Portfolio Investment in Malaysia and Saudi Arabia

Several strategies are adopted by investors in lowering the risk of investment while maximising its return. Graham's stock selection criteria are noted as one of the best strategies in selecting portfolios by investors. Although the model is universally accepted, it is less commonly practised and examined in emerging markets. Considering the growth of these emerging countries' financial markets, it is worthwhile to investigate the doctrine's effect on investment in these countries. This study endeavours to review the consequence of Graham's stock selection criteria on portfolio returns in the Malaysian and Saudi Arabian stock markets. Each country represents the fastest growing market in their region which justifies this study. The study found that the Malaysian stock market is capable of proffering abnormal returns to investors while the Saudi stock market is capable to offer abnormal returns to investors despite being an undeveloped and immature stock market. The study concludes that the model of stock selection remains beneficial and indeed valuable to regional investments.

Analysis on the Impact of Economic Globalization on Human Development and Economic Growth in the ASEAN-4

Economic globalization has made economies fruitful; however, a few studies argued that its impact on human development is not at par with economic growth’s advancements. With this, the effect and difference of economic globalization in terms of Trade, Foreign Direct Investment (FDI), and Foreign Portfolio Investment (FPI) on Human Development Index (HDI) and Gross Domestic Product (GDP) per capita were examined among the ASEAN-4 nations, namely, Indonesia, Malaysia, Philippines, and Thailand conjointly from 1990 to 2019. Multiple regression was used to estimate the parameters and significance of the models. Results have proved that the predictors, collectively, have a positive and statistically significant effect on GDP and the HDI. However, the data showed that linear regression of GDP per capita at 51.21% has more variation than HDI at 35.95%, which could mainly be due to that human development is highly influenced by other factors such as demand political freedom and prioritization of human rights, while the preferred subset still has the three variables altogether. Yet there were sub predictors towards GDP per capita that showed a partial effect except for FDI and FDI+FPI. This might be caused by its unidirectionality and volatility in investing.

AHP–TOPSIS Methodology for Stock Portfolio Investments

This paper presents a methodology for making decisions in the stock market using the AHP-TOPSIS multi-criteria technique. The problem is related to the stock market’s investment process considering the criteria of liquidity, risk, and profitability. The proposed methodology includes integrating economic and financial theories of investment in equity portfolios with the AHP-TOPSIS multi-criteria technique, which allows for evaluating a finite number of alternatives hierarchically under qualitative and quantitative criteria. The methodology has been tested in a real case of selecting a portfolio of high and medium marketability stocks for the Colombian market from April 2012 to April 2017. The computational results show the importance and efficiency of successfully integrating traditional equity portfolio investment criteria and multi-criteria methodologies to find an appropriate balance between profitability and risk in the investment decision-making process in shares in the Colombian stock market. The proposed methodology could be applied to other emerging markets, similar to Colombia.

Strategies of portfolio investment with estimates of bull and bear markets

The financial market has non-linear patterns, with different return behavior in bull versus bear markets. This article uses multivariate model estimates to study portfolios in changing conditions, and develops investment strategies for portfolios in light of uncertainty about the bear or bull status of the stock market. Portfolios were optimized for the main stocks listed on the Brazilian market index Ibovespa. The portfolios proposed with estimates of changing market status outperformed others over the analyzed period, with rebalancing adjustments made either weekly or monthly.

FOREIGN PORTFOLIO INVESTMENT AND CAPITAL MARKET DEVELOPMENT IN NIGERIA

The poor performance of Nigeria’s stock market is a source of concern and has generated contentious debates among the stakeholders in the Nigerian Stock Exchange Market (NSE). This study investigates the impact of foreign portfolio investment on the performance of the stock market in Nigeria for the period of 30years (1989-2018). Secondary and time-series data were used and the variables such as; stock market capitalization proxy for capital market performance, portfolio investment, exchange rate and inflation rate were sourced from the Central Bank of Nigeria (CBN) statistical bulletin, 2019 To avoid spurious results, unit-root test and regression analysis were used as the tools of data analysis. Findings show that all the predictors have no significant impact on stock market capitalization except the exchange rate that is statistically significant at 5% critical value. However, the f-statistic results (18.83660) indicate that the combine variables have a significant impact on stock market performance in Nigeria. It was therefore concluded that foreign portfolio investment if properly encouraged serve as a Potent variaable for enhancing the performance of the stock market in Nigeria. The study recommends that, there is a need for the government through the central bank of Nigeria to implement a policies that will increase the level and size of market capitalization in the capital market. Such an increase in the capital market will provide the necessary funds for investors for further investments thereby increasing productivity in Nigeria.

INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION, INVESTOR PROTECTION, AND FOREIGN PORTFOLIO INVESTMENT: A REVIEW

This paper aims to analyze the impacts of International Financial Reporting Standards (IFRS) adoption on foreign portfolio investment (FPI) in relation to investor protection based on existing empirical literature. This study uses a historical approach and focuses on thirty-six relevant articles published in accounting and finance journals. The author provides a theoretical groundwork of the association between IFRS adoption and FPI and summarizes the results. The findings are critically analyzed by employing developed vs. developing country lens. The review study reveals that the effects of IFRS adoption on FPI significantly differ between developed and developing countries. Although the positive impact of IFRS adoption on FPI is documented in existing literature, not all countries (particularly developing countries), firms, and users have benefited or equally benefited from IFRS adoption regarding FPI. In addition, the positive impacts of IFRS adoption on FPI are associated with the country's regulatory environment, such as level of investor protection. The findings of the study suggest that developing countries should ensure a proper regulatory environment to reap the full benefits of IFRS adoption. This review contributes to the existing literature by providing a comparative analysis of IFRS adoption effect on FPI between developed and developing countries while also suggests future research avenues.

Does Corruption and Government Regulation Matter to Foreign Portfolio Investment: Evidence from Asian and the European Union Countries

Economic integration in various countries impacts fluctuations in and out of capital and multiple economic cooperation between countries. The investment that is one form of implementation of economic integration positively influences a country's capital reserves. The study analyzed the influence of macroeconomic variables and proxied institutions with corruption variables and government regulations on foreign portfolio investment fluctuations in the twenty Asian and EU countries with the largest funds flows. The data used in this study is a data panel with a period from 2002-2019. The analysis method used in this study uses two methods at once, namely the Generalized Method of Moment (GMM) and the Panel Vector Error Correction Model (PVECM), to analyze the cost of the analysis results. The study found that macroeconomic instruments projected with GDP variables had a positive and significant influence on foreign portfolio investments, while exchange rate variables negatively affected foreign portfolio investments. Important findings in this study that corruption consistently negatively and significantly affects foreign portfolio investments are based on both GMM test results and PVECM tests in the long term. In contrast, the results of PVECM tests in the short term do not have any macroeconomic variables or institutions that significantly affect foreign portfolio investment. This means that investors' consideration in investing in Asian countries and Europe is based on a long-term perspective than on short-term economic dynamics. In addition, regulatory variables have a positive and significant effect on foreign investment portfolios in twenty Asian countries and the European Union with the largest portfolio investment fund flow.

PENGARUH PDB DAN KURS RUPIAH-USD TERHADAP INVESTASI PORTOFOLIO ASING DI INDONESIA

The influence of foreign investors on the financial sector in Indonesia is still very large. Therefore it is necessary to know the factors that affect the amount of Foreign Portfolio Investment in Indonesia. The aim of this study is to know the effect of the rupiah-usd exchange rate and GDP on Foreign Portfolio Investment in Indonesia in 2007Q1-2020Q4? The research method used is quantitative research. The data used is secondary data with documentation data collection techniques. The data analysis technique uses the Vectorautoregression (VAR) method with Eviews 9. The results of data analysis for the GDP variable (X1) only have a 0.4% effect on the fluctuation of Foreign Portfolio Investment (Y) in Indonesia and X1 does not have a Granger causality with Y.While the Rp-USD exchange rate (X2) has an effect of 7.78% on Fluctuations in Foreign Portfolio Investment (Y) and X1 have Granger causality with Y. And 91.8% of the variables that affect the fluctuation of Foreign Portfolio Investment are Foreign Portfolio Investment itself or other random variables. The conclusion of the study, GDP (X1) has an insignificant effect of 0.4% on Foreign Portfolio Investment in Indonesia (Y). The Rp-USD exchange rate (X2) has an effect of 7.78% on Foreign Portfolio Investment in Indonesia (Y).

Impact of Foreign Direct Investment, Foreign Portfolio Investment and Diaspora Remittances on Kenya’s Economic Growth

The Objective of this study is to find out the effect of capital flows on economic growth in Kenya, With Three specific objectives; To investigate the effect of foreign direct investment on economic growth in Kenya, to find out the effect of foreign portfolio investment on economic growth in Kenya, and to determine the effect of diaspora remittances on economic growth in Kenya. Quarterly data from 2002 to 2017 was used in the study, and Descriptive research design and inferential research design were used to analysis the data. Descriptively, mean and standard deviation were used and Inferentially the Auto regressive distribution Lag technique using the STATA software Version 15. Diagnostic tests were conducted on the data; Normality test using Jarque Bera test supported by the skewness and Kurtosis results; Unit root was tested using the Augmented Dickey Fuller Test .The Auto Regressive Distributed Lag regression short run results show that, foreign direct investment had an positive and insignificant effect on gross domestic product, whereas foreign portfolio investment had a positive and statistically significant short run effect on gross domestic product at 1% level of significance and diaspora remittances had a positive and very significant effect of gross domestic product at 5% level of significance. The Error Correction Model regression results showed that in the long run, Foreign Direct Investment, Foreign Portfolio Investment, and Diaspora Remittances had a positive and very significant effect on the economic growth at 1% level of significance.