Unlocking the power of investment decision making with MATLAB: A cutting-edge method for optimizing capacities

This article is devoted to investigation of China’s investment activity in Africa. The authors pay attention to the formation history of China’s investment strategy in the African market, and highlight three stages: 1) from 1950 to 1980, 2) from 1980 to 2010, and 3) from 2010 to the present. A distinctive feature of the current China’s investment strategy in Africa is medium and small companies’ entering into the African market. The main areas of Chinese investment are: mining, construction of infrastructure facilities, industrial production and financial services. Chinese financial institutions are interested in further financing of infrastructure projects because this contributes to the achievement of goals within the framework of the Chinese national economic strategy. Beijing needs to balance its export flows to Africa as well. Africa is also an important strategic location for the deployment of the Chinese navy to protect trade routes and transport hubs implemented within the 21st Century Maritime Silk Road. The Port of Djibouti is an example of that strategy. It allows experts to talk about China’s economic and geopolitical expansion through the Belt and Road Initiative. The security issues of the investment and economic policy toward Africa are considered by Beijing as a necessity to protect its investments. In the medium and long-term perspective, the growth trend of Chinese investment, carried out by Chinese private sector, including small and medium-sized companies, will continue. The volume of investments in such areas as industry, transport and telecommunications will grow. The article also looks at the problems of China’s investment activity and the criticism that Beijing faces from African governments. The institutionalization of China’s trade and investment policy in the African direction, which includes the use of potential of the Forum on China-Africa Cooperation, China- Africa Development Fund and African Projects Support Fund, is one of important focuses of the article.

Optimal combined long-term facility design and short-term operational strategy for CHP capacity investments

Objective: The objective of this technological article is to present a practical tool for calculating CO2 emissions based on fuel consumption applied in a small road freight transport company. Theoretical Framework: There are 4 methods available in the literature for calculating CO2 emissions produced during cargo transport, which stand out for their applicability: (1) GHG Procol; (2) MNT; (3) DEFRA; and (4) GLEC. The authors (Leonardi & Baumgartner, 2004; Lewis et al., 2016) have methodologies for calculating emissions from freight transport, which currently present significant variability in the approaches and databases recommended. The main methodologies in this area are based on two main foundations: (1) fuel-based methodologies; (2) activity-based methodologies. Method: The calculation methodology used is based on fuel consumption (bottom-up), which considered the characteristics of the target fleet, the number of vehicles and their technological phase, the actual intensity of fleet use in operation, and real fuel consumption. Results and Discussion: From this initial information, it was possible to obtain the volume of CO2 emissions specific to the fleet, considering vehicles using regular diesel and biodiesel (S10). The results indicated a fleet CO2 emission of 1,643 tons per year with the use of biodiesel (S10), representing a 10.5% reduction compared to the total CO2 emission from regular diesel. Research Implications: The practical and theoretical implications of this research are discussed, providing insights into how the results can be applied or influence practices in the field of [insert field of study]. These implications could encompass [list impacted areas or sectors]. Originality/Value: This technological article contributes to the presentation of a review of CO2 emission calculation models available in the literature and the selection of a methodology for easy application for small and medium-sized road freight transport companies.

Purpose – The purpose of this paper is a comparison of forecasting behaviour of small and large Austrian firms, analysing their forecast practices in a volatile business environment. Design/methodology/approach – The empirical analysis of the paper, deductive by nature, was conducted by means of a quantitative online-survey (199 data sets). The relationship of perceived volatility and forecast predictability was evaluated by correlation analysis. t-Test and analysis of variances were used to examine significant differences in the forecast characteristics between small and large Austrian companies and different industries. Findings – The study provides evidence that the surveyed companies have been hit by volatility, showing that Austrian SMEs are significantly more severely affected than large companies. The increasing volatility correlates with a reduced forecast predictability of sales quantities and commodity prices. Large Austrian companies primarily use a broad spectrum of qualitative forecasting methods. In contrast, Austrian SMEs utilize simple quantitative and qualitative forecast techniques, like the forward projection of historical data. Research limitations/implications – Relevant for the forecasting of small and large companies. Practical implications – Although management requests a broad spectrum of forecast qualities, the current usage of less sophisticated methods reveals a gap between intention and reality. Companies that supplement their qualitative techniques by sophisticated quantitative ones should expect less forecast bias. Originality/value – This paper initially compares forecast methods in large and small Austrian firms and additionally provides the impact of volatility on the forecast predictability.

