Today, small and medium-sized enterprises are increasingly involved in creating new jobs, creating added value and involving the domestic economy in world trade through their internationalization. ...Therefore, small and medium enterprises are the key drivers of economic development. There are number of weaknesses and advantages between small and medium enterprises and large enterprises and also similarities and differences in the realization of various business activities. Investments are important for the development of SMEs. Considering this, investment decision are one of the most rewarding business decisions. The investment decision-making process is a complex and dynamic process, which means analysis of all factors (financial, market, technical-technical, location, social), anticipation of different alternatives, perception and evaluation of the effects. The procedure for assessing the justification of investment projects is different for small and medium enterprises from large ones. The differences arise from the opportunities for access of these companies to the sources of financing, from the opportunities and capabilities for planning by the owners of small enterprises, the short-term orientation in the operation and especially from the way of management. Due to all this, the process of investment decision-making in SMEs is usually avoided or it’s reduced only to a superficial analysis of the business environment and the application of investment criteria. Therefore, the main goal of this paper will be to assess and analyze the importance of special determinants of investment activity in small and medium enterprises in North Macedonia. At the end, in the conclusion a lot of considerations, measures and solutions for more serious treatment of investment decision-making in SMEs will be proposed.
A systematic review of the nudge literature and an examination of its applications across different domains reveals that: (i) a nudge, in the sense of using choice architecture to push people to ...choose desired results, works well; and (ii) a nudge, in the sense of pushing people to choose desired results so that people will be better off, remains questionable. In financial markets, regulators and financial intermediaries currently use nudge theory to: (i) adjust how investment choices are presented to investors; and (ii) provide information in a selective way. Besides nudging investors, it is also possible for regulators to nudge financial intermediaries towards making more ethical decisions.
Th is study offers empirical insights into investor behavior and its correlation with various behavioral biases in the context of investment decisions in the Pakistan Stock Exchange (PSX). Data was ...collected through a structured questionnaire from 261 individual investors in Pakistan. The study employs hierarchical regression analysis to test the hypothesis. It considers several behavioral biases, and statistically, anchoring and adjustment, overconfidence, and herding show a significant impact. The study uses financial literacy to examine its moderating effects on these biases, and the result suggests that it significantly influences behavioral biases related to investment decisions. The results underscore the unique investment behaviors in emerging markets, contrasting with established norms in well-developed financial markets. These findings can inform policymakers and stock market authorities about investor decision-making in emerging economies.
We develop a dynamic model where heterogeneous firms take investment decisions depending on their beliefs on future carbon prices. A policy-maker announces a forward-looking carbon price schedule but ...can decide to default on its plans if perceived transition risks are high. We show that weak policy commitment, especially when combined with ambitious mitigation announcements, can trap the economy into a vicious circle of credibility loss, carbon-intensive investments and increasing risk perceptions, ultimately leading to a failure of the transition. The presence of behavioural frictions and heterogeneity - both in capital investment choices and in the assessment of the policy-maker's credibility - has strong non-linear effects on the transition dynamics and the emergence of ‘high-carbon traps’. We identify analytical conditions leading to a successful transition and provide a numerical application for the EU economy.
•Propose a new real option model for China’s shale gas investment decision-making.•Consider multiple uncertainties in market, technology and environment.•Explore investment values and optimal ...investment timings under different scenarios.•Study the impacts of changes in relevant factors on investment decision-making.
The investment in shale gas green and efficient development in China faces many uncertain factors that affect the investment decision-making of enterprises, which contributes to China's low-carbon energy transformation and national energy security. Based on the characteristics of China's shale gas resource development and considering the uncertainties in the aspects of market, technology and environment, this paper proposes a real option model to evaluate investment decision-making of China’s shale gas development and uses the Least Square Monte Carlo simulation to solve the investment values and optimal investment timings of shale gas low, moderate, high and ultrahigh productivities under four combination scenarios of financial subsidy and/or carbon emission trading. The results show that the current investment environment in China is not suitable for immediate investment in shale gas development projects. Investors can invest immediately when the initial average daily production reaches at least 30 × 104 m3. And financial subsidy and carbon emission trading help advance the optimal investment timings. According to a sensitivity analysis, appropriate increases in financial subsidy, shale gas price, absolute value of the drift rate of drilling and completion cost and environmental external benefit coefficient are found to improve the investment value and advance the optimal investment timing, while drilling and completion cost and production decline rate have the opposite effect. Therefore, to stimulate the investment, the government and enterprises should adopt some measures such as addressing key problems on technology and equipment, flexibly adjusting subsidy policies and driving forward the carbon emission trading market.
