OPEC investment strategies—Past and future

Some forecasters recently have predicted that OPEC countries with continuing current account surpluses will shift from long-term to short-term investments in the near future to improve their liquidity positions. However, careful study of a variety of data, including historical patterns, suggests that this will not be the case. Instead, surplus countries will turn even more to long-term investments offering higher returns over time.     

Including emerging markets in international momentum investment strategies

Momentum return investment strategies that diversify across countries provide lower portfolio standard deviations and/or increased expected returns. These diversification benefits are larger when adding emerging markets than when adding developed markets, and they are larger than would be suggested by diversifying with long-only portfolios. Using data on almost 16,000 firms from 22 developed and 18 emerging markets over the 1990–2004 period, we confirm the profitability of momentum trading strategies in both developed and emerging markets and document the diversification benefits of including emerging markets in an international momentum portfolio investment strategy.     

Implementation and profitability of sustainable investment strategies: An errors-in-variables perspective

Firm-level studies of sustainable investment performance are typically limited by an errors-in-variables bias (i.e., a distortion of estimated regression coefficients caused by measurement error in explanatory variables). Using recent advances in statistical methodology, we present the first cross-sectional analysis of sustainable stock selection which adequately corrects for this bias and additionally answers the question of whether betas with respect to sustainable risk factors or sustainable characteristics (i.e., environmental, social, and governance ratings) are more relevant in portfolio selection. Within the universe of S&P 500 stocks, which is highly relevant from the investor attention and liquidity perspectives, we find that, after accounting for errors-in-variables bias, both types of variables become insignificant. Consequently, they do not add value to investment portfolios and are not vital in models explaining stock returns. Among classic predictors with a long history of use in the investment fund industry, only the market-to-book ratio provides independent investment and pricing information.     

Visualization service investment strategies for a self-operated fresh agricultural product e-tailer

Motivated by the fact that numerous fresh agricultural product e-tailers utilize the visualization technology to improve service quality, this paper examines visualization service investment strategies for a fresh agricultural product e-tailer. A supply chain comprised of one manufacturer and one self-operated e-tailer is constructed. We first investigate two service investment strategies in the game theory model: the manufacturer investment and the e-tailer investment. Our analysis reveals that there are two investment cases in the supply chain: one member intends to the service investment (a “win-win” situation) and neither is willing to offer the service (a “lose-lose” dilemma). Then we extend the theory model. The impacts of consumer preference heterogeneity, demand uncertainty and consumer preference for the product quality difference on the investment strategies are explored by the method of multi-agent modelling. We find that: (i) when consumer preference heterogeneity is small, the e-tailer should invest in the service; (ii) if consumer preference or demand uncertainty is moderate, it is difficult to reach an agreement between two players. Further, the government subsidy factor is considered. The issue of how the government subsidy affects service investment strategies is discussed. In fact, it is not necessary to provide a subsidy all the time. Only when the free-riding behavior happens, the government should grant a moderate amount of subsidy to coordinate the supply chain members. An excessive subsidy hurts two sides’ benefits instead.     

Impact investments,evil investments,and something in between: Comparing social banks' investment criteria and strategies with depositors' investment preferences

Since the global financial crisis in 2007, social banks have been flooded with deposits. Previous studies have indicated that customers hold deposits with social banks due to social banks' special placement of assets. However, to date it has been far from clear how social banks select their investments, and consequently to what extent the placement of assets meets depositors' preferences. The purpose of this paper is, therefore, to investigate whether the characteristics of social banks’ placement of assets are relevant to depositors’ choice of social banks. A two-stage study is conducted, using data collected via a document analysis of social banks' investment criteria, a survey of social banks, and an online survey of 609 depositors. The results imply that the characteristics of social banks' placement of assets are indeed relevant to depositors' choice of social banks, but do not explain customer behaviour entirely. Furthermore, the findings indicate that a relevant proportion of customers hold deposits with social banks to avoid “evil” rather than necessarily creating “good.” Based on the findings, a theoretical framework of depositors' choice of social banks is presented that goes far beyond previous explanations by considering various types of social depositors, banks, and borrowers.     

Us foreign direct investment in India: Emerging trends in MNC entry strategies

India, along with China, is one of the key emerging markets in the region that has attracted multinational corporate interest. This has been enhanced by recent economic reforms and enormous market potential. After briefly tracing the political precipitants of the economic reforms, this article reviews the new FDI rules and the opportunities and challenges that this new investment climate presents the US investor. Finally, the FDIs of 30 US MNCs are classified according to the entry strategies being employed and some rationale is provided on the primary entry modes of choice.     

金融危机下主权财富基金投资的风险控制与策略

占有总额约2万亿美元的资产,主权财富基金是近年来最受瞩目的国际投资者.此次美国次贷危机引起全球金融市场剧烈波动,且已由虚拟经济向实体经济蔓延,而以长期投资为主的主权财富基金被认为在一定程度上可对全球动荡的经济起到稳定器的作用,因此,对金融危机下主权财富基金的投资策略的研究具有重大的意义.     

