Investment Management and Financial Innovations (open-access)

ISSN 1810-4967 (print), 1812-9358 (online)
Publisher LLC “Consulting Publishing Company “Business Perspectives”
Issued from September 2004
Investment Management and Financial Innovations (open-access)

Starting January, 2017, Journal is open-access.

The journal covers all aspects of investment activity management on both global and local levels, strategy and methods of investment purposes achievement, investment process participants, investment tools, monetary systems, financial markets, and financial innovations. It publishes articles, which are focused on financial management issues, financial innovations, modern trends and tendencies of investment activity management both on macro- and micro-levels. The journal is published quarterly in Ukraine.

Key topics:

  • financial and investment markets;
  • government policy and regulation;
  • information and market efficiency;
  • financial forecasting and simulation;
  • financial institutions: investment companies, investment funds, investment banks, hedge funds, private pension funds;
  • objects of real and financial investing;
  • financial instruments and derivatives;
  • efficiency of investment projects;
  • econometric and statistic methods in project management;
  • alternative investments;
  • ratings and rating agencies.


LLC “СPС “Business Perspectives”
Hryhorii Skovoroda lane, 10, Sumy 40022, Ukraine
phone/fax: +38-0542-775771

Submission guidelines

Please send a soft copy of your paper as an MS Word .doc file (all versions accepted) and filled Cover letter form to the following e-mail:
Editorial Assistant -


Open Access Statement

Journal is committed to full open access for scholarly publications. All articles are available to all users immediately upon publication of the issue.
Benefits of the open access are:increased citation and usage;rapid publication; faster impact with permissive licenses; copyright retention by the author.
Authors can choose either of Creative Commons licenses (CC-BY 4.0 or CC-BY-NC 4.0). Find detailed information in the Copyright section.



Natalya (Natasha) V. Delcoure

Dean, Professor of Finance, College of Business Administration, Texas A&M University-Kingsville, USA.

Volodymyr Ponomarenko

Doctor of Economics, Professor, Corresponding Member of National Academy of Educational Sciences of Ukraine, Academic of Engineering Academy of Sciences of Ukraine, Rector of Simon Kuznets Kharkiv National University of Economics, Ukraine.

Kenichiro Miyamura

Professor of Finance, the Chairperson of the Accounting and Finance department, Faculty of Business Administration, Toyo University, Tokyo, Japan.

Advising Editors

Robert Brooks

Professor, Department of Econometrics and Business Statistics, Faculty of Business and Economics, Monash University, Australia.

Svetlozar (Zari) Rachev

Professor, Department of Mathematics & Statistics, Texas Tech University, USA.

Frank Skinner

Professor of Corporate Finance, Head of the Department of Economics and Finance, Brunel University London, UK.

Editorial Board

Benzion Barlev

Ph.D., Lev Academic Center and John Berg Professor Emeritus of Accounting, Jerusalem School of Business Administration, The Hebrew University of Jerusalem, Israel.

Earl Benson

Professor of Finance, Department of Finance and Marketing, Western Washington University, USA.

Agyenim Boateng

Professor of Finance and Banking, Department of Law, Economics, Accounting & Risk, Glasgow Caledonian University, United Kingdom.

K.C. Chen

Ph.D., Chartered Financial Analyst, Theodore F. Brix Endowed Chair in Finance, Department of Finance and Business Law, California State University, Fresno, USA.

Mihir Dash

Associate Professor, Alliance School of Business, Alliance University, Bangalore, India.

Ahmad Etebari

Ph.D., Professor of Finance and Co-Chair of the Atkins Strategic Investment Center at the University of New Hampshire’s Peter T. Paul College, Durham, USA.

Christian-Oliver Ewald

Dr., Professor in Financial Economics, Head of the Subject Economics, Adam Smith Business School, University of Glasgow, United Kingdom.

Frank J. Fabozzi

Frank J. Fabozzi, Professor of Finance, EDHEC Business School and Senior Scientific Adviser at EDHEC-Risk Institute, France.

Pablo Fernandez

Ph.D., Professor of Financial Management, PricewaterhouseCoopers Chair of Corporate Finance, IESE Business School, University of Navarra, Spain.

Manfred Frühwirth

Dr., Associate Professor, Department of Finance, Accounting and Statistics, Institute for Finance, Banking and Insurance, Vienna University of Economics and Business; Academic Director – Professional MBA Finance, Austria.

Fazil Gokgoz

Ph.D., Professor, Vice Dean and Chair of Quantitative Methods Division of Faculty of Political Sciences, Ankara University, Turkey.

John A. Haslem

Ph.D., Professor Emeritus of Finance, Robert H. Smith School of Business, University of Maryland, USA.

Edward Lawrence

Full Professor of Finance, College of Business Administration, University of Missouri, USA.

Da-Hsiang Donald Lien

Ph.D., Richard S. Liu Distinguished Chair in Business Department of Economics, College of Business, University of Texas at San Antonio, USA.

Otto Loistl

Ph.D., Professor of Finance, Institute of Finance and Financial Markets, Department for Investment Banking and Catallactics, Wirtschaftsuniversitat Vienna (Vienna University of Economics and Business), Austria.

Cornelis A. Los

Ph.D., Professor of Finance, School of Management and Leadership, Alliant International University California; Paul Merage School of Business, University of California at Irvine, USA.

John J. McConnell

Burton D. Morgan Distinguished Chair of Private Enterprise (Finance), Purdue University, USA.

J. Austin Murphy

Full Professor of Finance, Oakland University, USA.

Michael Phillips

Ph.D., Professor of Finance, Real Estate and Insurance, David Nazarian College of Business and Economics, California State University, Northridge, USA.

Petr Polak

Ph.D., Associate Professor in Finance, Faculty of Business, Economics and Policy Studies, University of Brunei Darussalam, Brunei.

Sunil S. Poshakwale

Ph.D., Professor of International Finance, Finance and Accounting, Cranfield School of Management, Cranfield University, UK.

Atul Rai

Ph.D., Associate Professor and Jones Faculty Fellow in Corporate Governance, School of Accountancy Barton, School of Business, Wichita State University, USA.

Hany A. Shawky

Dr., Professor of Finance and Economics, University at Albany, State University of New York, USA.

Kishore Tandon

Professor, Bert Wasserman Department of Economics and Finance, Zicklin School of Business, Baruch College (CUNY), USA.

George F. Tannous

Ph.D., Professor and Head Department of Finance and Management Science, College of Commerce, University of Saskatchewan Saskatoon, Canada.

Kuo-Cheng Tseng

Emeritus Professor of Finance, California State University, Fresno, USA.

Harry J. Turtle

Department Chair and Professor, Finance and Real Estate Department, Colorado State University, Fort Collins, USA.

Andrey Ukhov

Ph.D., Assistant Professor of Finance, School of Hotel Administration, Cornell University, Ithaca, NY, USA.

Erik P.M. Vermeulen

Professor of Business and Financial Law, Tilburg University and Tilburg Law and Economics Center (TILEC), the Netherlands.

Joseph Doung Vu

Associate Professor of Finance, Department of Finance, DePaul University, USA.

Robert A. Weigand

Ph.D., Professor of Finance and Brenneman Professor of Business Strategy, Washburn University School of Business, USA.

Guneratne B Wickremasinghe

Ph.D., Senior Lecturer, School of Accounting & Finance, Faculty of Business and Law, Victoria University, Melbourne, Victoria, Australia.

Burhan Fatih Yavas

Chair, Department of Accounting, Finance & Economics, California State University, Dominguez Hills (CSUDH), USA.


