...Review and Evaluation on ‘Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints’ by Kaplan and Zingales (QJE,1997) The research paper written by Steven N. Kaplan and Luigi Zingales as titled above which was published in year 1997 is to test the relationship linking investment-cash flow with financial constraint. In their research, they found that firm with a low level of financial constraint have a tendency to have a high investment-cash flow sensitivity. However, the findings contradict with the other research paper especially the FHP, 1988 paper. They used the same sample used in research done by Fazzari, Hubbard, and Petersen (FHP, 1988). But they only took the firms from Class 1 in FHP research which is manufacturing firms and classified as low dividend firms with dividend payout ratio with value below 10%, where they believe to be firms with an abnormally high investment-cash flow sensitivity (Kaplan & Zingales, 1997). The reasons why Kaplan and Zingales chose Class 1 firms as their sample are because of the strong connection illustrated between the firm’s investment and cash flow, FHP argue Class 1 firms are financially constrained even the result indicates that the firms have significantly high sensitivity of investment-cash flow, and lastly because the sample size is considered manageable for a costly research design. They follow the same timeline which is from year 1970 to 1984. Research is conducted by first determining the demand...
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...awareness, mutual funds in Malaysia are becoming a preferred investment option compared to other investment avenues like Fixed Deposits (FDs) and postal savings that are considered safe but give comparatively low returns. But before investing in mutual funds, investors have to analyze the factors of the economy, industry and company within the investment environment in which they operate. There are several macro-economic factors having influence on the investment choices. The investigator intends to study more particularly, the impact of quantitative economic variables on the investment of mutual funds. The trends of the industry also have to be examined from time to time. In response to the changing circumstances, the fund houses have introduced a host of interesting technological innovations to grab the attention of the investors. Investors need to correctly appraise the risks and rewards of investing in schemes which seek to offer attractive returns. Total of 122 respondents were selected for data analysis. The respondents’ profile consists of demographic data namely, age, gender, occupation background, educational background, investment habit and years of investing activities. The gender, monthly income and race of respondent are not relevant for this research since it is basically focused on the investors’ habit in Malaysia. The perception will be taken into consideration as per their views on mutual fund investment. The last and final analysis of hypothesis testing is to complete...
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...Proposal for Effects of Foreign Direct Investment towards Economic Growth, Exchange Rate, and Management Skills in Malaysia Research Method (MKT651) Noor Azyan Syawanie Bt Abdul Ghani Nur Athirah Binti Mohamadzin Nur Aishatul Adila Binti Adnan Effects of Foreign Direct Investment towards Economic Growth in Malaysia Introduction Malaysia is a nation that has been working itself up from the predominantly mining and agricultural based economy towards a more multi-sector economy. To achieve a faster economic growth, Malaysia has accepted an unparalleled opportunities for developing this country through globalization (Athukorala, 2003). An offer of combination of locational advantages by the government is a factor that foreign investors got tempted with (Farhad, Alberto, & Ali, 1999), to invest in Malaysia. Foreign investors has been encouraged by the Government to invests in Malaysia in which has the advantage of having a well-developed infrastructure, industrious workforce, as well as politically stable nation with a good legal system with the additional attractiveness of incentives for the foreign investors. In other words, foreign investors are attracted to invest in Malaysia because of the lower cost of production (Wong, 2005). FDI is a medium for acquiring skills, technology, organizational and managerial practices and access to market, besides being the source of finance and employment (Farhad, Alberto, & Ali, 1999). There are a lists of exports by...
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...Marketing Research Project Report Topic: The Changing Trends in Investment Pattern of People in India In Partial Fulfilment of the Course Marketing Research Submitted To: Dr Shalini Trivedi, Assistant Professor, Department of Economics, Amity Business School, Amity University. Submitted by: Shivani Mehta (E 12) Nupur Mittal (E 21) Abdul Azeem (E 24) Prateek Saini (E 27) Jalees Ahmed (E 57) Rashmita Bora (E 61) DECLARATION We hereby declare that all the work presented in the project report entitled “The changing trends in investment patterns of people in India” of the subject Marketing Research at Amity Business School, Amity University, Noida is an authentic record of our own work carried out under the guidance of Dr. Shalini Trivedi, Assistant Professor, Department of Economics, Amity Business School, Amity University. CERTIFICATE This is to certify that project report entitled “The changing trends in investment patterns of people in India” of the subject Marketing Research, which is submitted by Nupur Mittal, Rashmita Bora, Shivani Mehta, Prateek Saini, Abdul Azeem and Jalees Ahmed at Amity Business School, Amity University, Noida is an authentic record of the candidate’s own work carried out by them under our guidance. The matter embodied in this thesis is original and has not been submitted for the award of any other degree. Dr. Shalini Trivedi, Assistant Professor, Department of Economics (Project Guide) ACKNOWLEDGEMENT We express...
