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Valentin Milinov, Tsetan Pavlov
Opportunities to Improve the Portfolio Performance Based on Dividend Strategies and Equity Home Bias
Summary:
The article examines the equity home bias puzzle and the "Dogs of the Dow" dividend strategy under conditions of the Bulgarian capital market. It was found out that local investors hold 74.1% of their portfolios in domestic stocks, although ICAPM suggests weight of 0.007%, and the "Dogs of the Dow" strategy generates annual risk-adjusted hyper-profitability of 11.18%. Following the dividend strategy, combined with good international diversification provides good opportunities to improve portfolio performance.
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Ouhinou Amine, Elhachimi Zineb, Kartobi Eddine
STUDY OF THE BEHAVIOURAL DETERMINANTS OF INVESTMENT IN THE ERA OF THE COVID-19 PANDEMIC AMONG SOCIALLY RESPONSIBLE INVESTORS IN MOROCCO
Summary:
Behavioral economics shows the important role of behavio¬ral and psychological determinants in explaining investment decisions and market anomalies. This study aims to examine the behavior of socially res¬ponsible individual investors in Morocco in the era of the COVID-19 crisis. This paper contributes to the existing literature on behavioral economics in the Moroccan context. To this end, we conducted a survey of socially responsible investors in Morocco after the initial phase of this pandemic between August and October 2022. The data was gathered through the use of a questionnaire. They were analysed to identify the psychological aspects that may influence socially responsible investors’ investment decisions. The SPSS 21 software package was used to perform Cronbach Alpha, factor analysis, descriptive analysis, and multiple regression procedures. This article aims to investigate the psychological features of behaviour in reaction to fear, risk propensity, risk perception, market volatility anxiety, herd behaviour and the impact of vaccination updates. The results found showed that during the COVID-19 pandemic, behavior responses to fear, market volatility anxiety, risk propen¬sity, and herd behavior influenced the decision-making of socially responsible investors in Morocco.
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Nikoleta Karamileva
CLIMATE INVESTMENTS IN BULGARIA – POTENTIAL AND EMPIRICAL EVIDENCE
Summary:
The study aims to establish the relationships between produc¬tion and climate indicators in order to design a financial weather instrument in order to reduce the volatility of the financial performance of farmers in the region of Dobruja. For this purpose, a simulated weather derivative was designed and approbated making the relevant assumptions and constraints to mitigate the negative effects of changes in the levels of precipitation, the drought frequency, and the increasing climatic amplitudes on cereal crops. Its effectiveness is assessed taking into account the varying temperature and production and business performance of the agricultural producers. Last but not least, the study presents a critical review of the conditions required for the operation of this type of financial market in our country.
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Dimitar Blagoev, Radostin Boyadzhiev
METHODOLOGICAL ASPECTS OF MANAGEMENT OF PORTFOLIOS OF INVESTMENT PROJECTS FOR REAL ASSETS OF BUSINESS ORGANIZATIONS
Summary:
The article aims to present the potential of the classical portfolio theory and the possibilities for its application in the formation and selection of a portfolio of investment projects for investment in real assets. For this purpose, it reviews and summarizes the views of various authors on key concepts, such as investment, project, investment project, etc. The essential conceptual characteristics of portfolio theory are defined in terms of its methodological and mathematical toolbox and subsequently adapted to a conceptual model (methodological framework) for selection of a portfolio of investment projects for real assets and its optimization according to key criteria set by the management. Finally, its draws conclusions regarding the main advantages and the related constraints of the methodological model.
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Kaloyan Petkov
Testing the Damodaran Approach to Estimate the Cost of Equity
in Emerging Markets
Summary:
The cost of equity is one of the key financial and economic indicators in corporate finance. The purpose of this paper is to test the well-known approach of Damodaran in global emerging markets. The main result of the study is that the Damodaran approach needs to be improved as it maintains constant deviation from the observed ex-post cost of equity.