempt to examine whether the sustainable PPI investments promote financial market development. First, we demonstrate how the PPI policy enlargers the size of financial markets and then fosters the liquidity of financial markets in the static and dynamic conditions. Using the data from 33 developing countries during 1997–2012, we discover the significant promotion effect of PPI investments on the development of financial markets in the dimensions of size and liquidity. Additionally, we confirm the significant mediator effect of financial market size for the positive relationship between PPI investments and financial market liquidity. Both the promotion effect and mediation effect are robust to different control variables and estimation techniques used.

  19. Simulation of power plant construction in competitive Korean electricity market

    International Nuclear Information System (INIS)

    Ahn, Nam Sung; Huh, Sung Chul

    2001-01-01

    power plant. Under these postulations, there is the potential for power plant construction to appear in waves causing alternating periods of over and under supply of electricity like commodity production or real estate construction. A computer model was developed to study the possibility that construction will appear in waves of boom and burst in Korean electricity market. This model was constructed using System Dynamics method pioneered by Forrester (MIT, 1961) and explained in recent text by Sternman (Business Dynamics, MIT, 2000) and the recent work by Andrew Ford (Energy Policy, 1999). This model was designed based on the Energy Policy results (Ford, 1999) with parameters for loads and resources in Korea. This Korea Market Model was developed and tested in a small scale project to demonstrate the usefulness of the System Dynamics approach, Korea electricity market is isolated and not allowed to import electricity from outsides. In this model, the base load such as nuclear and large coal power plant are assumed to be user specified investment and only CCGT is selected for new investiment by investors in the market. This model may be used to learn if government investment in new nuclear plants could compensate for the unstable actions of private developers. This model can be used to test the policy focused on the role of nuclear investments over time. This model also can be used to test whether the future power plant construction can meet the government targets for the mix of generating resources and to test whether to maintain stable price in the spot market

  20. Competitive Capacity Investment under Uncertainty

    NARCIS (Netherlands)

    X. Li (Xishu); R.A. Zuidwijk (Rob); M.B.M. de Koster (René); R. Dekker (Rommert)

    2016-01-01

    textabstractWe consider a long-term capacity investment problem in a competitive market under demand uncertainty. Two firms move sequentially in the competition and a firm’s capacity decision interacts with the other firm’s current and future capacity. Throughout the investment race, a firm can

  1. Crisis will impact investments

    International Nuclear Information System (INIS)

    Anon.

    2008-01-01

    This paper summarizes the content of Capgemini's 10. European Energy Markets Observatory (EEMO) report. The EEMO is an annual report that tracks the progress in establishing an open and competitive electricity and gas market in the 27 European countries, including Norway and Switzerland. This tenth edition is based on 2007 and winter 2007-2008 data sets. A 1 trillion euros infrastructure investment is required to build the plants, electrical lines and gas pipelines needed in Europe over the next 25 years. Although today's credit crunch could severely hurt the investment cycle, analysts also anticipate a difficult period for the European energy markets once the recession is over. The report said that Europe has yet to solve the related issues of responding to its energy demand, while curbing its carbon dioxide (CO 2 ) emissions. In 2007, even at a slower pace than previous years, analysts said European electricity consumption still increased by 0.9% and CO 2 emissions stabilized, instead of decreasing. Despite the mild weather, the electricity security of supply deteriorated, analysts said. The Union for the Coordination of Transmission of Electricity (UCTE) real margin - which takes into account non-usable and unavailable generation capacities - dropped from 7.6% in 2006 to 5.3% in 2007. Analysts said without a significant and vigorous investment program in electricity and gas infrastructures, Europe's energy supply security will be threatened. Since the low point in 2005, utilities started to invest again, but have made energy mix choices that are not moving toward a reduction in CO 2 emissions as the majority (58%) of the planned generation capacities will be fossil-fueled. In 2007, investments in renewable capacities grew fast, wind being the industry's preference, with an addition of 8.3 gigawatt (GW) renewables in Europe. However, analysts said this type of 'non-scheduable' source is not always available during peak hours. This partially explains the security

  2. Pattern of Foreign Direct Investment in Developing Economies

    DEFF Research Database (Denmark)

    Patibandla, Murali

    2004-01-01

    Qualitative information and data show significant differences in the magnitude and type of foreigndirect investment inflows among developing economies. Explanation of the differences requiresanalysis of market institutional factors as well as the supply and demand side conditions. This paperadopts...... the approach that different configurations of supply, demand and market institutional factorsexplain the type of investment flows into developing economies. The argument is illustrated througha comparative study of China and India.Key Words: Developing Economies; Foreign Direct Investment; China, and India...

  3. Cooperative Investment in Incomplete Markets under Financial Fairness

    NARCIS (Netherlands)

    Pazdera, J.; Schumacher, J.M.; Werker, B.J.M.

    2016-01-01

    Groups of agents, such as participants in a collective pension fund, can decide to undertake a joint investment and to define, ex ante, a rule for the division of proceeds. The collective investment decision and the allocation rule together form a risk sharing scheme. Such a scheme defines a

  4. Cooperative investment in incomplete markets under financial fairness

    NARCIS (Netherlands)

    Pazdera, Jaroslav; Schumacher, Hans; Werker, Bas

    2016-01-01

    Groups of agents, such as participants in a collective pension fund, can decide to undertake a joint investment and to define, ex ante, a rule for the division of proceeds. The collective investment decision and the allocation rule together form a risk sharing scheme. Such a scheme defines a

  5. 12 CFR 702.105 - Weighted-average life of investments.

    Science.gov (United States)

    2010-01-01

    ... investment funds. (1) For investments in registered investment companies (e.g., mutual funds) and collective investment funds, the weighted-average life is defined as the maximum weighted-average life disclosed, directly or indirectly, in the prospectus or trust instrument; (2) For investments in money market funds...

  6. Political Risk and Foreign Exchange Rates: an Efficient-Market Approach

    OpenAIRE

    Jean-Claude Cosset; Bruno Doutriaux de la Rianderie

    1985-01-01

    This paper examines the reaction of the foreign exchange market to the announcement of changes in the business environment of a country. Our results suggest that sampled political risk news conveys important information about a country's investment climate and causes its currency's exchange rate to vary. It appears, however, that the reaction of the foreign exchange market is more dramatic for unfavorable events than for favorable events. The evidence presented is also consisted with the hypo...

  7. RUSSIAN INDUSTRY INVESTMENT SITUATION

    Directory of Open Access Journals (Sweden)

    O. V. Pochukaeva

    2011-01-01

    Full Text Available The actual deficiency of investment into Russian industry innovative development increases its technological drag from industries of countries with developed markets. Although the rate of investment into real sectors of Russian economics mid 2000 was higher compared to the previous period, annual investment amounts were much lower than in 1990. At present, highest investment amounts are directed to industry extractive branches and to the commerce. Amounts invested to various economy branches do not correspond to their contribution to the country’sGross Added Product; particularly underinvested are manufacturing industry branches. At present, foreign share in the country economy total investment makes 15–18%. Recently, most interesting for foreigners was investment to machine-building branches with overwhelming part (for example, 90% in 2007–2008 of foreign investment into the machine-building industry being directed to creation of new automobile plants. Today, first place in the list of foreign investors’ preferences in Russia is taken by the machine-tool construction sector.

  8. Insufficient incentives for investment in electricity generations

    Energy Technology Data Exchange (ETDEWEB)

    Neuhoff, K. [Cambridge University (United Kingdom). Dept. of Applied Economics; De Vries, L. [Delft University of Technology (Netherlands). Faculty of Technology, Policy and Management

    2004-12-01

    In theory, competitive electricity markets provide incentives for efficient investment in generation capacity. We show that if consumers and investors are risk averse, investment is efficient only if investors in generation capacity can sign long-term contracts with consumers. Otherwise the uncovered price risk increases financing costs, reduces equilibrium investment levels, distorts technology choice towards less capital-intensive generation and reduces consumer utility. We observe insufficient levels of long-term contracts in existing markets, possibly because retail companies are not credible counter-parties if their final customers can switch easily between them. With a consumer franchise, retailers can sign long-term contracts, but this solution comes at the expense of retail competition. Alternative capacity mechanisms to stimulate investment are discussed. (author)

  9. The relationship between the stock market and foreign direct investment in Croatia: evidence from VAR and cointegration analysis

    Directory of Open Access Journals (Sweden)

    Irena Raguz

    2013-03-01

    Full Text Available The aim of this paper is to investigate the existence and characteristics of both the long- and short-term relationships between FDI and the stock market in Croatia. The main hypothesis is that, in the long run, trends in FDI should determine the movement of the stock market through the channel of economic growth. However, in the short run, upward movement on the stock market positively affects Croatian FDI stock, as events on the stock market signalize the vitality and investment climate of the domestic market to foreign investors. The long-term connection is tested by two cointegration approaches; the results of both models suggest the absence of a long-term relationship among observed variables, which may be explained by the lack of connection between FDI and economic growth in Croatia. The short-run relationship is investigated by a two-variable VAR model, and the results obtained are consistent with the theoretical assumptions, as the stock market did prove to be an important short-term determinant of FDI in Croatia.

  10. Life insurance investment and stock market participation in Europe.

    Science.gov (United States)

    Cavapozzi, Danilo; Trevisan, Elisabetta; Weber, Guglielmo

    2013-03-01

    In most European countries life insurance has played a key role in household portfolios, to the extent that it has often been the first asset ever purchased. In this paper we use life history data from a host of European countries to investigate the role of life insurance investment in shaping individuals' attitudes towards participation in stocks and mutual funds. We show that individuals who purchased a life insurance policy are more likely to invest in stocks and mutual funds later. On the one hand, these findings support the notion that life insurance policies play an educational role in financial investment. On the other hand, they are also consistent with behavioural models where economic agents are first concerned with avoiding unacceptable adverse scenarios by purchasing low risk investments, such as life insurance policies, and then invest in riskier assets, such as stocks and mutual funds, to obtain higher economic returns. Copyright © 2012 Elsevier Ltd. All rights reserved.

  11. Transmission expansion in an oligopoly considering generation investment equilibrium

    DEFF Research Database (Denmark)

    Taheri, S. Saeid; Kazempour, Jalal; Seyedshenava, Seyedjalal

    2017-01-01

    the future generation investment actions. However, in such an oligopolistic market, each producer makes its own strategic generation investment decisions. This motivates the transmission system planner to consider the generation investment decision-making problem of all producers within its TEP model......Transmission expansion planning (TEP) is a sophisticated decision-making problem, especially in an oligopolistic electricity market in which a number of strategic (price-maker) producers compete together. A transmission system planner, who is in charge of making TEP decisions, requires considering....... This paper proposes a tri-level TEP decision-making model to be solved by the transmission system planner, whose objective is to maximize the social welfare of the market minus the expansion costs, and whose constraints are the transmission expansion limits as well as the generation investment equilibrium...

  12. Exploring International Investment through a Classroom Portfolio Simulation Project

    Science.gov (United States)

    Chen, Xiaoying; Yur-Austin, Jasmine

    2013-01-01

    A rapid integration of financial markets has prevailed during the last three decades. Investors are able to diversify investment beyond national markets to mitigate return volatility of a "pure domestic portfolio." This article discusses a simulation project through which students learn the role of international investment by managing…

  13. In-Depth Review of the Investment Climate and Market Structure in the Energy Sector. Armenia

    International Nuclear Information System (INIS)

    2004-08-01

    Since gaining independence in 1991, Armenia is committed to the principles of democracy and market economy. Armenia has made encouraging progress on liberalisation and selected structural reforms compared with other economies of the region. The economy has been growing strongly, reaching double-digit rates in recent years. Inflation has remained low, while the authorities have managed to substantially reduce the fiscal deficit. The current account deficit also declined significantly in 2002. Armenia formally joined the WTO in February 2003. The Armenian government is strongly committed to attracting foreign investment in order to generate and sustain economic growth. Armenia has set up a non-discriminatory legislative framework for foreign investors, and offers them several investment incentives, including a temporary tax exemption and protection against legislative changes after the investment has been made. Another reassuring trend is the gradual reduction of the negative current account balance, a feature that until recently used to be attributed to the growth of the import substituting sectors of the economy, but is now resulting from the substantial growth of the export-oriented sectors as evidenced by an increase in exports in 2003 by 34.2% over 2002 levels and by the decrease of the foreign trade deficit as related to GDP from 31.2% in 1999 to 21.1% in 2003. The private sector, which is now up and running, dominates the economy and produces about 80% of GDP. It is particularly heartening that this state-of-affairs is supported not only by the establishment of new enterprises, but also by the rehabilitation of enterprises that had been pronounced beyond hope by many experts. The mainstays of Armenia's investment policies are: 'open door' policies vis-a-vis foreign investment, national treatment (of investors), equal terms for economic activities, protection of foreign investors. The investment policy implemented by the Government does bear fruit, as evidenced

  14. INVESTMENT FOR ENVIRONMENTAL PROTECTION IN THE EUROPEAN UNION

    Directory of Open Access Journals (Sweden)

    POPEANGĂ VASILE

    2014-08-01

    Full Text Available Investment decision can be regarded as one of the most important decisions taken by the management company. By the correct foundation of investment decisions depend the market position of the company, increasing its market share and gain a competitive advantage over competitors. Investments for environmental protection brings together all available money-makers, private and mixed distribute to finance activities and actions aimed at the prevention, reduction and elimination of pollution and other forms of environmental degradation resulting from production processes or consumption of goods and services.

  15. The role of investment, fundamental Q and financing frictions in agricultural investment decisions: an analysis pre and post financial crisis

    OpenAIRE

    Conor M. O'Toole; Carol Newman; Thia Hennessy

    2011-01-01

    This paper uses a fundamental Q model of investment to consider the role played by financing frictions in agricultural investment decisions, controlling econometrically for censoring, heterogeneity and errors-in-variables. Our findings suggest that farmer's in- vestment decisions are not driven by market fundamentals. We find some evidence that debt overhang restricts investment but investment is not dependent on liquidity or internal funds. The role of nancing frictions in determining invest...

  16. Suboptimal investments and M&A deals in emerging capital markets

    Directory of Open Access Journals (Sweden)

    Cherkasova Victoria

    2016-01-01

    Full Text Available This paper focuses on the efficiency of target-company investment decisions before and after Merger & Acquisition deals. We study whether M&A deals help to solve the problem of suboptimal investment after the acquisition. Using a sample of 145 target companies from BRICS countries that were acquired during the period 2004-2014, we outline those that had over- or underinvested before the deal and show that more than half the companies managed to optimize the investment level after the deal. We determine the key factors that improve the inefficiency of investment decisions and demonstrate that the industry and country have an impact on the degree of suboptimal investment.

  17. Investing in the Long Term

    Institute of Scientific and Technical Information of China (English)

    Valerie; Sartor

    2007-01-01

    Janice Dai is a senior executive at Harvest Fund Management Co.Ltd.,one of China’s top fund management compa- nies,managing fixed income market investments across the country.She also leads her company’s overall institutional investments.Recently she agreed to talk about her company as well as comment on China’s booming financial indus- try,in the wake of overseas invest- ment bankers predicting tremen- dous returns on the Chinese main- land over the next few years.

  18. The Application of Dividend Yield Based Investment Strategy in Indonesian Stock Exchange

    OpenAIRE

    Ekaputra, Adriansyah; Sukarno, Subiakto

    2012-01-01

    Stock market development in Indonesia is growing rapidly, coupled with the increase of Indonesia's investment rating by investment research and rating companies such as Moody's and S&P, it makes Indonesian stock market look sexy in the eyes of investors from various countries. The investment strategy that simple and applicable is often sought by investors to maximize the investors' portfolio. One investment strategy is evolving but still not widely used in Indonesia is an investment strat...

  19. New nuclear investment - an unmanageable risk?

    International Nuclear Information System (INIS)

    Grimston, M.C.

    2000-01-01

    Liberalization of electricity supply markets in many developed countries has led to significant charges in investment patterns. The decline in orders for nuclear stations has been one consequence, as investors require quick returns and so prefer less capital-intensive sources, notably natural gas. However, a system of tradable carbon emission permits could, in effect, create a guaranteed market for non-fossil fuelled electricity. Investment in more capital-intensive forms of electricity, such as nuclear power and renewables, would therefore present a lower economic risk. (author)

  20. Incentives to invest in liberalised electricity industries in the North and South. Differences in the need for suitable institutional arrangements

    International Nuclear Information System (INIS)

    Finon, Dominique

    2006-01-01

    The issue of investment is all too often underplayed in deregulation reforms focused on market rules and de-integration measures. This presentation criticises first the optimistic approach of the theory of investment incentives through market signals when it is applied to deregulated electricity industries. The greater part of the investment in base-load and peak equipment should be made profitable by income from very high prices during peak and extreme peak periods, that raises a problem of political acceptability. The problem is then addressed in the context of the mature electricity industries in the North. Given the maturity of markets there, a number of modifications to the pure market model could be envisaged to strengthen incentives to invest, but none of them is perfect. The main way is to focus on adaptation of market rules on the supply of power at peaks and extreme peaks by considering 'capacity adequacy' as a public good (with three solutions: capacity payment, reserve obligations, centralised procurement by auctioning for peak capacity). Observation of reforms suggests also the validity of some other solutions based on a limitation of the competition by allowing long-term contracts and vertical integration between production and supply. Finally the question is extended to the specific problem of developing countries characterised by irregular growth. It is argued that reforms must be designed in view of the importance of the need for investment through long-term coordination and reduction of investment risks. Indeed experiences of Latin American liberalised industries show that they have to include a number of competition-based imperfections and to allow ongoing exercise of market power in order to allow prices to rise above competition prices. The single buyer model or some variants of it appear to be good alternatives if one wishes to avoid the twists and turns of the competition paradigm. The difficulty with this model arises from the institutional

  1. Prioritising Marketing Activities in Different Types of Marketing Functions

    DEFF Research Database (Denmark)

    Martensen, Anne; Mouritsen, Jan

    2017-01-01

    performance (BP) and top management's respect. An empirical survey identifies four types of MFs: (1) the broad spectrum; (2) the hesitant; (3) the traditional and (4) the market-creating. Findings show that for each of the four types, the effect of investing in a particular role varies: all roles......Marketing functions (MFs) differ in how they practise marketing roles. The purpose of this article is to differentiate between MFs that practice marketing roles in a particular manner and then study how these different types of MFs differ with regard to the marketing roles’ effect on business...... are not equally important to practise. Moreover, all roles are not equally important to all marketing functions, but depend on the marketing function's unique starting point. Since MFs differ, relevant investments in marketing roles also differ, making it beneficial to prioritise them. However, management...

  2. Gli investimenti di portafoglio nelle economie di mercato emergenti:tendenze, dimensioni e problemi (Portfolio Investment in Emerging Market Economies: Trends, Dimensions and Issues

    Directory of Open Access Journals (Sweden)

    Dilip K. Das

    2000-09-01

    Full Text Available Securitised financial flows to emerging market economies have become an important feature of the global capital flows. The principal focus of this paper is on an in-depth analysis of current trends in securitised financial flows. It lays special emphasis on private portfolio equity investment into the emerging market economies. The paper begins with the analysis of the process of stimulation of these flows, and identifies the institutional, structural and non-cyclical factors behind them. One of the points it emphasises is the progressively important role of institutional investors, which is the causal factor behind a significant increase in the quantum of portfolio investment into the emerging market economies. These flows were adversely affected by the financial crises of the 1990s. The subject matter of this paper also includes two of the most important policy issues, namely, the "hot money and cold money" issue and the volatility issue.

  3. THE NEED OF DEVELOPING THE INVESTMENT OF WINE-MAKING IN THE REPUBLIC OF MOLDOVA IN ORDER TO ENTER THE EUROPEAN MARKET

    Directory of Open Access Journals (Sweden)

    Angela ŞESTACOVSCAIA

    2013-01-01

    Full Text Available Wine-making in the Republic of Moldova is an industrial sector with high growth potential. But in recent years the sector has undergone drastic changes. In order to harness the potential of the wine-making we need to invest in improving the quality of wine products, to develop new products, to enter new markets. In order to achieve these objectives in the country it is developed the restructuring program of the wine sector with financial support of the European Investment Bank.

  4. Investment in Exploration-Production and Refining - 2017

    International Nuclear Information System (INIS)

    Maisonnier, Guy; Hureau, Geoffroy; Serbutoviez, Sylvain; Silva, Constancio

    2018-01-01

    Based on surveys of expert opinion, in the absence of extraordinary geopolitical or economic circumstances, oil prices could rise in the range of $55 to $70/barrel, compared with $54/barrel in 2017. This prospect for higher prices is consistent with the expected re-stabilization of the market and a favorable economic and financial climate. Shifts in oil prices are clearly possible, upward in the case of potentially weak investment in exploration/production, or downward if U.S. supply is greater than previously expected. The wholesale price of natural gas, which rose during 2017 in Europe, Japan and the United States, may again rise in 2018 due to steady demand and changes in the price of oil and coal. Following two years of significant declines (-24% in 2015, -28% in 2016) worldwide investment in exploration-production (E and P) grew 4% in 2017 to reach $390 billion ($billion). Growth is focused in North America, where investment jumped by more than 30%, while it fell slightly in the rest of the world, especially in Europe. This can be attributed to independent oil companies, whose worldwide investment rose 23%, while the E and P budget for NOCs was stagnant and those for the major oil companies continued to sharply decline (-16%). Except for the U.S. onshore shale drilling market, all Exploration and Production markets have continued to decline since 2015 with the drop in oil prices. The markets lost half their value over a three year period. Offshore drilling, when carried out in deep and ultra-deep water, continues to decline due to excessively high intrinsic costs. Only those projects that have considerably revised their costs (-30 to -40%) could be approved. Investment by oil and gas operators concern existing fields, at the expense of development in new regions. Postponement and cancellation of major projects impacted the offshore construction markets. The geophysical market remained sluggish during 2017. Contractual surveys were rare, often replaced with

  5. Model-based investigation of the electricity market. Unit commitment and power plant investments; Modellgestuetzte Untersuchung des Elektrizitaetsmarktes. Kraftwerkseinsatzplanung und -investitionen

    Energy Technology Data Exchange (ETDEWEB)

    Sun, Ninghong

    2013-08-08

    The German Federal Government published its energy concept in September 2010 with a description of the road into the era of renewable energies. Therefore, the future renewable energy installed in Germany is expected to consist mostly of wind and solar, which are subject to intermittency of supply and significant fluctuations. The growing portion of energy generation by fluctuating sources is turning to a big challenge for the power plant unit commitment and the investment decisions as well. In this thesis, a fundamental electricity market model with combined modeling of these two aspects is developed. This model is subsequently applied to the German electricity market to investigate what kind of power plant investments are indispensable, considering the steadily increasing portion of energy generation from fluctuating sources, to ensure a reliable energy supply in a cost-effective way in the future. In addition, current energy policy in Germany regarding the use of renewable energy and nuclear energy is analyzed.