Erdal Atukeren

Ph.D., Professor, Business School Lausanne, Switzerland.

Ramaprasad Bhar

Dr., Associate Professor, School of Banking and Finance, Australian School of Business, The University of New South Wales, Sydney, Australia.

Ghassen Bouslama

Associate Professor of Finance, NEOMA Business School, France.

Marie Briere

Ph.D., Head of Fixed Income, Forex and Volatility Strategy, Crédit Agricole Asset Management, Paris, France. Senior Associate Researcher at Center Emile Bernheim (Free University of Brussels), Bruxelles, Belgium. Affiliated professor at CERAM Business School.

David C. Distad

Ph.D., CFA, Investments Consultant, Distad & Associates, USA.

Kostas Giannopoulos

Professor of Finance, Neapolis University, Cyprus.

Christophe J. Godlewski

Full Professor of Finance, Haute Alsace University; Adjunct Professor of Finance, EM Strasbourg Business School; Research fellow, LaRGE Research Center; Member of the Institut de Finance de Strasbourg, France.

Liang Guo

Department of Accounting and Finance, College of Business & Public Administration, California State University, San Bernardino, USA.

Nathalie Hilmi

Professor of Finance and Macroeconomics, International University of Monaco, International Atomic Energy Agency, Scientific Center of Monaco, Monaco.

Robert M. Hull

Professor, Clarence King Endowed Chair in Finance, Washburn University, USA.

A. Can Inci

Ph.D., Full Professor of Finance, College of Business, Bryant University, Rhode Island, USA.

Suk-Joong Kim

BEc Macq; MEc (Hon), Ph.D. Sydney, Associate Professor, The University of Sydney, Australia.

Maxim Korneyev

Ph.D., Associate Professor, University of Customs and Finance, Dnipro, Ukraine.

Yulia Kovalenko

Doctor of Economic Sciences, Professor, Department of Financial Markets, University of the State Fiscal Service of Ukraine, Ukraine.

Stelios N. Markoulis

Dr., Adjunct Lecturer University of Cyprus, Visiting Lecturer Cyprus International Institute of Management, Honorary Visiting Research Fellow Cass Business School, London, UK.

Marco Micocci

Full Professor of Financial Mathematics and Actuarial Science, University of Cagliari, Italy.

Haitham Nobanee

Associate Professor of Finance, College of Business Administration, Abu Dhabi University, Abu Dhabi, U.A.E.

João Pinto

Professor of Finance, Católica Porto Business School; Vice-President, Catholic University of Portugal-Porto, Portugal.

Nidal Rashid Sabri

Professor and Dean of College of Economics, Birzeit University, Palestine.

Asma Salman

Ph.D. CFM, Associate Professor, Department Chair of Accounting and Finance, College of Business Administration, American University in the Emirates, U.A.E.

Vrajlal K. Sapovadia

Dr., Executive Director of Shanti Business School, Ahmedabad, India.

Rani G. Selvanathan

Ph.D., Associate Professor, Management Department, West Chester University, USA.

Shakir Ullah

Dr., Professor & International Research Coordinator, Stratford University, Virginia, USA; Chair of Stratford University’s Institutional Review Board (IRB); Adjunct Assistant Professor, University of Maryland University College, Maryland, USA; Ph.D. Advisor, Georgetown University, Washington D.C., USA.

Piotr Wisniewski

Associate Professor of Corporate Finance, Warsaw School of Economics, Poland.

Nicholas Wonder

Associate Professor of Finance, Department of Finance and Marketing, College of Business and Economics, Western Washington University, USA.

Congsheng Wu

Ph.D., Professor of Finance, University of Bridgeport, USA.

Oleg Yaremenko

Doctor of Economics, Professor, Senior Research Fellow of the State Organization “Institute for Economics and Forecasting, Ukrainian National Academy of Sciences”, V. N. Karazin Kharkiv National University, Ukraine.

Rami Zeitun

Ph.D., Assistant Professor of Finance, College of Business and Economics, University of Qatar, Qatar.

Guidelines for Editors and Reviewers

The Editorial Board consists of international experts in their respective fields. All members of the Board occupy high positions in educational and research institutions. The roles of the Editorial Board members are the following:

  • provide expertise in definite research field;
  • review submitted papers;
  • advise on journal policy and scope and participate in the journal development;
  • propose subject definition and conference choice for special issues. Also, editorial members may be guest editors of special issue;
  • promote the journal at conferences, seminars, workshops, and relevant public events
  • attract new potential authors;

Guest editors play a vital role in ensuring the quality of special content publications, such as Special Issues. Guest editors overlook the process, from proposal to publication.

The Editorial Board is reviewed every two years, which means exclusion of inactive members and addition of the new ones.

We appreciate applications from the editorial candidates. To submit an application, please send an e-mail to an editorial assistant of the selected journal and attach a file with your CV (containing the current place of work, occupation, education, the scope of your scientific interest, types of activity, list of publications, list of the journals in which you occupy the positions of an editor or a reviewer, e-mail for contact and a link to personal page at you university).

Duties of editors

We strongly recommend that Editors get acquainted with and follow COPE Code of Conduct and Best Practice Guidelines for Journal Editors.

The editors of the journal are responsible for deciding which of the articles submitted to the journal will be published. The editor may confer with the members of the Editorial Board in making this decision.

Fair play. The editors evaluate manuscripts without regard to the nature of the authors or the host institution including race, gender, religious belief, ethnic origin, citizenship, or political philosophy of the authors.

Confidentiality. The editors, members of the Editorial Boards, and any editorial staff must not disclose any information about a submitted manuscript to anyone except the authors of the paper, reviewers, potential reviewers, and the publisher, for appropriate reasons.

Disclosure. Unpublished materials disclosed in a submitted paper should not be used in the own research of the editors or the members of the Editorial Board without the express written consent of the author.

Duties of reviewers

We strongly recommend that all reviewers get acquainted with and follow COPE Ethical Guidelines for Peer Reviewers.

Confidentiality. Information regarding submitted manuscripts should be kept confidential during and after review process. Also, reviewers should not reveal any details about reviewing manuscript to anybody.

Standards of objectivity. Reviewers should be objective while conducting reviews. All the comments and recommendations should be supported with relevant arguments.

Disclosure. Unpublished materials disclosed in a submitted manuscript must not be used in a reviewer's own research without the express written consent of the author. Privileged information or ideas obtained through peer review must be kept confidential and not used for personal advantage.

Peer Review

Peer review plays a vital and critical role in the publication of scholarly articles through assessment of validity, quality and originality of submitted articles. It is considered to be the most effective and valid form of research evaluation to help select the highest quality articles for publication. Authors can receive the information regarding the peer-review stage of their manuscripts through editorial assistants.

Review process

Editorial staff transfers all submitted manuscripts to one of the Editors for initial evaluation in order to establish if the manuscript meets the editorial criteria. Initial evaluation includes assessment if the manuscript is suitable for the journal or special issue, authors’ qualification and background, and plagiarism levels. Papers that don’t meet these criteria, as well as obviously poor manuscripts, will be rejected without sending for further external review.

If the papers provide potential interest for readers and present importance to the scientists in the relevant field of the journal’s scope, Editors suggest external peer-reviewers (selection of peer-reviewers is based on expertise, reputation, specific recommendations and our own previous experience of a reviewer's characteristics). Alternatively, editorial staff will send manuscripts to qualified Editorial Board members or reviewers from our database.

