This study presents a methodology for making decisions on the number of Collective Investments Funds (CIF) for portfolio construction using Multi-Criteria Decision Analysis (MCDA) techniques, ...particularly a combination called PrAToVi. The proposed methodology includes the integration of economic and financial theories of investment in equity portfolios with the multi-criteria techniques described in PrAToVi, which allows a finite number of alternatives to be evaluated hierarchically under qualitative and quantitative criteria. This methodology was evaluated with funds managed by fiduciaries and with information from the end of 2021, which is contained in the technical sheets of each fund, and, the compares with information about 2022 and 2023. The computational results show the importance and efficiency of successfully integrating traditional investment criteria in stock portfolios and multi-criteria methodologies to generate a ranking of those CIFs with which portfolios can be created and an adequate balance between multiple criteria, including profitability and risk, can be found. This approach also considers the investment decision-making process regarding assets managed by Colombian SFs. The proposed methodology can be applied to other emerging markets such as Colombia and can manage this alternative type of investment.
One of the most acute challenges to which EU member countries urgently need to find solutions is related to digital resilience. Such a challenge must be addressed from both a temporal, spatial, and ...financial perspective. One of the areas where both problems and solutions to them must be placed is that of structural and investment funds. At the EU level, the new development model is feverishly sought, which must be green, digital, and resilient. The authors of this study explore how European Union funding programs and specifically the Recovery and Resilience Facility, influence the advancement of digital transition. It explores and quantifies the value added of using these programs to obtain more sustainable growth, societal inclusion, and global competitiveness through digital transformation. One of the most relevant hypothesis is that despite a growing interest in the impact of EU financial instruments on digitalisation, to different societal levels, lacks a comprehensive analysis that combines both the broad scope of EU initiatives and the specific impact of the RRF. Using qualitative methods, the authors investigated the main pitfalls and asymmetries of the allocative methods, the allocation, and impact of EU funding on digital transformation. The main focus of this paper is to answer the research questions regarding the connection between budget allocation for digital transformation and the position of digital transformation in EU priorities, while highlighting the changes that Recovery and Resilience Facility is bringing compared to other financial instruments for promoting digitalization in EU. Following this research route, we find indication that the budget allocations EU makes for digitalization, specifically through the Recovery and Resilience Facility demonstrate that digital transition is one of EU strategic priorities. The amounts and percentages made available through the Recovery and Resilience Facility which target to support in particular digital initiatives underline its key role in EU digital strategy. The clear comparison of EU financing programs that focus on digitalization, while providing a comprehensive literature review that gives a refined understanding of digitalization’s impact will enable professionals and policy makers to analyze EU strategic objectives and identify key focus areas that require additional support, thus contributing to EU digitalization efforts.
The article aims to carry out an analysis on how the cohesion policy was implemented in the multiannual financial framework 2014-2020, taking into account, in particular, the data and information ...available until the end of 2019. At the same time, we aimed to emphasize the positive impact of the European funds allocated through the cohesion policy on the local communities, not forgetting to identify also the issues affecting European funding.
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Substantial European Structural and Investment Funds (ESIF) monies have been directed at regional economic and social development in Portugal in which Portuguese local government plays a vital role. ...Given the magnitude of funding, an important question turns on the effect of the ESIF on overall local authority performance. This paper focuses on the impact of the ESIF on Portuguese municipality performance and development. In particular, it investigates whether the ESIF improved the performance of Portuguese local government and which factors best explain its effect on municipality development. The analysis considers all 308 Portuguese local authorities for the period 2000-2014. Various policy implications flowing from the empirical results of this analysis are explored.
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Purpose - This paper aims to contribute the existing finance literature by examining whether the ratings of Morningstar in Australia provide useful information for an investor by way of investigating ...the efficiency of domestic Australian equity funds that received a rating as at November 2005.Design methodology approach - This paper proposes the application of a simulation approach to stochastic data envelopment analysis (SDEA) based on Excel @RISK, which was first proposed by Premachandra et al. in 1998. The analysis provides a variety of informative statistical information about the stochastic properties of the efficiency figure. Efficiency is measured by looking at fund performance, fund cost, fund risk exposure and manager ability over the period December 1990-November 2005.Findings - The introduction to portfolio performance evaluation of a new tool for evaluating fund performance (namely, the efficiency rating) is recommended. From a sample of Australian domestic equity managed funds we find that evidence exists to suggest that efficient funds are likely to receive an upgrade in rating in the medium to long term.Practical implications - The benefit of the present paper for investors and fund managers is the improved efficiency of managed funds in terms of expense and risk.Originality value - The present paper further contributes to the literature by reinforcing the importance of SDEA as a tool for measuring the efficiency of decision-making units within investment fund markets.