  6. The Intangible Assets of Korean Manufacturing Firms for Foreign Direct Investment

    Directory of Open Access Journals (Sweden)

    Sunghoon Hong

    2004-12-01

    Full Text Available This paper attempts to apply the intangible assets approach to the emerging multinational enterprises of Korea. More specifically, it tries to empirically analyze whether Korean firms investing in foreign markets possess more advanced intangible assets than those investing only in the domestic market, and whether Korean firms exploit different types of tangible assets in different host regions. The following conclusions have been drawn by analyzing the data on Korea manufacturing firms listed on the Stock Exchange. First, firms investing in foreign markets possess more advanced intangible assets than domestic market-oriented ones. More specifically, firms investing in the Western developed region are shown to be superior in the economies of scale, R&D, advertising intensity, capital intensity, and interfirm linkages, whereas those investing in the Asian developing region are superior only in the economies of scale and organizational skills. This implies that Korean firms operating in developed countries seem to exploit a wider range of intangible assets to address intense competition and sophisticated demand in the host markets. And, when firms investing in the developed and developing regions are compared directly, the former group are found to exploit technological capability and interfirm linkages more intensively. Second, availability of internal funds and human capital intensity do not show statistical significances, implying that these abilities are not different between firms investing in foreign markets and the domestic market. Third, Korean multinational enterprises are more similar to Japanese than Western ones in terms that they actively exploit organizational skills and interfirm network. Nonetheless, these conclusions have been derived by analyzing the data on parent firms, based on the assumption that Korean overseas subsidiaries commonly share the intangible assets of their parents. This weakness is mainly due to the limited

  7. Socially Responsible Investing

    DEFF Research Database (Denmark)

    Parisi, Cristiana; Stang, Andreas

    This paper analyzes the Scandinavian market for Socially Responsible Investing (SRI) mutual funds in order to determine the returns from discriminatory investment decision compared to the return from conventional portfolios. The analysis is conducted on 642 Scandinavian equity mutual funds...... counterparts. In the case of Norway no statistical difference in return is found when conducting the three factor regression. The Scandinavian market is considered particularly relevant for the interest of the investors in SRI mutual funds. However, to the authors’ knowledge, this is the first study to present....... The methodology adopts the Sharpe ratio to establish the risk return relationship. Moreover, the Capital Asset Pricing Model (CAPM) and the Fama and French Three Factor model are used to test the hypotheses. The results indicate the underperformance of Swedish and Danish SRI funds relative to their conventional...

  8. The Japanese and Italian power station markets: prospects for steam coal

    Energy Technology Data Exchange (ETDEWEB)

    Thomas, S D

    1989-02-01

    The world market for steam coal seems likely to fall far short of the expectations of 1980. Two markets which appeared to offer considerable scope for expansion, the Italian and Japanese power station markets, are examined and the factors behind their disappointing performance analysed. The reasons behind the lack of investments in new power stations differ. Difficulties in obtaining sites and financial problems are most important in Italy, whilst environmental restrictions and the attractions of competing technologies dominate in Japan. It is concluded that these factors will not weaken significantly in the next decade and coal's prospects in these two markets are correspondingly restricted. 20 refs., 20 tabs.

  9. Applicability of Investment and Profitability Effects in Asset Pricing Models

    Directory of Open Access Journals (Sweden)

    Márcio André Veras Machado

    2017-11-01

    Full Text Available This study aims to investigate whether investment and profitability are priced and if they partially explain the variations of stock returns in the Brazilian stock market, according to the Fama and French’s (2015 five-factor model. By using time series and cross-section regression, we found that book-to-market, momentum and liquidity are associated with stock returns whereas investment and profitability were not significant. We also found that there is no investment premium in Brazil. Therefore, motivated by the importance of B/M, momentum and liquidity to the Brazilian stock market, as well as by the poor performance of profitability and investment, we document that Keene and Peterson’s (2007 five-factor model is superior to all other models, especially the five-factor model by Fama and French (2015.

  10. Investments in power networks and alternative measures

    International Nuclear Information System (INIS)

    2003-01-01

    Measures taken with respect to production and consumption are often alternatives to investments in the power networks. While decisions about production and consumption are taken in the market, the network operation is subject to monopoly regulation. In the central network, Statnett's commission is to invest on the basis of socioeconomic profitability. There is a need for much better coordination between network investments and other measures in the power system. The price signal from the market and general tariffs are not sufficient to realize optimal solutions, and there is a need for a ''visible hand'' that can contribute to the realization of the solutions that are the best in each individual situation. It is desirable to create processes and incentives that realize the best solutions, independently of dealing with network investments, local power production or other measures.

  11. Management of Portfolio Investment Held by Pension Funds

    Directory of Open Access Journals (Sweden)

    Dan Armeanu

    2008-09-01

    Full Text Available As a result of the fact that pension funds are financial intermediaries, the value of their assets and liabilities is influenced by changing conditions in financial markets. The market image of a pension fund (and hence its perceived value are closely tied to the “financial health” of the fund. Setting up and managing complex investment portfolios requires that pension administrators use scientific models of portfolio selection and optimization based on the risk-expected return relationship. Most investment portfolios are modified in time as result of changing stock prices and investment policy objectives. Having established investment policy guidelines, the administrators of pension funds have to determine the structure of their portfolios so that the latter meet legal requirements.

  12. Implementation of Economic Value Added and Market Value Added Analysis as Valuation Tools of Invest Feasibility

    Directory of Open Access Journals (Sweden)

    Achmad Daengs GS

    2017-09-01

    Full Text Available For the investors, financial statement is a benchmark of investors in assessing the company's performance. In fact, investors are not always receiving the accurate company's financial statements information and its levels of fairness are in doubt. The financial statement analysis with using financial ratios is not enough. The investors may need to use alternatives financial statement analyses techniques that reflect the actual company's performance. Therefore, both of the investors and the prospective can use Economic Value Added (EVA and Market Value Added (MVA analysis. With these technical analyses, the investors may know the company's performance where they are invested or to be used as a place to invest whether it has value added or not. With the results of these analyses, it is the expected for the investors to be more confident in making decision whether to buy, sell or hold the ownership in the company.

  13. FROM EFFICIENT MARKET HYPOTHESIS TO BEHAVIOURAL FINANCE: CAN BEHAVIOURAL FINANCE BE THE NEW DOMINANT MODEL FOR INVESTING?

    OpenAIRE

    Anastasios KONSTANTINIDIS; Androniki KATARACHIA; George BOROVAS; Maria Eleni VOUTSA

    2012-01-01

    The present paper reviews two fundamental investing paradigms, which have had a substantial impact on the manner investors tend to develop their own strategies. specifically, the study elaborates on efficient market hypothesis (emh), which, despite remaining most prominent and popular until the 1990s, is considered rather controversial and often disputed, and the theory of behavioural finance, which has increasingly been implemented in financial institutions. based on an extensive survey of b...

  14. Asset pricing with index investing

    OpenAIRE

    Georgy Chabakauri; Oleg Rytchkov

    2014-01-01

    We provide a novel theoretical analysis of how index investing affects capital market equilibrium. We consider a dynamic exchange economy with heterogeneous investors and two Lucas trees and find that indexing can either increase or decrease the correlation between stock returns and in general increases (decreases) volatilities and betas of stocks with larger (smaller) market capitalizations. Indexing also decreases market volatility and interest rates, although those effects are weak. The im...

  15. Essays in Investment Theory

    International Nuclear Information System (INIS)

    Bobtcheff, C.

    2006-01-01

    This thesis analyzes different aspects of the investment decision. In the first chapter, we consider an economy in which different energy sources may produce electricity. The model focuses first on the optimal use of a hydroelectric dam from which water can be extracted and which is supplied with a random water flow. The presence of constraints on a minimal and on a maximal storage capacity makes electricity consumption smoothing possible only when the quantity of water available to the agent lies in a certain range that we determine. In a second stage, we introduce a second energy source with unlimited supply at some exogenous cost. The marginal propensity to produce hydroelectricity is an increasing function of the second technology cost. The availability at a low cost of the alternative source improves thus time diversification. Finally, the optimal electric park is composed of a number of dams that is increasing with the cost of the second technology. Chapter 2 studies the decision of an investor who wants to undertake an irreversible investment when he has the choice between two mutually exclusive projects that present input price and/or output price uncertainty. We prove that the investor decides not to invest in any project when each investment generates the same payoff independently of its size. Therefore, some inaction region appears in which the investor prefers not to invest whereas an immediate investment would have been optimal if no choice had been available: a 'choice value' is thus created. A key feature of this bidimensional degree of uncertainty is thus that the payoff generated by each project is not a sufficient statistic to make a rational investment. In this context, our analysis provides a new motive for waiting to invest: the benefits associated with the dominance of one project over the other. In chapter 3, we study the investment decision problem of a duo-poly with price competition on a market of finite size driven by stochastic taste

  16. Research document no. 20. The constitutionalizing of the international legal regime of the petroleum investments and the world market reconstruction

    International Nuclear Information System (INIS)

    Noel, P.

    2000-09-01

    We analyse the new international legal regime for upstream petroleum investments and ''state contracts'' in general. In striking contrast to the ''New international economic order'' and ''Permanent sovereignty over natural resources'' ideologies of the 1960 and 1970, the emerging regime promotes the sanctification of contractual economic rights; the strict definition of State sovereign prerogatives, and the severe limitation of their conditions of exercise; the internationalization of the settlement of disputes through direct firm-State arbitration; the integration of national territories in a competitive, transparent, non-discriminative global market for investment. We demonstrate that it is rooted in the principles of liberal constitutionalism, hence promoting the internationalization of the Rule of Law. Such a legal regime is conducive to the expansion of the market for petroleum rights, as it restores the institutional conditions for credible commitment by the State. It will also accelerate the trend toward the ''commoditization'' of hydrocarbon resources. Bilateral investments treaties (especially the United States BIT program) as well as multilateral/regional instruments both general (draft MAI, MIGA, MERCOSUR, ALENA) and energy-specific (Energy Charter Treaty) are analysed as the main pillars and diffusion mechanisms of the new regime. A final paragraph indicates the way forward: the evaluation of the impact of this new legal regime on the world oil supply curve, especially as it eventually reaches - or not - some of the lowest-cost, biggest-resources countries. (author)

  17. Gas trade and investments

    International Nuclear Information System (INIS)

    Chabrelie, M.F.

    2000-01-01

    The WOC 9 workshop of the CMG 2000 world gas congress was devoted to gas projects and economics. One round table chaired by G. Bouchard (Gaz de France) and T.H. Thorn (Enron) was devoted to the commercial and financial challenges the gas industry will have to face in the context of inter-region markets and investments. This article summarizes the discussion that took place during this round table: towards a progressive un-partitioning of regional markets, the strategic changes in the European gas market, the LNG industry: new actors and new markets, the gas producers at the crossroads. (J.S.)

  18. The Investment Climate of Ukraine and Ways for its Formation

    Directory of Open Access Journals (Sweden)

    Oryshchyn Tatyana M.

    2017-05-01

    Full Text Available The article is aimed at studying the factors that determine the positive investment climate in Ukraine. These include the potentially inclusive market, the availability of abundant natural resources, the sufficient scientific and technological potential, the significant agricultural potential (advantageous geographical location, favorable climate, fertile soils, the developed infrastructure, the skilled labor resources, and a developed legislative framework for the issues of foreign investment. The current status of the investment climate in Ukraine, which is characterized by a high level of risk, has been analyzed. Relevance of such necessary measures to improve the investment climate in Ukraine has been substantiated: countering the corruption, reform of the judicial branch and the law enforcement bodies, development of a favorable investment image, facilitation to the investment infrastructure and the stock market, and support for small entrepreneurship.

  19. Investing exhaustible resource rents and the path of consumption

    International Nuclear Information System (INIS)

    Hamilton, K.; Hartwick, J.M.

    2005-01-01

    This study presented a brief analysis of the concept of maintaining capital intact in an economy with 2 capital goods: one produced, and one an exhaustible oil stock. Oil stock supplies a vital input flow to the economy every day. The authors characterized dollar-valued national wealth and income. The magnitude of net investment has become pivotal in measuring the sustainability of an economy. This study linked the investment of exhaustible resource rents to growth in a model with energy consumption varying through time, as in a model of optimal savings. Dollar-valued net national product was set out for the economy with the essential, but wasting oil stock. The study applied the principle of maintaining capital intact and locally unchanging consumption. The percentage change in net investment or genuine savings, relative to the market rate of interest, determines whether current consumption is rising, constant, or declining. In the case of utility discount rates, it was observed that at a point of locally unchanging consumption, the net investment equals the prevailing market rate of interest, and the level of net investment is negative. The consumption increases when the percentage change in net investment is lower than the market rate of interest, and the reverse is true when consumption decreases. The connection between zero net investment and constant consumption was clarified. The sign of current net investment was found to be a good indicator of the direction of national wealth and income. 15 refs

  20. Perspectives of development of the nuclear market in the world

    International Nuclear Information System (INIS)

    2006-09-01

    Since the end of the second oil shock, the context has never been as favorable as today for a re-launching of nuclear energy. The growth of energy demand requires heavy investments in new power production capacities. The explosion of fossil fuel prices and the implementation of the carbon trade market in Europe have burdened the competitiveness and price of electricity generated from these energy sources. New and renewable energies will not be capable to take up the challenge of production capacities and thus the nuclear power appears as the inevitable solution, despite the investments needed and the problem of wastes management. Moreover, most nuclear plants in operation today were built during the 1970-1980 era and, despite their lifetime extension, the USA, France, Japan, Russia and Germany will have to replace 80 to 100% of their nuclear park within the next 20 years. Taking into account the administrative and construction delays, the investment decisions will have to be taken in the coming years. This study answers the following questions: what reactor technologies dominate the market today? What are the forces in presence at each sector of the nuclear industry? What is the weight of each market segment? Who are the operators positioned in the market of 3. generation reactors? What will be the size of the market by 2030? What are the most attractive markets? Who are the best positioned groups to capture these markets? This study is based on the analysis of 14 representative groups of the nuclear sector: vertically integrated operators, fuel cycle front-end specialists, reactor construction specialists and atypical nuclear fuel companies. (J.S.)

  1. Transmission assets investment timing using net present value curves

    International Nuclear Information System (INIS)

    Garcia, Reinaldo C.; Contreras, Javier; Correia, Pedro F.; Munoz, Jose I.

    2010-01-01

    Improvement and expansion of the transmission grid is still an unresolved issue in the new competitive environment. In current electricity markets, transmission lines have become assets that need financial instruments for investors who wish to ensure steady long-term returns and to withstand short-term market volatility. The timing and the combination of new transmission investments is key to analyze their long-term effects. This paper presents the concept of net present value (NPV) curve to estimate the best investment time for the investor, where the curve is constructed by calculating the NPVs resulting from the investment in successive years. A specific contract model based on financial transmission rights (FTR) is used for the NPV evaluation of transmission assets, and the stochastic properties of all variables related to the investment market structure are considered. The model is applied to the IEEE 24-bus Reliability Test System (RTS) showing the approach capabilities as a decision-aid tool for transmission investors.

  2. The value of information in electricity investment games

    International Nuclear Information System (INIS)

    Oliveira, Fernando

    2008-01-01

    In this paper we look at the assumptions behind a Cournot model of investment in electricity markets. We analyze how information influences investment, looking at the way common knowledge of marginal costs, expectations on the competitors' marginal costs, expectations on the level and duration of demand, and conjectures on the others' behavior, influence the value of a project. We expose how the results are highly dependent on the assumptions used, and how the investment Nash-Cournot game with perfect and complete information implies such a degree of coordination between players that the outcome of the game would be classified by any regulation law as collusive behavior. Furthermore, we introduce the concept of Nash Value of Complete Information. As an example we use a stylized model of investment in liberalized electricity markets

  3. East-West European farm investment behaviour - The role of financial constraints and public support

    Energy Technology Data Exchange (ETDEWEB)

    Fertő, I.; Bakucs, Z.; Bojnec, S.; Latruffe, L.

    2017-09-01

    The article investigated farm investment behaviour among East (Hungarian and Slovenian) and West (French) European Union farms using individual farm accountancy panel data for the 2003-2008 period. Despite differences in farm structures, except for the presence of capital market imperfections evidenced in the East, farms’ investment behaviour was not substantially different. Farm gross investment was positively associated with real sales’ growth. In addition, it was positively associated with public investment subsidies which can mitigate capital market imperfections in the short-term. On the long run, the farm’s ability to successfully compete in the output market by selling produce and securing a sufficient cash flow for investment is crucial.

  4. East-West European farm investment behaviour - The role of financial constraints and public support

    International Nuclear Information System (INIS)

    Fertő, I.; Bakucs, Z.; Bojnec, S.; Latruffe, L.

    2017-01-01

    The article investigated farm investment behaviour among East (Hungarian and Slovenian) and West (French) European Union farms using individual farm accountancy panel data for the 2003-2008 period. Despite differences in farm structures, except for the presence of capital market imperfections evidenced in the East, farms’ investment behaviour was not substantially different. Farm gross investment was positively associated with real sales’ growth. In addition, it was positively associated with public investment subsidies which can mitigate capital market imperfections in the short-term. On the long run, the farm’s ability to successfully compete in the output market by selling produce and securing a sufficient cash flow for investment is crucial.

  5. Measuring marketing effectiveness.

    Science.gov (United States)

    Gluckman, J; Michaelis, T

    1987-09-01

    The most frequent question about the marketing function in hospitals today is, What are we getting for our money? To answer this, marketing directors must convince the board first of the need for marketing, then of marketing's effectiveness. To measure marketing effectiveness, some basic needs are a staff, equipment, cooperation between departments, utilization data, and a research budget. Some steps to be followed include developing a marketing data base--consisting of demographic projections, demand projections, and market share--testing a marketing strategy through experimentation, documenting the expected results and measurement techniques, and calculating the expected return on investments. In dealing with those "impossible-to-measure" cases, such as a physician who is not advertising but finds that a competitor is, a decision tree can help determine whether to advertise and how much to spend by indicating what the return on investment might be.

  6. Comparative Analysis of Direct and Indirect Property Investment ...

    African Journals Online (AJOL)

    Sultan

    substitute for direct property investment in Abuja, Nigeria. The study .... of stock market investment using Lagos,. Ibadan and ... ordinary shares and saving account for the. Adeogun ... Hence, the need for this study which provides information.

  7. Gli investimenti di portafoglio nelle economie di mercato emergenti:tendenze, dimensioni e problemi (Portfolio Investment in Emerging Market Economies: Trends, Dimensions and Issues

    Directory of Open Access Journals (Sweden)

    Dilip K. Das

    2012-04-01

    Full Text Available Securitised financial flows to emerging market economies have become an important feature of the global capital flows. The principal focus of this paper is on an in-depth analysis of current trends in securitised financial flows. It lays special emphasis on private portfolio equity investment into the emerging market economies. The paper begins with the analysis of the process of stimulation of these flows, and identifies the institutional, structural and non-cyclical factors behind them. One of the points it emphasises is the progressively important role of institutional investors, which is the causal factor behind a significant increase in the quantum of portfolio investment into the emerging market economies. These flows were adversely affected by the financial crises of the 1990s. The subject matter of this paper also includes two of the most important policy issues, namely, the "hot money and cold money" issue and the volatility issue.       JEL Codes: G11, O16, F32, P33Keywords: Capital Flows, Financial Flows, Portfolio

  8. Post-neoliberal electricity market 're-reforms' in Argentina. Diverging from market prescriptions?

    International Nuclear Information System (INIS)

    Haselip, James; Potter, Clive

    2010-01-01

    This paper focuses upon the policy and institutional change that has taken place within the Argentine electricity market since the country's economic and social crisis of 2001/2. As one of the first less developed countries (LDCs) to liberalise and privatise its electricity industry, Argentina has since moved away from the orthodox market model after consumer prices were frozen by the Government in early 2002 when the national currency was devalued by 70%. Although its reforms were widely praised during the 1990s, the electricity market has undergone a number of interventions, ostensibly to keep consumer prices low and to avert the much-discussed energy 'crisis' caused by a dearth of new investment combined with rising demand levels. This paper explores how the economic crisis and its consequences have both enabled and legitimised these policy and institutional amendments, while drawing upon the specifics of the post-neoliberal market 're-reforms' to consider the extent to which the Government appears to be moving away from market-based prescriptions. In addition, this paper contributes to sector-specific understandings of how, despite these changes, neoliberal ideas and assumptions continue to dominate Argentine public policy well beyond the postcrisis era. (author)

  9. Democracy and regulation: the effects of electoral competition on infrastructure investments

    NARCIS (Netherlands)

    Schram, A.; Ule, A.

    2013-01-01

    This paper investigates infrastructure investment in markets where regulation is subject to varying degrees of manipulation by elected politicians. Based on a model of price regulation in a market with increasing demand and long-term returns on investment we construct a multi-period game between a

  10. Marketing in the Australian Higher Education Sector

    Science.gov (United States)

    Favaloro, Chrissa

    2015-01-01

    This article examines domestic marketing in the Australian higher education sector, specifically, the marketing investment patterns of universities and their levels of student growth as a return on marketing investment. Marketing expenditure by universities has risen 23 per cent in the five years to 2013, with several institutions allocating in…

  11. An Optimal Investment Strategy for Insurers in Incomplete Markets

    Directory of Open Access Journals (Sweden)

    Mohamed Badaoui

    2018-04-01

    Full Text Available In this paper we consider the problem of an insurance company where the wealth of the insurer is described by a Cramér-Lundberg process. The insurer is allowed to invest in a risky asset with stochastic volatility subject to the influence of an economic factor and the remaining surplus in a bank account. The price of the risky asset and the economic factor are modeled by a system of correlated stochastic differential equations. In a finite horizon framework and assuming that the market is incomplete, we study the problem of maximizing the expected utility of terminal wealth. When the insurer’s preferences are exponential, an existence and uniqueness theorem is proven for the non-linear Hamilton-Jacobi-Bellman equation (HJB. The optimal strategy and the value function have been produced in closed form. In addition and in order to show the connection between the insurer’s decision and the correlation coefficient we present two numerical approaches: A Monte-Carlo method based on the stochastic representation of the solution of the insurer problem via Feynman-Kac’s formula, and a mixed Finite Difference Monte-Carlo one. Finally the results are presented in the case of Scott model.