All manuscripts are “double-blind” peer-reviewed, which means that reviewers do not possess any information about the authors’ identities and vice versa. If one of the editors submits the manuscript for publication in the journal, editorial staff transfers this manuscript to another Editor or one of the Editorial Board members without disclosing any information about the author.

After the manuscripts have been reviewed, Editors receive a Referee Report with point-by-point evaluation and comments. Based on the suitability of selected reviewers, adequacy of reviewer comments and overall scientific quality of the paper, Editors make one of the following decisions:

  • Publish unaltered
  • Consider after minor changes
  • Consider after major changes
  • Reject without further consideration

If the authors are required to revise the paper, they ought to provide revised manuscript along with Response to the Reviewers. All authors can receive Referee Report on demand without revealing the identity of the reviewer and appeal against editorial decisions by response to the referees with authors’ arguments and explanations. Articles may or may not be sent to reviewers after author revision, dependent on whether the reviewer requested to see the revised version and the wishes of the Editor.

Expectations from reviewers

During the peer-review process, report preparation, and after refereeing we expect from Editorial Board members and reviewers to:

  • respond in a reasonable time-frame, especially if reviewer can not perform the review, including intentional delay;
  • declare if they are not experts in the field the paper is relevant to;
  • declare any potentially conflicting or competing interests (which may, for example, be personal, financial, intellectual, professional, political or religious) and seek advice from the Editorial Board in this case;
  • decline to review if they feel unable to provide a fair and unbiased review or they are involved with any of the work in the manuscript or its reporting;
  • to provide honest and fair assessment of the strengths and weaknesses of the research and the manuscript;
  • send completed report form along with the reviewed manuscript;
  • be specific in their criticisms, and provide evidence with appropriate references to substantiate general statements to help editors in their evaluation and decision;
  • suggest additional research if it helps strengthen or extend the work;
  • ensure their comments and recommendations for the editor are consistent with their report for the authors;
  • any suggestions and comments must be based on valid academic or technological reasons;
  • continue to keep details of the manuscript and its review confidential during and after reviewing;

Conflicts of Interest

Conflicts of interest comprise those which may not be fully apparent and which may influence the judgment of author, reviewers, and editors. They have been described as those which, when revealed later, would make a reasonable reader feel misled or deceived. They may be personal, commercial, ideological, academic, or financial.

When authors submit a manuscript of any type or format they are responsible for disclosing all financial and personal relationships that might bias or be seen to bias their work. This includes declaration of all sources of funding. All authors that publish in our journals are obliged to declare conflicts of interest if there are any. Declared conflicts of interest will be considered by the editor and Conflict of Interest Statement will appear in our journals at the end of the published article.

Reviewers should not consider manuscripts in which they have conflicts of interest resulting from competitive, collaborative, or other relationships or connections with any of the authors, companies, or institutions connected to the papers. Reviewers should be objective and constructive, declare all potential conflicting interest, seeking advice from the editors if they are unsure whether something constitutes a relevant interest; do not allow their reviews to be influenced by the origins of a manuscript, by the nationality, religious or political beliefs, gender or other characteristics of the author, which could be implied in the manuscript.

If the founders decide to publish as authors or co-authors, they are required to include the Conflict of Interest Statement in the Publication Agreement. This statement will be also included in their published paper.

Editors who make final decisions about manuscripts should not make editorial and publication decisions if they have conflicts of interest related to articles under consideration. Editorial staff must not use information received through working with manuscripts for private gain. Guest editors should follow these same procedures.

Research Misconduct Policies


LLC "CPC "Business Perspectives" uses Similarity Check service and all manuscripts that are being sent for an external peer review, are screened for originality with iThenticate software. By submitting their manuscripts to our journals authors are agreeing to any necessary originality checks the manuscript may have to undergo during the publication process.
Plagiarism implies the use another author's work without permission or acknowledgement. Plagiarism may have different forms from copying word by word to rewriting. While defining plagiarism the following definitions are taken into account:

Literal copying
Copying the work word by word, in general or in parts, without permission or acknowledgement of the source. Literal copying is clearly plagiarism and is easily detected by plagiarism software.

Substantial copying
Replicating substantial part of the work without permission and confirmation of the source. In determining what is "substantial", both the quantity and the quality of the copied content are relevant.
Quality is measured by relative value of copied text comparing to the whole text. Where the essence of the work was copied, even not very big part of it, plagiarism is identified.

Copying may be made without literal replicating, used in the original work. This type of copying is known as paraphrasing and it may be the most difficult type of plagiarism to reveal.
Plagiarism in all its forms is unacceptable and will lead to immediate rejection of the paper along with possible sanctions against authors.

Allegations about authorship of contributions

It is important that all authors are declared in the list of authors and are declared in the Cover letter form, sent along with a submitted paper.

To be considered the author, a person should be responsible for particular research aspect or preparation for work or make particular contribution to the concept, project, fulfillment, or research explanation, and it must be confirmed in the final work form.

Insignificant contribution may not be considered as an authorship. A person who provides insignificant contribution or appropriate data or other type of help may be considered as "contributor" by author/co-authors, and may be declared in the paper in acknowledgement section.

According to our policy, author/co-authors of submitted paper must fill in the Cover letter form to identify all participants, as well as confirm their consent to publish the paper.

Duplicate submission

Authors must present papers which are unique and must not be submitted to any other journal (except for some unusual circumstances and only with reviewer's approval). Sometimes authors may ignore this requirement, submitting the same document to several journals or submitting several documents on the basis of one and the same research. As in plagiarism duplicate submission may take different forms: literal copying, partial, but substantial copying or even paraphrased copying of the research. The publisher sticks to the policy which forbids publication of multiple papers on the basis of a single research. Infringement of this policy will result in immediate rejection along with possible sanctions against authors.

Citation manipulation

Submitted manuscripts that are found to include citations whose primary purpose is to increase the number of citations to a given author's work, or to articles published in a particular journal, will result in immediate rejection along with possible sanctions against authors.

Data falsification

If the falsified or fabricated data of experimental results (this also includes manipulation of images) will be found in the submitted paper, it will result in an immediate rejection along with possible sanctions against authors.

The following sanctions may be imposed in case of infringement of abovementioned policies:

  • Immediate rejection of the manuscript.
  •  Immediate rejection of every other manuscript submitted to any journal published by LLC "CPC "Business Perspectives".
  • Publication embargo against all authors of the manuscript (prohibition for any new submissions to any journal published by LLC "CPC "Business Perspectives"). The term of the embargo may vary, but the minimum is 24 months.
  • Prohibition against all of the authors from serving on the Editorial Board of any journal published by LLC "CPC "Business Perspectives".

Correction and Retraction Policy

All Business Perspectives journals have the same policy regarding corrections and retractions. We differentiate between addenda, errata, corrigenda, and retractions.

If significant information was unintentionally omitted by authors from the original publication, the original article can be amended through an Addendum reporting these previously omitted results. The Addendum will be published, with page numbers added, in the current issue of the journal. A hyperlink to the Addendum will also be added to the original publication.

An erratum will be used if a significant error has been introduced by us during the production of the journal article, including errors of omission such as failure to make factual proof corrections requested by authors within the deadline provided by the journal and within journal policy. A significant error is considered to be the one that affects the scholarly record, the scientific integrity of the article, the reputation of the authors, or of the journal. All errata are linked to the version of the article that they correct.

A corrigendum is a notification of a significant error made by the authors of the article. All corrigenda are approved by the editors of the journal. All corrigenda are linked to the version of the article that they correct.

