scholarly journals APPLICABILITY OF CONTRARIAN INVESTMENT STRATEGIES IN SMALL CAPITALIZATION MARKETS: EVIDENCE FROM NASDAQ OMX VILNIUS

Ekonomika ◽  
2011 ◽  
Vol 90 (1) ◽  
pp. 101-114 ◽  
Author(s):  
Arvydas Paškevičius ◽  
Rūta Mickevičiūtė
Keyword(s):  
Economic Crisis ◽  
Rapid Growth ◽  
Investment Strategy ◽  
Investment Strategies ◽  
Contrarian Strategy ◽  
Holding Period ◽  
Market Index ◽  
The Subject ◽  
Nasdaq Omx

This study reviews previous research on the contrarian investment strategy as first analyzed by De Bondt and Thaler (1985), and aims at deepening and complementing the existing research on the subject. The paper analyses the results of applying the strategy to NASDAQ OMX Vilnius stocks over the period 2003–2010, dividing the testing into two groups: prior to the economic crisis and the crisis periods, based on the movement of the OMXV index. The method uses holding period returns in evaluating the standard contrarian investment strategy. The paper explains the methodology in detail and presents the findings which show no considerable holding period returns from the strategy in NASDAQ OMX Vilnius during the decline period; however, contrarian strategy seems to be a better option than a standard market index based portfolio during the periods of rapid growth when stocks are overrated.

scholarly journals Financial Market Evaluative Inefficiencies and Companies Sub-Optimal Investment Choices: How to Get Out of the Shortermist Impasse?

2017 ◽  
Vol 9 (5) ◽  
pp. 143
Author(s):  
Bruna Ecchia
Keyword(s):  
Financial Market ◽  
Optimal Investment ◽  
Investment Strategy ◽  
Minority Shareholders ◽  
Holding Period ◽  
Average Share ◽  
The Subject ◽  
Short Termism ◽  
Investment Choices

This paper examines, in an innovative way as compared to the literature on the subject, “whether, how and under what conditions” certain technical devices, such as so-called “loyalty bonuses,” devised to increase the holding period of shares, can effectively reach their goal of countering the short-termist tendency involved in company investment decisions. This trend is an expression of compliance toward the current short-termism of the financial market as evidenced by the enormous shortening of the average share-holding period. This is not a recent phenomenon but it becomes more marked in times of crisis. Thus many projects, although functional to a company’s competitiveness, are rejected simply because of their deferred profitability and therefore incompatibility with the short market horizon, more focused on results emerging from quarterly reports than on a company’s long-term choices for business development. If the market is unable to immediately and adequately incorporate into prices the benefits from deferred returns, shareholders can equally obtain them if they remain durably connected with the company, but this choice must be encouraged by appropriate incentives. The loyalty bonus may be useful for this purpose and for long-term company interests, because it contributes to a better alignment of shareholders’ expectations with a more long-term vision in investment strategy. However the bonus, rather than involving the minority shareholders in the enterprise’s “mission,” often degenerates into a Control Enhancing Mechanism, though with unusual effects, among which a situation of “captivity” for all shareholders, even and especially the majority shareholders. In any case the utility of the bonus can occur, especially in less efficient markets. In a fully efficient market it could be harmful.

Long-term Portfolio investment: New insight into Return and Risk

2015 ◽  
pp. 54-77
Author(s):  
A. Abramov ◽  
A. Radygin ◽  
M. Chernova
Keyword(s):  
Portfolio Management ◽  
Traditional Approach ◽  
Investment Strategy ◽  
Strategy Development ◽  
Investment Horizon ◽  
Investment Strategies ◽  
Fixed Income ◽  
Portfolio Rebalancing ◽  
Holding Period

The article examines the influence of investment horizon increase on comparative advantages of main asset classes and on the principles of investment strategy development. Unlike in the traditional approach of portfolio management theory, the study shows that for long-term investments corporate bonds have the advantage over equity in terms of return-risk tradeoff. This fact argues in favor of the fixed-income oriented (including infrastructure bonds) investment strategies for pension funds and institutional investors. The article draws special attention to the importance of regular portfolio rebalancing for long-term investors. In this case the variation of returns decreases and the variation of risks increases with the holding period. Consequently, with horizon increase a long-term investor should allocate more assets in the low-risk financial instruments in order to keep a certain level of return-risk tradeoff. This argument becomes increasingly important for the purposes of pension savings management.