  12. The returns and risks of investment portfolio in a financial market

    Science.gov (United States)

    Li, Jiang-Cheng; Mei, Dong-Cheng

    2014-07-01

    The returns and risks of investment portfolio in a financial system was investigated by constructing a theoretical model based on the Heston model. After the theoretical model and analysis of portfolio were calculated and analyzed, we find the following: (i) The statistical properties (i.e., the probability distribution, the variance and loss rate of equity portfolio return) between simulation results of the theoretical model and the real financial data obtained from Dow Jones Industrial Average are in good agreement; (ii) The maximum dispersion of the investment portfolio is associated with the maximum stability of the equity portfolio return and minimal investment risks; (iii) An increase of the investment period and a worst investment period are associated with a decrease of stability of the equity portfolio return and a maximum investment risk, respectively.

  13. Manufacturing Capital Lingers in the Stock Market

    Institute of Scientific and Technical Information of China (English)

    吴程涛; 段铸; 张景宇; 张曙光

    2008-01-01

    Pressured by a slowdown in exports, cost increases and dwindling returns to manufacturing investments, China’s manufacturing capital has begun to shift to the real-estate and stock markets. As a matter of fact, the stock market had already felt a shock a couple of years ago when top domestic manufacturers like Midea, Gree, TCL and LMZ started to invest their idle capital in the real-estate and stock markets. Investments of manufacturing capital in both the real estate and stock markets have increased fluid capital and pushed up the value of both markets. Booms in both markets have in turn guaranteed investment returns of manufacturing capital, which further increased the stock market valuations of manufacturing capital. Such a cycle has created interest chains between listed manufacturers, the stock market and the real-estate market. Along with the ups and downs of the stock and real-estate markets, manufacturing capital now faces a dilemma: to escape or to persist? Where should it escape? When can the markets be profitable again? Just like the classic Shakespearean question: to be or not to be, that is the question.

  14. Valuation of long-term investments in energy assets under uncertainty

    Energy Technology Data Exchange (ETDEWEB)

    Abadie, L. M. [Bilbao Bizkaia Kutxa, Gran Via 30, 48009 Bilbao (Spain)

    2009-07-01

    This paper aims to contribute to the development of valuation models for long-term investments while keeping an eye on market prices. The adopted methodology is rooted on the existence of markets for futures and options on commodities related to energy investments. These markets are getting ever-increasingly liquid with ever-longer maturities while trading contracts. We discuss the advantages of this approach relative to other alternatives such as the Net Present Value (NPV) or the Internal Rate of Return (IRR), despite a limited increase in the complexity of the models involved. More specifically, using the valuation methods well-known to energy-finance academics, the paper shows how to: break down an investment into its constituent parts, apply to each of them the corresponding risk premium, value annuities on assets with a deterministic or stochastic behavior, and value the options that are available to its owner, in order to get an overall value of the investment project. It also includes an application to improvement in coal consumption, where futures markets are used to get a numerical estimate of the parameters that are required for valuation. The results are then compared with those from traditional methodologies. Conclusions for this type of investments under uncertainty are derived. (author)

  15. Valuation of Long-Term Investments in Energy Assets under Uncertainty

    Directory of Open Access Journals (Sweden)

    Luis M. Abadie

    2009-09-01

    Full Text Available This paper aims to contribute to the development of valuation models for long-term investments while keeping an eye on market prices. The adopted methodology is rooted on the existence of markets for futures and options on commodities related to energy investments. These markets are getting ever-increasingly liquid with ever-longer maturities while trading contracts. We discuss the advantages of this approach relative to other alternatives such as the Net Present Value (NPV or the Internal Rate of Return (IRR, despite a limited increase in the complexity of the models involved. More specifically, using the valuation methods well-known to energy-finance academics, the paper shows how to: break down an investment into its constituent parts, apply to each of them the corresponding risk premium, value annuities on assets with a deterministic or stochastic behavior, and value the options that are available to its owner, in order to get an overall value of the investment project. It also includes an application to improvement in coal consumption, where futures markets are used to get a numerical estimate of the parameters that are required for valuation. The results are then compared with those from traditional methodologies. Conclusions for this type of investments under uncertainty are derived.

  16. Valuation of long-term investments in energy assets under uncertainty

    International Nuclear Information System (INIS)

    Abadie, L. M.

    2009-01-01

    This paper aims to contribute to the development of valuation models for long-term investments while keeping an eye on market prices. The adopted methodology is rooted on the existence of markets for futures and options on commodities related to energy investments. These markets are getting ever-increasingly liquid with ever-longer maturities while trading contracts. We discuss the advantages of this approach relative to other alternatives such as the Net Present Value (NPV) or the Internal Rate of Return (IRR), despite a limited increase in the complexity of the models involved. More specifically, using the valuation methods well-known to energy-finance academics, the paper shows how to: break down an investment into its constituent parts, apply to each of them the corresponding risk premium, value annuities on assets with a deterministic or stochastic behavior, and value the options that are available to its owner, in order to get an overall value of the investment project. It also includes an application to improvement in coal consumption, where futures markets are used to get a numerical estimate of the parameters that are required for valuation. The results are then compared with those from traditional methodologies. Conclusions for this type of investments under uncertainty are derived. (author)

  17. The investment challenges facing the oil and gas industry

    International Nuclear Information System (INIS)

    Suellentrop, Steve

    1998-01-01

    In considering the potential of the United Kingdom for investment in the oil and gas industry, four factors are discussed. They are: the importance of certainty in identifying markets; the importance of infrastructure in assisting follow-on developments in mature oil and gas fields; the UK's competitive position in the world investment market; fiscal terms in the UK as compared with those offered by other countries. The conclusion drawn is that the UK needs to be responsive to its status as a mature oil and gas area and have the flexibility to stimulate investment in frontier areas. Stability in both the fiscal regime and also handling issues like market access is important. There is a need to capitalise on the many advantages conferred by the existing infrastructure in mature areas. (UK)

  18. Investment in exploration-production and refining 2014

    International Nuclear Information System (INIS)

    Hureau, Geoffroy; Serbutoviez, Sylvain; Silva, Constancio; Maisonnier, Guy

    2014-11-01

    IFPEN analyses in this study the 2014 evolution of global investment in the field of exploration-production and refining: 1 - Changes in oil and gas prices: General background: weak economy and global disorder, Oil prices: fundamentals that could help to relax oil prices?, Gas prices: fall in Europe, stability in Japan, increase in the US; 2 - Exploration and production - Slowdown in growth: moderate rise in investment in 2014, exploration - Discoveries in 2014, Russia: sanctions will have limited short term impact, implications of the reforms to the Mexican energy sector; 3 - Drilling activity and market throughout the world: onshore and offshore drilling (Number of wells drilled throughout the world, Number of onshore wells, Number of offshore wells, Drilling, equipment and well services markets, Onshore drilling market, Offshore drilling market, Fracking market), Geophysical activity and the geophysical market, Offshore construction activity and the offshore construction market (Offshore construction activities, Rig construction activity, Floating Platform Systems (FPS), Sub-sea constructions, Offshore construction market); 4 - Refining - Significant increase in spending: increase in industrial costs, a slowdown in the increase in excess capacity in the future?, A bleak future for the european refining sector

  19. 12 CFR 704.10 - Investment action plan.

    Science.gov (United States)

    2010-01-01

    ... market pricing, cash flows, and risk; (3) How the investment fits into the credit union's asset and... Banks and Banking NATIONAL CREDIT UNION ADMINISTRATION REGULATIONS AFFECTING CREDIT UNIONS CORPORATE CREDIT UNIONS § 704.10 Investment action plan. (a) Any corporate credit union in possession of an...

  20. Retail Structured Products for Socially Responsible Investments

    DEFF Research Database (Denmark)

    Jessen, Pernille

    Institutional investors are the main drivers of demand for socially responsible investment (SRI). Preferences for non- nancial goals such as social and environmental sustainability are also held by small retail agents who, nonetheless, are almost non-existent in the market. This paper studies how...... and when it can be utility enhancing to engage in SRI: It proposes a quantitative method to incorporate responsibility into the investment decision and investigates how structured financial instruments can facilitate access to SRI for small retail agents. The goal is to demonstrate market potential...

  1. Make Markets Work for Climate

    International Nuclear Information System (INIS)

    2006-11-01

    In developing countries with rapidly growing economies, energy consumption will more than triple by 2030. This will require more than 8 trillion euros in investments in energy in these countries. The way these investments are made will be crucial in determining whether greenhouse gas emissions will rise proportionately. By creating a worldwide, lucrative market for clean technologies, countries can use the money they set aside for fighting climate change to stimulate large-scale private investment in clean energy production and efficient energy consumption. A well-functioning market ensures that money is invested where it will be the most cost-effective and will have the greatest impact in helping to solve a generally recognised problem. This also means making sure that innovations get to the market, so as to take advantage of economies of scale. The conference on 16 and 17 October 2006 in Amsterdam was the official start of the collaboration of governments, business and financial institutions to Make Markets Work for Climate. At the conference it was underlined that coordinated strategies are needed for international financial institutions, private banks, private investors and governments. Business and governments stand shoulder to shoulder in shaping the much needed actions on climate change. The participants agreed that potentially profitable opportunities exist for investment in commercial technologies in developing countries, especially aimed at energy efficiency. An enabling environment is needed in developing countries to attract funds for clean energy. Attention should be paid to less-developed countries. They have difficulty profiting from the current CDM market and are unable to compete on the technology learning curve. In order to make markets work for climate there is a strong need for long-term continuity in the carbon market beyond 2012. Governments need to create stable incentives for business to invest in clean energy technologies. Business is ready

  2. Investment criteria of private equity/venture capital funds and financial performance of companies before initial investment

    Directory of Open Access Journals (Sweden)

    Zbigniew Drewniak

    2013-12-01

    Full Text Available Understanding and recognizing of the investment criteria of private equity/venture capital seems to be crucial for all parties of this market. Entrepreneurs, who are looking for the capital for financing their businesses, can easier find the most proper fund and better formulate their expectations. For the funds, specifying theirs investment criteria is the reflection of the investment strategy leading to its better wording. The fund's investmentcriteriaare also importantfor investors - capital donors. First of allthey wantto knowin whattypes of assetswill be investedtheirfunds. That can help to assess the risk involved in the investment and calculate the expected rate of return. In addition topresentation ofthe investment criteriaof private equity/venture capital funds, thepaper refers to thecompany's financialsituationbefore investments. That draw the company profile, the funds are most interested to invest. The turnover, net profit, profitability ratios and liquidity were analyzed to specify this profile.

  3. Impact and implications of international financial reporting standards in the UK : evidence from the alternative investment market\\ud

    OpenAIRE

    Ali, Arshad; Akbar, Saeed; Ormrod, Phillip; Shah, Syed Zulfiqar Ali

    2016-01-01

    This paper investigates implications of the IFRS adoption from the perspective of small and growing companies listed on the UK Alternative Investment Market (AIM). The study considers the cost-benefit issues of the IFRS adoption and investigates its economic consequences. The results reveal that only a small number of comparatively larger AIM companies have voluntarily adopted IFRS for some anticipated economic objectives. The results also suggest that most of the mandatory adopters have done...

  4. Market research on factors influencing women's preferences in investment decision making

    OpenAIRE

    Sharma, Abhishek.; Douglas, Tony.; Jaworski, Piotr.

    2017-01-01

    This study aims to gain knowledge on the factors that influence the investment decision making of women in Singapore. The research explores the fact that investment decision is being affected by the demographic, psychographic factors of the individuals. The individuals may be equal in all aspects but their investment decision varies with their own perception towards various investment plans. The research was conducted among 200 respondents through a survey so as to get an empirical findings o...

  5. Power plant investment cycles in liberalised markets. A model of the German electricity generation market; Zyklen bei Kraftwerksinvestitionen in liberalisierten Maerkten. Ein Modell des deutschen Stromerzeugungsmarktes

    Energy Technology Data Exchange (ETDEWEB)

    Gaidosch, Lars

    2008-07-01

    In the course of the next ten to fifteen years almost half of Germany's installed power plant capacity will need to be replaced by the construction of new facilities. The power plant investments required for this will be made in an environment marked by liberalisation and competition. This is the context of the present article, which analyses the causes behind the cyclical behaviour of power plant investment and identifies factors that influence it. Cycles in this connection are defined as recurring oscillations in power plant capacity and electricity prices. The authors also propose measures that could dampen the cyclical course of power plant investment over time. One of the major outcomes of the present model calculations is that the power production market, similarly to other capital-intensive branches of industry, is expected to experience strong price fluctuations in the future as well. As it has been framed up to now, the German electricity wholesale market will not be able to prevent the occurrence investment cycles in power plant construction. One way to counteract investment cycles would be to greatly expand the time horizon of the liquid spot market through greater activity on the part of trading firms. [German] In den naechsten 10 bis 15 Jahren sind in Deutschland und Europa sowie weltweit knapp die Haelfte der installierten Kraftwerksleistung zu ersetzen bzw. neu zu errichten. Die hierfuer erforderlichen Kraftwerksinvestitionen finden heute unter den veraenderten Rahmenbedingungen der Liberalisierung und des Wettbewerbs statt. In diesem Zusammenhang werden Ursachen von Zyklen bei Kraftwerksinvestitionen analysiert und deren Einflussfaktoren aufgezeigt. Zyklen werden als wiederkehrende Schwankungen der Kraftwerkskapazitaeten und Strompreise definiert. Zusaetzlich werden Massnahmen vorgeschlagen, die eine Zyklenbildung bei Kraftwerksinvestitionen abschwaechen koennen. Zunaechst erfolgt eine Untersuchung unter welchen Bedingungen

  6. Winds of change: How high wind penetrations will affect investment incentives in the GB electricity sector

    International Nuclear Information System (INIS)

    Steggals, Will; Gross, Robert; Heptonstall, Philip

    2011-01-01

    Wind power is widely expected to expand rapidly in Britain over the next decade. Large amounts of variable wind power on the system will increase market risks, with prices more volatile and load factors for conventional thermal plant lower and more uncertain. This extra market risk may discourage investment in generation capacity. Financial viability for thermal plant will be increasingly dependent on price spikes during periods of low wind. Increased price risk will also make investment in other forms of low-carbon generation (e.g. nuclear power) more challenging. A number of policies can reduce the extent to which generators are exposed to market risks and encourage investment. However, market risks play a fundamental role in shaping efficient investment and dispatch patterns in a liberalised market. Therefore, measures to improve price signals and market functioning (such as a stronger carbon price and developing more responsive demand) are desirable. However, the scale of the investment challenge and increased risk mean targeted measures to reduce (although not eliminate) risk exposure, such as capacity mechanisms and fixed price schemes, may have increasing merit. The challenge for policy is to strike the right balance between market and planned approaches. - Research highlights: → Analyses how increases penetrations of wind power effect electricity market functioning. → Assesses the impacts of this on investment incentives for different technologies. → Discusses implications for policy and market design.

  7. THE IMPORTANCE OF CAPITAL MARKET IN ECONOMY

    Directory of Open Access Journals (Sweden)

    Alin Marius Andrieş

    2009-12-01

    Full Text Available All participants in capital markets are asking how to finance investments or to invest money available. The answer to these questions depends on the situation you have: deficit or surplus capital. This article addresses issues concerning the place and role of capital market within the financial markets and in financing investments, trying to highlight the growing importance of this subsystem, shown both to economic agents and to all categories of investors.

  8. Determinants of sovereign wealth fund investment in private equity

    NARCIS (Netherlands)

    Johan, S.A.; Knill, A.M.; Mauck, N.

    2010-01-01

    This paper examines investment patterns of 50 sovereign wealth funds (SWFs) in nations around the world. We study investment by SWFs in 903 public and private firms over the period 1984-2009. As expected, we observe SWFs investments are more often in private firms when the market returns of target

  9. Value oriented strategic marketing

    Directory of Open Access Journals (Sweden)

    Milisavljević Momčilo

    2013-01-01

    Full Text Available Changes in today's business environment require companies to orient to strategic marketing. The company accepting strategic marketing has a proactive approach and focus on continuous review and reappraisal of existing and seeking new strategic business areas. Difficulties in achieving target profit and growth require turning marketing from the dominant viewpoint of the tangible product to creating superior value and developing relationships with customers. Value orientation implies gaining competitive advantage through continuous research and understanding of what value represents to the consumers and discovering new ways to meet their required values. Strategic marketing investment requires that the investment in the creation of values should be regularly reviewed in order to ensure a focus on customers with high profit potential and environmental value. This increases customer satisfaction and retention and long-term return on investment of companies.

  10. Investment Policy, Internal Financing and ownership Concentration in the UK

    NARCIS (Netherlands)

    Goergen, M.; Renneboog, L.D.R.

    2000-01-01

    This paper investigates whether investment spending of firms is sensitive to the availability of internal funds.Imperfect capital markets create a hierarchy for the different sources of funds such that investment and financial decisions are not independent.The relation between corporate investment

  11. STATE REGULATION OF INVESTMENT INSURANCE COMPANIES IN UKRAINE

    Directory of Open Access Journals (Sweden)

    О. Zaletov

    2016-03-01

    Full Text Available In the article the essence of investment insurance company. The role and importance of investment of insurance companies on formation of investment resources in the economy. The essence of the definition of "investment potential of insurance companies" and its relationship with the definition of "financial strength of insurance companies' insurance and potential insurance companies." By analyzing the structure and dynamics of aggregate investment portfolio of insurance organizations of Ukraine in 2008-2015 years defined contribution insurance sector in the formation of investment resources. The problems and prospects of the investment potential of the insurance market of Ukraine. Directions of improvement of state regulation of investment of insurance companies in Ukraine.

  12. Environmental, Social and Governance (ESG and Investment Decision in Bangladesh

    Directory of Open Access Journals (Sweden)

    Sayema Sultana

    2018-06-01

    Full Text Available As a key facet of sustainable development, environmental, social and governance (ESG discretion on stock market investment decision is gaining prevalence following the global financial crisis. ESG considers the sustainable return, risk reduction, and accountability aspects of investments. This study is an exploration of the individual stock market investors’ preferences for ESG issues and the influence that purpose of investment has on investment decision-making, by testing the investment horizon as a moderator. The theoretical background was taken from the theory of planned behavior (TPB, goal setting theory (GST, and the behavioral asset pricing model (BAPM. The study uses the sequential mix method of research, starting with an interview followed by a survey, which was conducted among individual stock market investors in Bangladesh, using simple random sampling. Structural equation modeling (SEM analysis was carried out using Warp PLS version 6.0. The key findings of this study delineate the effect of ESG issues and the purpose of investment on investment decision-making. The contribution of the study signifies the moderating role of the investment horizon, which confirms the importance of the long-term horizon as a time and risk diversification factor. The sparse utilization of the United Nations Global Compact (UNGC (2004 and Thomson Reuters Corporate Responsibility Index (TRCRI (2013 as measurement scales in this study is mentioned. This study has made practical contributions for managers, investors, and regulators.

  13. Usefulness Of Derivative Instruments In Emerging Markets: Turkish Experience

    OpenAIRE

    Cem Saatcioglu; Iskender Karagul; Ara G. Volkan

    2011-01-01

    This article presents an overview of derivative markets, definitions of derivative investment instruments, development of global derivative markets and the applicability of derivative markets in Turkey, given their economic value added to the Turkish economy. Readers will acquire insight into investing in various investment instruments and hedging against risk. Turkish derivative markets will be described, supportive statistical data will be presented, and readers will be introduced to the de...

  14. Panel discussion : signals for capital investment : systems for assessing performance

    International Nuclear Information System (INIS)

    Shalaby, A.; Van Beers, R.; Keizer, C.; Taylor, R.; Rothstein, S.

    2003-01-01

    This session presented highlights of 5 panelists who discussed signals for capital investment in Ontario's newly opened electricity market. Four main issues were highlighted. The panelists emphasized that the industry does not want a market where the price is managed by anyone. They don't want government interference, which will undermine the market's integrity. In addition, the industry wants a market that reflects scarcity, as well as a transparent market, where all the necessary information is available to all players. It was noted that at the moment, green power is not the priority. Rather, emphasis should be placed on reliability, transmission planning, inter-regional coordination, and joint investments with neighbouring jurisdictions. figs

  15. Modeling energy technology choices. Which investment analysis tools are appropriate?

    International Nuclear Information System (INIS)

    Johnson, B.E.

    1994-01-01

    A variety of tools from modern investment theory appear to hold promise for unraveling observed energy technology investment behavior that often appears anomalous when analyzed using traditional investment analysis methods. This paper reviews the assumptions and important insights of the investment theories most commonly suggested as candidates for explaining the apparent ''energy technology investment paradox''. The applicability of each theory is considered in the light of important aspects of energy technology investment problems, such as sunk costs, uncertainty and imperfect information. The theories addressed include the capital asset pricing model, the arbitrage pricing theory, and the theory of irreversible investment. Enhanced net present value methods are also considered. (author)

  16. Hybrid Electricity Markets with Long-Term Risk-Sharing Arrangements: Adapting Market Design to Security of Supply and decarbonization Objectives

    International Nuclear Information System (INIS)

    ROQUES, Fabien; FINON, Dominique

    2017-01-01

    The re-emergence of policy interventionism in electricity markets raises questions as to how market design can best be adapted to meeting the investment challenge associated with security of supply (SoS) and decarbonization objectives. This paper takes an institutionalist approach in terms of modularity of the market design, and reviews the standard historical approach towards competitive markets, in order to analyse the roles and interactions of the initial and additional market 'modules'. We argue that a number of additional modules is required to achieve long-term policy objectives, such as decarbonization and security of supply (SoS). But, in turn, they destabilise the initial modules of the market design, in particular by the entries of renewables. We review the international experience with hybrid market design and draw a number of policy recommendations at to best practices, as well as suggesting ways in which the initial market modules can be improved to prevent inconsistencies with the new modules. The move towards a hybrid market regime, which relies on a combination of planning, long-term risk sharing arrangements and improved markets entrenched in a function of short-term coordination, appears to be unavoidable where decarbonization policies are adopted. (authors)

  17. Can listed property shares be a surrogate for direct property investment behaviour?

    Directory of Open Access Journals (Sweden)

    Douw Boshoff

    2012-03-01

    Full Text Available The listed property sector in South Africa has grown to a size which could be considered to be a good representation of the income producing property market in general. Stock market listed property investment funds offer the opportunity to compare indirect property investment to direct property investment, which could bridge the gap between irrational investment behaviour and intrinsic asset values. This study investigates the relationship between listed property share prices and the property values in listed property funds. The share prices are correlated with various factors, such as the accounting ratios of the companies, the financial statements of the companies and general economic variables. The outcome of the study is an explanation of the behaviour of listed property shares, and its relationship to the direct property market and the general economy. This would assist in the explanation of market behaviour and provides the opportunity to more accurately predict portfolio asset values, which might be used in the valuation of individual real estate assets.