Retraction will be issued by an editor upon several conditions: severe plagiarism, multiple publications, data fabrication, unreliable or faulty findings, and other harmful practices. In this case, Retraction notice will be published. This notice will include the title and authors of the article, the reason for the retraction and who is retracting the article. It will be published online with a link to the online version of the article. It will be published in the next print issue and included in the table of contents of that issue. Before publishing the notice of retraction, a signed statement by the authors should be sent to the editorial office.


LLC "CPC "Business Perspectives" uses Similarity Check service and all manuscripts that are being sent for an external peer review, are screened for originality with iThenticate software. By submitting their manuscripts to our journals authors are agreeing to any necessary originality checks the manuscript may have to undergo during the publication process.

Plagiarism implies the use another author's work without permission or acknowledgement. Plagiarism may have different forms from copying word by word to rewriting. While defining plagiarism the following definitions are taken into account:

Literal copying
Copying the work word by word, in general or in parts, without permission or acknowledgement of the source. Literal copying is clearly plagiarism and is easily detected by plagiarism software.

Substantial copying
Replicating substantial part of the work without permission and confirmation of the source. In determining what is "substantial", both the quantity and the quality of the copied content are relevant. Quality is measured by relative value of copied text comparing to the whole text. Where the essence of the work was copied, even not very big part of it, plagiarism is identified.

Copying may be made without literal replicating, used in the original work. This type of copying is known as paraphrasing and it may be the most difficult type of plagiarism to reveal.
Plagiarism in all its forms is unacceptable and will lead to immediate rejection of the paper along with possible sanctions against authors.

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To contact the Editorial office:
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postal mail: Hryhorii Skovoroda lane, 10, Sumy 40022, Ukraine

Questions concerning manuscript (submission, status, publishing....):

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All financial questions by email:

If you would like to make a complaint please contact:


This section contains information about articles which are already reviewed, accepted and waiting for publication in next issues of the journal.

Evaluating the performance of The Motley Fool’s Stock Advisor™

Greg Filbeck, Samuel P. Black Professor of Finance and Risk Management, Penn State Behrend, USA
Alexander Lyon, Penn State Behrend, USA
Xin Zhao, Professor of Finance, Penn State Behrend, USA

Abstract. Since March 2002, The Motley Fool’s founders, David Gardner and Tom Gardner, have published monthly stock recommendations under Motley Fool’s premium Stock Advisor service. In this paper, we investigate whether analysts’ recommendations can add value for investors by examining the performance of portfolios constructed based on Motley Fool’s recommendations. We evaluate the announcement effect on share price corresponding to the publication of stock recommendations. Additionally, we examine holding period returns for a portfolio imitating the actions of Stock Advisor™. We find portfolios composed of recommendations through Stock Advisor add value, initially upon recommendation and across extended holding periods. Additionally, we find that the Stock Advisor sample out performs other sample portfolios on a risk-adjusted basis and over several subperiods. Our findings contribute to the literature of the usefulness of analysts’ recommendations in adding value to investors’ portfolios.

How financial liberalisation impact stock market volatility in Africa: evidence from Nigeria

Adeyeye Patrick Olufemi, Graduate School of Business, University of KwaZulu-Natal, South Africa
Aluko Olufemi Adewale, University of Ilorin, Nigeria
Oladapo Fapetu, Department of Banking & Finance, College of Management Sciences, Federal University of Agriculture, Nigeria
Migiro Stephen Oseko, Graduate School of Business, University of KwaZulu-Natal, South Africa

Abstract. Understanding the impact of financial liberalisation on stock market is important for decision making by investors. The neo-classical economists believe that financial liberalisation reduces stock market volatility while the post-Keynesian economists argue that financial liberalisation increases volatility of the stock market. This study investigates the effect of financial liberalisation on the volatility of an emerging stock market in Africa, with particular focus on the Nigerian stock market. The estimation results reveal that financial liberalisation has a significant impact onreturn volatility, thus indicating that it increases stock market volatility. Also, the study finds no evidence of asymmetry in the stock market.

The role of high-yield bonds in strategic asset allocation over the great recession

Georgios Menounos, Bank of Piraeus, Athens, Greece
Constantinos Alexiou, Cranfield University, UK; Aristotle University of Thessaloniki, Greece
Sofoklis Vogiazas, Βlack Sea Trade and Development Bank, Thessaloniki, Greece

Abstract. By utilizing a modified version of the Black-Litterman model, the authors explore the asset allocation to high-yield bonds based on an investor’s risk profile. In so doing, the authors use US data on high-yield bonds and over the period 2007 to 2013. The key finding relates to the strategic asset allocation to high-yield bondsina simulated global market portfolio depending on an investor’s risk tolerance. In particular, the share of high-yield bonds does not exceed 4.15% of total assets in a global market portfolio over the period 2007-2013 whilstthe allocation remains relatively stable and small on a risk-adjusted basis, irrespective of an investor’s risk profile or the phase of the business cycle. In simple terms, our results suggest that high-yield bonds do not seem to merit a favorable treatment in the asset allocation process relative to other financial instruments in a global market portfolio.

Investment attractiveness of the port industry in crisis conditions

S. Ilchenko, Doctor of Economic Sciences, Senior Research Officer, Institute of Market Problems and Economic & Ecological Research NAS of Ukraine, Ukraine
G. Glushko, Postgraduate student of the Department of Transport Services Market, Institute of Market Problems and Economic & Ecological Research, National Academy of Sciences of Ukraine, Ukraine

Abstract. Historically, the maritime industry in Ukraine, which previously was subordinated to the Ministry of Transport of Ukraine and whose successoris the Ministry of Infrastructure of Ukraine, was a complex of different organizations (shipping companies, ports, shiprepairing and ship building factories and other related and auxiliary enterprises). They had their own organizational structures, goals and tasks and in some way interacted with each other. Such organization was aimed, first of all, at achieving target production indicators formed by the state authorities. In fact, such structure of maritime industry can be regarded as vertically integrated. When the issue of increasing the economic efficiency of the main component of the maritime industry (of the ports) was raised, the main efforts were aimed at minimizing the costs of their functioning. This led to the creation of horizontally integrated (in whole or in part) companies in the maritime industry. The driving factor for their implementation should be the transformation of organizational and economic mechanisms of regulation of the port’s activity from the point of view of a clearly defined anti-crisis character.
Therefore, the goal of the study was to develop and justify the feasibility of using a model that will determine the effectiveness of the strategy of investment into the development of the organizational and economic mechanism of regulation of the port activity. The calculations of determining the best variant ofan investment project under different external conditions are presented. In calculations based on certain criteria (appropriate levels of capitalization and effective dividend policies) we took into account the factors related to the expectations of the crisis in Ukraine, Ukraine's unpreparedness to enter the new technological phase, the loss of scientific and technical personnel, inflationary phenomena and instability of the national and world currencies.
In addition, within the framework of the developed model we propose an algorithm that makes it possible to select the characteristics and determine the parameters of optimization of the organizational and economic mechanism of regulation of the port activity under the conditions of long-term continuation of the crisis situation.

Foreign ownership and firm-level stock return volatility in Taiwan

Yi-Chein Chiang, Professor, Feng Chia University, Taiwan
Ming-Han Chan, Master Student, Feng Chia University, Taiwan

Abstract. With the increasing presence of foreign investors and their importance in the stock markets, we investigate the effects of foreign ownership on stock return volatilityby using Taiwanese firm-level data covering a period from 1994 to 2014. Our results demonstrate that foreign ownership is negatively correlated with stock return volatility during the whole sample period, the so-called stabilizing effect. For the sub-sample test, this effect is the largest during the period 2002-2007, the years following Taiwan joins WTO. However, the stabilizing effect did not exist afterthe global financial crisis in 2008 and recent years. Our results are also robust after correcting the potential endogeneity issue.

