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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Main Author: HOU, Wenbiao
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2024
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Online Access: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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spelling 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
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Investment Decision-making
Non-financial Factors
Investment Contract Clauses
Management Team
Industry Track
Social Relationship
Synergy Effect
Finance
Finance and Financial Management
spellingShingle 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
description 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.
format text
author HOU, Wenbiao
author_facet HOU, Wenbiao
author_sort 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
title_full_unstemmed The research of the non-financial factors in the investment decision
title_sort research of the non-financial factors in the investment decision
publisher Institutional Knowledge at Singapore Management University
publishDate 2024
url 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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