  18. Market assessment of photovoltaic power systems for agricultural applications in Morocco

    Science.gov (United States)

    Steingass, H.; Asmon, I.

    1981-01-01

    Results of a month-long study in Morocco aimed at assessing the market potential for stand-alone photovoltaic systems in agriculture and rural service applications are presented. The following applications, requiring less than 15 kW of power, are described: irrigation, cattle watering, refrigeration, crop processing, potable water and educational TV. Telecommunications and transportation signalling applications, descriptions of power and energy use profiles, assessments of business environment, government and private sector attitudes towards photovoltaics, and financing were also considered. The Moroccan market presents both advantages and disadvantages for American PV manufacturers. The principle advantages of the Moroccan market are: a limited grid, interest in and present use of PV in communications applications, attractive investment incentives, and a stated policy favoring American investment. Disadvantages include: lack of government incentives for PV use, general unfamiliarity with PV technology, high first cost of PV, a well-established market network for diesel generators, and difficulty with financing. The market for PV in Morocco (1981-1986), will be relatively small, about 340 kwp. The market for PV is likely to be more favorable in telecommunications, transport signalling and some rural services. The primary market appears to be in the public (i.e., government) rather than private sector, due to financial constraints and the high price of PV relative to conventional power sector.

  19. Responsible Investing in the Asia-Pacific Region: Understanding Sustainability and Investments in Japan and Hong Kong/China in an Era of Global Climate and Environmental Change

    NARCIS (Netherlands)

    J. Park (Jacob)

    2014-01-01

    markdownabstract__Abstract__ The author of this thesis examined the concept and market development of responsible investing (RI), which can be defined as an investment process that integrates social and environmental considerations within the context of traditional investment processes. RI has

  20. Advertising and generic market entry.

    Science.gov (United States)

    Königbauer, Ingrid

    2007-03-01

    The effect of purely persuasive advertising on generic market entry and social welfare is analysed. An incumbent has the possibility to invest in advertising which affects the prescribing physician's perceived relative qualities of the brand-name and the generic version of the drug. Advertising creates product differentiation and can induce generic market entry which is deterred without differentiation due to strong Bertrand competition. However, over-investment in advertising can deter generic market entry under certain conditions and reduces welfare as compared to accommodated market entry.

  1. Efficient capacity investment and joint production agreements in an oligopolistic electricity market: The HidroAysen joint venture project

    International Nuclear Information System (INIS)

    Raineri, Ricardo; Contreras, Gonzalo

    2010-01-01

    We develop a model for a power market with the characteristics of the Chilean power supply industry, which is an integrated system with a system operator (SO) with a vast authority to define the dispatch of the system. We evaluate whether a large joint power generator project made up by the two largest power generators is an anti-competitive project. Considering four investment technologies for power generation, namely, hydro, coal, diesel, and an advantageous hydro technology which can only be built in a large scale (HidroAysen) for the joint venture case, we use an oligopolistic Cournot model and a Benevolent Social Planner, both calibrated to the Chilean power industry, in order to assess the efficiency of alternative investment strategies and conditions whether the HidroAysen joint venture project can be barred to be judged as anti-competitive. Results suggest that the joint venture is an efficient investment and there is a pro-competitive behaviour on the part of the two power generators, and that there are benefit to consumers, who should expect non-increasing energy prices as a result of the advantageous hydrotechnology.

  2. The economic content of the term “investment attractiveness”

    Directory of Open Access Journals (Sweden)

    E. R. Zakirova

    2016-01-01

    Full Text Available The article is devoted to the definition of the economic content of the concept of “investment attraction” and the study of the criteria of investment attractiveness. We conducted a retrospective analysis and systematization of the various definitions of “capital”, “investment”, “investment attraction”, given by domestic and foreign authors. A generalized definition of capital is given: “capital’ is an objective economic category, which offers a business entity to carry out its investment activities in order to expand the scope and value of the business, making a profit and improve its investment attractiveness. It is emphasized that the concept of “investment” is broader than the concept of “capital”: it is investment in capital with varying degrees of liquidity for the purpose of subsequent increments and increase the value of the business entity. The author defines the main characteristics of the investment. A distinction of the term “investment attractiveness” of similar concepts, “market attractiveness”, “investment climate”, “investment image”, “investment potential” is made. It is concluded that the investment attractiveness is a component of the investment climate, which is characterized by an objective character and eliminates the subjectivity. Based on the understanding of different approaches to the study of the investment attractiveness and define its criteria the author offers a brief description of the concept of “investment attractiveness”: investment attractiveness is an independent economic category – a set of internal and external factors, as well as qualitative and quantitative indicators of the investment potential of any of the levels of the economic system – state, regional, sectoral, level of economic entities. Evaluation of investment attractiveness at all levels of the economic system is carried out in the current period (current situation analysis and forecast

  3. 7 CFR 1216.55 - Investment of funds.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 10 2010-01-01 2010-01-01 false Investment of funds. 1216.55 Section 1216.55 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (MARKETING... financial institutions that are members of the Federal Reserve system; or obligations that are fully...

  4. Financing energy investments in the economies in transition

    International Nuclear Information System (INIS)

    Brendow, C.

    1997-01-01

    This report is the part concerning Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) of the World Energy Council (WEC) Programme - a global study of the financing requirements of future energy developments. The investment needs are determined to reach the standards of developed energy market economies in terms of quality of service, efficiency, profitability, environmental protection and safety. Considering the macro-economic and general energy development scenarios done by IIASA and WEC the cumulative investment requirements 1990-2020 would be to range from $281bill. to $509 bill. in CEE; annual investment requirements would amount to $15-28 bill. depending on the scenarios; specific investment requirements per ton energy would range from 77 (ecologically driven scenario) to $101 (high growth, coal based scenario). In 1994 international finance for CEE/CIS energy sector was only $5 bill. (or 5% of the needs) due to the small size of the projects, low energy prices and the lack of incentives. CEE/CIS countries have not done enough to attract foreign loans. Western energy corporations acquired shares of Russian oil and gas companies. Reasons for the slow start include currency risk, legal uncertainty, uncertain demand prospects, low electricity tariffs, required rate of returns - above 18% in CEE, 25% in CIS, compared to 10% in US and UK. About 9% of total world foreign direct investments have been entered in energy sector. Multilateral organizations have invested yearly average $0.8-1 bill. grants and credits in CEE/CIS energy activities. From 1991 to 1995 135 mill. ECU have been spent for supporting national energy sector in CEE countries under PHARE activities. Difficulties are due to the lack of developed capital markets in these countries. In the future CEE capital markets could support a substantial proportion of the national investment requirements. By 2020 capital requirements for energy supply investments would be 3.4-4.7% of

  5. CHALLENGES AND STRATEGIC PRIORITIES FOR THE DEVELOPMENT OF INVESTMENT INSURANCE IN UKRAINE

    Directory of Open Access Journals (Sweden)

    Iryna Honcharenko

    2017-12-01

    Full Text Available The purpose of the paper is to substantiate the feasibility of expanding the scope of investment insurance in Ukraine, taking into account its advantages over other types of insurance services as well as the possibility of minimizing the possible disadvantages. Methodology. The list of the research methods of the subject under consideration includes the monographic method, analysis, techniques of the abstract-logical method, etc. Results. The urgency of the article is that the disclosure of the internal potential of the insurance market in Ukraine should take place with the introduction or activation of modern insurance products capable of meeting several financial needs at once, not only of their consumers but of the state as a whole. The development of voluntary life insurance plays an important investment role in the country’s economy, therefore, at the moment, the need to develop new financial products aimed at increasing voluntary insurance is urgent. The share of life insurance services in the insurance market of Ukraine in dynamic is analysed. The purpose and positive consequences of expanding the segment of investment insurance are substantiated. Investment insurance as a financial product has both advantages and disadvantages. The benefits include the transparent structure of the insurance product, the choice of investment strategy, the possibility of obtaining increased investment returns while preserving the benefits of the insurance contract, preferential taxation of investment income, the existence of a guaranteed amount of payment in the contract, etc.; to the drawbacks – the lack of the possibility of early termination of the contract with the receipt of all the insurance premiums paid, the absence of a guarantee fund, guaranteed income, long-term contracts, limited range of people who can be insured. To enhance the use of investment insurance in Ukraine and to minimize these shortcomings, the prospects for the development of

  6. Marketing Effectiveness Of Small Firms Investments

    OpenAIRE

    Svilen Ivanov

    2014-01-01

    Marketing efficiency acquires ever-increasing importance, both for the scientific community, and in the practice. At the corporate level there have - in theoretical plan - been developed and are applied a multitude of metrics for its assessment. The question whether these metrics are applicable and whether they are used in the activity of companies possessing scarce resources, has not yet been studied thoroughly. The main aim of this article is to ascertain within a particular market whether ...

  7. Gold-Stock Market Relationship: Emerging Markets versus Developed Markets

    Directory of Open Access Journals (Sweden)

    Jalal Seifoddini

    2017-09-01

    Full Text Available We perform a comparative study on the gold-stock market relationship in U.S. stock market as a developed market and in Iran stock market as an emerging market. By considering appropriate variables for emerging markets and by providing a more proper methodology, we improve earlier studies. According to our findings, the relationship between stock market returns and gold price returns does not follow any specific regimes and that this relationship changes in short and long term returns. It is necessary to mention that in the present research, we did not consider this relationship in major structural changes in the economies and instead considered usual economic circumstances that investors are regularly faced with in their investment decisions.

  8. Stock returns and foreign investment in Brazil

    OpenAIRE

    Reis, Luciana; Meurer, Roberto; Da Silva, Sergio

    2008-01-01

    We examine the relationship between stock returns and foreign investment in Brazil, and find that the inflows of foreign investment boosted the returns from 1995 to 2005. There was a strong contemporaneous correlation, although not Granger-causality. Foreign investment along with the exchange rate, the influence of the world stock markets, and country risk can explain 73 percent of the changes that occurred in the stock returns over the period. We also find that positive feedback trading play...

  9. Stem cell industry update: 2012 to 2016 reveals accelerated investment, but market capitalization and earnings lag.

    Science.gov (United States)

    Ng, Mitchell; Song, Simon; Piuzzi, Nicolas S; Ng, Kenneth; Gwam, Chukwuweike; Mont, Michael A; Muschler, George F

    2017-10-01

    Treatments based on stem cells have long been heralded for their potential to drive the future of regenerative medicine and have inspired increasing medical and business interest. The stem cell therapy market has been expanding since 2012, but earnings and profitability still lag the broader health care sector (compounded annual growth rate in annual financing of 31.5% versus 13.4%, respectively). On the basis of historical financial data, approximately $23 billion has been invested in stem cell companies since 1994, with more than 80% of this raised from 2011 through 2016. This reflects a marked acceleration in capital investment, as companies began late-stage clinical trials, initiate partnerships or are acquired by large pharmaceutical companies. All of these data reflect a field that is emerging from infancy, which will demand more time and capital to mature. This update is relevant to researchers, clinicians and investors who wish to quantify the potential in this field. Copyright © 2017 International Society for Cellular Therapy. Published by Elsevier Inc. All rights reserved.

  10. BRICS Investment Policies from PFI Perspective

    Directory of Open Access Journals (Sweden)

    Andrei Sakharov 

    2017-12-01

    Full Text Available The Organisation for Economic Co-operation and Development (OECD Policy Framework for Investment (PFI contains recommendations and best practices in 12 investment-related policy areas, and is widely regarded as the world’s most comprehensive and authoritative instrument on international investment regulation. The topicality of PFI recommendations for OECD members and other countries, including Russia, is dictated by competition in international investment markets. The instrument’s implementation can significantly boost a national jurisdiction’s attractiveness to investors and thus increase its economic competitiveness. The experience of the BRICS countries as large developing economies involved in collaboration with the OECD could be of great value from the standpoint of PFI implementation in Russia. This article examines investment policies of Brazil, India, China and South Africa from the perspective of PFI recommendations. The analysis is organized around four major themes: the general characteristics of investment regimes and investment stimuli, national investment regulation regimes, trade policies and overcoming structural limitations. The analysis forms the basis for recommendations to improve the investment policy regime in Russia

  11. Considerations on Optimal Financial Invest ment into Infrastructural Facilities

    Institute of Scientific and Technical Information of China (English)

    2002-01-01

    The enlargement of government's investment into infrastructural construction is both a help medicine curing economic contraction and an effective measure to accumulate long-term economic growth.. However, the investment by finance into infrastructure also has a problem of optimization and reasonable selection. In view of market economic requirements, the policy direction of financial investment into infrastructural industries must be doing something at the expense of some other things. In the process of the adjustment and optimization of economic structure, state financial investment into infrastructural facilities has to first of all solve the problem of delimitating the best fields and selecting trades. As to the infrastructure facilities producing and selling pure public products, the development must be made by financial investment;As to the production fields of subpublic products, finance should ensure reasonable investment; As to the infrastructural facilities of pure privite production, finance should completely, in principle, pull out and let market supply. On this basis, selections should be made on best capital soureces and investment ways. The capital sources should be mainly from tax and regulational income and direct investment may be made. As to the production fields of most subpublic production, the best capital sources are national debt income and indirect investment may be made. In addition, the optimization of financial investment into infrastructural facilities must reform the managerial system of infrastructural facilities and raise investment efficiency. Only by scientifically selecting and arranging the financing ways and managerial system in investment fields,can the maximum economic efficiency and social welfare results be realized in carrying out financial investment into infrastructural facilities.

  12. The Effect of the European Monetary Union on International Capital Markets

    Directory of Open Access Journals (Sweden)

    Chae-Shick Chung

    1998-12-01

    Full Text Available This thesis analyzed the influence of the Economic and Monetary Union (EMU which is predicted to appear publicly on January 1999 over the international financial environment, aiming at discussing the countermeasure that Korea should take to this external environment. The inexistence of exchange risk in Europe which brought by the appearance of the single currency accelerated the flow of capital within this area, and it is predicted that the financial institutions in this area will be rearranged. It is predicted that the appearance of Euro will contribute to the development of the company bond market greatly. It is estimated that the company bond of “high-risk, high-return” including the junk bond which is unsuitable for investment will be activated, but the sound financial policy which was taken to stabilizing the Euro will greatly shrink the national debt market. At present, US dollar plays a dominant role in aspects of foreign exchange trade, international settlement, asset investment, governmental reserve assets, etc., but it is predicted that the international currency system will be polarized with the appearance of Euro. In the year 1999 in which EMU established, it is predicted that Euro will keep its stability by cooperating with the US policy, and it won’t greatly affect the private and governmental assets of other countries including Asian countries. However, the appearance of Euro might weaken the function of Yen which is another main currency further, so there is analysis that Japan will positively promote the internationalization of Yen.

  13. A Critical Review of the Literature on Firm-Level Theories on Ship Investment

    Directory of Open Access Journals (Sweden)

    Sinem Celik Girgin

    2018-01-01

    Full Text Available The maritime industry is one of those rare industries that are both highly international integrated to international trade and also highly capital intensive dependent on substantial investment amount. In the literature, ship investments have not been widely examined through the firm-level investment theories to explore the link between investment level and asset price valuation. The general trend in the literature of ship investments is to analyse the relationship among the shipping markets (newbuilding, second-hand, freight rate and scrap and their impact on asset price valuation, the timing of investments and market entry and exit conditions. In this paper, we extensively reviewed the literature of firm-level investment theories and ship investments. We showed that the application of firm-level investment theories to the ship investments is confined to the basic investment valuation models, such as Net Present Value and Real Option Analysis. Ship investments need to be examined by firm-level investment theories to define firm/industry value maximization level within the approach of the solid investment theories.

  14. Investment in Electronic Commerce: Financial Perspectives and Profit Conditions

    OpenAIRE

    Bergendahl, Göran

    2002-01-01

    Electronic Commerce ("eCommerce") is a concept for trade based upon products and services that are being marketed, contracted, and paid for over the Internet. Consequently, electronic commerce demands for the investment in computer systems, marketing, logistics and payments. This paper will focus on the profitability of investments in eCommerce with a special focus on outlays for information technology systems and sales management. If the services are made more standardized, if they do not ch...

  15. Concepts of investment risks and strategies in electricity generation

    International Nuclear Information System (INIS)

    De Joode, J.; Boots, M.G.

    2005-06-01

    This report deals with the specific investment risks in electricity generation and discusses the problems associated with energy investments in general and focus on the additional or changing risks resulting from electricity market liberalisation. The focus is on (1) risks under the control of the electricity company, and on (2) market risks, such as the risk of price changes. Ultimately, some of the approaches and strategies that enable electricity producers to counter or mitigate these risks are discussed

  16. Juggling Act: Balancing Safety, Security, and Yield in School Investments.

    Science.gov (United States)

    Sallack, David J.

    2001-01-01

    Although state laws governing school district investing are quite conservative, there have been some notable investment failures leading to the loss of public funds. School districts must beware three kinds of investment risks involving credit, market, and interest rates and consider safety, legality, liquidity, and cash-flow requirements. (MLH)

  17. Risk Aversion, Price Uncertainty and Irreversible Investments

    NARCIS (Netherlands)

    van den Goorbergh, R.W.J.; Huisman, K.J.M.; Kort, P.M.

    2003-01-01

    This paper generalizes the theory of irreversible investment under uncertainty by allowing for risk averse investors in the absence of com-plete markets.Until now this theory has only been developed in the cases of risk neutrality, or risk aversion in combination with complete markets.Within a

  18. 7 CFR 1280.213 - Investment of funds.

    Science.gov (United States)

    2010-01-01

    ... 7 Agriculture 10 2010-01-01 2010-01-01 false Investment of funds. 1280.213 Section 1280.213 Agriculture Regulations of the Department of Agriculture (Continued) AGRICULTURAL MARKETING SERVICE (MARKETING... thereof, in any interest-bearing account or certificate of deposit of a financial institution that is a...

  19. Chinese investment in the EU renewable energy sector: Motives, synergies and policy implications

    International Nuclear Information System (INIS)

    Curran, Louise; Lv, Ping; Spigarelli, Francesca

    2017-01-01

    This paper addresses three questions: how have trade and investment in wind and solar sectors evolved between the EU and China in recent years? Is there a link between rising trade conflicts and trade and investment trends? And what wider motivations and synergies can be identified in Chinese investments in the EU's RE sector? To address these questions we analyze trade and investment data, as well as qualitative data, including information from media and company reports. Large increases in trade and investment were followed by rapid falls since 2012–13. Trade tensions have not led to increases in investment, rather the inverse. We find that Chinese investment in these two sectors is very concentrated in Germany. The key motivation for investment is market seeking, although R+D is also important, especially for wind. Most investments are greenfield, a preference that has persisted over time. Our qualitative analysis of several key acquisitions indicates that technology integration and the consolidation of capacities across the supply chain were key motivations in most of the cases studied. We conclude with some policy orientations. - Highlights: • Chinese investments in solar and wind in Europe are concentrated in Germany. • Large increases in trade and investment were followed by rapid falls since 2012–13. • These falls seem to be related to market difficulties. • Key investment entry mode is greenfield and motivation is market seeking. • In acquisitions, technology seeking plays a key role.

  20. THE ANALYSIS OF THE REAL ESTATE INVESTMENTS IN THE CURRENT ECONOMIC ENVIRONMENT

    Directory of Open Access Journals (Sweden)

    Hristea Anca Maria

    2013-07-01

    Full Text Available Real estate investments are one of the most attractive business opportunities in the context of the contemporary economy, generally marked by economic recession and especially by monetary and financial instability. Last years international reporting concluded that deepening the global economic crisis determined an increase of the real estate request, while despite all expectations one did not assist a crash of the prices. Economic reality showed that real estate assets value (buildings, land kept proportions with economic reality over time. A comparison between stock exchange market and the real estate market shows that while an movables investor (investments in stocks, bonds or life insurance might lose completely his initial investment, the investments in real estate assets, such as buildings, would keep their quality as goods and would also keep a value to better resist shocks and thus allowing an increase of the capital. When appreciating the value of an investment the first things to analyze are the return, liquidity and risk criteria, which are essential in real estate investments too. Stimulating real estate market must be not only a wish but also a reality of global economy, since it can correct many of the aggregated indicators of a country. Containing scientifically detached from economic practice, this article is addressed to readers with interests in real estate investment. The language is usually referred particularly to the qualitative side of the real estate market approach. The feasibility of the real estate investments is being conditioned by their capacity to generate important profits, on the background of the reduction of the duration of recovery of their value. The economic instability from the last couple of years has generated fears and failures but, paraphrasing Johann Wolfgang von Goethe, courage is a mixture of genius, magic and power that helps us succeed in everything we set our mind to. The investments on the real

  1. Essays on restructured electricity markets

    Science.gov (United States)

    Nicholson, Emma Leah

    This dissertation focuses on the performance of restructured electricity markets in the United States. In chapter 1, I study bidder-specific offer caps ("BSOCs") which are used to mitigate market power in three wholesale electricity markets. The price of electricity is determined through multi-unit uniform price auctions and BSOCs impose an upper limit, which is increasing in marginal cost, on each generator's bid. I apply BSOCs in both the uniform and discriminatory price auctions and characterize the equilibria in a two firm model with stochastic demand. BSOCs unambiguously increase expected production efficiency in the uniform price auction and they can increase the expected profit of the generator with the lower cap. Chapter 2, coauthored with Ramteen Sioshansi, Ph.D., compares two types of uniform price auction formats used in wholesale electricity markets, centrally committed markets and self committed markets. In centrally committed markets, generators submit two-part bids consisting of a fixed startup cost and a variable (per MWh) energy cost, and the auctioneer ensures that no generator operates at a loss. Generators in self committed markets must incorporate their startup costs into their one part energy bids. We derive Nash equilibria for both the centrally and self committed electricity markets in a model with two symmetric generators with nonconvex costs and deterministic demand. Using a numerical example, we demonstrate that if the caps on the bid elements are chosen appropriately, the two market designs are equivalent in terms of generator revenues and settlement costs. Regulators and prominent academic experts believe that electric restructuring polices have stifled investment in new generation capacity. In chapter 3 I seek to determine whether these fears are supported by empirical evidence. I examine both total investment in megawatts and the number of new investments across regions that adopted different electric restructuring policies to

  2. ANALYSIS OF THE INVESTMENT RISK IN CRYPTOCURRENCY BITCOIN

    OpenAIRE

    Kinga Kądziołka

    2015-01-01

    The aim of the article was to evaluate the risks of investing in Bitcoin cryptocurrency. Particular attention was paid to the risk of investment on the Polish exchanges: Bitcurex, BitBay, BitMarket.pl and LocalBitcoins. To evaluate the risk there was used VaR measure. There were compared the risk of investing in Bitcoin cryptocurrency and the risk of investing in the selected "traditional" currencies. There was also paid attention to the effect of day of the week on the Bitcoin’s exchanges. T...