Imitation model for evaluation of investment processes in the regions of Ukraine

Ivan Blahun, Doctor of Economics, Professor, Vasyl Stefanyk Precarpathian National University, Ukraine
Lesia Dmytryshyn, Doctor of Economics, Professor, Vasyl Stefanyk Precarpathian National University, Ukraine
Halyna Leshuk, Ph.D. in Economic Sciences, Carpathian Institute named after Mykhaylo Hrushevsky of Interregional Academy of Personnel Management, Ukraine

Abstract. To analyze and evaluate the investment processes in the regions of Ukraine, it is suggested to use a simulative model that, unlike existing ones, allows to take into account the influence of macroeconomic factors and to predict the future development of the economic system of the regions taking into account their investment potential. The examination of the assessed simulative models of the investment processes in the regions of Ukraine for adequacy is carried out using the determination coefficient and Fisher's criterion, by which the influence of the most significant economic variables of social and economic development of the regions on the investments formation is determined. Research of the investments impact on the dynamics of economic systems indicators of the regions, has shown that 86% of the constructed models are adequate. The presence of statistically significant estimates of model parameters confirms the effectiveness of the proposed approach for conducting research on the analysis and forecasting of the patterns of significant indicators formation of investment activity at the regional level, as well as their impact on indicators of social and economic development.

Methods of assessment of efficiency of creating regional innovative clusters for dynamic development of economics

R. Kozhukhіvska, Ph.D. (Economics), Associate Professor, Uman National University of Horticulture, Ukraine
N. Parubok, Lecturer, Uman National University of Horticulture, Ukraine
N. Petrenko, Ph.D (Economics), Associate Professor, Uman National University of Horticulture, Ukraine
S. Podzihun, Ph.D. (Economics), Associate Professor, Uman State Pedagogical University named after Pavlo Tychyna, Ukraine
I. Udovenko, Ph.D. (Economics), Associate Professor, Uman National University of Horticulture, Ukraine

Abstract. The deployment of a systemic economic crisis in Ukraine was conditioned by the aggravation of the socio-economic situation in certain regions and the build-up of structural deformations in the economy and the preservation of an inefficient model of production organization. This situation requires the search for a new model of economic growth, which based on the use of competitive advantages of regions and a combination of industrial, scientific and managerial potential of the domestic economy.
Clustering is a form of internal integration that can provide both sustainability and a synergistic effect of counteracting global competition for today.
The research of the foundations of the formation of a modern cluster theory is a significant theoretical and practical interest for the further development of a successful model of cluster policy in Ukraine. In addition, the important place in this judgment is the fact that this theory is in the stage of active formation and development.
The purpose of the article is the research, analysis and development of methods of assessment of efficiency of creating regional innovative clusters for dynamic development of economics. The article considers the methods of quantitative evaluation of clusters performance based on the analysis of effects of reducing transaction expenses, capital value, marketing expenses, innovation diffusion and employment of infrastructure in common.
It was established that the application of innovative cluster approach is one of the most efficient tools in the fulfillment of tasks of enterprise modernization and ensuring the development of innovative sectors of economy. Cluster effects for regional economies are relative and, in general, can be used for estimating total cluster effect.
The suggested variants of assessment of potential cluster effects will provide opportunities of carrying out a more complete cluster estimation and selection of the most efficient projects for increasing the efficiency of regional innovation clusters and dynamic development of economics.

Perceptions about effective risk management. The crucial role of internal audit and management. Evidence from Greece

George Drogalas, Assistant Professor, Department of Business Administration, University of Macedonia, Greece
Michail Pazarskis, Assistant Professor (elected), Department of Accounting and Finance, Technological Educational Institute of Central Macedonia, Greece
Iordanis Eleftheriadis, Associate Professor, Department of Business Administration, University of Macedonia, Greece
Evgenia Anagnostopoulou, Ph.D, Department of Business Administration, University of Macedonia, Greece

Abstract. In the aftermath of the financial crisis, many companies have implemented extensive risk management procedures. Additionally, internal audit has increasingly attracted the attention of managers as it constitutes the core of modern corporate governance. However, regarding Greek companies, there is a lack of empirical research on factors that affect risk management. Therefore, the purpose of the present paper is to analyze specific factors associated with effective risk management. Primary data was collected using questionnaires distributed to employees in companies that are listed on the Athens Exchange. Multiple regression analysis was conducted in order to examine the relationship between effective risk management, risk based internal audit, internal auditors’ involvement in risk management and top management support. Our findings demonstrate that the above factors contribute positively to effective risk management.

The impact of the deferred tax adjustment on the Economic Value Added (EVA) measure

Melissa Naicker, Masters Degree in Management Accounting, Lecturer at the Department of Management Accounting, Faculty of Accounting and Informatics, Durban University of Technology, South Africa

Abstract. Economic Value Added (EVA) is a value-based accounting measure used by companies to measure the amount of value created for shareholders. EVA requires the conversion of accounting values to economic values. This conversion process is known as the EVA adjustment. If accounting values are not converted to economic values, the value of the EVA can be distorted.Previous studies have shown that companies are experiencing difficulties in implementing EVA adjustments. To reduce these difficulties, companies have decided to limit their EVA adjustments to ten or even fewer. The research problem is that if the appropriate adjustments are not made, an inaccurate EVA measure will be calculated.
The aim of the research is to measure whether deferred taxes impact EVA. The study is conducted within a quantitative research paradigm. Secondary data analysis was carried out on JSE-listed Food producers over a seven-year period, from 2004 to 2010. The unadjusted EVA was compared to the adjusted EVA measure, to determine the before and after effects of deferred taxes on EVA. The findings of the study revealed that deferred taxes either understated or overstated the value of the EVA during 2004 to 2010. In addition, the results from the regression analysis revealed an overall significance for all deferred tax predictors. The results from the study showed that deferred tax had a significant impact on the value of EVA. Therefore, the study recommends that companies implement the deferred tax adjustment on EVA.

Orientation to finance (ORTOFIN) and its relationship with residential status

Shaha Faisal, Dr., Assistant Professor, Department of HRM, College of Business Administration, Prince Sattam bin Abdulaziz University, Al-Kharj, Kingdom of Saudi Arabia

Abstract. The two factors Orientation Towards Finance (ORTOFIN) Scale tests the ‘Financial Information’ and ‘Personal Financial Planning’ of the respondents. The scale helps in identifying the personal financial management behavior of a general and non-specific nature. The present study was undertaken to test the relationship between status of residence and financial orientation using ORTOFIN Scale. Towards this the ORTOFIN scale was adminsterd on 167 resident employed Indians and 62 expartrites working in Saudi Arabia. Since most of the expatriates work in unique situations that are often beset with risks, they have to face an uncertain future. This unique situation, it was hypothesised, would induce in them a different type of financial behaviour, distinct from those who are settled and work in the home country. Results of the study, however, show that there is no relationship between the status of residence and financial orienation of the respondents. The results of the study are of great significance and of practical implication to those financial insitutuions with which expatriates are associated.