Purpose – This study examined the effect of corporate culture (the availability of corporate pages on the website of the company) on the corporate value (Tobin’s Q) of the companies listed on the Indonesia Stock Exchange. Design/methodology/approach – The study uses secondary data extracted both from the company website and the financial reports for the year 2019. There are 530 companies that met the selection criteria. The hypothesis is tested using the cross-sectional ordinary least square (OLS) regression. Findings – The results show a modest positive effect of corporate culture on corporate value. The robustness test reveals that the finding is more pronounced among small companies. The study also includes four other variables, namely employee activities, employee training programs, honors earned, and charity programs. It was found that only honors earned have a significant positive effect on corporate value. Research limitations/implications – This study uses a cross-sectional-based analysis, making it lack of capability to look for the multi-years effect of the variables being investigated. It measures Tobin’s Q using the end of the fiscal year stock price. Using one single day as the base of calculation may ignore the fluctuation of the stock prices over the whole year. Practical implications – Given the findings, it is recommended that the company shall disclose and promote its corporate culture as a means of informing potential investors about the company’s strong commitment to doing business with a specific culture. Originality/value – The study examines the issue using cross-sectional data and divides the sample based on the size of the companies allowing it to seek more evidence on whether the main issue under investigation is sensitive to the size of the company.

Purpose – The purpose of this study is to provide insights into the perceptions and uses of qualified audit reports in financial statements of small- and medium-sized enterprises (SMEs). As there is a long-standing debate on the usefulness of auditor’s going-concern reports, this study aims to provide insights into the factors that affect how banks perceive and use going-concern reports. Design/methodology/approach – Semi-structured interviews with bank officers were conducted. Findings – The study findings demonstrated that bank officers considered that the going-concern report provided information, although they did not regard the information as being particularly useful. The main factors affecting the usefulness of information are use of other information sources and bank officers’ perceptions of auditing. Other factors are also presented and discussed in the current research paper. Practical implications – Regulators have taken the action to improve the auditor’s reporting model, and the findings provided by this study are important because they provide a deeper understanding of the perceptions and uses of audit reports from smaller companies. The study also contributes knowledge about the role of audit reports in the context of SMEs finance. Originality/value – This is one of the first studies to use a qualitative approach to examine factors that affect the use of going-concern reports.

Carbon dioxide allowance trading systems for electricity generators are in place in the European Union and in several U.S. states. An important question in the design of such systems is how allowances are to be initially allocated: by auction, by giving away fixed amounts (grandfathering), or by allocating based on present or recent output, investment, or other decisions. The latter system can bias investment, operations, and product pricing decisions and increase costs relative to the other systems. A nonlinear complementarity model is proposed for investigating the long-run equilibria that would result under alternative systems for power markets characterized by time-varying demand and multiple technology types. Existence of equilibria is shown under mild conditions. Solutions for simple systems show that allocating allowances to new capacity based on fuel use or generator type can yield large distortions in capacity investment, invert the operating order of power plants, and inflate consumer costs. The distortions can be smaller for tighter CO2 restrictions and are somewhat mitigated if there is also a market for electricity capacity or minimum-run restrictions on coal plants. Distortions are also less if allowances are allocated to plants in proportion to sales rather than capacity.

Purpose This study examines a cross section of the Spanish retailing branch on the adoption and use of Social Media tools, identifying users and nonusers and their impact on management experiences. The use of 2.0 technologies has also been analyzed based on company size. Methodology An online survey among 90 Spanish retailers provides a number of interesting insights in the adoption rates, the facilitating and disruptive factors in the adoption process, the types of applications used by retailers, and their experiences from them. Prior to filling in the online questionnaires, the recipients were contacted by phone and were informed about the study. A Chi-square analysis has been carried out to contrast the suggested research questions. Findings Retailers using Social Media as part of their marketing strategy use most social applications for customer-related purposes and see clear benefits in improving customer relations, market communication, improving their after-sales services, and obtaining customer feedback and customer information. Although many differences do not exist between large, medium, and small companies, it is remarkable that large companies use social web tools as branding and small companies as customer service. Research limitations The main problem of this study has been the low recruitment of answers by retailers. Practical and social implications Customers are using such technologies in overwhelming numbers and a substantial part of the customer generated content in Social Media is about brands, businesses, and products. Having a good idea about the customer dialog online can provide businesses with very valuable information and help them understand market trends but also identify potential areas of danger and problems. Originality/value of chapter The adoption of Social Media tools is a topic much studied from demand perspective. Nevertheless, the application to business and, specifically, retailing sector is less analyzed. With this study we pretend to improve this research line from offer perspective.

