scholarly journals Application of Algorithms of Constrained Fuzzy Models in Economic Management

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Lingyan Meng ◽  
Dishi Zhu
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Optimal Investment ◽  
Portfolio Performance ◽  
Portfolio Investment ◽  
Investment Strategies ◽  
Economic Management ◽  
Expected Return ◽  
Investment Decision Making ◽  
Human Thinking

Stochasticity and ambiguity are two aspects of uncertainty in economic problems. In the case of investments in risky assets, this uncertainty is manifested in the uncertainty of future returns. On the contrary, the complexity of the economic phenomenon itself and the ambiguity inherent in human thinking and judgment are characterized by indistinct boundaries. For the same problem, research from different perspectives can often provide us with more comprehensive and systematic information. Currently, the expected value of return or the variance representing risk is still used as a rational investment criterion for both single-stage portfolios and multistage portfolios. However, in general, the greater the expected return of an investor, the greater the risk he should take. Different investors have different requirements for profitability, but regardless of their expected return, they always hope to find a set of portfolios that maximize the probability of achieving the expected rate of return. In this paper, after analyzing the development of portfolio investment theory research, we take fuzzy information processing as the entry point and systematically discuss the theory and methods of fuzzy modeling of portfolio investment decision-making from the perspective of fuzziness around the portfolio investment decision-making process. The results of the empirical analysis show that the existence of basis constraints affects investors’ investment strategies as well as their final returns, but there is a limit to the influence of basis constraints on portfolio performance, and investors can obtain optimal investment returns by selecting a reasonable number of securities to form a portfolio based on the characteristics of different securities.

scholarly journals European Option Based R&D Investment Decision Making under Uncertainties

2015 ◽  
Vol 2015 ◽  
pp. 1-6
Author(s):  
Qing Miao ◽  
Boyang Cao ◽  
Minghui Jiang
Keyword(s):  
Decision Making ◽  
Research And Development ◽  
Joint Venture ◽  
Investment Decision ◽  
Optimal Investment ◽  
European Option ◽  
Project Investment ◽  
Research Joint Venture ◽  
Investment Decision Making ◽  
D Investment

This paper establishes the payoff models of the European option for research and development (R&D) projects with two enterprises in a research joint venture (RJV). The models are used to assess the timing and payoffs of the R&D project investment under quantified uncertainties. After the option game, the two enterprises can make optimal investment decision for the R&D project investment in the RJV.

Does underconfidence matter in short-term and long-term investment decisions? Evidence from an emerging market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad
Keyword(s):  
Decision Making ◽  
Stock Exchange ◽  
Emerging Market ◽  
Investment Decision ◽  
Investment Decisions ◽  
Investment Strategies ◽  
Short Term ◽  
Content Type ◽  
Investment Decision Making

PurposeThe purpose of this article is to clarify the mechanism by which underconfidence heuristic-driven bias influences the short-term and long-term investment decisions of individual investors, actively trading on the Pakistan Stock Exchange.Design/methodology/approachInvestors' underconfidence has been measured using a questionnaire, comprising numerous items, including indicators of short-term and long-term investment decision. In order to establish the influence of underconfidence on the investment decisions in both the short and long run, a 5-point Likert scale questionnaire has been used to collect data from the sample of 203 investors. The collected data were analyzed using SPSS and AMOS graphics software. Hypotheses were tested using structural equation modeling technique.FindingsThis article provides further empirical insights into the relationship between heuristic-driven biases and investment decision-making in the short and long run. The results suggest that underconfidence bias has a markedly negative influence on the short-term and long-term decisions made by investors in developing markets. It means that heuristic-driven biases can impair the quality of both short-term and long-term investment decisions.Practical implicationsThis article encourages investors to avoid relying on cognitive heuristics, namely, underconfidence or their feelings when making short-term and long-term investment strategies. It provides awareness and understanding of heuristic-driven biases in investment management, which could be very useful for finance practitioners' such as investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making its financial management strategies. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in more appropriate investment strategies.Originality/valueThe current study is the first to focus on links between underconfidence bias and short-term and long-term investment decision-making. This article enhanced the understanding of the role that heuristic-driven bias plays in the investment management and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on the investment decision-making in an emerging market. It also adds to the literature in the area of behavioral finance specifically the role of heuristics in investment strategies; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.