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...—Honors Research Tools to help------ msn.money, bankrate, yahoo finance, market watch, investopedia.com Aggressive Investment Name of company or investment|| Contact information|| Company details|| Type of investment|| Risk level|| Expected rate of return|| Minimum required investment (dollar amount)|| Why are you interested in this investment? (Be sure to discuss statistics found in research and include at least five sentences.)|| Visual Evidence for Aggressive Investment: Such as a stock table, Investment history over time, current value of investment, Rate of return sheet etc… Moderate Investment Name of company or investment|| Contact information|| Company details|| Type of investment|| Risk level|| Expected rate of return|| Minimum required investment (dollar amount)|| Why are you interested in this investment? (Be sure to discuss statistics found in research and include at least five sentences.)|| Visual Evidence for Moderate Investment: Such as a stock table, Investment history over time, current value of investment, Rate of return sheet ect… Conservative Investment Name of company or investment|| Contact information|| Company details|| Type of investment|| Risk level|| Expected rate of return|| Minimum required investment (dollar amount)|| Why are you interested in this investment? (Be sure to discuss statistics found in research and include at least five sentences.)|| Visual Evidence for Conservative Investment: Such as...
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...Christina Selden Week 8 12-7 1. This grant has the characteristics of an exchange transaction rather than a contribution. It is not donor restricted and therefore would be reported in an unrestricted fund. 2014 No entry 2015 Research expenses (direct) 4 Cash (or accounts payable) 4 Grants and contracts receivable 6 Revenue from sponsored research 6 Cash 6 Grants and contracts receivable 6 2. 2014 Pledges receivable (from NSA) 6 Revenues from contributions 6 2015 Research expenses (direct) 4 Cash (or accounts payable) 4 Due from restricted fund 6 Resources released from restrictions 6 Cash 6 Due from restricted fund 6 Cash 6 Pledges receivable (from NSA) 6 Resources released from restrictions 6 Cash 6 3. The grant revenue from the SGMA was recognized only as the research was carried out. It is an ordinary commercial cost plus contract. The restricted contribution from the NSA was recognized when the pledge was made. 4. CAA would not recognize revenue from NSA’s contribution until it had completed the research. 12-8 Cash 30,000 Revenues from contributions 30,000 Resources released from restriction 21,000 Cash 21,000 Equipment 21,000 Resources released from restriction 21,000 Depreciation expense 7,000 Accumulated depreciation ...
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...11 January 2010 Global Sukuk Market Global Sukuk Update The sukuk market was not spared from the effect of the global financial crisis. After expanding robustly in 2007 (by 90% yoy by total value of sukuk issued), the sukuk market experienced a marked slowdown in 2008 and 1H09 due to the following reasons: • • • Challenging market conditions and drying up of liquidity Wide credit spreads and shortages of USD funding in issuing countries Challenging economic environment in the GCC countries, particularly in the UAE Nevertheless, as the overall market conditions improved, the primary sukuk market rebounded in 2H09. Third quarter issuance was up by 162.5% yoy and 61.9% qoq to USD8.8bln, followed by a strong issuance of USD8.1bln in 4Q09. These were in comparison to USD2.2bln in 1Q09 and USD5.5bln in 2Q09. Global Sukuk Issued 1H09 vs. 1H08 12000 10000 USD mln Global Sukuk Issued 2H09 vs. 2H08 Other 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 MENA +292.1% yoy MENA Other USD mln 8000 6000 4000 2000 0 4633 10075 6469 6382 1152 1H08 1H09 2277 2041 2H08 6854 2H09 Source: Zawya, IFIS, Bloomberg, KFHR In 4Q09, global sukuk issued amounted to USD8.1bln, up by 752.1% yoy. On a quarterly basis, the amount of sukuk issued in 4Q09 was however lower than that recorded in 3Q09 by 8.6%, partly attributed to jitteries in the sukuk market resulting from Dubai World’s announcement on its debt restructuring. Global Sukuk Issuance Trend, Quarterly...