The impact of microfinance on microenterprises

Sanya Olugbenga, Department of Managerial Accounting and Finance, Faculty of Economics and Finance, Tshwane University of Technology, South Africa
Polly Mashigo, Department of Managerial Accounting and Finance, Faculty of Economics and Finance, Tshwane University of Technology, South Africa

Abstract. The provision of and access to financial services, particularly credit, can contribute greatly to the development of microenterprises in South Africa. Such provision has been an issue ignored by conventional banks or formal financial institutions.The problem associated with this ignorance include high transaction and operation costs, lack of collateral, and the inability to obtain information aboutmicroenterprisesresulting in difficulties to extend such credit.Microfinance therefore becomes an alternative to conventional banking and a mainstream and sustainable development activity for extending credit to microenterprises. However, the benefits of microfinance which include, among others, the ability to provide the much needed financial support for microenterprises,have not been fully harnessed in South Africa. The objective ofthis article is to evaluate the impact of microfinance on microenterprisesin a typical South African townshipand to propose specialised financial mechanisms to support and improve the provision of credit to microenterprises. The article draws on the findings of a study undertaken in the Ga-Rankuwa township located in the Tshwane Metropolitan area in the Gauteng province of South Africa.It further draws on a wide range of extensive review of literature that documents the impact of microfinance on microenterprises. A case study approachis adopted and mixed-method research paradigm(qualitative and quantitative) used to gather information.Structured questionnaires and interviews were used to solicit information from the randomly selected microfinanceinstitutions and microenterprises in the Ga-Rankuwa township.

A comparison two models to measure business success in microinsurance

Zaheenah B. Chummun, Dr., University of KwaZulu-Natal, South Africa
Christo Bisschoff, Prof., NWU School of Business and Governance, North-West University, South Africa

Abstract. Microinsurance is an insurance product offered to low-income earners charecterised by low profitability resulting from low premiums and high transaction costs. Insurance companies are socially challenged to also include this market segment in their portfolio of insurance products to contribute to economic development and servicing the low-income market. Business success in the microinsurance segment is, therefore, more than calculating profits. This article offers guidance to measure businesssuccess in this market. Two models wereconstructed to measure business success:onegeneralised and the other an industry specific model. These models are compared to determine which one would be the more suitable to employ as atool to measure business success in the microinsurance industry. The analysis indicated that the generalised model is the better model to use. However, the industry specific model also proves valuable and is more suited for specific company applications than general industry analysis.

A new method of measuring stock market manipulation through SEM

Maruf Rahman Maxim, Charles Darwin University, Australia
Abu Sadat Muhammad Ashif, Assistant Professor, East West University, Bangladesh

Abstract. This paper proposes a new model of measuring a latent variable, stock market manipulation. The model bears close resemblance with the literature on economic well-being.It interprets the manipulation of a stock as a latent variable, Q*, in the form of a multiple indicators and multiple causes (MIMIC) model. This approach exploits systematic relations between various indicators of manipulation and between manipulation and multiple causes, which allows itto identify the determinants of manipulation and an index of manipulation simultaneously.The main reason of stock market manipulation comes from the fact that information availability is not universally equal. The manipulation is thus critically linked to the creation, arrival and dissemination of information or rumors/mis-information. Thus, the immediate impact of manipulation is on the time profile of returns, or excess returns, from an asset and the excess volatility of returns in excess of the volatility explained by the fundamentals. In this basic set up, the model used these two variables as the indicators of stock market manipulation. The main intuition of the MIMIC approach is that some variables, or statistics, related to peace are indicators of manipulation, while others signify effects or outputs of causal factors, or inputs, of manipulation. In other words, distinction can be made between causes of manipulation and indicators of manipulation. The causal factors used in this model are classified into five different domains namely pure economic factors as determinants of manipulation, labour market conditions, international factors, quality of governance factors and systematic risk factors.

Investment capacity of the economy during the implementation of projects of public-private partnership

Oksana N. Berduygina, Ph.D. (Pedagogic), Assistant professor, Chair of Business Informatics and Mathematics, Tyumen Industrial University, Russia
Andrey I. Vlasov, Ph.D.(Engineering), Assistant professor, Chair of Design and Technology of Electronic Devices, Bauman Moscow State Technical University, Russia
Evgeny A. Kuzmin, Assistant lecturer, Chair of Corporate Economics, Ural State University of Economics, Russia; Researcher (Academic), Institute of Economics of the Urals Branch of the Russian Academy of Sciences, Russia

Abstract. The article considers the peculiarities of the mechanism of public-private partnership. An important problem of the research is to find an optimal ratio in the investment distribution when the arising positive externalities are maximized. In the critical literature review, the assumption was made that the balance between the market and state methods of regulation allows reaching the sustainable growth from the point of view of the use of resources. This hypothesis is developed in the analysis of the multiplicative effect through the index of GDP investment capacity. The research approach is based upon the study of the regression dependencies: multidimensional optimization is solved by the method of configurations with performing the iteration procedure. The obtained results show that the state contribution into the total investment potential of the projects of public-private partnership is traditionally low. The maximal investment capacity of the economy can be reached when maintaining the structure of investment distribution at the ratio 0.09/0.91 for the public and private sectors accordingly. The practical use of the optimization model allows to introduce the flexible mechanism of coordination of the terms of project financing.

The prestige of stock exchanges and corporate cash holding in transitional economies: a study on Vietnamese listed firms

Do Thi Thanh Nhan, Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic
Ngo Minh Vu, Faculty of Management and Economics, Tomas Bata University in Zlín, Czech Republic

Abstract. The main purpose is to examine the relationship between corporate cash holding level and the prestige of the stock exchanges. And, the other determinants in the listing requirements impact on cash holding level will be indicated. The paper uses a sample of 577 listed firms excluding the financial institutions on the Vietnamese stock exchange over the period 2007 to 2015.The results find out that the listed firms on the stock exchange with higher prestige hold larger amount of cash reserve and vice versa. The study investigates that there is a statistically significant connection between cash holding and the listing requirements as profitability, dividend and information disclosure. The findings have implications on the cash management of listed firms in the stock exchanges with dissimilar prestige.

Tests of quantitative investing strategies of famous investors: cases of Thailand

Paiboon Sareewiwatthana, Ph.D., School of Business, National Institute of Development Administration, Bangkok, Thailand
Patarapon Janin, Phillip Securities, Bangkok, Thailand

Abstract. This research studied quantitative investing strategies of famous investors in the Stock Exchange of Thailand from 2002 to 2016. This study found that the Graham’s Net nets, Dreman’s Contrarian, Fisher's Super stock, O'Neil's CANSLIM, Slater's Zulu principle, Neff's Cheapo, O’Shaughnessy’s Tiny titans, Greenblatt's Magic formula, Carlisle's Acquirer's multiple and Piotroski's F-score strategies beat the market (SET TRI). It also found that, the Benjamin Graham’s Net nets strategy which used the market capitalization less than two thirds of net current assets value (NCAV) criterion produced the highest return among the strategies used. However, the Tobias Carlisle’s the Acquirer’s multiple strategy which used EBIT to enterprise value (EBIT/EV) to sort stocks for 30 stocks yielded the highest risk-adjusted return.

