Extensive studies show that risk has a large impact on investment decisions. In addition, studies also show that risk behavior varies between men and women, where women tend to behave more risk averse. The purpose of this study is to examine how private investors make their investment decisions under risk but also to see if there are differences between men and women. The methods used in this research consists of a web survey that has been distributed via social media and interviews, to hear how private investors reason about investment decisions. The result from the web survey show that age and income does not affect investment decisions or their risk behavior. Neither does their own assessed willingness to take risk or knowledge in investments. The women in this research consider themselves to be more risk averse than men. However, when testing for their actual risk behavior, results show that women take more risk than men. Therefore, there are differences in investment decisions between women and men. / Tidigare forskning visar på att risk har en stor betydelse vid investeringsbeslut. Vissa studier menar även på att det föreligger en skillnad i kvinnor och mäns riskbenägenhet, där kvinnor anses vara mer riskaverta än män. Syftet med denna studie är att undersöka hur småsparare fattar sina investeringsbeslut under risk. Med hänsyn till tidigare studier har författarna även ett delsyfte att undersöka om och hur riskbenägenheten skiljer sig mellan kön. Studien har använt enkätundersökning samt intervjuer för att både ha tillgång till stora mängder data, men även för att fördjupa sig i det som enkäten inte kan besvara. Resultatet från enkätundersökningen visar att ålder och inkomst inte påverkar investeringsbeslut, samtidigt som intervjuerna säger det motsatta. Respondenternas självuppskattade riskbenägenhet och ansedda kunskap har heller ingen påverkan på deras investeringsbeslut. Kvinnorna i studien anger en lägre uppskattad riskbenägenhet än män samtidigt som de, i motsats till tidigare studier, agerar mer risksökande. Därmed föreligger det s

This paper explores the 2008-2009 Global Trade Collapse to estimate the effects of a credit supply shock on exporters\' investments decisions. Using a Brazilian firm-level dataset compiled by the Brazilian Internal Revenue Service (IRS) over the period 2007-2013, I pair up export-intensive firms with their domestically-oriented counterparts to, subsequently, calculate the differences in terms of sensitivity of investment to cash flow between the two groups over the years. After controlling for the effect of international falling demand, my study reveals that exporters are more severely constrained than their peers in the control group only in 2009, when the supply of credit instruments to finance international trade shrank. Given their high need of external financing to support exporting activities and the volatility of the cost of trade finance, usually priced against 3-month Libor, my results are in line with expected. A number of robustness and placebo tests confirm the validity of the findings. / Este artigo explora o colapso do comércio global em 2008-2009 no intuito de estimar os efeitos de um choque de oferta de crédito nas decisões de investimento das empresas exportadoras. Utilizando dados em painel de empresas brasileiras no período 2007-2013, compilados pela pela Receita Federal do Brasil (RFB), é feito pareamento entre empresas exportadoras e as focadas no mercado interno e, em seguida, calculadas as diferenças na sensibilidade do investimento ao fluxo de caixa entre os dois grupos ao longo dos anos. Depois de controlar o efeito da queda da demanda internacional, meu estudo revela que as exportadoras ficaram mais restritas a crédito que suas similares do grupo de controle somente no ano de 2009, quando a oferta de instrumentos de crédito para o setor encolheu. Dada a alta necessidade de financiamento externo para apoiar as atividades de exportação e a volatilidade do custo dos instrumentos de crédito destinados a estas, geralmente precificados em relação à Libor de 3 meses, os resultados obtidos estão em linha com o esperado. Uma série de testes de robustez e placebo são realizados para confirmar a validade das inferências.