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...ReseaRch PaPeR Commerce Volume : 3 | Issue : 1 | January 2013 | ISSN - 2249-555X A Study About Awareness of Mutual Funds Among the Investors of Navsari District Keywords Mutual Funds, Investment alternatives, Investors’ perception. Dr. M. P. Desai Head, Department of Accountancy,Udhna Citizen Commerce College, Surat. Residence: 50,Niral Nivas, Ashapuri society,Vijalpore road, Navsari,396445, Gujarat. Mr. Mayur K Joshi Asst. Prof., Department of Accountancy,Udhna Citizen Commerce College, Surat. Residence: Vinay readymade, 7, shopping center,Dudhiya talav, Navsari,396445, Gujarat. ABSTRACT The financial securities include ownership securities (like shares, mutual fund units) and creditorship securities (like debentures, bonds). Ownership securities are more risky than creditorship securities. Investment decisions relating to ownership securities involve planning of investment strategies according to the extent of diversification desired by individuals. Investors can reduce risk and maximize returns by way of mutual fund investments, enjoying the expertise of professional fund management. In India, Mutual fund industry is an organised financial system, accessible to individual investors having varied needs and options. In order to identify awareness of mutual funds among the investors of Navsari District, a careful collection of primary data through questionnaire was made. Introduction Financial system comprises financial institutions, services, market and...
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...Experts Investment Investment is time, energy, or matter spent in the hope of future benefits actualized within a specified date or time frame. Investment has different meanings in economics and finance. In economics, investment is the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories. The word "investment" has become muddled with overuse. Referring to a stock or a bond as an investment is still in regular use, but now people make "investments" in their education, their cars and even their flat screen TVs. In this article, we will look at the three basic types of investment as well as some of the things that are definitely not investments - no matter what the commercial says (en.wikipedia.org). In simple terms, Investment refers to purchase of financial assets. While Investment Goods are those goods, which are used for further production. Investment implies the production of new capital goods, plants and equipments. Refers investment as real investment and not financial investment (John Keynes). Investment is a conscious act of an individual or any entity that involves deployment of money (cash) in securities or assets issued by any financial institution with a view to obtain the target returns over a specified period of time. Types of investment There are three types of investment: 1. Ownership investment 2. Lending investment 3. Cash equivalent 1. Ownership Investments Ownership investments are what...
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...[pic] A RESEARCH PAPER On Opportunities in indian market of mutual funds investment PIONEER (Since 1996) Submitted to Submitted By Prof. Dr. V K Jain Ravendra Kushwaha Prof. Nidhi Kothari MBA 3rd sem Roll. No. 09010118 DECLERATION I hereby declare that this Research Paper entitled “OPPORTUNITIES IN INDIAN MARKET OF MUTUAL FUNDS INVESTMENT” submitted for the extra co curriculum activities fulfillment of the requirement of Master of Business Administration (MBA) of PIONEER INSTITUTE OF PROFESSIONAL STUDIES INDORE is based on secondary data found by me in various Companies fact sheets, books, magazines and websites & Collected by me in under guidance of Prof. Nidhi Kothari. DATE: Ravendra Kushwaha ...
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...Curriculum Source References The following references were used in the CFA Institute-produced publications Quantitative Methods for Investment Analysis, Analysis of Equity Investments: Valuation, and Managing Investment Portfolios: A Dynamic Process. Ackerman, Carl, Richard McEnally, and David Ravenscraft. 1999. “The Performance of Hedge Funds: Risk, Return, and Incentives.” Journal of Finance. Vol. 54, No. 3: 833–874. ACLI Survey. 2003. The American Council of Life Insurers. Agarwal, Vikas and Narayan Naik. 2000. “Performance Evaluation of Hedge Funds with OptionBased and Buy-and-Hold Strategies.” Working Paper, London Business School. Ali, Paul Usman and Martin Gold. 2002. “An Appraisal of Socially Responsible Investments and Implications for Trustees and Other Investment Fiduciaries.” Working Paper, University of Melbourne. Almgren, Robert and Neil Chriss. 2000/2001. “Optimal Execution of Portfolio Transactions.” Journal of Risk. Vol. 3: 5–39. Altman, Edward I. 1968. “Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy.” Journal of Finance. Vol. 23: 589–699. Altman, Edward I. and Vellore M. Kishore. 1996. “Almost Everything You Wanted to Know about Recoveries on Defaulted Bonds.” Financial Analysts Journal. Vol. 52, No. 6: 57−63. Altman, Edward I., R. Haldeman, and P. Narayanan. 1977. “Zeta Analysis: A New Model to Identify Bankruptcy Risk of Corporations.” Journal of Banking and Finance. Vol. 1: 29−54. Ambachtsheer, Keith, Ronald Capelle, and...