Semi-monthly effect in stock returns: new evidence from Bombay Stock Exchange

B. Shakila, Assistant Professor and Research Scholar, Department of Business Administration, St. Joseph Engineering College, Mangaluru, India
Prakash Pinto, Dr., Professor and Dean, Department of Business Administration, St. Joseph Engineering College, Mangaluru, India
Iqbal Thonse Hawaldar, Dr., Assistant to the President for Accreditation & Quality Assurance, Associate Professor, College of Business Administration, Kingdom University, Kingdom of Bahrain, Bahrain

Abstract. Semi-monthly effect is a kind of calendar anomalies which is less explored in the financial literature. The main objective of this paper to investigate the presence of semi-monthly effect in select sectoral indices of Bombay Stock Exchange (BSE). The study uses the daily stock returns of five sectoral indices viz S&P BSE Auto Index, S&P BSE Bankex, S&P BSE Consumer Durables Index, S&P BSE FMCG Index and S&P BSE Health Care Index for the period of 10 years starting from 1st April 2007 to 31st March 2017. The data is analyzed using two approaches namely calendar days approach and trading days approach. To test the equality of mean returns for the two halves of the month, Mann-Whitney U test is used. The empirical results of the study did not provide any evidence for the presence of semi-monthly effect in the select sectoral indices. Nevertheless, BSE Auto index showed significant difference in the mean returns of first half and second half of trading month during the study period.

Market reaction and fundamental signal in Indonesia

Winston Pontoh, Associate Professor, Faculty of Economics and Business, Sam Ratulangi University, Indonesia

Abstract. The random reaction in capital market by different perceptions and other factors makes investors are difficult to get their optimum return. The objective of this study is to provide an empirical evidence about how the market will react by fundamental signal in perspectives of life cycle theory, free cash flow theory, bird in the hand theory. The study conducts the analysis of covariate for hypotheses testing with 241 firms as the sample which are listed in Indonesia Stock Exchange for period of 2010 to 2015. This study finds that the life cycle theory and free cash flow theory are not an absolute theories to explain the market reaction for any firms because each firms have their own characteristics. The findings show that share prices shall react differently depend on each characteristics of the firms. The bird in the hand theory seems applicable in any case of firms since the informational contents by dividend can deliver good signal to investors in capital market. Excluding the smaller and younger firms, this study proves that dividend is still a better way in determining the reaction of share prices, since each type of firms have their own types of dividend payers with different share prices.

The effects of the International Financial Reporting Standards(IFRS) adoption on earnings quality: evidence from Korea

Jee Hoon Yuk, Ph.D., Full-time Lecturer, Da Vinci College of General Education, Chung-Ang University, Republic of Korea
Wook Bin Leem, Ph.D., Assistant Professor, Department of Business Administration, ShinGyeong University, Republic of Korea

Abstract. This study investigateswhether earnings quality of Korean listed firms was substantially improved after the IFRS adoption in long-term aspect and which firms listed in KOSPI or KOSDAQ market had been more enjoyed the benefit. Prior studies related to this subject don’t provide consistent results and have a limitation of insufficiency of research periods. Therefore, this study analyzes the positive effect of the IFRS adoption in Korea using long-term based approach and comparative analysis on each Korean Stock Markets. Furthermore, this study considered Korean specific institutional environment that main financial statements prepared and disclosed by listed firms were changed from individualfinancial statementsto consolidated financial statements after the IFRS adoption.Results of the study found that earnings quality of Korean listed firms had been significantly improved during 5 years after the IFRS adoption. In addition, earnings quality on consolidated financial statementsof KOSDAQ listed firms was improved greater than that of KOSPI listed firms. The results provides meaningful implications to evaluate the effects of IFRS adoption on earnings quality and to assess accomplishment of fundamental purpose of the IFRS adoption in Korea.

Company's financial state forecasting: methods and approaches

Shynara Jumadilova, Ph.D., Assistant Professor, International Information Technology University, Kazakhstan
Nurlan Sailaubekov, Doctor of Economic Sciences, Kazakh Ablai Khan University of International Relations and World Languages, Kazakhstan
Dana Kunanbayeva, Candidate of Economic Sciences, Kazakh Ablai Khan University of International Relations and World Languages, Kazakhstan

Abstract. Planning company’s activity is a complex process, in which foresight is of great importance. The paper presents a method to predict financial state of a company using available financial data. For the prediction of quantitative indicators of the company currently there are different ways to build predictive models, such as simple and multiple regressions, autoregressive model and others. In this paper, to predict financial indicators of the company we use econometric modeling techniques. Tools to check the time series for the seasonality and stationarity are used in constructing the models. To check the reliability of the analysis techniques applied backtesting. To apply the developed method we used the values of financial indicators of the Kazakh national oil producing company. However, the method can be used for any company despite its size, industry, and so on. Albeit the method proposed is universal one and enables to predict financial state at any company, it has certain shortcomings and should be used along with fundamental analysis tools. The method proposed in the paper illustrated adequate results with sufficient accuracy according to the backtesting results. Therefore, based on the results of forecasting the financial state indicators, one can conduct a financial analysis of the expected state in upcoming period and use the derived values for future planning.

Government subsidy, profitability strategic and its impact on financial performance: empirical evidence from Indonesia

Aminullah Assagaf, Universitas Dr. Soetomo, Surabaya, Indonesia
Yusliza Mohd Yusoff, Dr., Associate Professor, School of Maritime Business & Management, Universiti Malaysia Terengganu, Malaysia
Rohail Hassan, Universiti Teknologi PETRONAS, Malaysia

Abstract: This paper examines the moderating impact of capital structure on the relationship between Government subsidy, profitability strategic and financial strength of state-owned enterprises in Indonesia. A purposive sampling is used and data collected from seven state-owned enterprises over the period of 2005 to 2016. The empirical evidence provided by this paper indicates that Government subsidy has a significant negativeimpact on the financial strength, which means that the state-owned enterprises are difficult to manage the company independently if the government continues to provide subsidies or additional capital. This study also found that profitability strategic has a significant positive impact on the financial strength, which means that there are opportunities for management to perform profitability practice of earnings management as strategic to enhance the level of financial strength of the company. However, capital structure is strengthening the relations of ‘Government subsidy’ and ‘real earnings management’ with the financial strength. So far, it is still little known how ‘capital structure’ effects the relationship between Government subsidy and financial strength. Specifically, in the case of state-owned enterprises.

Inefficiency of pension investment regulation: case of Russia

Alexander Nepp, Ph.D. in Economics, Ural Federal University, Ekaterinburg Russia

Abstract. Inflation risks are one of the major factors faced by funded pension systems. Investment risks affect such key parameters of pension systems as the amount of pension contributions and payments. In order to limit the exposure of pension systems to such risks, governments have introduced instrumental and geographical restrictions on pension investments. These measures are particularly popular in developing countries.
This article discusses the efficiency of pension investment regulation in Russia and demonstrates the inadequacy of the current regulatory measures. We show that the negative investment results of pension market players were caused by inefficient government regulation. We also show that pension market players should be given more freedom in their investments and that instrumental and geographical restrictions should be removed. We propose to diversify investment portfolios into stocks traded on the leading stock markets, which would allow us to increase investment returns and maintain the risk at the current level. Thus, it would be reasonable to invest 76% of funds into foreign assets, which will increase pension benefits and the replacement rate by 2.54 times. If we keep the geographical barriers but lift the restrictions on equity investments, the growth will be 1.34 times.