Este estudo analisa os efeitos do sistema financeiro, caracterizado tanto em termos de desenvolvimento financeiro quanto por sua estrutura financeira, sobre as decisões de investimento e restrições financeiras de firmas brasileiras. Dessa forma, este trabalho investiga como o desenvolvimento financeiro afeta o comportamento das firmas e que tipo de estrutura financeira, isto é, se market-based ou bank-based, prepondera na condução do investimento corporativo e na redução das restrições financeiras das firmas. A relevância deste estudo reside em seu caráter original conduzido a partir da análise de um tema ainda pouco explorado na literatura nacional. A investigação é realizada dentro de um contexto teórico e aplicado e assumindo que o sistema financeiro exerce impacto substancial sobre as decisões de investimento. Com o propósito de contribuir para a escassa literatura internacional e à exígua literatura para o Brasil são consideradas neste estudo informações de 404 firmas brasileiras para o período de 1998 a 2006. A fim de identificar a presença de restrição financeira no comportamento da firma e para controlar e separar seus efeitos de outros fatores nas decisões de investimento, as firmas da amostra são classificadas segundo os índices de restrição financeira KZ e WW. A partir do emprego de dados macroeconômicos em uma análise microeconômica, é estimada uma versão do modelo acelerador do investimento pelo método GMM-system para analisar os efeitos do sistema financeiro sobre os investimentos corporativos. Os resultados sugerem que para firmas financeiramente não restritas o impacto do desenvolvimento financeiro sobre as decisões corporativas ocorre de forma direta, conduzindo a maiores investimentos. Já para firmas financeiramente restritas este efeito ocorre de forma indireta. Nesse caso, um maior desenvolvimento financeiro reduz a dependência dessas firmas por recursos internos para investir e aumenta a resposta de seus investimentos às oportunidades de crescimento. Evidências também são encontradas de que a estrutura financeira exerce influência sobre os investimentos de firmas financeiramente restritas, mesmo após os resultados serem controlados pelo nível de desenvolvimento financeiro. Este resultado aponta para a relevância de um sistema financeiro baseado em mercados para atenuar as restrições financeiras de firmas restritas. Os resultados também sugerem que na presença de oportunidades de crescimento um sistema financeiro baseado em mercados destaca-se ao permitir que a resposta do investimento das firmas a um aumento da demanda seja maior que em um sistema baseado em bancos. / This study analyzes the effects of the financial system, characterized both in terms of financial development as also by its financial structure, on the investment decisions and financial constraints of Brazilian firms. Thereby, this work investigates how the financial development affects a firm\'s behavior and which kind of financial structure, that is, if market-based or bank-based, prevails in driving corporate investment and in reducing a firms\' financial constraints. The relevance of this study lies on its original feature carried from the analysis of a topic not much explored in the national literature. The research is conducted within a theoretical and applied context and by assuming that the financial system exerts substantial impact on investment decisions. In order to contribute to the scarce international literature and to the limited literature for Brazil this study considers information on 404 Brazilian firms over the 1998-2006 period. With the aim to identify the presence of financial constraint on firm behavior and control and separate its effects from other factors on investment decisions, the firms are classified according to the KZ and WW financial constraint indexes. Through the use of macroeconomic data in a microeconomic analysis, a version of the accelerator investment model is estimated by the GMM-system method to analyze the effects of the financial system on corporate investments. The results suggest that for financially unconstrained firms the impact of financial development on corporate decisions is direct, leading to higher investments. On the other hand, for financially constrained firms this effect occurs in an indirect way. In this case, a higher financial development reduces the investment dependence of these firms on internal resources and increases the response of investment to growth opportunities. Evidence is also found that the financial structure affects the investment of financially constrained firms, even after the results are controlled for the level of financial development. This result points to the relevance of a market-based financial system for mitigating the constrained firms\' financial constraints. Results also suggest that in the presence of growth opportunities the response of a firm\'s investment to the increased demand is higher in a market-based financial system than in a bank-based one.