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...Banking & Finance Banking Fields Asset Management * manage investments for private funds, individuals and organizations. * Through investments in stocks, bonds, foreign exchange, property * Comprises of 2 functions – Investments and Sales & Distribution Corporate Finance * Delivers the strategic advice and financial products that help large corporate clients build their businesses and grow their shareholder value * Comprises of 2 functions – Client Teams & Product Teams Sales & Trading * Buy and sell products. These might be: financial products (e.g. stocks, bonds), foreign exchange, commodities (e.g. oil or natural gas). * Comprises of the following roles: Sales, Trading, Research, Structuring Wealth Mangement * managing people’s wealth. * Making their assets work hard calls for in-depth knowledge of financial markets and investment opportunities, plus the ability to nurture very good relationships with the high-net-worth (HNW) individuals in question. * Discretionary or non-discretionary Finance Fields Private Equity PE firms will typically acquire 100% of the target company and make use of a combination of cash and debt to finance the acquisition. The advantage of using debt is that the firm has to invest less of its own cash, and therefore the return on equity is higher and they can undertake bigger / more investments. When the target company is acquired, the future cash flows are used to pay off...
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...Introduction: The main in this research assignment is to determine whether an investor should buy, hold, or sell the carefully chosen shares. The "Three-step down approach" was used to make conclusions and it also served as a guideline to the research. The two stocks that were chosen for the research falls within the financial sector, these two are FNB (First Rand Bank) and Nedbank. A brief analysis of the state of the economy and the financial industry was done. Furthermore a thorough investigation and analysis was done in respect of both firms. The Discounted cash flow and relative valuation techniques are used, both of these uses quantitative information. Cumulative information will also be incorporated to answer the objective and research hypothesis in a scientific and logical way. Statement of the problem: The business problem for the purposes of the research assignment is: Will an investor buy shares in Nedbank or FNB? If an investor owns shares in Nedbank or FNB, will he keep it or rather sell it? As an investor, the primary goal is to find the investment that will give you the highest return with the lowest risk. Investors also looks for the investments that can be bought at a discount in order to deliver a higher return on sales when sold, but also to sell the investment at a premium in order to deliver a higher return on the sale of the investment. To calculate whether the investor is investing at a discount or premium or selling at a discount or premium the investor...
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...Strategy of DFA Dimensional is a different kind of investment firm headquartered in Austin, Texas with regional offices in Amsterdam, Berlin, London, Santa Monica, Sydney, and Vancouver now (DFA 2012) which was founded in 1981 by David G. Booth and Rex Sinquefield, both graduates of the University Of Chicago Graduate School Of Business. The underlying principle of DFA is that the stock market was “efficient” which is, on one could beat the market consistently except by luck during some periods. The founders also believed that academic research and the ability of skilled traders could contribute to a fund’s profits even when the investment was inherently passive. At the first stage, DFA was aiming single investment fund that consisted with small stocks which fit its position in the market as a passive fund. The initial clients were major for tax-exempt institutions such as government, union pension funds and charities and etc. With the time going, DFA pursued individuals while through the intermediaries known as RIAs. Although with the low turnover, low transaction costs and diversification, DFA still could make reasonable profits by charging a moderate advising fee and developed rapidly. DFA is an outstanding investment firm doing the investment based on precise academic research and strict trading strategy which will both be discussed later. Over the years, DFA have translated financial research into real world investment solutions (DFA 2012) such as Fama-French findings which...
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...Value investing is the strategy of purchasing an asset which is trading at a significant discount from its determined intrinsic value. It has long been regarded as a low risk method of providing outstanding investment returns (Klarman 2001). The investment strategy was described by Benjamin Graham and David Dodd in their book, Security Analysis (1940, p. 724). Over subsequent decades the investment approach has evolved utilizing varying fundamental methodologies but always maintaining the principle of investing when a discount to intrinsic value exists. Graham and Dodd (1940, p. 368) referred to this principle as the 'margin of safety'. This essay will explore the various methodologies, expand on the 'margin of safety' concept and discover the factors that have led to the success of the exponents of value investing. Bierig’s (2000) assessment of the Graham and Dodd approach indicated that a value investor doesn’t just follow share market fads but instead ‘searches for stocks selling for less than their intrinsic value’ and after purchasing, waits for market recognition that corrects this discrepancy. Athanassakos (2011b) has illustrated that a search for undervalued stocks is the initial process undertaken. He maintains that these stocks tend to be ‘avoided by large institutional investors’ and are not the ‘glamour stocks everyone wants to own’. Graham (1973, p. 211) describes two methods of searching for fundamentally undervalued stocks; companies selling at a low price to...
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