  3. PRICING AND ASSESSING UNIT-LINKED INSURANCE CONTRACTS WITH INVESTMENT GUARANTEES

    Directory of Open Access Journals (Sweden)

    Ciumas Cristina

    2014-07-01

    Full Text Available One of the most interesting life insurance products to have emerged in recent years in the Romanian insurance market has been the unit-linked contract. Unit-linked insurance products are life insurance policies with investment component. A unit-linked life insurance has two important components: protection and investment. The protection component refers to the insured sum in case of the occurrence of insured risks and the investment component refers to the policyholders’ account that represents the present value of the units from the chosen investment funds. Due to the financial instability caused by the Global Crisis and the amplification of market competitiveness, insurers from international markets have started to incorporate guarantees in unit-linked products. So a unit- linked life insurance policy with an asset value guarantee is an insurance policy whose benefit payable on death or at maturity consists of the greater of some guaranteed amount and the value of the units from the investment funds. One of the most challenging issues concerns the pricing of minimum death benefit and maturity benefit guarantees and the establishing of proper reserves for these guarantees. Insurers granting guarantees of this type must estimate the cost and include the cost in the premium. An important component of the activity carried out by the insurance companies is the investment of the premiums paid by policyholders in various types of assets, in order to obtain higher yields than those guaranteed by the insurance contracts, while providing the necessary liquidity for the payment of insurance claims in case of occurrence of the assumed risks. So the guaranteed benefits can be broadly matched or immunized with various types of financial assets, especially with fixed-interest instruments. According to Romanian legislation which regulates the unit-linked life insurance market, unit-linked life insurance contracts pass most of the investment risk to the

  4. 26 CFR 53.4944-3 - Exception for program-related investments.

    Science.gov (United States)

    2010-04-01

    ... furtherance of its exempt purposes. Although there is a relationship between the return on the investment and... investment would not have been made but for such relationship between the investment and the accomplishment... market rate for commercial loans of comparable risk. Y's primary purpose for making the loan is to...

  5. Biomass Power Generation Investment in China: A Real Options Evaluation

    Directory of Open Access Journals (Sweden)

    Mingming Zhang

    2016-06-01

    Full Text Available This paper proposes a real options model for evaluating the biomass power generation investment in China. The uncertainties in the market price of electricity, CO2 price and straw price are considered. Meanwhile the dynamic relationship between installed capacity and fuel cost, as well as the long-term reduction of subsidy are described. Two scenarios, i.e., with the carbon emission trading scheme existent and non-existent, respectively, is built to empirically analyze the investment of a 25-MW straw-based power generation project. The results show that investors should undertake the investment in 2030 under two scenarios. Investment values are 14,869,254.8 and 37,608,727 Chinese Yuan (RMB, respectively. The implementation of the carbon emission trading scheme theoretically helps improve investment value and advance the most likely optimal investment time. However, the current CO2 price is not sufficient to advance the most likely optimal investment time. The impacts of several factors, including subsidy policy, CO2 price, straw price, installed capacity, correlation structure and the validity period of investment, on the optimal investment strategy are also examined. It is suggested that governments take some measures, including increasing subsidy, setting the growth pattern of subsidy and establishing and perfecting a nationwide carbon trading market, to improve the investment environment and attract more investments.

  6. Collaborative Approaches in Emerging Markets

    DEFF Research Database (Denmark)

    Søberg, Peder Veng; Han, Yang

    2011-01-01

    , in order to increase innovation performance. The theoretical framework is based on theories on trust, as well as institutional theory. The findings suggest that cognition-based trust as well as affect-based trust is needed for successful innovative collaboration, however, in emerging markets affect......The paper investigates innovative collaboration undertaken by newly established foreign invested R&D units in emerging markets. In particular, the paper investigates how foreign invested newly established R&D centers in emerging markets can leverage local knowledge networks, such as universities......-based trust is more important than Westerners are used to. This is due to the different institutional backgrounds, in emerging markets and developed markets respectively....

  7. Analysis of stock market returns of American and European stock market from the view of an American and a European investor

    Directory of Open Access Journals (Sweden)

    Oldřich Šoba

    2005-01-01

    Full Text Available The paper is focused on the analysis of stock market returns of American and European stock market for different investment horizon from the view of an American and European investor. The paper also partly resumes, in the part of analysis of USD/EUR exchange rate influence on market returns of mentioned stock market, research paper REJNUŠ, O., ŠOBA, O.: Changes in the USD/EUR exchange rate and their impact on the return of stock indexes from the viewpoint of a European and of an American investor. ACTA UNIVERSITATIS AGRICULTURAE ET SILVICULTURAE MENDELIANAE BRU- NENSIS, Vol. LII, No. 6, 2004, pg. 145–159, ISSN 1211-8516.The development of both American and European stock market is put on the development of two, structure-similar Standard & Poor’s exchange indexes, particularly S&P 500 and S&P Europe 350. According to the USD/EUR exchange rate, there were used the values published by FED, with the oldest data there were accepted the count ECU to EUR. The data were taken both from the weekly closing values of mentioned stock indexes and weekly closing values of USD/EUR exchange rate.The analysis was done with using the methods of quantification of „running market returns“ (recount to the average annual values of indexes from the view of both investors within the set investment horizon. The elemental statistical level characteristic – simple average, median and statistical characteristic of variability – standard deviation and variation coefficient were quantified from this time series of annual running market returns. The analysis, which was purposely oriented to six basic different long investment horizon (1 year, 2 years, 3 years, 5 years, 7 years, 10 years, has approved that in focused term of 1980–2004 the market returns of picked stock market from the view of both investors (American and European was generally higher in longer investment horizon than in the shorter investment horizon. The values of variation coefficient in

  8. Short communication: East-West European farm investment behaviour - The role of financial constraints and public support

    Directory of Open Access Journals (Sweden)

    Imre Fertő

    2017-04-01

    Full Text Available The article investigated farm investment behaviour among East (Hungarian and Slovenian and West (French European Union farms using individual farm accountancy panel data for the 2003-2008 period. Despite differences in farm structures, except for the presence of capital market imperfections evidenced in the East, farms’ investment behaviour was not substantially different. Farm gross investment was positively associated with real sales’ growth. In addition, it was positively associated with public investment subsidies which can mitigate capital market imperfections in the short-term. On the long run, the farm’s ability to successfully compete in the output market by selling produce and securing a sufficient cash flow for investment is crucial.

  9. Financial Development and Investment-Cash Flow Sensitivity

    Directory of Open Access Journals (Sweden)

    Jungwon Suh

    2007-06-01

    Full Text Available Using firm-level data from thirty-five countries around the world, this paper empirically examines whether investment-cash flow sensitivity reflects financial constraints. Recent US studies have raised questions on the prediction that investment-cash flow sensitivity is a measure of financial constraints. Looking at thirty-five countries with varying degrees of financial development, this study tests whether investment-cash flow sensitivity is in fact related to financial constraints. In most countries, the evidence supporting the argument that firms likely facing financially constraints display high investment-cash flow sensitivity is weak. Moreover, the evidence that firms in the absence of developed financial markets display high investment-cash flow sensitivity is also weak. Overall, the results from this international investigation do not support the prediction that investment-cash flow sensitivity reflects financial constraints.

  10. The place of foreign direct investment in the global economy

    Directory of Open Access Journals (Sweden)

    Tomasz Gutowski

    2011-06-01

    Full Text Available Foreign direct investment (FDI plays an extraordinary and growing role in global business. It can provide a firm with new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing. For a host country or the foreign firm which receives the investment, it can provide a source of new technologies, capital, processes, products, organizational technologies and management skills and as such can provide a strong impetus to economic development. The sea change in trade and investment policies and the regulatory environment globally in the past decade, including trade policy and tariff liberalization, easing of restrictions on foreign investment and acquisition in many nations, and the deregulation and privitazation of many industries, has probably been been the most significant catalyst for FDI’s expanded role.

  11. Political participation in European welfare states: Does social investment matter?

    DEFF Research Database (Denmark)

    Marx, Paul; Nguyen, Christoph

    2018-01-01

    The role of the welfare state has expanded beyond passive assistance and decommodificaton. In many countries, social investment policies now actively encourage (re)integration into the labour market. While the effectiveness of these policies is debated, we know even less about their broader social...... and political effects. In this contribution, we explore the impact of social investment policies on one key aspect of social life: political participation. Combining insights from social psychology with institutional analysis, we investigate the impact of three social investment policies (early childhood...... education, secondary education, active labour market policies) on two disadvantaged groups: young individuals from low-skill backgrounds; and single parents. Combining the European Social Survey with data on social investment, we find that these risk groups have reduced political efficacy and political...

  12. The Impact of the Asian Crisis on International Financial Markets

    Directory of Open Access Journals (Sweden)

    Sang-Uck Loh

    1998-12-01

    Full Text Available Among the influences of the Asian financial crisis on the international market and its monetary policy and situation, the sharp backwash of the international private capital which has been continually related to the emerging market since the early 1990s is considered as the most important one. Though this trend is partly the result of the internal causes of the emerging countries, such as the inflexible policy of the exchange rate, the accumulation of the frequent income and expenses deficit and the stagnation of the economy in the countries hit by the Asian economic crisis, the unstable internal structure of the application system of the international monetary market probably also brought a tremendous influence. This thesis takes a look at the situation and is directed towards the direction and scale of the future international capital based on the studies of the unsteady factors of the structure of the economic market, which appeared in the period of the Asian economic crisis. After the moratorium of Russia, the liquidity of the international private capital in the international monetary market became various with the implement of the policy which lowered the exchange rate under the cooperation of the developed countries. Meanwhile, the Asian countries strived to establish the structure of enterprises and financial department in a full speed and with a high intensity after the economic crisis. So it is believed that they were fully qualified to enter the emerging market, and would be again in case of need. As the international investors experienced the Asian economic crisis, they faced and estimated the risk of investing into the emerging markets again. As the case stands, the strengthened joint of finance and trade among countries lead to a higher risk of the possibility that the crisis of one country expands to a worldwide crisis. So it is predicted that the inflow of the capital to the emerging market will be in a gradual way. The selection

  13. Incentives for the investment in the liberalized electric industries of the north and of the south: The necessity of appropriate institutional arrangements

    International Nuclear Information System (INIS)

    Finon, Dominique

    2004-01-01

    long-term co-ordination and reduction of investment risks. Indeed experiences of Latin American liberalized industries show that they have to include a number of competition-based imperfections and to allow ongoing exercise of market power for prices rising above competition prices. The Single Buyer model or some variants of it appears to be a good alternative if one wishes to avoid the twists and turns of the competition paradigm. The difficulty with this model rises from the institutional conditions to make it efficient and not over-costly

  14. On Russian/Nordic Investment Competition in the Baltic States

    Directory of Open Access Journals (Sweden)

    Olenchenko Vladimir

    2015-06-01

    Full Text Available The researchers often overlook the relationships between Russian and Nordic investment capital; and even less attention is paid to studying the competition between the two. Yet this subject can be of particular relevance to the areas that are geographically, historically and culturally close to both Russia and the Nordic countries. Thus, the aim of this article is to understand how the competition between Russian and Nordic capital investment is played out in the Baltic States. The study discusses the principles of Russian and Nordic investment in the Baltic, and suggests ways to regulate these relations. To this end, we compare the investment conditions created in the Baltic States for both Russian and Nordic investors. The analysis shows that most of the Baltic market is controlled by the Nordic capital, which blocks the arrival of Russian investment to the Baltic States. With a nod to a number of previous studies, the authors of this article suggest some adjustments to the theory of foreign direct investment. The study will be also of practical interest to those Russian investors who are seeking entry points to the Baltic markets.

  15. Doing Good with Foundation Assets: An Updated Look at Program-Related Investments

    Science.gov (United States)

    Lawrence, Steven

    2010-01-01

    For four decades U.S. foundations have had the ability to make below-market-rate investments in activities consistent with their missions, and count these investments as part of their annual charitable distributions. Program-related investments, or PRIs, provide the opportunity for a philanthropic multiplier effect, as foundations invest the…

  16. Optimizing investments in coupled offshore wind -electrolytic hydrogen storage systems in Denmark

    DEFF Research Database (Denmark)

    Hou, Peng; Enevoldsen, Peter; Eichman, Joshua

    2017-01-01

    , electrolyzers, and hydrogen fuel cells is explored. This research reveals the investment potential of coupling offshore wind farms with different hydrogen systems. The benefits in terms of a return on investment are demonstrated with data from the Danish electricity markets. This research also investigates......In response to electricity markets with growing levels of wind energy production and varying electricity prices, this research examines incentives for investments in integrated renewable energy power systems. A strategy for using optimization methods for a power system consisting of wind turbines...

  17. Prospects for investment in large-scale, grid-connected solar power in Africa

    DEFF Research Database (Denmark)

    Hansen, Ulrich Elmer; Nygaard, Ivan; Pedersen, Mathilde Brix

    since the 1990s have changed the competiveness of solar PV in all markets, ranging from individual households via institutions to mini-grids and grid-connected installations. In volume and investment, the market for large-scale grid-connected solar power plants is by far the most important......-scale investments in grid-connected solar power plants and local assembly facilities for PV panels, have exceeded even optimistic scenarios. Finally, therefore, there seem to be bright prospects for investment in large-scale grid-connected solar power in Africa....

  18. Security of Supply in Australia's National Electricity Market

    International Nuclear Information System (INIS)

    Roberts, Sebastian

    2005-06-01

    This paper discusses the experience with an energy-only market in Australia, focusing on investment and price outcomes since market commencement. Looking back at the changes in the market since it commenced in 1998, it is fair to say that the energy-only market design has been a success so far. Demand has increased steadily, but this has been matched with new investment in generation and networks. The availability and efficiency of existing plant has also increased substantially. As a result of these gains, prices have come down and are less volatile, and the reliability and security of the market has been consolidated. Compared with 1989-90, the industry delivered more electricity (an increase of 45 per cent), to more customers (an increase of 26 per cent), and with less than half the number of employees. Industrial and residential energy users have enjoyed decreased prices, thanks to a combination of increased generation and network investment, and greater competition. Despite these successes, there is scope for further reform of the NEM to aid further improvements in the market's performance. We have seen how successful the energy-only market has been in signalling new investment in peaking generation, but there is still a question as to the effectiveness of the market in signalling baseload investment. In any case, future challenges will involve ensuring that market arrangements are conducive to new investment. Indeed, following recent reviews of the Australian energy market by Australian statutory bodies, there is a consensus view that the further reform is required to improve investment signals. The 2002 Review of Australian Energy Markets recommended structural reform of the New South Wales electricity industry and the removal of ETEF. In February this year, the Productivity Commission recommended disaggregation of the generation sector in New South Wales, and took the further step of recommending that the New South Wales government should consider

  19. Investing in the gas industry in Central and Eastern Europe

    International Nuclear Information System (INIS)

    Mulder, H.

    1996-01-01

    This presentation explains what are the most common bottlenecks for foreign investments in the gas industry in Central and Eastern Europe. Taking into account the investment needs arising in economies in transition, from investor's point of view the issue of great importance is the risk when prices are not yet at market equivalent levels. Changes in the policy (regulatory, legal, financial) environment should stimulate investments. Privatization and liberalization are also driven by lack of public capital. Foreign investment would need a predictable investment environment. The investment needs of the gas industry would compete with other investments that might be more attractive

  20. Is there any overtrading in stock markets? The moderating role of big five personality traits and gender in a unilateral trend stock market.

    Science.gov (United States)

    Zhang, Jian; Wang, Haocheng; Wang, Limin; Liu, Shuyi

    2014-01-01

    Overtrading is a common anomaly among stock investors. This study examines the relationship between overtrading and investment returns and the impact of the Big Five traits and gender on overtrading in a unilateral trend stock market using a simulated stock investment system. The data were derived from a sample of undergraduates from six universities who performed in a simulated stock investment situation and had their personality traits measured by the Big Five Personality Questionnaire. The results indicate that: (1) Overtrading was significant in rising stock markets, but not significant in falling markets. (2) The degree of female investors who overtraded was significant in rising markets. (3) The degree of overtrading investors who were high in extroversion or agreeableness was significant in rising markets. The implications of these results for more effective investment strategies are discussed.

  1. International Markets Boosted in The 9th Chitec

    Institute of Scientific and Technical Information of China (English)

    Sun Yongjian

    2006-01-01

    @@ The UK, Small Country with Largest European Market Mr. Corin Wilson, Inward Investment Manager, British embassy Beijing General Bureau of Trade and Investment in UK(Accessing the UK Market and Beyond): In 2006, there are many reasons why China and Chinese companies are looking for the opportunities of investment in the UK, which includes very good trade organizations.

  2. Optimization of investments in gas networks

    International Nuclear Information System (INIS)

    Andre, J.

    2010-09-01

    The natural gas networks require very important investments to cope with a still growing demand and to satisfy the new regulatory constraints. The gas market deregulation imposed to the gas network operators, first, transparency rules of a natural monopoly to justify their costs and ultimately their tariffs, and, second, market fluidity objectives in order to facilitate access for competition to the end-users. These major investments are the main reasons for the use of optimization techniques aiming at reducing the costs. Due to the discrete choices (investment location, limited choice of additional capacities, timing) crossed with physical non linear constraints (flow/pressures relations in the pipe or operating ranges of compressors), the programs to solve are Large Mixed Non Linear Programs (MINLP). As these types of programs are known to be hard to solve exactly in polynomial times (NP-hard), advanced optimization methods have to be implemented to obtain realistic results. The objectives of this thesis are threefold. First, one states several investment problems modeling of natural gas networks from industrial world motivations. Second, one identifies the most suitable methods and algorithms to the formulated problems. Third, one exposes the main advantages and drawbacks of these methods with the help of numerical applications on real cases. (author)

  3. Hospital marketing: characterization of marketing actions in private hospitals in the city of São Paulo - Brazil.

    Science.gov (United States)

    Leiderman, Eduardo Blay; Padovan, Jorge Luis; Zucchi, Paola

    2010-01-01

    Characterize the marketing actions in private hospitals in the city of São Paulo, the organizational structure of the marketing area, the target public of marketing actions and the media used. Exploratory cross-sectional study, carried out by a survey made with hospital administrators. The hospitals studied were clearly divided in two groups whose differentials are statistically significant: 1. good infrastructure and equipment, with a well-defined investment policy in marketing; 2. worse infrastructure and less equipment, with lower proportional investment in marketing. 1. The actions most used are the evaluation of patients/caregivers satisfaction, web site and dissemination of the hospital services. 2. The hospital administrators attribute a level of significant importance to the application of hospital marketing concepts. 3. There is a marketing structure in most of the hospitals studied. 4. The hospitals consider as extremely or very important publics: patients and relatives, doctors, collaborators, health plans and community. 5. The media most used are the most simple and of lower cost. 6. There is a statistically significant correlation between the higher investment in marketing and the best infrastructure. 7. The studied hospitals apply the concept of marketing in a restricted way.

  4. A Nodal Pricing Analysis of the Future German Electricity Market

    International Nuclear Information System (INIS)

    Ozdemir, O.; Hers, J.S.; Bartholomew Fisher, E.; Brunekreeft, G.; Hobbs, B.F.

    2009-05-01

    The electricity market in Germany is likely to undergo several significant structural changes over the years to come. Here one may think of Germany's ambitious renewable agenda, the disputed decommissioning of nuclear facilities, but also unbundling of TSO's as enforced by European regulation. This study is a scenario-based analysis of the impact of different realizations of known investment plans for transmission and generation capacity on the future German power market while accounting for internal congestion. For this analysis the static equilibrium model of the European electricity market COMPETES is deployed, including a 10-node representation of the German highvoltage grid. Results for the multi-node analysis indicate that price divergence and congestion are likely to arise in the German market as renewable additions affecting mainly the North of Germany, the debated decommissioning of nuclear facilities in the South, and the expected decommissioning of coal-fired facilities in Western Germany appear to render current investment plans for transmission capacity insufficient. The current system of singlezone pricing for the German market may therewith be compromised. However, transmission additions would not benefit all market parties, with producers in exporting regions and consumers in importing regions being the main beneficiaries. Vertical unbundling of German power companies could increase the incentive for constructing transmission lines if generation capacity would cause Germany to be a net-importing country. In case Germany remains a net-exporting country, the effects of vertical unbundling on cross-border capacity are less clear cut.