The 2007 financial crisis served as a stark reminder of the vulnerability in the relationship between institutions and companies, as it revealed that many companies collapsed despite government ...interventions. Two crucial factors that influenced the crisis’s impact on firms were the level of creditor rights protection and corporate risk management. In this study, our aim was to investigate the impact of investment funds and banks on corporate risk prior to the 2007 financial crisis. We conducted an analysis across 21 countries to examine how institutional factors determined the influence of mutual funds and banks on corporate risk, ultimately leading to critical levels of collapse and the global spread of the financial crisis to the real economy. Additionally, we explored the role of mutual funds and banks as reference shareholders. The findings of our study reveal that the process of financial deregulation preceding the 2007 financial crisis contributed to an increase in corporate risk. In other words, financial deregulation facilitated greater involvement of institutional investors in companies, thereby encouraging the adoption of excessively risky and speculative strategies that were not necessarily aligned with the long-term sustainability of firms.
The article examines the peculiarities of legal regulation, emission and circulation of securities of joint investment institutions on the basis of which their comparative legal analysis was ...conducted for the first time. The subject of the study is the legal regime of securities of joint investment institutions – shares of corporate investment funds and investment certificates of unit investment funds. The purpose of the article is to study the features of the legal regime of securities of joint investment institutions – shares of corporate investment funds and investment certificates of unit investment funds, as well as to identify problems of their legal regulation. As far as methodology is concerned, in the course of the research general scientific and special legal methods of cognition were used. The comparative and legal methods made it possible to study the current legislation on the activities of joint investment institutions to establish common and distinctive features of securities of joint investment institutions. Methods of scientific induction and deduction provided an opportunity to investigate the legal nature of the relations that arise from securities of institution of joint investment. The problematic aspects of legislative regulation of securities of joint investment institutions were identified. The peculiarities of shares of corporate investment funds and investment certificates of unit investment funds were investigated. Common and distinctive features of securities of joint investment institutions were identified. Special attention is given to the fact that shares of corporate investment funds and investment certificates of unit investment funds, although assigned by the legislator in one category – securities of joint investment institutions, significantly differ in the legal nature of certifying relations. It is stated that the corporate investment fund shares give the investor of such a fund corporate rights instead of investment certificates of unit investment funds certify ownership. The article will be useful for practitioners in the field of law and economics, students of higher education, scientific and pedagogical workers of law and economics faculties, as well as all interested readers
Crisis phenomena and speculations in housing construction led to strict state regulations to attract financing and investments in this area. In addition, an additional participant (intermediary) was ...entered into the system of economic relations, whose mission is to supervise and control the timely execution of construction and installation works and the effective use of financial resources received from investors. One of the possible forms of functioning of such intermediaries is joint investment institutes. Orienting these institutions to satisfy the interests of various groups of participants – investors and developers – requires establishing an appropriate management information support system, which is mainly based on accounting data. At the same time, the issue of taxation of operations for financing housing construction through joint investment institutions is no less relevant. The article is devoted to disclosing the peculiarities of accounting and taxation of housing construction financing processes through the creation of joint investment institutions. The methodological basis of this research is the methods of imperative analysis, deduction, graphic and comparison. The legislative and normative regulation of the functioning of joint investment institutes, particularly for the needs of the organization of housing construction financing, has been studied. Proposals regarding the accounting of the activity of corporate and mutual investment funds, as well as operations involving their attraction of investments to finance housing construction are substantiated. The peculiarities of taxation of these transactions with income tax and value-added tax under the imperatives of Ukrainian tax legislation are characterized. The practicality of using joint investment institutes as a mechanism for financing housing construction in Ukraine was argued to minimize investment risks, control spending and tax burden planning.