Mutual fund management in the period of financial crisis

2017 ◽  
Vol 31 (2) ◽  
pp. 75-81
Author(s):  
О. А. Bank
Keyword(s):  
Financial Crisis ◽  
Mutual Fund ◽  
Economic Recession ◽  
Investment Strategy ◽  
Economic Conditions ◽  
Investment Strategies ◽  
Fixed Income ◽  
Fund Management ◽  
Fund Managers ◽  
Different Types

Mutual fund managers do not have full freedom in choosing investment strategies - they are limited both by the laws and by investment declarations of the funds. Investment strategy cannot be fully changed even in financial crisis but it only can be corrected. This fact could not be characterized as a disadvantage because different types of funds are efficient in different time even during the same economic recession. Mutual fund manager should rationally invest funds of their clients: it is better to keep the maximum possible part of the portfolio in cash and instruments with fixed income on the declining market and it is better to keep shares on the rising market. However the choice of bonds also as the choice of shares should pay respect for the features of these instruments during unfavorable economic conditions. Russian mutual fund management differs from fund management in other countries as in stable economic situation so in the circumstances of financial crisis.

scholarly journals Effectiveness of Selected Investment Strategies in the Opinion of Polish Individual Investors Depending on their Personal Preferences

2020 ◽  
Vol 13 (4) ◽  
pp. 442-451
Author(s):  
Katarzyna Daniluk
Keyword(s):  
Risk Aversion ◽  
Investment Strategy ◽  
Capital Allocation ◽  
Survey Method ◽  
Individual Investors ◽  
Investment Horizon ◽  
Investment Strategies ◽  
Research Material ◽  
Individual Needs ◽  
Level Of Risk

SummarySubject and purpose of work: The work aimed at identifying and characterising the interdependence between Polish investors’ personal preferences in investing and their opinion about the effectiveness of investment strategies. It was examined how the adopted investment horizon, the level of risk aversion and the time spent daily on investing impact the interviewees’ experiences and opinions on the effectiveness of investment strategies.Materials and methods: As the survey method was employed, a questionnaire was sent to randomly selected Polish individual investors. The research material consisted of 652 questionnaire forms.Results: The study showed a relevant dependence between Polish investors’ personal preferences and their opinions on the effectiveness of the particular strategies.Conclusions: The interdependencies revealed in the study may be used by potential investors in the process of matching a strategy to individual needs so as to enhance the effectiveness of the choice. A higher awareness of the problem of matching an investment strategy to personal preferences will lead to improved effectiveness of capital allocation among Polish investors.

scholarly journals VALUE-SENSE MANAGEMENT

2021 ◽  
Vol 6 (1(82)) ◽  
pp. 38-43
Author(s):  
A. Kurbatov ◽  
L. Kurbatova
Keyword(s):  
Economic Crisis ◽  
Large Scale ◽  
System Analysis ◽  
Negative Impact ◽  
Political Reality ◽  
The World ◽  
Sufficient Degree ◽  
Modern Economic ◽  
The Subject ◽  
Scientific Practical

The greatest crisis, which is being experienced by the world economy, has not come unexpectedly, since it was predicted with a sufficient degree of precision. Moreover, the matters, causing obstacles for the transformation in the period of transition from the mixed economy to the intellectual economy, have been studied well enough and the technologies of the harmonious transformation have not just been developed but also successfully approbated. However, the crisis is escalating with increasing strength, and many analysts are warning against the risk of irreversible losses, that threaten the mankind with self-destruction due to the effect of 'the lacuna' and 'the gap' between the speed of changes in life conditions and the velocity of growth of human and humanity abilities to adapt to fast changing conditions of ecological, economic, technological and political reality. As anticipated, the main problem turned out to be the intellectual inertia. Despite the fact that the system analysis of the global crisis in education, which does not any longer provide the human and humanity with the proper competencies, even those necessary for the survival, was published by F.G.Coobles back in 1968, the approaches which are long outdated and, therefore, have become dangerous, are still widely spread all over the world. The reports of the Roman club have repeatedly highlighted that the overcoming of 'the lacuna' effect requires new approaches to education, but this has not led to large scale practical results, in spite of the fact, that the task of the development of the new system of the continuous anti-crisis education (for all ages) was accomplished back in the USSR and the experimental model proved to be efficient in process of the 20 years approbation in conditions of the Russian Federation. The psychological bareers arising during the transition from the programme goal method to the system-synergetic approach, from the crisis model of economy to value-sense one, from the subject-object relations to the subject-subject ones and others, have turned to be hard to overcome without the help of specialists, equipped with the methods of the value-sense management, which enable each subject, experiencing the negative impact of the modern economic crisis, to successfully overcome it. This article is dedicated to the peculiarities of the author's scientific-practical school of the value-sense management as a means of overcoming the modern economic crisis. 