  5. COINTEGRATION ANALYSIS OF EUROPEAN STOCK MARKETS (ROMANIA, GERMANY, FRANCE AND POLAND FROM THE PERSPECTIVE OF THE NET ASSETS INVESTMENT OF THE ROMANIAN MANDATORY PRIVATE PENSION FUNDS

    Directory of Open Access Journals (Sweden)

    Andreea-Cristina PETRICA

    2016-12-01

    Full Text Available The goal of this paper is to investigate cointegration between Bucharest Stock Exchange and three European Stock Markets: Germany,France and Poland, respectively. The choice of the European markets is based on the net assets investment of the Romanian mandatory private pension funds. On June 30, 2016, according to the Romanian Financial Supervisory Authority 91.28% of all investments in shares of private pension funds have been performed in Romanian shares, while the rest of 8.72% (0.44 billion lei have been performed in shares issued by Germany (2.34%, France (2.23%, Poland (0.89% and other countries. Having the intention of achieving maximizing returns by managing risk, and also to capture the co-movements in the above markets,we perform the cointegration analysis to examine portfolio diversification of the Romanian mandatory private pension funds. The empirical analysis is based on daily closing prices of the BET Index, DAX 30 Index, CAC 40 Index and WIG 20 Index and covers the period from 30 January 2006 to 27 September 2016 (2713 observations.

  6. Alternative Investments: Valuation of Wine as a Means for Portfolio Diversification

    OpenAIRE

    Jurevičienė, Daiva; Jakavonytė, Agnė

    2015-01-01

    This article analyses wine as an alternative investment tool and its relevance for investment portfolio diversification. Advantages and disadvantages of alternatives, benefits and weakness and peculiarities of investing in wine are systemised. In addition, the article looks at statistical data analysis of fine wine market and compares wine with other investment tools. The examination is based on three investment instruments: US equities (using S&P 500 index), bonds (using US 20-Year treasury ...

  7. Financing investment in new electricity generation capacity in Northwest Europe. Policy brief

    Energy Technology Data Exchange (ETDEWEB)

    Ozdemir, O.; De Joode, J.; Koutstaal, P.R. [ECN Policy Studies, Amsterdam (Netherlands)

    2013-05-15

    Current Northwest European electricity markets are designed as 'energy-only' markets. In an energy-only market the price received for electricity produced is set by the marginal generation unit and potentially leaves the owners of these units with 'missing money': i.e. money that is required to recover investment cost. With a much higher penetration of intermittent electricity sources such as wind and solar PV, these markets may not be capable of providing sufficient incentives for investment in generation capacity, because operating hours and scarcity rents for peak and mid-merit order capacity will be considerably reduced. There are a number of options available to address this missing money problem. First of all, options should be explored which focus on improving the existing electricity markets. These options include increasing flexibility in both supply and demand improving the profitability of investments, for example by means of removing (implicit) price caps and allowing for long-term contracts. Next to these options which can help increase the revenue for generation investments some form of capacity mechanism such as capacity payments or capacity markets could be introduced. These capacity mechanisms have attracted considerable attention in recent years, both in the literature and in the policy debate, with a number of countries considering the introduction of such mechanisms. However, unilateral introduction of capacity mechanisms in integrated electricity markets can have a considerable impact on cross border electricity flows and investment decisions. It might negatively affect security of supply in neighbouring countries and will result in price differences between consumers within a country which have to bear the costs of capacity mechanisms and those outside those countries. Moreover, unilateral capacity mechanisms can disrupt the functioning of the internal energy market. Before the implementation of capacity mechanisms

  8. ANALYSIS OF THE INVESTMENT RISK IN CRYPTOCURRENCY BITCOIN

    Directory of Open Access Journals (Sweden)

    Kinga Kądziołka

    2015-09-01

    Full Text Available The aim of the article was to evaluate the risks of investing in Bitcoin cryptocurrency. Particular attention was paid to the risk of investment on the Polish exchanges: Bitcurex, BitBay, BitMarket.pl and LocalBitcoins. To evaluate the risk there was used VaR measure. There were compared the risk of investing in Bitcoin cryptocurrency and the risk of investing in the selected "traditional" currencies. There was also paid attention to the effect of day of the week on the Bitcoin’s exchanges. The investment in cryptocurrency was characterized by higher risk than investing in “traditional” currencies. The Polish Bitcoin exchange LocalBitcoins was characterized by the highest risk and highest average daily rate of return.

  9. Technology mix configuration in liberalized electricity market

    International Nuclear Information System (INIS)

    Castro-Rodriguez, F.

    2007-01-01

    This paper analyzes the evolution of technology mix in the electricity industry when investment choices are left to private investors. In particular, possible failures and investment biases in recent liberalized electricity markets are presented. In addition, the main regulatory mechanisms used in practice and their effects are analyzed. Finally, this paper explores the government intervention in technology choices in the Spanish electricity market from the beginning of the liberalization process. While some regulatory rules have adequacy complemented the market functioning, others have distorted the electricity price, which is the reference to signal right investments. (Author) 13 refs

  10. Capacity choice, technology mix and market power

    International Nuclear Information System (INIS)

    Meunier, Guy

    2010-01-01

    This paper investigates strategic capacity choices in electricity markets comprised of heterogeneous firms. Long term strategic investments are analyzed assuming that the wholesale market is competitive. There are two technologies available to produce electricity; both are efficient and used at a first best optimum. When not all firms can invest in both technologies, there can be over investment in either of these technologies. It is shown that if the number of firms that can invest in a particular technology is limited, the development of competition solely using the other technology can decrease welfare. (author)

  11. Impact of BRICS’ investment in vaccine development on the global vaccine market

    Science.gov (United States)

    Milstien, Julie; Schmitt, Sarah

    2014-01-01

    Abstract Brazil, the Russian Federation, India, China and South Africa – the countries known as BRICS – have made considerable progress in vaccine production, regulation and development over the past 20 years. In 1993, all five countries were producing vaccines but the processes used were outdated and non-standardized, there was little relevant research and there was negligible international recognition of the products. By 2014, all five countries had strong initiatives for the development of vaccine technology and had greatly improved their national regulatory capacity. South Africa was then the only BRICS country that was not completely producing vaccines. South Africa is now in the process of re-establishing its own vaccine production and passing beyond the stage of simply importing, formulating and filling vaccine bulks. Changes in the public sector’s price per dose of selected vaccines, the global market share represented by products from specific manufacturers, and the attractiveness, for multinational companies, of partnership and investment opportunities in BRICS companies have all been analysed. The results indicate that the BRICS countries have had a major impact on vaccine price and availability, with much of that impact attributable to the output of Indian vaccine manufacturers. China is expected to have a greater impact soon, given the anticipated development of Chinese vaccine manufacturers in the near future. BRICS’ accomplishments in the field of vaccine development are expected to reshape the global vaccine market and accelerate access to vaccines in the developing world. The challenge is to turn these expectations into strategic actions and practical outcomes. PMID:24940018

  12. Impact of BRICS' investment in vaccine development on the global vaccine market.

    Science.gov (United States)

    Kaddar, Miloud; Milstien, Julie; Schmitt, Sarah

    2014-06-01

    Brazil, the Russian Federation, India, China and South Africa--the countries known as BRICS--have made considerable progress in vaccine production, regulation and development over the past 20 years. In 1993, all five countries were producing vaccines but the processes used were outdated and non-standardized, there was little relevant research and there was negligible international recognition of the products. By 2014, all five countries had strong initiatives for the development of vaccine technology and had greatly improved their national regulatory capacity. South Africa was then the only BRICS country that was not completely producing vaccines. South Africa is now in the process of re-establishing its own vaccine production and passing beyond the stage of simply importing, formulating and filling vaccine bulks. Changes in the public sector's price per dose of selected vaccines, the global market share represented by products from specific manufacturers, and the attractiveness, for multinational companies, of partnership and investment opportunities in BRICS companies have all been analysed. The results indicate that the BRICS countries have had a major impact on vaccine price and availability, with much of that impact attributable to the output of Indian vaccine manufacturers. China is expected to have a greater impact soon, given the anticipated development of Chinese vaccine manufacturers in the near future. BRICS' accomplishments in the field of vaccine development are expected to reshape the global vaccine market and accelerate access to vaccines in the developing world. The challenge is to turn these expectations into strategic actions and practical outcomes.

  13. PORTFOLIO INSURANCE INVESTMENT STRATEGIES: A RISK-MANAGEMENT TOOL

    Directory of Open Access Journals (Sweden)

    Elma Agic-Sabeta

    2017-06-01

    Full Text Available Unsystemic risks in financial markets may be reduced through diversification. Systemic risks relate to the overall economy, cannot be influenced by a single company, and require special attention. Empirical research on return distributions in the long-term shows that investing under the assumption of normal distribution of returns may be dangerous. The main objectives of this article are to describe portfolio insurance strategies and investigate their advantages and disadvantages. Furthermore, their use in financial markets in both developed and emerging markets is explored, with special consideration placed on southeast European markets. Theoretical models are reviewed, including recent research articles in the field. The results are analyzed, summarized, and presented in the form of tables and graphs. The main finding of the article is identification of strategies that could be used in southeast Europe. It concludes that implementation of portfolio insurance strategies by asset managers may reduce financial risks in southeast European markets if implementation is done professionally and, simultaneously, it is monitored during the entire investment horizon.

  14. Firm-Specific Marketing Capital and Job Satisfaction of Marketers: Evidence from Vietnam

    Science.gov (United States)

    Nguyen, Tho D.; Nguyen, Trang T. M.

    2011-01-01

    Purpose: Based on the resource-based view of the firm, this study aims to examine antecedents and outcomes of firm-specific marketing capital pool invested by marketers in a transition market, Vietnam. Design/methodology/approach: A sample of 528 marketers in Ho Chi Minh City was surveyed to test the theoretical model. Structural equation…

  15. Is There Any Overtrading in Stock Markets? The Moderating Role of Big Five Personality Traits and Gender in a Unilateral Trend Stock Market

    Science.gov (United States)

    Zhang, Jian; Wang, Haocheng; Wang, Limin; Liu, Shuyi

    2014-01-01

    Overtrading is a common anomaly among stock investors. This study examines the relationship between overtrading and investment returns and the impact of the Big Five traits and gender on overtrading in a unilateral trend stock market using a simulated stock investment system. The data were derived from a sample of undergraduates from six universities who performed in a simulated stock investment situation and had their personality traits measured by the Big Five Personality Questionnaire. The results indicate that: (1) Overtrading was significant in rising stock markets, but not significant in falling markets. (2) The degree of female investors who overtraded was significant in rising markets. (3) The degree of overtrading investors who were high in extroversion or agreeableness was significant in rising markets. The implications of these results for more effective investment strategies are discussed. PMID:24475235

  16. Is there any overtrading in stock markets? The moderating role of big five personality traits and gender in a unilateral trend stock market.

    Directory of Open Access Journals (Sweden)

    Jian Zhang

    Full Text Available Overtrading is a common anomaly among stock investors. This study examines the relationship between overtrading and investment returns and the impact of the Big Five traits and gender on overtrading in a unilateral trend stock market using a simulated stock investment system. The data were derived from a sample of undergraduates from six universities who performed in a simulated stock investment situation and had their personality traits measured by the Big Five Personality Questionnaire. The results indicate that: (1 Overtrading was significant in rising stock markets, but not significant in falling markets. (2 The degree of female investors who overtraded was significant in rising markets. (3 The degree of overtrading investors who were high in extroversion or agreeableness was significant in rising markets. The implications of these results for more effective investment strategies are discussed.

  17. Essays on electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Rud, Linda

    2009-07-01

    The report covers several topics of electricity markets: The first essay, 'Selected Topics on Early Electricity Market Design in Norway' studies market design issues in establishing the market-based Norwegian electricity market. Essays 2-4 focus on issues of network congestion: 'Capacity Charges: A Price Adjustment Process for Managing Congestion in Electricity Transmission Networks' presents the capacity charge approach for managing transmission constraints in electricity networks. 'Understanding the Stochastics of Nodal Prices: Price Processes in a Constrained Network' seeks a further understanding of stochastic nodal prices processes. 'Investment Evaluation in a Constrained Electricity Network with Stochastic Nodal Price Processes' studies how the interaction of the competitive market and the capacitated network affects the evaluation of investments under uncertainty, and points out potential pitfalls of evaluation. In the last essay, 'A Newsboy Model Perspective on the Power Market: The Case of a Wind Power Producer' we discuss aspects of optimal bidding for a wind power producer. (Author)

  18. Essays on electricity markets

    Energy Technology Data Exchange (ETDEWEB)

    Rud, Linda

    2009-07-01

    The report covers several topics of electricity markets: The first essay, 'Selected Topics on Early Electricity Market Design in Norway' studies market design issues in establishing the market-based Norwegian electricity market. Essays 2-4 focus on issues of network congestion: 'Capacity Charges: A Price Adjustment Process for Managing Congestion in Electricity Transmission Networks' presents the capacity charge approach for managing transmission constraints in electricity networks. 'Understanding the Stochastics of Nodal Prices: Price Processes in a Constrained Network' seeks a further understanding of stochastic nodal prices processes. 'Investment Evaluation in a Constrained Electricity Network with Stochastic Nodal Price Processes' studies how the interaction of the competitive market and the capacitated network affects the evaluation of investments under uncertainty, and points out potential pitfalls of evaluation. In the last essay, 'A Newsboy Model Perspective on the Power Market: The Case of a Wind Power Producer' we discuss aspects of optimal bidding for a wind power producer. (Author)

  19. The economics of natural gas infrastructure investments. Theory and model-based analysis for Europe

    Energy Technology Data Exchange (ETDEWEB)

    Lochner, Stefan

    2012-07-01

    Changing supply structures, security of supply threats and efforts to eliminate bottlenecks and increase competition in the European gas market potentially warrant infrastructure investments. However, which investments are actually efficient is unclear. From a theoretical perspective, concepts from other sectors regarding the estimation of congestion cost and efficient investment can be applied - with some extensions - to natural gas markets. Investigations in a simple analytical framework, thereby, show that congestion does not necessarily imply that investment is efficient, and that there are multiple interdependencies between investments in different infrastructure elements (pipeline grid, gas storage, import terminals for liquefied natural gas (LNG)) which need to be considered in an applied analysis. Such interdependencies strengthen the case for a model-based analysis. An optimization model minimizing costs can illustrate the first-best solution with respect to investments in natural gas infrastructure; gas market characteristics such as temperature-dependent stochasticity of demand or the lumpiness of investments can be included. Scenario analyses help to show the effects of changing the underlying model presumption. Hence, results are projections subject to data and model assumption - and not forecasts. However, as they depict the optimal, cost-minimizing outcome, results provide a guideline to policymakers and regulators regarding the desirable market outcome. A stochastic mixed-integer dispatch and investment model for the European natural gas infrastructure is developed as an optimization model taking the theoretical inter-dependencies into account. It is based on an extensive infrastructure database including long-distance transmission pipelines, LNG terminals and gas storage sites with a high level of spatial granularity. It is parameterized with assumptions on supply and demand developments as well as empirically derived infrastructure extension costs

  20. Principles of marketing: Setting goals and marketing strategies

    OpenAIRE

    Marjanova Jovanov, Tamara

    2015-01-01

    Presented material to the students: 6.1. The mission of the organization and corporate goals 6.2. Marketing goals 6.3. Classification of marketing strategies 6.4. Generic marketing strategies regarding the wanted competitive advantage. 6.5. Competitive strategies in relation to the competitors and in relation to the environment. 6.6. Growth strategies or investment (intensive growth and integration / diversification) and maintenance strategies or divest (maintenance, harvest...

  1. Making sense in asset markets: Strategies for Implicit Organizations

    Directory of Open Access Journals (Sweden)

    Johannes M. Lehner

    2015-12-01

    Full Text Available While asset markets are traditionally left to economic inquiry, the paper shows that there is both a legal possibility and an incentive for organizing within such markets and for exercising market share-based strategic maneuvering. It proposes, based on sensemaking theory, Implicit Organizations in asset markets to exploit equivocality for momentum trading strategies. An Implicit Organization fulfills the criteria of an organization, while maintaining the image of a perfect market. Its members coordinate via market signals and fixed investment time windows to ensure positive returns to strategic maneuvering in asset markets. In support of hypotheses derived from sensemaking theory, results of empirical studies from two different investment contexts (Xetra and NYSE provide evidence that equivocal analysts’ recommendations predict investment returns after a fixed time period.

  2. A system dynamics analysis of the Nordic electricity market: The transition from fossil fuelled toward a renewable supply within a liberalized electricity market

    Energy Technology Data Exchange (ETDEWEB)

    Vogstad, Klaus-Ole

    2005-07-01

    A system dynamic model to analyze long-term versus short-term implications of various energy policies within the context of the Nordic electricity market has been developed. The model itself provides a theory of the development of the Nordic electricity market in response to various energy policies, both in the long and the short term. The model includes generation scheduling, demand, price formation, investment decisions, resource availability and to some extent technology progress as endogenous. Thus, explanations of the model behaviour can be found from within the model. As examples of use, the model/modelling concept addresses two important questions on the energy policy agenda. First the marginal C02-emission controversy has been study, whether building gas power in Norway increase or reduce Nordic C02-emissions. The results were that in the short run, some emission reductions can be obtained due to substitution of existing coal units by operations of the market, but this effect was found to be modest. Existing gas power is also substituted, plus some bio. In the long run, there are also some investment substitutions of renewables. These effects do not appear to be significant in the short run, but in the long run, the investment rate of renewables is reduced as a consequence of reduced prices from gas. The reduced investments in renewables results in increased emissions. Some increase in demand is also to be expected from adding gas power, due to price-elasticity of demand. The net result is that gas power is likely to increase C02-emissions, which contradicts the current belief as well as results from other electricity market models that omit the long-term mechanisms such as investment decisions and technology progress. The second study analyzed the current Swedish TGC market at the time of the introduction. The purpose was to assist market design. It was found that the current Swedish TGC market design is likely to crash, due to the slow adjustment of the

  3. A system dynamics analysis of the Nordic electricity market: The transition from fossil fuelled toward a renewable supply within a liberalized electricity market

    International Nuclear Information System (INIS)

    Vogstad, Klaus-Ole

    2005-01-01

    A system dynamic model to analyze long-term versus short-term implications of various energy policies within the context of the Nordic electricity market has been developed. The model itself provides a theory of the development of the Nordic electricity market in response to various energy policies, both in the long and the short term. The model includes generation scheduling, demand, price formation, investment decisions, resource availability and to some extent technology progress as endogenous. Thus, explanations of the model behaviour can be found from within the model. As examples of use, the model/modelling concept addresses two important questions on the energy policy agenda. First the marginal C02-emission controversy has been study, whether building gas power in Norway increase or reduce Nordic C02-emissions. The results were that in the short run, some emission reductions can be obtained due to substitution of existing coal units by operations of the market, but this effect was found to be modest. Existing gas power is also substituted, plus some bio. In the long run, there are also some investment substitutions of renewables. These effects do not appear to be significant in the short run, but in the long run, the investment rate of renewables is reduced as a consequence of reduced prices from gas. The reduced investments in renewables results in increased emissions. Some increase in demand is also to be expected from adding gas power, due to price-elasticity of demand. The net result is that gas power is likely to increase C02-emissions, which contradicts the current belief as well as results from other electricity market models that omit the long-term mechanisms such as investment decisions and technology progress. The second study analyzed the current Swedish TGC market at the time of the introduction. The purpose was to assist market design. It was found that the current Swedish TGC market design is likely to crash, due to the slow adjustment of the

  4. Inconsistent Investment and Consumption Problems

    DEFF Research Database (Denmark)

    Kronborg, Morten Tolver; Steffensen, Mogens

    2015-01-01

    In a traditional Black–Scholes market we develop a verification theorem for a general class of investment and consumption problems where the standard dynamic programming principle does not hold. The theorem is an extension of the standard Hamilton–Jacobi–Bellman equation in the form of a system...... of non-linear differential equations. We derive the optimal investment and consumption strategy for a mean-variance investor without pre-commitment endowed with labor income. In the case of constant risk aversion it turns out that the optimal amount of money to invest in stocks is independent of wealth...... of future labor income net of consumption. Using the verification theorem we give a detailed analysis of this problem. It turns out that the optimal amount of money to invest in stocks is given by a linear function of wealth plus the financial value of future labor income net of consumption. The optimal...

  5. Optimal Deterministic Investment Strategies for Insurers

    Directory of Open Access Journals (Sweden)

    Ulrich Rieder

    2013-11-01

    Full Text Available We consider an insurance company whose risk reserve is given by a Brownian motion with drift and which is able to invest the money into a Black–Scholes financial market. As optimization criteria, we treat mean-variance problems, problems with other risk measures, exponential utility and the probability of ruin. Following recent research, we assume that investment strategies have to be deterministic. This leads to deterministic control problems, which are quite easy to solve. Moreover, it turns out that there are some interesting links between the optimal investment strategies of these problems. Finally, we also show that this approach works in the Lévy process framework.

  6. Estimating Phenomenological Parameters in Multi-Assets Markets

    Science.gov (United States)

    Raffaelli, Giacomo; Marsili, Matteo

    Financial correlations exhibit a non-trivial dynamic behavior. This is reproduced by a simple phenomenological model of a multi-asset financial market, which takes into account the impact of portfolio investment on price dynamics. This captures the fact that correlations determine the optimal portfolio but are affected by investment based on it. Such a feedback on correlations gives rise to an instability when the volume of investment exceeds a critical value. Close to the critical point the model exhibits dynamical correlations very similar to those observed in real markets. We discuss how the model's parameter can be estimated in real market data with a maximum likelihood principle. This confirms the main conclusion that real markets operate close to a dynamically unstable point.

  7. ANALYSIS OF INVESTMENT DIVERSIFICATION OF THE PRECIOUS METALS

    Directory of Open Access Journals (Sweden)

    Ivan I. Agafonov

    2013-01-01

    Full Text Available Analysis of the impact of investment portfolio of precious metals on its minimum risk with limited mean income is carried out based on the data from the beginning of 2009 to the July of 2013. Vector and matrix criteria of assessment of the effects of investment diversification at the precious metals market are offered.

  8. Intellectual Capital: Perceptions of Productivity and Investment

    Directory of Open Access Journals (Sweden)

    Aristides Isidoro Ferreira

    2011-03-01

    Full Text Available This study focuses on the influence intellectual capital has on employees’ perceptions as related to both company investments and productivity levels. The data was obtained from 440 employees at 13 Portuguese companies. Both ANOVA and Regression Analysis were conducted in order to understand the impact three Intellectual Capital Scale components have on perceptions of investment and organizational productivity. Results show that companies with higher scores of Structural Capital have a lower perception of investment in human resources and research, as well as a higher perception of investment in marketing and sales. Moreover, employees of companies with higher Structural Capital scores also have higher perceptions of productivity. On the other hand, organizations with higher investment in Customer Capital tend to be associated with a lower perception of organizational productivity.