我国利用外资形势的变化与跨国公司投资战略的调整

外国直接投资(Foreign Direct Investment,简称FDI)是重要的外部资源,也是一种稀缺资源。大力吸引和有效利用FDI,对于提升我国的产业结构,促进社会主义市场经济的形成和发展,推动中国经济与国际经济体系相融合等,都将发挥重要而积极的作用。自2001年起,特别是在加入WTO以后,中国又迎来了新一轮外商对华投资的高潮。2002年,全国合同外商直接投资827.68亿美元,同比增长19.62％;实际使用外商直接投资527.43亿美元,同比增长12.51％,超过美国成为世界     

新一轮外商直接投资的趋势及我国的引资策略

加入WTO两年来，中国市场开放进一步扩大，吸收外商投资的政策更加符合国际投资的要求，中国吸收外资进入了一个新的发展阶段。据商务部统计，2004年1-3月份，全国新批设立外商投资企业10312家，比去年增长19．57％；合同外资金额342．78亿美元，同比增长49．15％；实际使用外资金额140．66亿美元，同比增长7．49％。截至2004年3月底，全国累计批准设立外商投资企业475589个，合同外资金额9774．08亿美元，实际使用外资金额5155．36亿美元。     

The complex integration strategies of multinationals and cross country dependencies in the structure of foreign direct investment

The behavior of many multinational enterprises is not well described by existing models of foreign direct investment (FDI). Firms often follow strategies that involve vertical integration in some countries and horizontal integration in others, a strategy known as complex integration. This paper presents a three-country model that is used to analyze why firms might follow a strategy of complex integration. My analysis reveals that complex integration strategies create complementarities between potential host countries that have important implications for the structure of FDI. The analysis also shows that falling transport cost between countries may increase the importance of complex integration strategies.     

Step Options

Motivated by risk management problems with barrier options, we propose a flexible modification of the standard knock‐out and knock‐in provisions and introduce a family of path‐dependent options: step options . They are parametrized by a finite knock‐out (knock‐in) rate , ρ. For a down‐and‐out step option, its payoff at expiration is defined as the payoff of an otherwise identical vanilla option discounted by the knock‐out factor exp(-ρτ_B^‐) or max(1‐ρτ^-B,0), where τ_B^‐ is the total time during the contract life that the underlying price was lower than a prespecified barrier level ( occupation time ). We derive closed‐form pricing formulas for step options with any knock‐out rate in the range $[0,∞). For any finite knock‐out rate both the step option's value and delta are continuous functions of the underlying price at the barrier. As a result, they can be continuously hedged by trading the underlying asset and borrowing. Their risk management properties make step options attractive no‐regrets alternatives to standard barrier options. As a by‐product, we derive a dynamic almost‐replicating trading strategy for standard barrier options by considering a replicating strategy for a step option with high but finite knock‐out rate. Finally, a general class of derivatives contingent on occupation times is considered and closed‐form pricing formulas are derived.     

A General Approach to Hedging Options: Applications to Barrier and Partial Barrier Options

In this paper we consider a Black and Scholes economy and show how the Malliavin calculus approach can be extended to cover hedging of any square integrable contingent claim. As an application we derive the replicating portfolios of some barrier and partial barrier options.     

Options listings and individual equity volatility

This article examines the effect of options introduction on the conditional volatility of 1,576 individual firms over the 1973–1996 time period. With the use of a GJR‐GARCH specification for daily volatility, it is found, for the majority of firms, that option listing does not impact the underlying equity security. Listing effects are identified for a small subset of firms, specifically smaller firms with high trading volume and/or volatility. For these firms there is evidence of a change in the conditional volatility process after option listing, and it is concluded that options continue to provide additional information about the underlying equity for these companies. © 2007 Wiley Periodicals, Inc. Jrl Fut Mark 27: 1–27, 2007     

饮食服务企业经营与战略

饮食服务企业在社会经济生活中的地位、作用越发显得重要,饮食服务企业经营战略确定与选择是饮食服务企业发展的重大课题。饮食服务企业经营战略确定是由饮食服务企业经营特殊性决定的;战略确定的依据是行业政策和企业环境;战略选择原则是发挥整体优势,适应经营环境,战略实施具有连续性和内聚性,战略目标及方向是社会需求和产业化服务。     

Science and ethical investment

The article explores the relationship between science and ethical investment, which is often concerned with the application of science and technology through commercial organisations. The article considers the contribution that scientific understanding makes to ethical investment, and the way in which ethical investment can improve the public perception of science. It then goes on to consider the historical relationship between science and society and the lessons that might be learnt from scientific study in developing a methodology for ethical investment. The conclusion reached is that scientific understanding provides the bedrock for many of the concerns which arise in ethical investment, as well as providing an indication of the nature of the research involved.