The research of the non-financial factors in the investment decision
Driven by globalization and technological innovation, the complexity of investment decisions is continuously increasing. While traditional financial factors still play a crucial role in these decisions, an increasing number of real-life cases indicate that investors are relying more on non-financial...
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2024
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sg-smu-ink.etd_coll-16092024-09-03T08:10:07Z The research of the non-financial factors in the investment decision HOU, Wenbiao Driven by globalization and technological innovation, the complexity of investment decisions is continuously increasing. While traditional financial factors still play a crucial role in these decisions, an increasing number of real-life cases indicate that investors are relying more on non-financial factors. This paper systematically analyzes the impact of these non-financial factors in the framework of investment decision-making. This paper employs a mixed research method, incorporating both qualitative and quantitative analyses to ensure comprehensive coverage of the topic. First, it outlines the theoretical basis and development of non-financial factors in investment decisions through a review of prior literature. Next, it collects and analyzes a large amount of data on investor behavior and investment decision-making processes using interviews, questionnaire surveys, and empirical analyses. The main findings are as follows: 1) Protective clauses in investment contracts can reduce investment risks and enhance investor confidence, while the role of earn-out clauses is mixed; 2) Investors pay close attention to an excellent management team and a high-quality industry track, which improve investment returns and reduce investment risks; and 3) Social relationships and investment synergy effects are crucial for investment decisions, as they help reduce information asymmetry and transaction costs. These findings highlight the central role of non-financial factors in investment decisions and provide investors with a new dimension for decision-making. This paper supplements theoretical research in the field of investment decision-making by proposing a new theoretical framework for incorporating non-financial factors into investment decisions. By integrating theories on contract, management team, industry track, social relationships, and investment synergy effects, it provides investors with a multi-dimensional analytical tool to assist them in making more informed decisions in a complex environment. By identifying and quantifying non-financial factors, investors can more effectively manage investment risks, optimize investment portfolios, and enhance investment returns. In summary, the findings of this paper on the importance of non-financial factors in investment decisions offer significant theoretical and practical contributions. 2024-06-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/etd_coll/611 https://ink.library.smu.edu.sg/context/etd_coll/article/1609/viewcontent/GPBA_AY2019_DBA_Hou_Wenbiao.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Dissertations and Theses Collection (Open Access) eng Institutional Knowledge at Singapore Management University Investment Decision-making Non-financial Factors Investment Contract Clauses Management Team Industry Track Social Relationship Synergy Effect Finance Finance and Financial Management |
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Investment Decision-making Non-financial Factors Investment Contract Clauses Management Team Industry Track Social Relationship Synergy Effect Finance Finance and Financial Management HOU, Wenbiao The research of the non-financial factors in the investment decision |
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Driven by globalization and technological innovation, the complexity of investment decisions is continuously increasing. While traditional financial factors still play a crucial role in these decisions, an increasing number of real-life cases indicate that investors are relying more on non-financial factors. This paper systematically analyzes the impact of these non-financial factors in the framework of investment decision-making.
This paper employs a mixed research method, incorporating both qualitative and quantitative analyses to ensure comprehensive coverage of the topic. First, it outlines the theoretical basis and development of non-financial factors in investment decisions through a review of prior literature. Next, it collects and analyzes a large amount of data on investor behavior and investment decision-making processes using interviews, questionnaire surveys, and empirical analyses. The main findings are as follows: 1) Protective clauses in investment contracts can reduce investment risks and enhance investor confidence, while the role of earn-out clauses is mixed; 2) Investors pay close attention to an excellent management team and a high-quality industry track, which improve investment returns and reduce investment risks; and 3) Social relationships and investment synergy effects are crucial for investment decisions, as they help reduce information asymmetry and transaction costs. These findings highlight the central role of non-financial factors in investment decisions and provide investors with a new dimension for decision-making.
This paper supplements theoretical research in the field of investment decision-making by proposing a new theoretical framework for incorporating non-financial factors into investment decisions. By integrating theories on contract, management team, industry track, social relationships, and investment synergy effects, it provides investors with a multi-dimensional analytical tool to assist them in making more informed decisions in a complex environment. By identifying and quantifying non-financial factors, investors can more effectively manage investment risks, optimize investment portfolios, and enhance investment returns. In summary, the findings of this paper on the importance of non-financial factors in investment decisions offer significant theoretical and practical contributions. |
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HOU, Wenbiao |
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HOU, Wenbiao |
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HOU, Wenbiao |
title |
The research of the non-financial factors in the investment decision |
title_short |
The research of the non-financial factors in the investment decision |
title_full |
The research of the non-financial factors in the investment decision |
title_fullStr |
The research of the non-financial factors in the investment decision |
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The research of the non-financial factors in the investment decision |
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research of the non-financial factors in the investment decision |
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Institutional Knowledge at Singapore Management University |
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2024 |
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https://ink.library.smu.edu.sg/etd_coll/611 https://ink.library.smu.edu.sg/context/etd_coll/article/1609/viewcontent/GPBA_AY2019_DBA_Hou_Wenbiao.pdf |
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