This study tends to examine the moderated mediation role of external locus of control (ELC) and risk tolerance (RT) in the relationship between heuristic availability bias (HAB) and investment ...decision‐making (IDM). We used SPSS PROCESS Model 7 (moderated mediation) on a data set gleaned from 385 practicing stock investors at Pakistan Stock Exchange. The results of the study revealed that the relationship between HAB and IDM is partially mediated by RT, whereas, the ELC significantly moderates the relationship between HAB and RT. Moreover, in the case of moderated mediation, the ELC showed a significant moderating role in the relationship of HAB with IDM through RT. Since the findings of the study argue that ELC intensifies the influence of HAB on investors' risk‐taking propensity that inculcate them toward making investment decisions. The practical and theoretical implications of the study are discussed in detail.
The deterioration of the environment and the depletion of resources are promoting the development of clean, renewable energy. Offshore wind is characterized by its sustainability and cleanliness, and ...is one of the fastest-growing renewable energy in recent years. Various methodologies have been therefore utilized to support offshore wind power investment decision-making. However, the existing literature lacks a comprehensive analysis and summary of these methods aimed at improving investment efficiency. To this end, this paper undertakes a systematic literature review of methodologies and theories commonly used in offshore wind power investment decision-making, following with the characteristics, applicability of various methods discussed and discussion of representative literature. Then, the selected papers were classified by the year of publication (2010–2020), journals, country of author affiliation, method consideration perspectives and application fields. These classifications are presented to highlight the trends, which aim to provide broad, systematic approaches and tools for assessment of power investment, and to give suggestions on which method to use for each situation. It can be seen that the popularity and applicability of these methods have improved after 2015. They cannot replace but complement each other and should be implemented in a parallel or better comprehensive way. The outputs of this review will map appropriate analytical techniques to specific investment applications and perspectives, provide researchers with guidance on future investment decision-making research, and point out any possible gaps. Specifically, through this review, decision-makers would be able to choose the best-suited or hybrid methodology, according to different fields and objects, for investment viability and effectiveness. Finally, untapped issues recognized in recent research approaches are discussed along with suggestions for future research.
•Economic analysis of investing in H2 storage for excess wind power production.•Use of real options analysis to account for uncertainty and managerial flexibility.•Hourly profits are simulated for ...profit-maximizing operation of the storage device.•Revenues by load factor increase, offering minute reserve, temporal arbitrage, H2 sale.•Power-to-power is unprofitable under current techno-political conditions in Germany.
In this paper, we investigate the economic viability of hydrogen storage for excess electricity produced in wind power plants. For the analysis, we define two scenarios (50MW system with and without re-electrification unit) and apply Monte Carlo simulation and real options analysis (ROA) to compute hourly profits under uncertainty regarding wind speed, spot market electricity prices, and call of minute reserve capacity. Hydrogen as a storage medium helps to either (1) increase capacity utilization of the wind park in case of grid disconnection; (2) to offer minute reserve; or (3) to exploit temporal price arbitrage at the electricity spot market; additionally, hydrogen can also be directly sold as a commodity. We find that power-to-power operation is highly uneconomical under current framework conditions in Germany, irrespective of potential energy efficiency gains. Interestingly, due to counterbalancing effects, offshore wind parks are found to have only a modest economic advantage compared to onshore ones. The power-to-fuel plant can be operated profitably (at hydrogen prices of more than 0.36€m−3 and a 100% utilization of the electrolyzer) if hydrogen is directly marketed instead of used to store and re-generate electrical energy. The ROA recommends investment in a storage device without re-electrification unit beyond an expected project value that is about twice the investment cost of the storage device, a figure which is reduced markedly as conversion efficiency rises, assuming technical change to come at no cost for the investor, i.e. as being exogenous.
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