O objetivo do presente trabalho é analisar a presença da restrição financeira nas decisões de investimentos em condições de incerteza de um conjunto de 1223 empresas brasileiras no período de 1986 a 2006. A incerteza é incorporada no modelo de investimento considerando o comportamento das variáveis vendas e fluxo de caixa como um movimento browniano com drift. Além disso, a variável fluxo de caixa é analisada em baixa e alta incerteza, considerando três diferentes medidas para a incerteza: a variação anual do índice Ibovespa, o desvio-padrão de vendas e de fluxo de caixa. Já para considerar o efeito da restrição financeira sobre as decisões de investimento as firmas são agrupadas de acordo com o grau de intensidade de capital, tamanho da firma e grau tecnológico. A estimação dos parâmetros da equação do investimento é realizada considerando-se o modelo misto. O modelo misto, ainda não utilizado em estudos brasileiros na análise do comportamento das decisões de investimento, permite considerar a heterogeneidade nos coeficientes das variáveis independentes, o que evita o viés introduzido pela suposição de homogeneidade. Os resultados obtidos neste estudo mostraram uma maior sensibilidade do investimento ao fluxo de caixa para as firmas mais intensivas em capital, firmas de médio porte e firmas com alto grau tecnológico. Esses resultados se mantêm quando a variável fluxo de caixa é analisada em alta incerteza, ou seja, o investimento das firmas com alta intensidade de capital, médio porte e com alto grau tecnológico é mais sensível ao fluxo de caixa em condições de alta incerteza. / The aim of this research is to analyze the presence of financial constraints on investments decisions under uncertainty using data from 1223 Brazilian firms over the 1986 to 2006 period. Uncertainty is incorporated in the model of investment decisions considering the sales and cash flow variables, which are estimated by a stochastic equation of Brownian motion. In addition, the variable cash flow is grouped by high and low uncertainty according to annual rate of the Ibovespa index, the standard deviation of sales and cash flow. To consider the effects of financial constraints on firms investment decisions, this study used the degree of capital intensity, size, and the technological degree to classify firms. The investment equation parameters are estimated considering the mixed model. The mixed model, it has not yet been used in analysis of Brazilian firms, allows considering the heterogeneity on explanatory variables, which avoids the bias introduced by assumption of homogeneity. The results show greater sensitivity of investment to cash flow for more capital-intensive firms, medium and high-tech ones. These results keep when cash-flow variable is analyzed by high uncertainty, i.e, for these firms the investment is more sensitive to cash flow under higher uncertainty.

In light of developing a nascent gas industry, present multiple challenges in restructuring, regulations and meeting infrastructure investments requirements. To identify an appropriate industry structure and provide suitable regulatory framework to attract adequate infrastructure investments are the requirement to maintain a viable nascent gas industry. The purpose of the study is to examine the conditions required for developing a viable nascent gas industry in Ghana. The study develops an analytical framework by combining the Structure-Conduct-Performance paradigm and the Transaction Cost Economics theory with stakeholder consultation in an integrated cash flow model, which identified inappropriate industry structure, ineffective regulation and high risk as challenges in the gas industry in Ghana. The current gas industry structure and regulatory framework in Ghana is identified as state control monopoly. To strengthen the analysis of the study alternative gas industry structural models were reviewed. The Single Buyer Model (SBM) is suggested as an initial stage structure for Ghana National Petroleum Corporation (GNPC) to commercialize upstream natural gas resources and ease transactions cost. However, the SBM is constrained by the Volta River Authority (VRA) and Electricity Company of Ghana (ECG) inefficiencies. The Multiple Buyer Model (MBM) is considered as a transitional structure to solve the existing hold-up and lock-in inefficiencies of Ghana National Petroleum Corporation-Ghana National Gas Company-Volta River Authority (GNPC-GNGC-VRA) firm structure. Enforcing open access regulations to essential infrastructure is required in the long run. Developing an integrated gas-to-power project in Ghana is a viable business. Nevertheless, non-associated gas production from the Sankofa Gas Project is risky and requires higher gas prices and alternative downstream consumers to be viable. The Gas Processing Plant and transmission pipeline tariffs are inappropriately set and requires regulations. Providing effective regulations and governance arrangements by establishing an independent regulator through a gas sector law are important in protecting the interest of various stakeholders in the nascent gas industry in Ghana.