The objective of this research is to investigate the volatility of investment instruments, with the aim of providing the best model for predicting investment value. In this topic, the main concepts and theories that underpin the research are presented. Efficient market hypothesis and rational expectations theory stand out, providing a solid basis for understanding the context of the investigation. The methodology adopted for this research GARCH modelling to analysis investment instrument and the impact of its volatility. Data collection was carried out through yahoo finance website and investing website during red sea war event. The research identified optimal GARCH models for different indexes and assets: GARCH (1,1) for JCI, STI, SET, and Bitcoin, E-GARCH (1,1) for KLSE, PSE, and VSE, and GJR-GARCH (1,1) for Gold. It discussed volatility persistence and leverage effects during the Red Sea War, considering model sensitivities, geopolitical impacts, and research limitations. This research's practical and theoretical implications inform financial risk management, highlighting the importance of robust volatility modeling. The findings can enhance portfolio optimization and investment strategies during geopolitical instability. These insights underscore the need for sophisticated approaches to manage financial risks effectively. This research uses advanced GARCH models to analyze volatility during the Red Sea Crisis, revealing asset-specific behaviors under geopolitical stress. The findings improve financial risk management and investment strategies in unstable conditions, enhancing volatility predictions and professional practices.

Economic instability conditions, which can be caused by various factors such as financial crises, political turbulence, or global events, highlight the importance of developing effective investment strategies to ensure the sustainability and development of enterprises. Effective investment can help businesses unlock new opportunities for competitive development. At the same time, the growing importance of innovation and technological progress is becoming increasingly significant, placing enterprises in need of constant renewal and modernization. Investing in high-tech solutions can provide desired competitive advantages and growth opportunities. Moreover, today consumers are paying more attention to the social responsibility of businesses. Investing in the development of environmentally friendly and socially responsible business can provide enterprises with a positive reputation and consumer support. Thus, in constantly changing market conditions, enterprises must be ready to adapt to new economic realities. Effective investment can help enterprises maintain competitiveness and respond to changing consumer and market demands. © Dmytro Donets, 2024 Received: 02.08.2024 Accepted: 24.08.2024 Published: 30.09.2024 This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 license, which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited. Cite as: Donets, D. (2024). Investment strategies in enterprise: unlocking opportunities for development. Economic analysis, 34 (3), 286-300. DOI: https://doi.org/10.35774/econa2024.03.286 The purpose of the article is to identify key factors that influence the effectiveness of investment activities of enterprises and provide recommendations for developing and implementing effective investment strategies for businesses. The article emphasizes that investment strategies in enterprises are aimed at stimulating the development of the business entity. As according to the chosen investment strategy, new paths and opportunities for further development can open up. This may include investments in new technologies, expansion of markets, modernization of production, development of innovative products and services, etc. This approach reflects the importance of investments as a strategic tool for stimulating effective and sustainable growth of the enterprise in a competitive environment. The investment strategy ensures the implementation of the appropriate mentality of investment behavior in the most important strategic investment decisions of the enterprise. In addition, in the process of investment activity, the significance of the main criteria for evaluating the selection of the most important investment management decisions is formed. The article also proves that the development of investment activity is one of the basic prerequisites for strategic changes in the overall organizational structure of management and organizational culture of the enterprise. It is emphasized that the development of the enterprise involves, primarily, the technological development of production, improvement of economic and financial performance indicators of the enterprise, in particular, the growth of production profitability, improvement of the characteristics of the social environment in which the investment project will be implemented, improvement of environmental performance indicators of the enterprise.

The purpose of the paper is to study the theoretical foundations of the formation of an enterprise's investment strategy in modern conditions. By analyzing, systematizing, and summarizing the scientific works of many scientists and researchers, the essence of the concept of «investment strategy» was determined, depending on the scientific point of view and practical experience of various authors. The main goals of the investment strategy are determined, including maximizing profit from investment activities, minimizing investment risks, ensuring the improvement of the state of the enterprise due to effective investment activities. Eight main stages of formation of the enterprise's investment strategy have been identified. The principles of forming the investment strategy of the enterprise are characterized. The paper highlights the following principles: consideration of investment risk in the process of making strategic investment decisions, adaptation of the investment strategy to changes in factors of the external investment environment, ensuring the flexibility of the investment strategy, taking into account the main strategies of the enterprise's operational activity, and using the results of scientific and technical progress in investment activities. Attention is focused on the importance of taking into account innovative approaches when forming an enterprise's investment strategy. It was investigated that, despite the crisis phenomena and political instability in Ukraine, domestic enterprises continue to conduct investment activities. According to the results of the research, the main measures to improve the process of investment strategy formation, including the improvement of the system of analysis of the external and internal environment of the enterprise, the introduction of modern methods of evaluating investment projects, the study of the legislative framework for the regulation of investment activity and adaptation to its changes, the creation of an investment project management system, which will help to ensure effective implementation of investment projects and achievement of set goals, etc.