Strengthening impact integrity in investment decision-making for sustainable development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fara Azmat ◽  
Ameeta Jain ◽  
Fabienne Michaux
Keyword(s):  
Decision Making ◽  
Sustainable Development ◽  
Management Practices ◽  
Investment Decision ◽  
Investment Strategies ◽  
Content Type ◽  
Responsible Investment ◽  
The Sustainable Development ◽  
Investment Decision Making ◽  
Development Outcomes

Purpose This paper aims to focus on impact integrity in investment decision-making – an under-researched yet important topic – as a means for optimising investor contributions to sustainable development outcomes, including achieving the sustainable development goals (SDGs). Design/methodology/approach This conceptual paper adopts a two-step approach. First, this paper reviews existing “responsible” investment strategies and products used in practice and highlight their shortcomings in terms of optimising sustainable development outcomes. Second, drawing from the minimal standards theory, this study explores how emerging impact management practices may strengthen impact integrity in investment decision-making and mitigate shortcomings in existing “responsible” investment approaches to increase their contribution to sustainable development outcomes. Findings Current “responsible” investment approaches often do not optimise sustainable development outcomes and may facilitate “impact washing”. The theoretically grounded framework demonstrates standardised impact management practices based on a bounded flexibility approach – adaptable to different contexts within limits and assessed by skilled analysts – along with incorporating shared language and conventions supported by appropriate accountability mechanisms that can be used to mitigate shortcomings in current “responsible” investment approaches. The authors further propose accountability mechanisms to systematically involve stakeholders (including rightsholders) in decisions that impact them with effective grievance and reparation mechanisms. Such an approach, the authors argue will strengthen impact integrity and the capacity of investments to optimise contributions to sustainable development outcomes. Practical implications The findings have implications for the ability of investment markets to optimise their contributions to sustainable development and the SDGs. Social implications By highlighting shortcomings in current “responsible” investment approaches and focussing on strengthening impact integrity in investment decision-making through standardised impact management practices, the findings enhance the capacity of investment markets to contribute positively to sustainable development and the SDGs. Originality/value Despite its importance, impact integrity in investment decision-making is severely under-researched with little academic attention. This paper fills this void.

scholarly journals A STUDY ON FACTORS THAT AFFECTING THE INDIVIDUALS’ INVESTMENT DECISION MAKING IN MALAYSIA INVESTMENT BANKS

2021 ◽  
Vol 3 (6) ◽  
pp. 01-12
Author(s):  
Haniza Hashim ◽  
Nur Baiti Shafee ◽  
Shadia Suhaimi ◽  
Siti Nurul Huda Mohd ◽  
Lye Ting Ku
Keyword(s):  
Decision Making ◽  
Information Structure ◽  
Investment Decision ◽  
Demographic Factors ◽  
Investment Banks ◽  
Expected Return ◽  
Behavioural Finance ◽  
Macroeconomic Factors ◽  
Working Adults ◽  
Investment Decision Making

The research paper is aim to study about the factors that influence individuals for making their investment decision. Behavioural finance examines one of the central factors that influence investors’ decision-making. In behavioural finance, the characteristics of individual and past information structure can significantly affect decision making. Thus, this study is to examine the factors of risk and expected return, demographic factors, macroeconomic factors, and advocate recommendation. Individuals with different perceptions on investment will be likely to have their own viewpoint. Therefore, various opinion s will be getting from different types of investors in making an investment decision. This research is conducted to examine the factors that affect individuals’ investment decision-making. There is 150 number of working adults who will be selected as the target respondents in filling in the questionnaire forms that distributed by the researcher. This research is for the purpose to fill in the gap of the previous researches which have been studied before. This research has identified that risk and expected return, demographic factors, macroeconomic factors, and advocate recommendation have a significant relationship in investment decision making. This research illustrates to help other researchers for the investment decision-making process.

scholarly journals Pengaruh Faktor Demografi dan Literasi keuangan dengan Behavior Finance dalam Pengambilan Keputusan Investasi

2021 ◽  
Vol 11 (2) ◽  
pp. 237-248
Author(s):  
Elkunny Dovir Siratan ◽  
Temy Setiawan
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Financial Literacy ◽  
Structural Equation ◽  
Investment Decision ◽  
Demographic Factors ◽  
Individual Investors ◽  
Portfolio Performance ◽  
Investment Decision Making ◽  
The Impact

