Accounting Information Quality, Financing Constraints, And Company Innovation Investment Efficiency By Big Data Analysis

This paper takes the listed companies in China from 2008 to 2017 as the research sample to study the relationship between accounting information quality (AIQ) and company innovation investment efficiency. The results show that AIQ is negatively correlated with both the underinvestment and overinvestment of corporate innovation. Further, AIQ can alleviate financing constraints and reduce the lack of innovation investment; At the same time, AIQ can also alleviate the agency conflict and reduce the excessive investment in innovation. Finally, AIQ can promote the innovation investment efficiency of companies with low information environment.

Business sustainability performance and corporate financial performance: the mediating role of optimal investment

PurposeEmploying a large sample consisting of 3,701 corporations domiciled in developed and emerging countries, this paper aims to analyze the mediating role of investment efficiency in the association between business sustainability performance and corporate financial performance.Design/methodology/approachFour different aspects of corporate sustainability offered by the ASSET4 database are used as proxies for business sustainability performance, including economic, corporate governance, social and environmental dimensions. In addition to these aspects, the aggregate measure of business sustainability performance is also employed. In order to test the association between business sustainability and corporate performance via investment efficiency, ordinary least squares, fixed-effect, random-effect and generalized method of moments statistical models were employed.FindingsThe results suggest that business sustainability performance is positively associated with corporate financial performance, indicating that sustainable corporations enjoy higher financial performance. Moreover, Sobel, Aroian and Goodman tests confirm that investment efficiency mediates the positive relationship between business sustainability performance and financial performance. Finally, further analyses show that the positive association between sustainability performance and investment efficiency is stronger for those firms headquartered in developed countries than in those located in emerging nations.Originality/valueThis paper contributes to the literature by investigating how growth opportunities advance the influence of business sustainability to corporate financial performance using a large sample from 43 countries.

ЕФЕКТИВНІСТЬ ІНВЕСТИЦІЙНОЇ ДІЯЛЬНОСТІ В УКРАЇНІ

This article seeks to assess the effectiveness of attracting foreign investment in Ukraine. Within the scope of the research, investment activity is considered a key driver for economic development. It is emphasised that boosting economic growth in Ukraine depends heavily on attracting foreign investment as their effects extend to encouraging the national output, the speed of its technological advancements as well as the scale and pace of economic restructuring. The purpose and objectives of the study are to explore and evaluate the effectiveness of foreign investment in Ukraine's economy along with offering the authors’ understanding of the key factors affecting the investment climate and suggesting the most promising pathways to foster investment efficiency in Ukraine. It is argued that this study has a number of significant implications to Ukraine, since investment processes to a great extent underpin market development strategies, and entail the most important mechanisms for creating appropriate environment to overcome the structural economic crisis, implement structural changes in the production sector, promote innovation and enhance economic performance at the micro- and macrolevels. The research methodology involves general scientific methods of analysis and synthesis, and the generalization techniques. The findings reveal a whole range of crucial factors behind the investment process crisis and lack of effective tools for investing into the national economic development. The authors assert that a country's position in the investment ranking is a sort of a ‘business card’ for the investor who is looking for new capital investment opportunities. Currently, from this perspective, Ukraine's chances to attract foreign investment seem quite miserable. However, the findings verify that in the context of modern globalization, to spur foreign capital attraction into Ukraine, creating a favourable investment climate is paramount. The study has identified factors that affect the process of shaping the investment climate, among which the most important are a group of economic, political and geographical factors. According to the research results, a proactive government strategy and a comprehensive approach to resolving the current challenges related to investment activities at the micro- and macrolevels will contribute to realizing Ukraine’s investment potential with maximum efficiency that will lay a solid background for sustainable economic development in the future.