  9. Volume Flexibility and Capacity Investment : A Real Options Approach

    NARCIS (Netherlands)

    Wen, X.; Kort, P.M.; Talman, A.J.J.

    2015-01-01

    This paper considers the investment decision of a firm where it has to decide about the timing and capacity. We obtain that in a fast growing market, right after investment the firm produces below capacity, where the utilization rate (the proportion of capacity that is used for production right

  10. Volume flexibility and capacity investment: a real options approach

    NARCIS (Netherlands)

    Wen, Xingang; Kort, Peter; Talman, Dolf

    2017-01-01

    This paper considers the investment decision of a firm where it has to decide about the timing and capacity. We obtain that in a fast-growing market, right after investment the firm produces below capacity, where the utilization rate (the proportion of capacity that is used for production right

  11. Sudan Investment Climate Assessment

    OpenAIRE

    World Bank

    2009-01-01

    This report on Sudan's Investment Climate Assessment (ICA) provides a baseline assessment of challenges to productivity, diversification and inclusion. Chapter 1 describes some of the questions underlying the three issues of competitiveness, diversification and broad-based growth. Chapter 2 analyzes firm performance and competitiveness. Chapter 3 discusses markets and trust. Chapter 4 des...

  12. Renewable Energy Investment in Emerging Markets: Evaluating Improvements to the Clean Development Mechanism

    Directory of Open Access Journals (Sweden)

    Amy Tang

    2014-06-01

    Full Text Available In the past, industrialized countries have invested in or financed numerous renewable energy projects in developing countries, primarily through the Clean Development Mechanism (CDM of the Kyoto Protocol. However, critics have pointed to its bureaucratic structure, problems with additionality and distorted credit prices as ill-equipped to streamline renewable energy investment. In this paper, we simulate the impact of policy on investment decisions on whether or not to invest in wind energy infrastructure in India, Brazil and China. Data from 2,578 past projects as well as literature on investor behaviour is used to inform the model structure and parameters. Our results show that the CDM acts differently in each country and reveal that while streamlining the approval process and reconsidering additionality can lead to non-trivial increase in total investment, stabilizing policy and decreasing investment risk will do the most to spur investment.

  13. Essays on electricity transmission investment and financial transmission rights

    Science.gov (United States)

    Shang, Wenzhuo

    The U.S. electric power industry has been going through fundamental restructuring and realignment since the 1990's. Many issues and problems have emerged during the transition, and both economists and engineers have been looking for the solutions fervently. In this dissertation, which consists primarily of three essays, we apply economics theory and techniques to the power industry and address two related issues, transmission investment and financial transmission rights (FTRs). The first essay takes the decentralized perspective and investigates the efficiency attribute of market-based transmission investment under perfect competition. We clarify, for the first time, the nature of the externality created by loop flows that causes transmission investment to be inefficient. Our findings have important implications for better understanding of transmission market design and creating incentives for efficient transmission investment. In the second essay, we define several rules for allocating transmission investment cost within the framework of cooperative game theory. These rules provide fair, stable or efficient cost allocations in theory and are good benchmarks against which the allocation mechanism in practice can be compared and improved upon. In the last essay, we make exploratory efforts in analyzing and assessing empirically the performance of the Midwest independent system operator (MISO) FTR auction market. We reveal some stylized facts about this young market and find that it is not efficient under the risk-neutrality assumption. We also point out and correct the drawbacks in previous related work and suggest about more complete empirical work in future. In all, this dissertation makes both theoretic and empirical analysis of the two hot issues related to the power industry and comes up with findings that have important implications for the development of this industry.

  14. Foreign Direct Investment and Government Policy in Central and Eastern Europe

    DEFF Research Database (Denmark)

    Meyer, Klaus E.; Jensen, Camilla

    2004-01-01

    The 1990s have been a period of extraordinary politics in Central and Eastern Europe (CEE). This chapter discusses how the transition from state to market has created bureaucratic barriers to entry, but also windows of opportunity for foreign direct investment (FDI). The high costs and high...... investment risks associated with FDI in CEE are a reflection the institutional development. Thus, inflows of FDI have been largest in those countries that made most progress in establishing a market-oriented institutional framework. After outlining trends of institutional change and their impact on FDI......, this chapter discusses how aspects of the institutional framework and FDI policy affect diverse types of investment projects. Acquisition and Greenfield investors are concerned with different aspects of government policy: privatization and regulatory policies for acquirers and investment incentives, regional...

  15. USING THE BUSINESS MODEL CANVAS TO IMPROVE INVESTMENT PROCESSES

    DEFF Research Database (Denmark)

    Sort, Jesper Chrautwald; Nielsen, Christian

    2017-01-01

    and the business angels did not fully agree on the value proposition of the investment opportunity. Practical implications — The findings show that entrepreneurs who market their business cases to investors obtain better feedback and a higher chance of funding using the business model canvas. Implications...... of this paper also relate to the preparation of the entrepreneurs and that matchmakers between entrepreneurs and investors can use the business model canvas to facilitate such processes. Originality/value — This paper contributes to both the theory of the investment process as well as the application......Purpose — This paper investigates how entrepreneurs market their business opportunities towards business angels in the investment process. This is achieved by introducing the Business Model Canvas as a mitigating framework to help entrepreneurs in communicating and structuring the information...

  16. On the environmental impact of energy market liberalisation

    International Nuclear Information System (INIS)

    Van Soest, D.P.; De Groot, H.L.F.

    2000-01-01

    In the literature, attention has been paid to the environmental consequences of lower energy prices caused by market liberalisation: the drop in energy prices reduces the attractiveness of investing in energy-saving technologies. In this paper we develop a simple model of investment decision-making emphasising the importance of not only levels but also volatility of energy prices for actual investment behaviour. The general finding is that lower energy prices and higher uncertainty reduce the propensity to invest. To empirically assess the importance of changes in both levels and volatility, we use US natural gas price data over the market liberalisation period and apply the information to the investment decision with respect to a specific energy-saving technology in the paper industry. We find that energy market liberalisation reduces the propensity to invest in energy-saving technologies substantially, not only because of the lower energy price but also because of its increased volatility. 12 refs

  17. A Risk Analysis of Small-Hydro Power (SHP Plants Investments

    Directory of Open Access Journals (Sweden)

    Jorge Cunha

    2014-06-01

    Full Text Available The increase in electricity consumption has led to a sharp increase in energy demand which rose environmental and sustainability concerns. To address this issue, there has been an incentive to resource to renewable energy sources for electricity production. Departing from a real case study, the investment appraisal of a SHP project under the present market conditions is described, followed by a sensitivity analysis in order to identify the main sources of risk. The main results obtained showed that in the context of a regulated tariff the project is worthwhile due to a positive NPV. However, if electricity had to be sold at market prices, the project becomes unprofitable. Theresults put also in evidence the vulnerability of the investment to an adverse change in interest rates. Future SHP plant investments should take into account the need to operate in a free market and to compete with technologies based on fossil fuels or large hydro.

  18. TRANSACTION COSTS AND MARKET IMPACT IN INVESTMENT MANAGEMENT

    Directory of Open Access Journals (Sweden)

    Marek Kociński

    2015-05-01

    Full Text Available The aim of this article is to analyse the major sources of transaction costs in financial markets, in particular to find the amounts of such costs on the Warsaw Stock Exchange (WSE. Sources of transaction costs are considered: commissions, bid-ask spread and market impact. The commissions are only briefly described since they are explicitly stated and easily measured. More attention is paid to the bid-ask spread which is one of the main causes of trading costs. It is shown that the investor who wants to outperform the Polish market should usually expect a much higher bid-ask spread than it follows from the officially used calculations. Then it is demonstrated how historical spreads can be used in predicting their future values. This seems to be important from the practical point of view, since forecasting trading costs is a compelling task for financial managers. Next, market impact and market impact costs are considered. The practical method of measuring these is applied and discussed.

  19. Students’ perceived risk and investment intention: the effect of brand equity

    Directory of Open Access Journals (Sweden)

    Washington Macías

    2015-10-01

    Full Text Available Emerging markets bring out the question of motivation to include of new investors in the market for financial securities often arises. The purpose of this study is to analyze how brands influence the investment intention of young potential investors. Specifically, the relationship between consumer based brand equity - according to Aaker’s multidimensional conceptualization - and investment intention, mediated by perceived risk, is analyzed. The study contributes to the literature in two ways: (1 based on the revision made, no study has analyzed Aaker’s brand equity construct in investment decisions; (2 studies linking brand aspects to investment decisions have not examined the mediating role of perceived risk. Through an experiment, where perceived risk and investment intention in a famous brand were measured as differences from fictitious brands, the following results were found: (1 the investment intention in a famous brand is higher than in a non-famous one, once controlled for risk and return; (2 the higher the brand equity, the lesser the perceived risk of investing in the famous brand, and the higher the investment intention; (3 the perceived quality of a brand’s products was the dimension by which the effect of brand equity is transmitted. Involvement with the investment task and cognitive ability, at an individual level, the relative size of comparable firms, and the risk and return of investment alternatives were introduced as control variables.

  20. Economic growth and the formation of an investment climate in the region: problems and prospects

    Directory of Open Access Journals (Sweden)

    Kravec A. V.

    2016-03-01

    Full Text Available the article deals with the regional investment attractiveness of the Russian market. The main problems of attracting investments into the Russian economy, ways to increase the investment attractiveness of the Russian regions. Attracting investment to the region (branch has a positive effect on the economy as a whole. In the case of their management is able to positively influence the development of production, development of new technologies, improving the competitiveness of manufactured goods in the world market, the state of the Russian business in general.

  1. Unit commitment and investment valuation of flexible biogas plants in German power markets

    Energy Technology Data Exchange (ETDEWEB)

    Hochloff, Patrick

    2017-07-01

    Biogas plants contribute a significant share of renewable energy sources (RES) to the electricity system. Most of them are designed to supply constant power generation. In the future biogas plants will most likely become more flexible, scheduling their power generation with respect to market prices. For this purpose power units need extended electrical capacity to convert the continuously produced gas as well as the gas held in storage. When constructing extended capacity at biogas plants, the flexibility premium is the main focus for about 8000 plants which were constructed before August 2014. Additional incomes as a result of selling at higher market prices have been considered, too. However, their relationship to the electrical capacity and storage size of biogas plants was unknown as was the impact on investment valuation. This work has shown how biogas plants with extended capacity can be analyzed when they are operated in power markets, in particular the power spot market and the control reserve markets. Models on the basis of unit commitment have been developed in order to obtain optimized schedules and financial parameters, such as gross income and net present value (NPV), when biogas plants with extended capacity capitalize on prices in each market. The models developed consider several use cases that describe possible ways of participating in German power markets, switching between static and variable gas supply, providing secondary and tertiary control reserve, and claiming the market and flexibility premium. Mixed integer linear programs (MILP) have been developed for the unit commitment of each use case. The model for the unit commitment of providing control reserve with biogas plants made significant progress compared to the state of the art and has been published in (Hochloff, Braun 2014). There are two ways to make use of this model. First of all, the model could be applied to plan daily schedules for the operation of gas plants located at a gas

  2. Unit commitment and investment valuation of flexible biogas plants in German power markets

    International Nuclear Information System (INIS)

    Hochloff, Patrick

    2017-01-01

    Biogas plants contribute a significant share of renewable energy sources (RES) to the electricity system. Most of them are designed to supply constant power generation. In the future biogas plants will most likely become more flexible, scheduling their power generation with respect to market prices. For this purpose power units need extended electrical capacity to convert the continuously produced gas as well as the gas held in storage. When constructing extended capacity at biogas plants, the flexibility premium is the main focus for about 8000 plants which were constructed before August 2014. Additional incomes as a result of selling at higher market prices have been considered, too. However, their relationship to the electrical capacity and storage size of biogas plants was unknown as was the impact on investment valuation. This work has shown how biogas plants with extended capacity can be analyzed when they are operated in power markets, in particular the power spot market and the control reserve markets. Models on the basis of unit commitment have been developed in order to obtain optimized schedules and financial parameters, such as gross income and net present value (NPV), when biogas plants with extended capacity capitalize on prices in each market. The models developed consider several use cases that describe possible ways of participating in German power markets, switching between static and variable gas supply, providing secondary and tertiary control reserve, and claiming the market and flexibility premium. Mixed integer linear programs (MILP) have been developed for the unit commitment of each use case. The model for the unit commitment of providing control reserve with biogas plants made significant progress compared to the state of the art and has been published in (Hochloff, Braun 2014). There are two ways to make use of this model. First of all, the model could be applied to plan daily schedules for the operation of gas plants located at a gas

  3. Assessment of Industry Investment in U.S. Domestic Production of Strategic Materials

    National Research Council Canada - National Science Library

    Arnold, Scot A; Tyson, Karen W; Aronin, Benjamin S

    2008-01-01

    .... strategic materials producers are investing for continued domestic production. The titanium sector is investing aggressively in anticipation of a growing share of global commercial aerospace material markets for dramatic expansion...

  4. Human Capital Investment and the Completion of Risky R&D Projects

    DEFF Research Database (Denmark)

    Siyahhan, Baran; Engelbert, Dockner

    2010-01-01

    but can be observed during the R&D phase of the project. The exogenous value of the patent determines the firm’s decisions to invest in human capital, to abandon the project if nec- essary, and to invest in marketing the new product. We study the corresponding optimal stopping times, determine their value...... and risk consequences, and derive optimal investment in the stock of human capital. While optimal investment in human capital is very sensitive to its productivity do increase the probability of a breakthrough it is insensitive to changes in the volatility of the present value of the patent. The value...... of the firm is driven by fixed labor costs that occur until the breakthrough is made, the call option to invest in human capital and market the product, and the put option to abandon the project. These options together with labor costs’ based operating leverage determine the risk dynamics. Risk varies non...

  5. Human Capital Investment and the Value of Risky R&D Projects

    DEFF Research Database (Denmark)

    Dockner, Engelbert; Siyahhan, Baran

    be observed during the R&D phase of the project. The exogenous value of the patent determines the firm’s decisions to invest in human capital, to abandon the project if necessary, and to invest in marketing the new product. We study the corresponding optimal stopping times, determine their value and risk...... consequences, and derive optimal investment in the stock of human capital. While optimal investment in human capital is very sensitive to its productivity do increase the probability of a breakthrough it is insensitive to changes in the volatility of the present value of the patent. The value of the firm...... is driven by fixed labor costs that occur until the breakthrough is made, the call option to invest in human capital and market the product, and the put option to abandon the project. These options together with labor costs’ based operating leverage determine the risk dynamics. Firm risk is inverse U...

  6. The risks and returns of stock investment in a financial market

    Science.gov (United States)

    Li, Jiang-Cheng; Mei, Dong-Cheng

    2013-03-01

    The risks and returns of stock investment are discussed via numerically simulating the mean escape time and the probability density function of stock price returns in the modified Heston model with time delay. Through analyzing the effects of delay time and initial position on the risks and returns of stock investment, the results indicate that: (i) There is an optimal delay time matching minimal risks of stock investment, maximal average stock price returns and strongest stability of stock price returns for strong elasticity of demand of stocks (EDS), but the opposite results for weak EDS; (ii) The increment of initial position recedes the risks of stock investment, strengthens the average stock price returns and enhances stability of stock price returns. Finally, the probability density function of stock price returns and the probability density function of volatility and the correlation function of stock price returns are compared with other literatures. In addition, good agreements are found between them.

  7. Optimal Investment Under Transaction Costs: A Threshold Rebalanced Portfolio Approach

    Science.gov (United States)

    Tunc, Sait; Donmez, Mehmet Ali; Kozat, Suleyman Serdar

    2013-06-01

    We study optimal investment in a financial market having a finite number of assets from a signal processing perspective. We investigate how an investor should distribute capital over these assets and when he should reallocate the distribution of the funds over these assets to maximize the cumulative wealth over any investment period. In particular, we introduce a portfolio selection algorithm that maximizes the expected cumulative wealth in i.i.d. two-asset discrete-time markets where the market levies proportional transaction costs in buying and selling stocks. We achieve this using "threshold rebalanced portfolios", where trading occurs only if the portfolio breaches certain thresholds. Under the assumption that the relative price sequences have log-normal distribution from the Black-Scholes model, we evaluate the expected wealth under proportional transaction costs and find the threshold rebalanced portfolio that achieves the maximal expected cumulative wealth over any investment period. Our derivations can be readily extended to markets having more than two stocks, where these extensions are pointed out in the paper. As predicted from our derivations, we significantly improve the achieved wealth over portfolio selection algorithms from the literature on historical data sets.

  8. Muddling up the Market: New Exempt- Market Regulations may do more Harm than Good to the Integrity of Markets

    Directory of Open Access Journals (Sweden)

    Jack M. Mintz

    2014-11-01

    protect investors from the higher risks that are presumed of exempt markets. However, there is no evidence — given the paucity of information about them — that exempt markets necessarily pose a greater risk of fraud or poorer returns and losses than do heavily regulated public markets. And if risk is indeed higher in the exempt markets, one would expect these proposed regulations to assist highquality firms from distinguishing themselves in the exempt market from low-quality firms. However, these regulations may actually have the opposite effect, making it harder for better-quality firms to signal their worthiness to investors. Canadian productivity — which continues to lag relative to other developed economies — relies heavily on businesses being able to acquire capital for investing in new technologies. Canadian companies and investors appear to be voting with their feet for exempt markets in raising that capital, possibly discouraged from public markets by regulatory costs and inefficiencies. For policy-makers to layer additional regulation on top of exempt markets without fully understanding the impact that it will have, could well result in making Canadian markets, and Canada’s economy, weaker, rather than stronger.

  9. Seeking markets and resources

    DEFF Research Database (Denmark)

    Kragelund, Peter; Hampwaye, Godfrey

    2012-01-01

    Processes of globalisation are currently changing the global activity of multinational companies (MNCs). ‘Emerging’ MNCs are competing with ‘conventional’ MNCs when investing in new markets. This article sets out to analyse the motives and strategies of Chinese and Indian MNCs investing in Zambia...... emphasis must be placed on the home and host contexts and how institutional features impact investment decisions....

  10. Motivations of Russian firms to invest abroad: how do sanctions affect Russia’s outward foreign direct investment?

    Directory of Open Access Journals (Sweden)

    Liuhto Kari

    2015-12-01

    Full Text Available In 2013, Russia’s outward foreign direct investment (OFDI soared and the OFDI stock exceeded $ 500 billion. However, a year later, Russia’s OFDI dropped by nearly 15 per cent. Rapid upward and downward swings make it necessary to analyze the motivation of Russian firms to invest abroad as well as to assess the impact of sanctions on Russian OFDI. The author points out that a significant part of Russia’s outward FDI stock is accounted for by the operations of Russian corporations in their home market. It is concluded that although Western sanctions target a relatively small number of Russian citizens and companies, they nevertheless affect some of Russia’s key people, largest banks, and hydrocarbon producers. Therefore, their direct impact could be substantial. Alongside the direct impact, one should consider their indirect impact, such as the tumbling rouble exchange rate and Russian banks’ increasing interest rates, which decrease Russian firms’ capability to invest abroad. Moreover, a less amicable politic al atmosphere in the West may push some Russian corporations out of the Western markets and diminish the enthusiasm of new ones to enter them. Today, Russia’s counter-sanctions do not directly restrict the country’s OFDI, but Russian state-owned enterprises may reach a decision to hold foreign investments to support Russia’s sanction policy.

  11. Risk and investment management in liberalized electricity markets

    International Nuclear Information System (INIS)

    Lemming, J.

    2003-09-01

    Electricity markets around the world are currently undergoing a liberalization process that changes the way electricity is traded and priced as a commodity. The electricity system has unique technical characteristics and the importance of electricity in today's information society is significant. The liberalization will not change the fact that politicians and regulators will be held responsible for keeping electricity on reasonable costs. What changes is the tool used by regulators to accomplish this task. The introduction of competitive markets implies that market participants will be held financial responsible for their decisions. System operators remain responsible for the physical balancing, thus electricity markets will remain strongly regulated even after liberalization. The hypothesis of this thesis is that the relevance of financial tools for electricity market risk management depends critically on the technical characteristics of electricity assets and on the demands placed by the stakeholders in the electricity sector. In many cases such technical characteristics and stakeholder demands will imply a need for revised and renewed tools compared to those used for portfolios of financial assets. (BA)

  12. Investment Strategy in an Inflationary Environment

    OpenAIRE

    Zvi Bodie

    1981-01-01

    This paper addresses the issue of how an investor concerned about the real rate of return on his investment portfolio should allocate his funds among four major asset classes: stocks, bonds, bills and commodity futures contracts. It employs the Markowitz mean-variance framework to derive estimates of the pre-tax, real risk-return tradeoff curve currently facing an investor in the U.S. capital markets. Some of the major findings are: 1) Bills are the cornerstone of any low-risk investment stra...

  13. The art of investing in the electricity sector

    International Nuclear Information System (INIS)

    Keuzenkamp, H.; De Nooij, M.; Van Geffen, S.

    2003-10-01

    After an introduction on the electricity market attention is paid to fundamental characteristics of supply and demand of electricity, and several aspects with respect to investment in the electricity sector. Next, some answers are given on questions on societal, economical and political damage of too low or too high investments in the electricity sector, focusing on public, commercial and conflicting interests [nl

  14. High-tech industries' overseas investment performance evaluation - Application of data envelopment analysis

    Directory of Open Access Journals (Sweden)

    Ridong Hu

    2013-12-01

    Full Text Available With the rapid change of the social environment, Mainland China has become a new economic market due to the great domestic demand caused by its enormous population and the increasing economic growth rate. Taiwanese businesses have gradually turned to develop in China under the pressure of increasing domestic wages and land costs for expanding factories as well as the enhancement of environmental protection. Mainland China presents the advantages of ample land, low labor costs, monoethnicity, and easy language communication making it an attractive major investment location for Taiwanese high-tech industries. Data Envelopment Analysis (DEA is applied to measure overseas investment efficiency evaluation of Taiwanese high-tech businesses in China, where the Delphi Method is used for selecting the inputs of the number of employees, R&D expenses, and gross sales in total assets. Sensitivity Analysis is further utilized for acquiring the most efficient unit and individual units with operating efficiency. The research results show that 1.Three high-tech businesses that present constant returns to scale perform optimally with overseas investment efficiency 2.Two high-tech companies with decreasing returns to scale appear that they could improve the overseas investment efficiency by decreasing the scale to enhancing the marginal returns, and 3.Sixteen high-tech enterprises reveal increasing returns to scale, showing that they could expand the scale to enhance the marginal returns and further promote efficiency.