The investment decision-making process is influenced by various factors, including financial literacy and demographic factors. This research examines the impact of demographic factors and financial literacy with behavioral finance as a mediation on investment decision making.  This research using structural equation model (SEM) analysis. The result shows that demographic factors through gender, age, education, income, occupation and experience have an influence and cause a specific behavior in investment decision making. Then the financial literacy factor has an influence in reducing negative behavior. Likewise, demographic factors and financial literacy with behavioral finance as a mediation on investment decisions have a positive influence. The existence of behavior that is manages with planning, financial literacy support, and demographic factors owned by individual investors will create an opportunity for market momentum. Which help maximize profit, better investment and portfolio performance, avoid risks, better investment decision, and forming trading strategies.

scholarly journals A longitudial study of private warehouse investment strategies

2009 ◽  
Vol 21 (2) ◽  
pp. 71-86
Author(s):  
Jonathan W Kohn ◽  
Michael A McGinnis ◽  
John E Spillan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Investment Decision ◽  
Investment Decisions ◽  
Strategic Decision ◽  
Investment Strategies ◽  
Chain Management ◽  
Investment Decision Making ◽  
Inventory Investment

This article revisits private warehouse investment decision making, a topic previously examined in 1989 by McGinnis, Kohn, and Myers (1990). Since then there has been a substantial amount of discussion regarding the scope and nature of logistics /supply chain management. In particular the roles of private, contract, and public warehousing has been discussed, increased emphasis on financial performance and strategic decision making may have altered the criteria for investment decisions in private warehousing, increased coordination of supply chains may have altered the relative importance of private, contract, and private warehousing, and increasing emphasis on controlling inventory investment may have shifted inventory responsibilities onto suppliers and customers. Empirical data was collected in 1999and 2008 regarding warehouse investment decisions in large United State manufacturing firms. This research focused on private warehouse investment decisions, topics that might affect those decisions, and the mix of private, contract, public, and other warehouse options. The results of the 1999 and 2008 data were compared to the earlier findings reported by McGinnis, Kohn, and Myers. Changes in private warehouse investment strategies, the roles of market /product mix uncertainties and availability of for-hire warehouse providers, and changes in warehouse mix were examined. Implications for practitioners, teachers, and researchers of transportation, supply chain management, logistics, and warehousing are discussed.

scholarly journals Optimal investment decision making on the model of production enterprise with limited resources

2018 ◽  
Vol 15 (4) ◽  
pp. 61-68 ◽  
Author(s):  
Tetiana Ivanenko ◽  
Viktor Hrushko ◽  
Anatolii Frantsuz
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Investment Project ◽  
Optimal Investment ◽  
Project Selection ◽  
Payback Period ◽  
Rate Of Return ◽  
Investment Decision Making ◽  
Growth Selection ◽  
The One

Investments are among the most important factors of national economic growth. Selection of optimal investment project is the first priority for any enterprise with limited financial resources. This study is dedicated to a choice among mutually exclusive projects, which are impossible to complete partially, so, one project must be chosen and all others must be rejected. An investor must find among all possible projects the one that allows to better achieve all investor’s aims. A mathematical model of multi-purpose multi-criteria investor decision making is proposed for investment project selection problem. Efficiency and riskiness of studied projects are evaluated using such indicators as profit, rate of return, payback period, marginal cost of capital, also taking into account subjective characteristics, namely the investor’s attitude towards financial risks, importance assessment of decision making criteria, etc. Decision making assessment methods for the situations of risk and uncertainty are applied to resolve the problem of optimal project selection, such as Wald’s pessimistic criterion, maximax optimistic criterion, as well as Hurwicz’s, Laplace’s, Bayes- Laplace, Hodges-Lehmann criteria, and Savage’s minimax risk criterion. Calculations carried out and results obtained indicate that the best investment project chosen that way will provide the highest absolute profit, despite certain disadvantages such as lower rate of return, longer payback period and higher risk than other projects.

The role of affective reactions on investment decision-making

2007 ◽  
Author(s):  
Enrico Rubaltelli ◽  
Giacomo Pasini ◽  
Rino Rumiati ◽  
Paul Slovic
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Affective Reactions ◽  
Investment Decision Making
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