scholarly journals MEDIA SOSIAL INSTAGRAM SEBAGAI SARANA PROMOSI UNTUK MENINGKATKAN MINAT BELI KONSUMEN

2017 ◽  
Vol 1 (01) ◽  
pp. 25-32
Author(s):  
Deru R Indika ◽  
Cindy Jovita
Keyword(s):  
Social Media ◽  
Social Interaction ◽  
Rapid Growth ◽  
Purchase Intention ◽  
Internet Access ◽  
Tourism Industry ◽  
Tourist Destination ◽  
Consumer Purchase Intention ◽  
The Subject ◽  
Use Of Social Media

The speed of internet access and the rapid growth of the smartphone industrymakes it easier for people to get information. In the field of marketing, this affectshow the promotion is done. The use of social media which is actually meansfor social interaction between online individuals becomes commonly used bycompanies as a tool for promotion including in the tourism industry. One of thesocial media that is often used is Instagram, an application that allows users toshare photos and pictures along with short messages with other users. This studydiscussed how Instagram as a social media can affect consumer purchase intentiontoward a tourist destination. The subject of research is Floating Market located inLembang, Bandung, West Java. The results showed that information deliveredthrough Instagram was effective in increasing consumer purchase intention upto 50.2%

scholarly journals A Sobre-Reação do Mercado à Informação Intangível

2009 ◽  
Vol 7 (2) ◽  
pp. 215
Author(s):  
Carlos Marcelo Lauretti ◽  
Eduardo Kazuo Kayo ◽  
Emerson Fernandes Marçal
Keyword(s):  
Risk Factors ◽  
Investment Strategies ◽  
Past Performance ◽  
Accounting Performance ◽  
Classic Model ◽  
Market Index ◽  
Intangible Information ◽  
The U.S

Academic studies have shown that returns show reversion effects, which has often been explained as market overreaction to firms past performance. Other studies have shown that future returns are positively related to book-to-market index (B/M), which has been suggested as a proxy for risk factors omitted by CAPM classic model. Both evidences have been widely used in investment strategies. More recent studies in the U.S. market showed that these observations stem from the same phenomenon: the overreaction to the intangible information, that is, information that is not present in accounting performance statements,

Educational and scientific programmes for the citizens of Belarus as an example of science diplomacy – a political and legal analysis

2021 ◽  
Vol 19 (4) ◽  
pp. 243-264
Author(s):  
Ewelina Panas ◽  
Marcin Gołębiowski
Keyword(s):  
Economic Crisis ◽  
Scientific Community ◽  
Negative Impact ◽  
Legal Analysis ◽  
Science Diplomacy ◽  
Current Events ◽  
Scientific Potential ◽  
Research Goal ◽  
The Subject ◽  
Opposition Movements

Owing to current events in Belarus (political and social, including the economic crisis and the ongoing activities that are having a negative impact on the functioning of opposition movements), the country is becoming an arena of competition for influence. In the context of the subject of this analysis, rivalry, especially in terms of the influence of other states on Belarusian society, is of key importance. Science diplomacy may be a tool of competition for influence. The fact that science diplomacy can be both a tool with which to cooperate with other countries in the region and a tool of competition for influence is of key importance in analysing this problem. The scientific potential of the Belarusian community is also of interest to other countries, including Ukraine, Lithuania, and Germany. The effective and efficient implementation of science diplomacy activities towards Belarus is undoubtedly in line with the well-understood Polish national interest. The aim of the article was to conduct a political and legal analysis of the process by which Poland is using science diplomacy as a tool for influencing the scientific community of Belarus. Another research goal was to analyse the activities undertaken by two other countries in the region – Ukraine and Lithuania – with respect to science diplomacy. The article also aimed to analyse the formal and legal conditions related to the normative solutions used in the countries under analysis, enabling the undertaking and implementation of education by Belarusian citizens. The educational and scientific programmes offered to students and scientists from Belarus in Poland were also subject to legal analyses. The whole analysis is supplemented and concluded by an attempt to evaluate the effectiveness of the activities carried out so far.

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