  15. Investing in systematic factor premiums

    NARCIS (Netherlands)

    Koedijk, Kees G.; Slager, Alfred M. H.; Stork, P.A.

    In this paper we investigate and evaluate factor investing in the US and Europe for equities and bonds. We show that factor-based portfolios generally produce comparable or better portfolios than market indices. We expand the analysis to other asset classes and factors, work with other optimisation

  16. Investor protection : towards additional EU regulation of investment funds?

    NARCIS (Netherlands)

    Wegman, Hanna Elisabeth

    2016-01-01

    The expansion of the fund industry has been one of the most notable trends in the financial markets of recent years. Not only has the demand for funds among EU investors grown, but both the number and types of investment funds also continue to increase. Since investment funds available in the EU can

  17. The Boom and Gloom of Real Estate Markets

    NARCIS (Netherlands)

    D. Brounen (Dirk)

    2008-01-01

    textabstractReal estate markets around the world have earned a complicated reputation. On the one hand, real estate markets offer investors a wide spectrum of profitable investments opportunities, investments that nowadays can be executed by simply buying shares of stock listed by real estate

  18. Capacity Market Design: Motivation and Challenges in Alberta’s Electricity Market

    Directory of Open Access Journals (Sweden)

    David Brown

    2018-03-01

    Full Text Available Alberta’s electricity market is currently undergoing a period of substantial transition. The province should proceed with caution as it switches from an energy-only electricity market to a capacity market by 2021. Many other jurisdictions have already made the changeover and Alberta can learn from their experiences in order to avoid common mistakes and pitfalls that can arise with the deployment of a capacity market.There were growing concerns that the existing electricity market structure would not attract sufficient investment from conventional generation (e.g., natural gas due to the increased penetration of zero marginal cost renewable generation. As a result, the Alberta government has chosen to transition to a capacity market. For consumers, a capacity market aims to ensure there is sufficient investment in new generation capacity to “keep the lights on” and reduce price swings in the wholesale market. The capacity market will also help the province meet its goals for attracting investors and transitioning away from its dependence on coal-fired electricity generation.However, a switchover is not as simple as it sounds. In an energy-only market, firms are paid solely based on the provision of electricity in hourly wholesale markets. In capacity markets, electricity-generating firms are also paid for providing generation capacity, reflecting the potential to provide electricity at some point in the future. While capacity markets can help ensure there is a reliable supply of electricity, there are several challenges in the implementation of capacity markets. This paper discusses the motivation for the adoption of capacity markets, highlights challenges regulators face when implementing this market design in the context of Alberta, and summarizes the key trade-offs associated with energy-only versus capacity market designs.Relative to an energy-only market, a capacity market is more complex and requires that regulators specify numerous

  19. The Money Market Liaison Group Sterling Money Market Survey

    OpenAIRE

    Westwood, Ben

    2011-01-01

    The Bank of England recently initiated a new survey of the sterling money market on behalf of the Money Market Liaison Group. This market — where short-term wholesale borrowing and lending in sterling takes place — plays a central role in the Bank’s pursuit of its monetary and financial stability objectives. Participants include banks, other financial institutions and non-financial companies, who use the market to manage their liquidity, by investing over short periods and raising short-term ...

  20. How Are Property Investment Returns Determined? : Estimating the Micro-Structure of Asset Prices, Property Income, and Discount Rates

    OpenAIRE

    Shimizu, Chihiro

    2014-01-01

    How exactly should one estimate property investment returns? Investors in property aim to maximize capital gains from price increases and income generated by the property. How are the returns on investment in property determined based on its characteristics, and what kind of market characteristics does it have? Focusing on the Tokyo commercial property market and residential property market, the purpose of this paper was to break down and measure the micro-structure of property investment ret...

  1. Investment barriers and incentives for marine renewable energy in the UK: An analysis of investor preferences

    International Nuclear Information System (INIS)

    Leete, Simeon; Xu, Jingjing; Wheeler, David

    2013-01-01

    Deployment of marine renewable energy (MRE) in the UK is desirable in order to address climate change, meet mandatory EU renewable energy targets and provide significant economic development opportunities, including new export markets. Public funding constraints in the UK mean that substantial investment is required from the private sector to commercialize the industry. By focussing on investor attitudes and behaviours towards wave and tidal technologies, this paper reveals significant observations from the investment community with serious implications for the future of the MRE industry. Through a series of in-depth interviews with individuals from the investment community, device developers and industry support, the research seeks to identify common barriers and incentives to investment. The paper demonstrates that although investors' attitudes are generally aligned, they do appear to have changed over time. Of the participants that had previously invested in early stage MRE device development, none were likely to do so again. It is concluded that this is a function of investors' greater understanding of the scale, and unpredictability of the costs, and the length of time required to develop these technologies. This presents a significant policy challenge for all actors interested in the commercialization of wave and tidal technologies. - Highlights: • Performed a series of in-depth interviews with senior finance and industry actors. • Examined investor attitudes and policy preferences that may encourage investment. • VC investors are currently disinclined to invest in early stage device development. • Policy instability, level of capital and revenue support are key investment barriers. • Commercialization requires strategic government and industrial partner investment

  2. The investment decision and its financing in a changing institutional environment: the case of an electronuclear facility

    International Nuclear Information System (INIS)

    Guillerminet, M.L.

    2002-09-01

    This document analyzes the consequences of the questioning of the hypothesis of independence between the investment and financing decisions, on the investment choice of a nuclear power company in a European market progressively opening to competition. This company, which can get into debts on the financial market, is taxable and can go bankrupt. It is shown that its investment opportunity, totally irreversible in self-financing, can become partially reversible for inter-dependent investment and financing decisions. (J.S.)

  3. EUROPEAN INVESTMENT BANK'S ROLE IN ECONOMIC DEVELOPMENT OF ROMANIA AND EUROPE

    Directory of Open Access Journals (Sweden)

    HAGIU ALINA

    2014-10-01

    Full Text Available European Investment Bank is the European Union's financial institution. It finances investment projects to contribute to the balanced development of the Union. At the same time "bank" and "body" of the European Union, it contributes to the achievement of the European Union objectives by funding projects to promote European integration, balanced development, economic and social cohesion and the development of an economy based on innovation. Today, the EIB exists on the capital markets with the best quote, “Triple A”. This quote allows it to mobilize in highly competitive conditions, the most important financial volume required to support investments. As an institution, EIB continuously adapts its working mode to changes in EU policies. As a bank, it works closely with the banking community, both for loans on the capital markets as well as for financing investments.

  4. Exploring future hydrogen development and the impact of policy: A novel investment-led approach

    International Nuclear Information System (INIS)

    Houghton, T.; Cruden, A.

    2011-01-01

    It is generally recognised that the primary tools being utilised today for hydrogen energy forecasting and policy development take a least-cost approach. While useful for comparing the viability of different technologies from a cost perspective, it is argued that these models fail to capture the potential value contribution such technologies could offer companies and, in consequence, the likelihood of their receiving investment. The authors propose a novel model for forecasting the deployment of hydrogen energy systems based on a company value maximisation approach designed to assist governments in the development of appropriate policy instruments. In this paper a theoretical relationship between market sector valuations and investment activity is presented using 3 value metrics, namely net present value (NPV), earnings per share (EPS) and sum of the parts (SOP). It is shown that, as the electricity and transport fuel markets begin to converge, examination of the effects of different policy measures through the value-led model can highlight otherwise hidden counter incentives. The model further recognises that the propensity to invest in hydrogen differs according to the characteristics of the company looking to make the investment and the implications for policy-makers regarding levels of support are also discussed in the paper. - Research highlights: → A novel approach to forecasting energy market development is proposed. → Approach based on analysis of value contribution of investment opportunities. → Model applied to the potential hydrogen energy market in Scotland. → Reveals potential inadequacy of assessing market development based on levelised cost alone. → Highlights relevance of investor company performance in assessing market development.

  5. A real option-based simulation model to evaluate investments in pump storage plants

    International Nuclear Information System (INIS)

    Muche, Thomas

    2009-01-01

    Investments in pump storage plants are expected to grow especially due to their ability to store an excess of supply from wind power plants. In order to evaluate these investments correctly the peculiarities of pump storage plants and the characteristics of liberalized power markets have to be considered. The main characteristics of power markets are the strong power price volatility and the occurrence of prices spikes. In this article a valuation model is developed capturing these aspects using power price simulation, optimization of unit commitment and capital market theory. This valuation model is able to value a future price-based unit commitment planning that corresponds to future scope of actions also called real options. The resulting real option value for the pump storage plant is compared with the traditional net present value approach. Because this approach is not able to evaluate scope of actions correctly it results in strongly smaller investment values and forces wrong investment decisions.

  6. Green Certificates and Market Power on the Nordic Power Market

    International Nuclear Information System (INIS)

    Bergman, Lars; Amundsen, Eirik S

    2007-06-01

    In Sweden a market for Tradable Green Certificates (TGCs) was introduced in 2003. The purpose was to stimulate investments in electricity generation based on renewable energy sources without using direct governmental subsidies to renewable energy. More precisely the aim is to create a market where different types of renewable electricity can compete on equal terms, thus relieving governments and public agencies from being directly involved in power industry investment decisions. The purpose of this study is to elucidate under which circumstances, how, and to what extent market power in the TGC market can be used to affect the entire electricity market. There are basically two reasons for being concerned with market power in TGC markets. The first is the fact that the industry average cost curve for 'green' electricity tends to be upward sloping. This is because the cost of wind power, the main source of green electricity, depends on the location of the power plants, and that the availability of first rate sites that do not involve sizable investments in new transmission and network infrastructure, is limited. The situation is similar for environmentally friendly hydro power, and, to some extent, for other types of 'green' electricity. Thus, given the state of technology and an upper cost limit, there is a maximum amount of 'green' electricity that can be produced within a country. This means that some generators, by getting access to the suitable sites, will become dominating producers of 'green' electricity and thus may be able to exercise market power in the TGC market. The second reason for being concerned with market power in a TGC market is that, as a result of the percentage requirement, the withdrawal of a given number of TGCs from the market forces a much larger reduction of electricity consumption. Thus relatively modest exercise of market power in the TGC market may have a significant impact on the price of electricity and the allocation of resources in

  7. Stock Market Savvy.

    Science.gov (United States)

    Okula, Susan

    2003-01-01

    This issue of Keying In, the newsletter of the National Business Education Association, focuses upon teaching young adults how to develop both investment strategies and an understanding of the stock market. The first article, "Sound Investing Know-How: A Must for Today's Young Adults," describes how young adults can plan for their own…

  8. Appearance and substance: World petroleum market review

    International Nuclear Information System (INIS)

    Ronchi, M.

    1992-01-01

    This review of supply and demand trends in the world petroleum market includes comments on the influence of the Brent quotations, political unrest in the Middle East and OPEC's reaction to the carbon tax proposed during the Rio Earth's Summit on global environmental protection. Overall, the analysis suggests increases in surplus, following a 15 month period of stagnant demand, with increases in Asiatic countries balanced by decreases in the Eastern Bloc nations currently periencing difficulties with their transition economies

  9. Risk management in electricity markets emphasizing transmission congestion

    International Nuclear Information System (INIS)

    Kristiansen, Tarjei

    2004-01-01

    This thesis analyzes transmission pricing, transmission congestion risks and their associated hedging instruments as well as mechanisms for stimulating investments in transmission expansion. An example of risk management in the case of a hydropower producer is included. After liberalization and restructuring of electricity markets, risk management has become important. In particular the thesis analyzes risks due to transmission congestion both in the short- and long-term (investments) for market players such as generators, loads, traders, independent system operators and merchant investors. The work is focused on the northeastern United States electricity markets and the Nordic electricity markets. The first part of the thesis reviews the literature related to the eight research papers in the thesis. This describes the risks that are relevant for an electricity market player and how these can be managed. Next, the basic ingredients of a competitive electricity market are described including the design of the system operator. The transmission pricing method is decisive for hedging against transmission congestion risks and there is an overview of transmission pricing models considering their similarities and differences. Depending on the transmission pricing method used, locational or area (zonal) pricing, the electricity market players can use financial transmission rights or Contracts for Differences, respectively. In the long-term it is important to create mechanisms for investments in transmission expansion and the thesis describes one possible approach and its potential problems. The second part comprises eight research papers. It presents empirical analyses of existing markets for transmission congestion derivatives, theoretical analyses of transmission congestion derivatives, modeling of merchant long-term financial transmission rights, theoretical analysis of the risks of the independent system operator in providing financial transmission rights, an analysis

  10. Green investment: Trends and determinants

    International Nuclear Information System (INIS)

    Eyraud, Luc; Clements, Benedict; Wane, Abdoul

    2013-01-01

    This paper fills a gap in the macroeconomic literature on renewable sources of energy. It offers a definition of green investment and analyzes the trends and determinants of this investment over the last decade for 35 advanced and emerging countries. We use a new multi-country historical dataset and find that green investment has become a key driver of the energy sector and that its rapid growth is now mostly driven by China. Our econometric results suggest that green investment is boosted by economic growth, a sound financial system conducive to low interest rates, and high fuel prices. We also find that some policy interventions, such as the introduction of carbon pricing schemes or “feed-in-tariffs,” which require use of “green” energy, have a positive and significant impact on green investment. Other interventions, such as biofuel support, do not appear to be associated with higher green investment. - Highlights: • We offer a definition of green investment and review its trend since 2000. • We analyze its determinants from both theoretical and empirical perspectives. • Green investment is boosted by economic growth, interest rates, and fuel prices. • Feed-in-tariffs and carbon pricing schemes impact positively green investment

  11. Penetration strategies of Turkish corporations in Kosovo’s market

    Directory of Open Access Journals (Sweden)

    Luan VARDARI

    2018-04-01

    Full Text Available Rapid developments and increasing competition in recent years have prevented companies from producing and selling only in domestic markets, but also causing their foreign resources and investments to be directed to foreign markets. In this case, once businesses decide to join a particular market, they have to decide which is the best way to penetrate there. Turkish multinational corporations, which have been spreading all over the world with their investments, have conquered world markets with their exports, initiatives and acquisitions, they have entered in foreign markets in various forms and have a significant share in world trade volume with their successful investments. From this point of view, this study examines the strategies by which Turkish multinationals enter foreign markets especially in Kosovo and the impact that those companies have had in the development of the Kosovo economy and the strategies by which Turkish multinationals enter foreign markets.

  12. Spanish reits as an investment vehicle and financing source of the real state activity

    Directory of Open Access Journals (Sweden)

    Jordi Fernández Gimeno

    2012-06-01

    Full Text Available Purpose: Analysis from a financial perspective of the SOCIMI, real estate investment vehicles regulated in Spain since 2009, which are equivalent to Real Estate Investment Trusts (REITs.Design/methodology: It has been used the inductive-deductive and experimental methodology.Findings: From the investors point of view, SOCIMI are real estate investment vehicles competitive in terms of profitability and risk being affected not only by the evolution of financial markets, but also by its underlying assets which are subject to the real estate market cycle. On the other hand, SOCIMI are helpful for funding capture in real estate companies but it is foreseen that its quotation will incorporate significant discounts over the Net Asset Value (NAV of its underlying assets. For investors as well as for real estate company managers, the application of behavioral finance will enable a better investment and financing decision making in the real estate market with the contribution of analysis models which make possible the understanding of market inefficiencies.Originality/value: Further investigation over SOCIMI, the real estate investment vehicle, barely studied up to now, can help to improve decision making of investors as well as real estate companies interested in fund raising through this vehicle.

  13. Financial Frictions, Foreign Direct Investment, and Growth

    OpenAIRE

    Luis San Vicente Portes

    2010-01-01

    This paper assesses the role of financial frictions and Foreign Direct Investment (FDI) on an economy´s growth rate, business cycle volatility, and firm´s capital structure. We gauge these effects within the Financial Accelerator framework, where entrepreneurs can establish affiliates of local firms abroad through Foreign Direct Investment. Model simulations suggest that in the presence of credit market imperfections FDI is associated with faster growth, less leverage, and lower aggregate vol...

  14. New Results on Gain-Loss Asymmetry for Stock Markets Time Series

    Science.gov (United States)

    Grudziecki, M.; Gnatowska, E.; Karpio, K.; Orłowski, A.; Załuska-Kotur, M.

    2008-09-01

    A method called investment horizon approach was successfully used to analyze stock markets of many different countries. Here we apply a version of this method to study characteristics of the Polish Pioneer mutual funds. We decided to analyze Pioneer because of its longest involvement in investing on the Polish market. Moreover, it apparently manages the biggest amount of money among all similar institutions in Poland. We compare various types of Pioneer mutual funds, characterized by different financial instruments they invest in. Previously, investment horizon approach produced different characteristics of emerging markets as opposed to mature ones, providing a possible way to quantify stock market maturity. Here we generalize the above mentioned results for mutual funds of various types.

  15. Investing in Cognac Producing Vineyards to Hedge Wealth While Receiving High Returns

    OpenAIRE

    Hakob Hakobyan

    2015-01-01

    The general trend over the last decade for investments has been moving towards emerging markets, where investors are promised high returns for risky investments. These kind of investments favor the brave and bold, but are frightening for the risk averse. In this paper I will be presenting the opportunities that an investment into cognac producing vineyards can offer. High return and relatively low risk investment opportunities that exists in France. Included in the paper will be examples of l...

  16. Understanding Financial Market States Using an Artificial Double Auction Market.

    Science.gov (United States)

    Yim, Kyubin; Oh, Gabjin; Kim, Seunghwan

    2016-01-01

    The ultimate value of theories describing the fundamental mechanisms behind asset prices in financial systems is reflected in the capacity of such theories to understand these systems. Although the models that explain the various states of financial markets offer substantial evidence from the fields of finance, mathematics, and even physics, previous theories that attempt to address the complexities of financial markets in full have been inadequate. We propose an artificial double auction market as an agent-based model to study the origin of complex states in financial markets by characterizing important parameters with an investment strategy that can cover the dynamics of the financial market. The investment strategies of chartist traders in response to new market information should reduce market stability based on the price fluctuations of risky assets. However, fundamentalist traders strategically submit orders based on fundamental value and, thereby stabilize the market. We construct a continuous double auction market and find that the market is controlled by the proportion of chartists, Pc. We show that mimicking the real state of financial markets, which emerges in real financial systems, is given within the range Pc = 0.40 to Pc = 0.85; however, we show that mimicking the efficient market hypothesis state can be generated with values less than Pc = 0.40. In particular, we observe that mimicking a market collapse state is created with values greater than Pc = 0.85, at which point a liquidity shortage occurs, and the phase transition behavior is described at Pc = 0.85.

  17. Understanding Financial Market States Using an Artificial Double Auction Market.

    Directory of Open Access Journals (Sweden)

    Kyubin Yim

    Full Text Available The ultimate value of theories describing the fundamental mechanisms behind asset prices in financial systems is reflected in the capacity of such theories to understand these systems. Although the models that explain the various states of financial markets offer substantial evidence from the fields of finance, mathematics, and even physics, previous theories that attempt to address the complexities of financial markets in full have been inadequate. We propose an artificial double auction market as an agent-based model to study the origin of complex states in financial markets by characterizing important parameters with an investment strategy that can cover the dynamics of the financial market. The investment strategies of chartist traders in response to new market information should reduce market stability based on the price fluctuations of risky assets. However, fundamentalist traders strategically submit orders based on fundamental value and, thereby stabilize the market. We construct a continuous double auction market and find that the market is controlled by the proportion of chartists, Pc. We show that mimicking the real state of financial markets, which emerges in real financial systems, is given within the range Pc = 0.40 to Pc = 0.85; however, we show that mimicking the efficient market hypothesis state can be generated with values less than Pc = 0.40. In particular, we observe that mimicking a market collapse state is created with values greater than Pc = 0.85, at which point a liquidity shortage occurs, and the phase transition behavior is described at Pc = 0.85.

  18. Electricity generation in Germany under the conditions of climate policy and liberalized electricity market. Valuation of power plant investments with Bayesian influence diagrams

    International Nuclear Information System (INIS)

    Oetsch, Rainald

    2012-03-01

    Power plant investors face large uncertainties due to ongoing liberalization, climate policy, and long investment horizons. This study provides a probabilistic appraisal of power plant investments within the framework of Bayesian decision theory. A Bayesian influence diagram is used for setting up a discounted cash flow model and analysing the profitability of power plants. As the study explicitly models merit order pricing, the pass-through of random fuel and carbon costs may be analysed. The study derives probabilistic statements about net present values of single investments and company portfolios and explores the sensitivity of profits to variations of select input variables. In the majority of cases, an increase in the price of emission allowances also increases the net present value of existing power plant portfolios. A substantially increased carbon prices also is the prerequisite to diversify power plant portfolios by gas and CCS plants. For the currently prevailing German electricity market, we argue that investors may lack incentives for new investments in fossil generation, a finding that holds true also with implementation of CCS. Our estimates are conservative, as profitability will further deteriorate with the build-up of renewables.

  19. Price Determination for Educational Services Based on the Investments in Education

    Directory of Open Access Journals (Sweden)

    Blaga Radu Lucian

    2016-11-01

    Full Text Available The study aims at highlighting the link between educational marketing (product/service and price determination for educational services and investment in education, using empirical models and customization of classic approaches (interpolation method addressed to individual educational investment.

  20. The Importance of Marketing Segmentation

    Science.gov (United States)

    Martin, Gillian

    2011-01-01

    The rationale behind marketing segmentation is to allow businesses to focus on their consumers' behaviors and purchasing patterns. If done effectively, marketing segmentation allows an organization to achieve its highest return on investment (ROI) in turn for its marketing and sales expenses. If an organization markets its products or services to…