Este trabalho tem como objetivo examinar os efeitos do desenvolvimento financeiro e das restrições financeiras nas decisões de investimento da firma considerando um conjunto de informações de 659 firmas brasileiras no período de 1998 a 2006. A investigação é realizada dentro de um contexto teórico e aplicado, considerando um modelo econométrico com dados longitudinais e assumindo que o desenvolvimento financeiro exerce impacto substancial nas restrições financeiras das firmas, o que está diretamente relacionado às suas decisões de investimento. Com o propósito de contribuir para a escassa literatura internacional e à inexistente literatura para o Brasil, este trabalho utilizou o índice KZ para classificação das firmas como financeiramente restritas e não restritas. Por meio do uso de dados macroeconômicos em uma análise microeconômica, empregou-se o modelo probabilístico logit para encontrar os principais fatores determinantes da probabilidade de restrição financeira das firmas brasileiras. Já para analisar a relação entre desenvolvimento financeiro, restrições financeiras e investimento da firma, estimou-se uma versão do modelo acelerador do investimento pelo método dos momentos generalizados (GMM) devido seu caráter dinâmico e à presença do problema de endogeneidade. Os principais resultados indicaram que, além dos fatores associados à estrutura financeira da firma, fatores como o nível de desenvolvimento financeiro e a taxa de juros de longo prazo têm influência sobre a probabilidade de restrição financeira da firma. Medindo-se a dependência das firmas por recursos internos por meio da sensibilidade do investimento ao fluxo de caixa, os resultados também indicaram que o desenvolvimento financeiro é mais importante para as firmas consideradas financeiramente restritas ao reduzir sua dependência por recursos internos, diminuindo seu grau de restrição financeira. Maiores níveis de desenvolvimento financeiro também se apresentaram associados a maiores taxas de investimento e a uma melhor alocação de capital no caso de firmas identificadas como financeiramente restritas. Esses resultados apresentaram-se robustos mesmo ao se controlar os resultados pela taxa de crescimento econômico, por diferentes variáveis de desenvolvimento financeiro e ao se classificar as firmas por intensidade de capital e taxa de investimento. / The aim of this work is to examine the effects of financial development and financial constraints on firm\'s investment decisions using data from 659 Brazilian firms over the 1998-2006 period. The research is conducted within a theoretical and applied context, considering an econometric model with longitudinal data and assuming that the financial development exerts a substantial impact on firms\' financial constraints, which is directly related to their investment decisions. With the aim of contributing to the scarce international literature and to the inexistent literature for Brazil, this study used the KZ index to classify firms as financially constrained and unconstrained. Through the use of macro data in a microeconomic analysis, the logit probability model was employed to find the main determinants of the financial constraint probability of Brazilian firms. To examine the relationship between financial development, financial constraints and firm\'s investment decisions, it was estimated a version of the accelerator model of investment by the generalized method of moments (GMM) due to its dynamic character and the presence of the endogeneity problem. The main results indicate that, beyond factors associated with the firm\'s financial structure, factors such as the financial development level and the long-term interest rate have influence on the likelihood of firm\'s financial constraint. Measuring the dependence of firms on internal resources by the sensitivity of investment to cash flow, the results also showed that financial development is more important for firms which are considered financially constrained by the fact that a higher level of financial development reduces the dependence on internal resources of these firms, decreasing their level of financial constraint. Higher levels of financial development were also associated with higher rates of investment and with a better allocation of capital when considering firms identified as financially constrained. These results were robust even when controlled by the economic growth rate, by different financial development variables and when firms were classified by capital intensity and investment rate.

Thesis (M. Com. (Economics)) -- University of Limpopo, 2018 / Many developing countries are trying to make their business environment more attractive to foreign investors. They try this by relaxing rules regarding market entry and foreign ownership; improving infrastructure and making other efforts to enhance their chances of becoming a destination country for foreign direct investment (FDI). Among the characteristics of globalisation is the unrestricted capital flow and access to world market. Global FDI stocks have been on the increase and many more African countries are becoming more open to FDI, even though it still remains low. Therefore, the main objective of this study is to provide an analysis of the driving factors towards foreign direct investment in South Africa. The ARDL approach is used to investigate drivers of international investment decisions in South Africa using quarterly data from 2007Q1 to 2017Q1. The bounds cointegration method was chosen to analyse the long and the short run relationship amongst the variables of interest. In addition, the Granger Causality test was used to determine causal relationships between FDI and other variables. The study found that household income level had an effect in the stock of FDI. It also found that labour productivity increased the total output of goods and services and therefore impacted on the stock of FDI in the country. Public infrastructure investment and interest rates are also among the important factors that determine FDI inflow. Furthermore, the dummy variable has a significant negative effect and it shows that labour strikes and unrests affect FDI negatively. Although South Africa has implemented strategies to attract more FDI, recent political instability and labour disputes has left investor weary of the future of the economy therefore a refinement of some of these policies is needed if the country is to be successful in this regard. The county should also focus on developing and maintaining quality infrastructures in terms of, roads, telephones, internet access, water and electricity supply.