CRYPTOCURRENCIES OR CAPITAL MARKETS. COMPARATIVE ANALYSIS OF INVESTMENT EFFICIENCY IN 2011-2020

Cryptocurrencies have become an important element of the global financial system and a frequent investment tool in the last decade. The aim of this paper is to compare the efficiency of investments in the cryptocurrency market with investments in global capital markets. The study used the quotations of the analyzed instruments in the years 2011-2020. The investment efficiency was estimated using Sharpe and Sortino ratios. Research has shown that investments in cryptocurrencies were the most effective. They brought, on average, the highest daily rates of return, but on the other hand, they were characterized by the highest risk. Such a result could have been significantly influenced by the widespread persistence of ultra-low interest rates and a decline in the attractiveness of debt securities. The best results were obtained for investments in bitcoin and ethereum, which have the largest share of cryptocurrency market capitalization.

Digital Transformation Driven by Internet Data Center

With the acceleration of the digital transformation and technological upgradation of various industries, in the wake of application of new technologies such as 5G, artificial intelligence, and the internet of things, the demand for data storage, computing, transmission, and applications has greatly increased. Remote working, remote education, and e-commerce on account of the pandemic have led to a drastic increase in data consumption as well. The processing and analysis of massive data requires the construction of an information infrastructure—Internet Data Center (IDC). In the past few years, China's government has been dedicating itself to the task of constructing IDCs in some underdeveloped areas and establishing more detailed regulations. This chapter introduces some basic policies and implications behind this and a mathematical way to quantitatively analyse the investment efficiency of R&D resources in China's different regions. Several recommendations for the government and the society at large have also been outlined in this chapter for improvement in the whole ecosystem for IDCs in China.

Cash holding and investment efficiency nexus for financially distressed firms: The moderating role of corporate governance

The current research study aims to analyze the impact of cash holding on investment efficiency by moderating the role of corporate governance among financially distressed firms. The data for 14 years (2006-2019) is gathered from 400 companies of two Asian emerging economies (Pakistan and India). The results are obtained by applying a generalized method of moments (GMM), which postulates that corporate governance improves cash holding with investment efficiency in the Indian scenario and decreases in the Pakistani scenario. Concerning financially distressed firms, corporate governance strengthens the relationship of cash holding with investment efficiency in the Pakistani context but showing no moderating role in the Indian scenario. The results are helpful in cash management decisions to minimize the agency issue and to avail investment opportunities.

Debt structure: a solution to the puzzle of capital structure

PurposeThe purpose of this paper is to investigate the relation between debt structure and future external financing and investment. Furthermore, it aims to analyze the association between debt structure and future financial performance.Design/methodology/approachVolume, maturity, possessing collateral and having priority at the settlement date are the dimensions of debt structure that have been employed in this paper. The sample consists of 1,060 firm-year observations from Tehran Stock Exchange corporations during the period 2009–2018.FindingsThe findings reveal that greater reliance on financial leverage (debt volume) and short-term debt are associated with increases in future debt financing as well as future equity financing. Moreover, these two dimensions of debt structure are positively related to future investment. This paper also shows that the positive impact of financial leverage and short-term debt on future financing and investment can finally lead to a favorable financial performance. Regarding other dimensions of debt structure, the results suggest that although collateralized debt with the priority option at the settlement date enhances future external financing, this type of debt can ultimately lead to a reduction in future investment and financial performance. Finally, the findings indicate that uncollateralized debt exacerbates future financial performance.Research limitations/implicationsFinancial performance can be affected by several factors, including available funds, investment amount, investment efficiency and managerial capability. However, this paper only considers the investment amount and external financing as the channels through which debt structure improves future financial performance. This study has the potential to contribute to one of the most important issues in finance and business fields, despite its probable trivial drawbacks.Practical implicationsFinancing strategies as one of the most controversial topics have been meticulously scrutinized in this paper and practical implications are made to facilitate the process of decision-making regarding the optimal type of debt financing.Originality/valueThis study extends the literature by analyzing the direct link between debt structure and firm performance in firms domiciled in developing markets.