Existing research suggests that market misvaluations affect corporate investment, often leading to suboptimal investment. I examine whether earnings smoothness reduces the impact of market valuations on corporate investment and in turn enhances investment efficiency. I find that earnings smoothness has a strong negative effect on the sensitivity of corporate investment to stock prices. Further analyses indicate that this negative effect is driven by both innate and discretionary components of earnings smoothness and is more pronounced for firms operating in more volatile business environments. I complement these findings by demonstrating that firms with smoother earnings have lower over- (under-)investment and higher future operating performance. Collectively, the evidence suggests that earnings smoothness improves corporate investment efficiency by reducing the impact of market valuations on investment.

I examine the relation between tax avoidance and firm investment by drawing on two capital market imperfections, adverse selection and moral hazard, to provide a link between tax avoidance and investment. Firms experiencing capital rationing because of adverse selection rely on internal resources to fund investment opportunities because of costly external financing. Tax avoidance can provide additional cash-flows that may alleviate capital rationing. Alternatively, tax avoidance can exacerbate problems of moral hazard by facilitating managerial rent extraction in the form of overinvestment. I find a positive relation between tax avoidance and investment suggesting effects of either capital rationing or overinvestment. To distinguish between these two effects, I examine how the relation between tax avoidance and investment varies in settings where capital rationing or overinvestment is more likely to occur. My findings suggest that firms rely on the cash savings from tax avoidance to alleviate capital rationing.

Success of investment depends to many mathematical rates. Every investor knows that there is a tradeoff between risk and reward: to obtain greater expected returns on investments, one must be willing to take on greater risk. The tool was designed to estimate these indexes and others conditions of investment and to offer to users optimal portfolio of investment. The models and technologies for system of estimation of investment efficiency are analyzed. Problems and difficulties of investment optimization are described. Analyses of how various methods solve these problems, finding their advantages and disadvantages. This tool helps users and students of investment sciences to choose optimal portfolio of investment with desirable risk and maximum returns. The development documentation of the tool is presented. It shows all steps of the tool development including results. The experiments of implemented model are described, analyzing new model’s influence for requirements specification process.

To determine the association between military expenditure (ME) and public investment efficiency, I regressed a measure of public investment effectiveness upon a measure of ME in a cross-section of 59 developing countries. A strong association was only observed for Sub-Saharan Africa. One of the main explanations for the strong association is a relatively big government which was accompanied by government operations being inefficient and corrupt. This served as a reason to separately observe group of regions with relatively small and big governments. The results confirmed that the effect of ME on public investment effectiveness in the group with a relatively big government is negative whereas the effect is positive in group of region with small governments. Thus, it confirms that the increase of ME is not always negative but can in some cases improve the effectiveness of public investment.

No description available.

Tax aggressiveness generates significant cash savings and information asymmetry. Combining these two consequences of tax aggressiveness, I suggest that tax aggressiveness is associated with higher agency costs of free cash flows that affect investment decisions. Using the conditional investment efficiency model, I find evidence that tax aggressiveness is associated with more investments in firms with high access to investable funds, thus suggesting tax aggressiveness is associated with overinvestment. I also provide evidence that stronger tax monitoring and a change in tax disclosures mitigate the relation between tax aggressiveness and overinvestment. Lastly, I find that the overinvestment is associated with lower future abnormal returns. Thus, my results suggest that poor managerial investment decision making is an unintended consequence to tax aggressiveness. Additionally, I further the need for shareholders and board of directors to exert influence to avoid compensating managers for aggressive tax strategies.

The higher the level of information asymmetry between a firm and its investors, the higher is the firm’s reluctance to raise money externally, potentially leading to investment distortions. An improved disclosure system reduces information asymmetry and therefore, lessens the adverse selection effects of external financing, thereby moderating investment inefficiencies. In this paper, we examine the impact of potentially improved transparency stemming from stricter disclosure requirements (Clause 49) on financing and investment decisions of Indian firms. The results show that reliance of Indian firms on internal financing in the pre-reform period gives way to greater use of external financing in the post-reform period, and alleviation in financial constraints. While expanded funding sources do not seem to improve investment unambiguously, firms that suffered under-investment prior to the reform show a significant improvement in investment post-reform. Firms also increase their financial slack making it possible for them to engage in acquisitions within India as well as abroad.

No description available.

The thesis is aimed to prepare a business plan for internet service provider on fiber optics for real company. The business plan includes a market analysis, financial reporting, evaluation of investment efficiency, risk and sensitivity analysis and other essential information which can help company's owner to evaluate the feasibility of the plan.

Pagrindinė šio darbo užduotis yra statybos investicijų efektyvumo analizė taikant matematinio modeliavimo metodus. Darbą sudaro trys pagrindiniai skyriai. Apžvalginiame skyriuje atlikta įvairių pasaulio šalių mokslininkų investicijų efektyvumo nustatymo modelių analizė. Pateikti vieni naujausių mokslinėje literatūroje aptinkamų metodų, taikomų investicijoms skaičiuoti. Apžvelgti finansinių (klasikinių) investicijų efektyvumo vertinimo metodų trūkumai. Apibrėžtos pagrindinės matematinio modeliavimo sąvokos, taikymo sritys bei pagrindiniai matematinių modelių sudarymo principai. Antrasis skyrius skirtas investicinių projektų sudėties ir jų vertinimo principų apžvalgai. Apibrė��ta bendroji bei investicijų statyboje koncepcija, statybos investicinių projektų klasifikacija. Pateikta uždavinių, padedančių nustatyti statybos investicijų efektyvumą, klasifikacija bei statybos investicijų efektyvumo nustatymo etapai. Toliau gilinamasi į bendruosius investicinio projekto vertinimo principus, pateikiama schema, apibrėžianti investicinių projektų vertinimo eigą. Trečiojoje dalyje, pereinant prie statybos investicinių procesų analizės, pateikiama rinkos ir statistinių duomenų apžvalga, kadangi būtent šių duomenų pagrindu sudaromas matematinis modelis, nuo jų tikslumo priklauso galutiniai skaičiavimų rezultatai. Statistinių duomenų apdorojimo programa MINITABTM, regresinės analizės metodu, sudaromas matematinis modelis, nustatantis statybos investicinio proceso efektyvumą. Remiantis... [to full text] / The main task of this project is the analysis of the construction investment efficiency, by applying of mathematical modeling methods. The model is created in order to define the effectiveness of the construction investment process. According to the model, it was calculated the yield of the process and the risk zones.