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Investment Process (investment + process)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting80%

Selected Abstracts

Portfolio Concentration and Investment Manager Performance,

INTERNATIONAL REVIEW OF FINANCE, Issue 3-4 2005
SIMONE BRANDS
ABSTRACT This study examines the relationship between investment performance and concentration in active equity portfolios. Active management is dependent on the success of two important components in the investment process , stock selection skill and portfolio management. Our study documents a positive relationship between fund performance and portfolio concentration. The relationship is stronger for stocks in which active managers hold overweight positions, as well as for stocks outside the largest 50 stocks listed on the Australian Stock Exchange (ASX). We find that more concentrated funds tend to be those implementing growth styles, having smaller aggregate assets under management, being institutions that are not affiliated with a bank or life-office entity, whose funds experience past period outflows, and who are benchmarked to narrower indexes than the S&P/ASX 300. [source]

Investment in organizational capital

MANAGERIAL AND DECISION ECONOMICS, Issue 2 2007
Orlando Gomes
Organizational capital is a specific form of capital that firms accumulate. It relates to the development of codes, technical languages, practical arrangements about how the work is done and to the creation of an organizational culture. The distinctive feature of this form of capital is the fact that it does not contribute directly to an output result. Instead, it can be thought as creating the correct environment for the human factor to maximize its capability of generating value, that is, organizational capital works as an external effect on the accumulation of the human capital input. Nevertheless, organizational capital is a form of capital and therefore it has an investment process associated with it. The paper considers the process of investment in this form of capital and recognizes that it introduces important changes over the firm's profit maximization problem. The problem gains new features relating to its dynamic nature and a condition that guarantees saddle-path stability can be derived. Copyright © 2007 John Wiley & Sons, Ltd. [source]

Public and Private Investments in Greece: Complementary or Substitute ,Goods'?

BULLETIN OF ECONOMIC RESEARCH, Issue 3 2000
Nicholas Apergis
This paper investigates whether government investment spending exerts a positive or a negative effect on private investments. Time-series data for Greece as well as the methodology of cointegration suggest that, over the period 1948-80, public investment spending exerted a positive effect on private investments, while over the period 1981-96, the relationship turned out to be negative. Empirical results indicate that the large increase of the public share in the total investment process tended to crowd out private investments and to jeopardize the growth process of the economy. [source]

Measuring corporate environmental performance: the trade-offs of sustainability ratings

BUSINESS STRATEGY AND THE ENVIRONMENT, Issue 4 2010
Magali Delmas
Abstract Socially responsible investing (SRI) represents an investment process that reflects environmental and social preferences. The financial industry is in a unique position to move corporations towards corporate sustainability. However, there is often little transparency regarding the metrics used to evaluate corporate social and environmental performance and the trade-offs involved in the evaluation. In this paper we discuss the various trade-offs of sustainability screening methodologies. We show that the rating of companies varies significantly according to whether the screening is based on toxic releases and regulatory compliance or on the quality of environmental policy and disclosure. We base our analysis on the evaluation of the performance of 15 firms in the chemical sector. The analysis indicates that firms that have the most advanced reporting and environmental management practices tend also to have higher levels of toxic releases and lower environmental compliance. We provide methodological recommendations to help stakeholders evaluate corporate environmental performance. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment. [source]

Corporate Governance and Competitive Advantage in Family-Controlled Firms

ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2005
Michael Carney
Recent attempts to identify the basis of family-controlled firms' competitive advantage have drawn upon the resource-based view of the firm. This article supplements these efforts and advances the argument that family-controlled firms' competitive advantage arises from their system of corporate governance. Systems of corporate governance embody incentives, authority patterns, and norms of legitimation that generate particular organizational propensities to create competitive advantages and disadvantages. For comparative purposes, the characteristics of managerial, alliance, and family governance are reviewed. The impact of a family's control rights over a firm's assets generates three dominant propensities (parsimony, personalism, and particularism). These propensities give advantages in scarce environments, facilitate the creation and utilization of social capital, and engender opportunistic investment processes. The experience of family-controlled firms in emerging markets is drawn upon to illustrate the argument. [source]