Introduction: Venture capital investment process is complex and different firms vary greatly in their investment practices. This has resulted in authors given several different factors that could be imperative for venture firms investment decisions. There is thus no consensus in the field of venture investing. Purpose: The purpose of this thesis is to list which factors are important for venture capital firms investment decisions in start-up firms. Method: The authors conducted structured phone interviews with seven venture capital firms in Sweden. Conclusion: The authors found the following factors to be important for venture firms investment decisions in start-up firms; Busienss plans that demonstrated the thinkings of the entrepreneur, communicate ideas, visions, product, market, competition, growth potential as well as the planned intentions with the recived funds. They also desired realistic, concreate, simple plans that explained the implementation process of the start-up firm. The second factor that was important was markets where large markets, market growth, market share, market entry and global markets were mentioned. The third factor of importance was product, in which uniqueness, simplicity, patents and time-to-market were listed. Management was the fourth factor of importance, in which sensibility, competence, technical skills, entrepreurial spirit, attitude, humbelness, determination, openness, drive, chemistry and confidence were included. The fifth factor of importamce financial embraced ROI, economioes of scale, valuation and the size of the investment. The last two important factors that the authors found to be important for the venture firms in the study were location and industry.

Bakgrund: Länge har paybackmetoden, nettonuvärdesmetoden och andra diskonteringsmetoder haft en ledande ställning när företag gör sina investeringsbedömningar. Metoderna har fått kritik för att inte ta hänsyn till beslutsfattarnas flexibilitet och på så sätt underskatta värdet av en investering. Syfte: Syftet med uppsatsen är att utreda i vilken utsträckning svenska företag använder sig av reala optioner och förklara varför metoden inte används i större utsträckning. Vidare syftar uppsatsen till att förklara varför användningen skiljer sig mellan USA och Sverige. Ytterligare ett syfte är att undersöka vilka kapitalbudgeteringsmetoder som används i Sverige idag . Metod: I uppsatsen har främst en kvantitativ metod använts i form av en enkätundersökning. Metoden kompletterades senare med den kvalitativa metoden, då i form av en intervju med en användare av reala optioner. Slutsatser: Payback- och DCF-metoden dominerar fortfarande bland de svenska företagen. Enkätundersökningen fann en användare av reala optioner. Resterande företag är nöjda med sina metoder och anser att reala optioner är en komplicerad metod som inte kan tillföra värde till företaget. / Background: When it comes to investment decisions the most frequently used methods are payback and the net present value model. These methods have been criticized for not taking decision makers flexibility into account and thus underestimate the value of an investment. Aim: The purpose of this paper is to investigate to what extent Swedish companies use real options and explain why the method is not used more widely. Furthermore, the study tries to explain why the use of real options differs between U.S. and Sweden. Another purpose is to examine what capital budgeting methods are used in Sweden today. Method: The mainly used method is the quantitative method in form of a survey. This method has been supplemented with the qualitative method, in form of an interview with one user of real options. Conclusions: The payback and DCF method is still predominant among Swedish companies. The survey found one user of real options. All other companies are satisfied with their used method and do not believe that real options can add more value.

<p>Introduction:</p><p>Venture capital investment process is complex and different firms vary greatly in their investment practices. This has resulted in authors given several different factors that could be imperative for venture firms investment decisions. There is thus no consensus in the field of venture investing.</p><p>Purpose:</p><p>The purpose of this thesis is to list which factors are important for venture capital firms investment decisions in start-up firms.</p><p>Method:</p><p>The authors conducted structured phone interviews with seven venture capital firms in Sweden.</p><p>Conclusion:</p><p>The authors found the following factors to be important for venture firms investment decisions in start-up firms; Busienss plans that demonstrated the thinkings of the entrepreneur, communicate ideas, visions, product, market, competition, growth potential as well as the planned intentions with the recived funds. They also desired realistic, concreate, simple plans that explained the implementation process of the start-up firm. The second factor that was important was markets where large markets, market growth, market share, market entry and global markets were mentioned. The third factor of importance was product, in which uniqueness, simplicity, patents and time-to-market were listed. Management was the fourth factor of importance, in which sensibility, competence, technical skills, entrepreurial spirit, attitude, humbelness, determination, openness, drive, chemistry and confidence were included. The fifth factor of importamce financial embraced ROI, economioes of scale, valuation and the size of the investment. The last two important factors that the authors found to be important for the venture firms in the study were location and industry.</p>