Purpose A review of relevant literature supported the need to examine the nature of the relationships (if any) between visionary leadership, continual improvement and product quality. This study examined the relationship between visionary leadership and product quality and investigated the mediating role of continual improvement in the relationship between visionary leadership and product quality. Design/methodology/approach Visionary leadership, continual improvement and product quality were measured through a questionnaire developed based on a theoretical framework derived from the literature and distributed to quality assurance managers in small and medium-sized companies in the engineering, electrical and information technology sectors in Jordan. Findings The results indicated that the levels of visionary leadership, continual improvement and product quality are good and more from the perspective of quality assurance managers in these companies. The results also indicated that there is a positive, statistically significant relationship between visionary leadership and continual improvement and between continual improvement and product quality. Moreover, the results indicated that the relationship between visionary leadership and product quality is partially mediated by continual improvement. This indicates that there is a direct, positive and statistically significant relationship between visionary leadership and product quality. Originality/value To the author’s knowledge, this is the first study that examined the relationship between visionary leadership, continual improvement and product quality and investigated the mediating role of continual improvement in the relationship between visionary leadership and product quality. This study concluded that visionary leadership is the driver of all improvement initiatives and activities, which in turn improve the final products. The study contributes to the literature by revealing that visionary leadership leads to continual improvement and thus product quality, supporting the sequential relationship between them. Accordingly, the study provides useful theoretical insights and practical implications.

ABSTRACTCapacity decisions involve trade‐offs between the cost of capacity and the opportunity costs of lost sales. Accounting researchers posit that accounting performance provides sufficient information about these trade‐offs and thus can be used to formulate simple rules to assist capacity decisions. Empirical research has not examined the role of accounting information in capacity investment decisions at the department level in a multiproduct firm in the presence of social costs. Empirical analyses using department‐level data from California hospitals for the period 1998–2005 show that hospitals are more likely to make capacity investments in departments with high accounting performance. However, in the presence of demand variability, the association between accounting performance and capacity investment is attenuated because of the resulting increase in noise in accounting performance measures. Thus, the weight on accounting performance as a decision tool for capital investments reduces when there is demand variability. Another factor that reduces the weight on accounting performance is capacity utilization. Higher capacity utilization can lead to turning away or rerouting of patients to other hospitals and negatively impacts reputation and quality of care, which increases the hospital's social costs. Hence, hospitals do not require high accounting performance before investing in a department with high capacity utilization. This empirical evidence of the role of accounting performance in capacity investment decisions fills a gap in the capacity investment literature and furthers our understanding of the interactions between accounting performance and the operational determinants of firms’ capacity investment behavior.

Purpose - The purpose of the study is to investigate the impact of heuristic biases on financial decision-making, particularly focusing on availability bias, anchoring and adjustment, overconfidence, and representativeness. Additionally, the study aims to recommend investment-related policies based on its findings. Study Design/Methodology/Approach - The study adopts a quantitative approach with correlational research as its methodology. It utilizes a sample size of 343 respondents and employs a structured questionnaire built upon prior studies. Independent variables such as overconfidence bias, representativeness bias, availability bias, and anchoring bias are examined, while the impact of these biases on investment decision-making, considered the dependent variable, is assessed. Findings- The findings reveal that representativeness and anchoring biases significantly affect risk perception, consequently impacting investment decision-making indirectly. However, the availability bias and overconfidence bias did not demonstrate significant indirect impacts on investment decision-making through risk perception. Practical Implications- The study suggests implications for enhancing the application of behavioral finance. It recommends future studies to target institutional investors, exploring factors like herd behavior to better understand decision-making processes in finance. These insights can inform the development of more effective investment policies and strategies

The originality of the study is that performances of CEOs are estimated by determining how efficiently they convert their own remuneration and other key company input resources into a key performance output. Accounting-based data, with the Du Pont analysis as conceptual framework, were applied as the other company input and output determinants. The main purpose was to determine whether there is a difference in remuneration of CEOs who are efficient and inefficient, as estimated by data envelopment analysis. A sample of 167 Johannesburg Stock Exchange-listed companies, divided into large, medium and small, from the industrial and resource sectors is empirically investigated. According to the Student t test, the study found that there is no statistically significant difference between the remuneration of efficient and inefficient CEOs of large and small companies, but for medium-sized companies, the inefficient CEOs are statistically significantly higher remunerated. A possible reason for this contradiction is, inter alia, that market-based performance determinants were not taken into account, which could lead to a different conclusion. The practical implication is that an accounting-based model is developed for company boards, which should consider using accounting-based data more frequently to benchmark their CEOs’ remuneration, since not only are these data readily available to make comparisons with peers, but it can be influenced more easily by a CEO as in the case of market-based determinants.