Detecting false financial statements: evidence from Greece in the period of economic crisis

Michail Pazarskis, Assistant Professor (elected), Department of Accounting and Finance, Technological Educational Institute of Central Macedonia, Greece
George Drogalas, Assistant Professor, Department of Business Administration, University of Macedonia, Greece
Kyriaki Baltzi, Accountant, MSc. in Cost Accounting and Auditing, Technological Educational Institute of Central Macedonia, Greece

Abstract. The purpose of this study is the examination of the financial fraud in Greek companies, listed on the Athens Exchange, for the period of 2008-2015, during the economic crisis in Greece. The data of all the listed companies that were used comprise financial statements, reviews in the reports by the auditors and the figures and information based on the reports of the Athens Exchange. A total of twelve companies were found and they comprise the primary research sample with fraud in their financial statements (FFS), while another twelve companies were employed as a control sample (non-FFS) for various comparisons. From thirty financial ratios, several statistical tests to the sample and the control sample are applied in order to create a model that will use ratios as “predictors” in the analysis of financial statements for fraud. The model is accurate in classifying the total sample correctly with accuracy rates exceeding 90 per cent. Our results demonstrate that the model functions effectively in detecting FFS in a period of economic crisis and could be used as a tool to the banking system, from internal and external auditors and taxation or other state authorities.

Profitability of commercial banks revisited: new evidence from oil and non-oil exporting countries in the MENA region

Nermeen Abdullah, Department of Accountancy, Finance and Economics, Huddersfield Business School, University of Huddersfield, Queensgate, Huddersfield, UK
Yong Tan, Department of Accountancy, Finance and Economics, Huddersfield Business School, University of Huddersfield, Queensgate, Huddersfield, UK

Abstract. This paper investigates the determinants of commercial bank profitability in oil and non-oil countries of the Middle East and North Africa (MENA) regionusing data from 11 countries over the period 2004–2014. Since banks are under no obligation to fill reports to Bankscope database, irregular reporting banks are omitted from the sample and the model is re-estimated using only regular reporting banks, and a comparative analysis between total banks' sample and regular reporting banks' sample is provided.Using the two-step system GMM and fixed effects models, the results indicate that credit risk is negative and highly significant when irregular reporting banks are omitted from the sample particularly in non-oil countries unlike the oil countries case, which indicates that adding irregular reporting banks to the sample could lead to bias in some estimated coefficients if they constitute a considerable percentage of the total banks' sample. Diversification is a key determinant for profitability in oil countries. No enough evidence to support the impact of financial inclusion and financial openness on bank profitability. In addition, the global financial crisis has significantly affected bank profitability in oil countries. Several policy implications are provided to the bank management to follow based on each country group.

The evaluation of derivatives of double barrier options of the bessel processes by methods of spectral analysis

Ivan Burtnyak, Ph.D. in Economics, Associate Professor, Department of Economic Cybernetics, Vasyl Stefanyk Precarpathian National University, Ukraine
Anna Malytska, Ph.D. in Physics and Mathematics, Associate Professor, Department of Mathematical and Functional Analysis, Vasyl Stefanyk Precarpathian National University, Ukraine

Abstract. The paper deals with the spectral methods to calculate the value of the double barrier option generated by the Bessel diffusion process. This technique enables us to calculate the option price in the form of a Fourier-Bessel series with the corresponding ratio. We propose a simple method to estimate options using the Green’s expansion function for boundary value problem for a singular parabolic equation. Thus, the accuracy of the estimation coincides with the accuracy of the convergence of the Fourier-Bessel series.
In this paper, we use the spectral theory to calculate the price of derivatives of financial assets, considering that the processes described are Markov and which can be considered in Hilbert spaces L2. In our work we use the diffusion process to find derivatives prices by introducing them through the Bessel functions of first kind. We also examine the Sturm-Liouville problem where the boundary conditions utilize the Bessel functions and their derivatives. All assumptions lead to analytical formulas that are consistent with the empirical evidence and, when implemented in practice, reflect adequately the passage of processes on stock markets.
We also focus on the financial flows generated by Bessel diffusion processes which are presented in the system of the Bessel functions of the first order under the condition that the linear combination of the flow and its spatial derivative are taken into account. Such a presentation enables us to calculate the market value of a share portfolio, provides the measurement of internal volatility in the market at any given time, and allows us to investigate the dynamics of the stock market.
The splitting of Green's function in the system of Bessel functions is presented by an analytical formula which is convenient to calculate the price level of options.

Exchange rate intervention and trade openness on the global economy with reference to Brazil, Russia, India, China and South Africa (BRICS) countries

Desti Kannaiah, Ph.D., FCPA (Aust.), Dr., Senior Lecturer, School of Business, James Cook University, Singapore
Narayana Murthy, Nimra Colledge of Business Management, India

Abstract. Currently, the economy of the world is trapped in interdependent global economic web. They are mutually dependent on one another’s in imports, exports, fiscal and monitory policies in terms of stability. This is going to be great challenges and opportunities to the emerging economies. These countries have greater trade openness to the international trading and are more affected by inflation. The BRICS represents about 40 percent of the world population; encompass over 25 percent of the worlds land coverage and comprise huge natural resources. BRICS share of a little over 10 percent in world Gross Domestic Product (GDP) and less than 4 percent in world trade in 1990, BRICS (with the recent inclusion of South Africa to the forum) now constitutes about 25 percent of world GDP in terms of PPP (Purchasing Power Parity), and 15 percent of world trade. The increase in GDP implies that the economic size of BRICS in terms of its share in world GDP has expanded by 150 percent in the past two decades, and they also estimated that the GDP of these countries may cross 47 percent of the world GDP, and will emerge as strong economic power in the world, and they contribute one fifth of the global economic output. The BRICS economies operate under varied monetary policy frameworks and procedures. Brazil and South Africa have inflation targeting regimes, while other countries follow multiple indicator frameworks. There are various other indicators, such as trends in inflows and outflows of foreign direct investment (FDI), trade openness, current account balance, forex reserves and economically active labour forces that could make BRICS a formidable force to reckon with in future. This study significantly apply exchange rate, Forex reserve and trade openness on the global economy of BRICS countries.


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  • provide authors with our resources, give them access to our products and services, fulfill order or transaction, hold researches or transactions;
  • address authors’ claims, comments or problems;
  • provide technical support;
  • provide authors with individual personalized content and services;
  • improve the quality of our resources, work out new products and services;
  • define and analyze new trends;
  • inform authors about all changes and updates of our resources, products and services.

We may share authors’ information with appropriate agents, representatives, mutual establishments and organizations, we are agents or sponsors to. This information may be shared only for appropriate reasons, which may be important for us in business matters or according to our legal obligations.

LLC “CPC “Business Perspectives” takes all necessary precautionary measures to protect your personal information from theft, abuse, unauthorized access, disclosure, change, and distraction with the help of appropriate administrative, physical, and technical measures in providing security.




LLC “CPC "Business Perspectives” protects your rights as an author and guarantees that any juridical information and questions regarding author’s right will be regulated.

Open-access articles
Authors whose articles are published in open-access retain copyright to the content of the articles. The publisher is granted the right to make the first publication of the article. Open access articles can be published under one of the following Creative Commons licenses by the author's choice (remember that licenses are irrevocable).

Creative Commons Attribution (CC BY) 4.0: allows content to be copied, adapted, displayed, distributed, re-published or otherwise re-used for any purpose including for adaptation and commercial use provided the content is attributed.

Creative Commons Attribution-NonCommercial (CC BY-NC) 4.0: allows content to be copied, adapted, displayed, distributed, republished or otherwise re-used provided the purpose of these activities is not for commercial use and the content is attributed. Commercial use means use of the content by a commercial organization or individual for direct or indirect gain or remuneration.


If the article is published in open-access under CC BY 4.0 or CC BY-NC 4.0 licenses, users may reproduce it in accordance with their terms.

Additionally, if the article had been published under CC BY-NC 4.0, the use for the following commercial purposes requires permission:

  • reproduction of content in a work or product intended for sale;
  • reproduction in presentations, brochures or other marketing materials used for commercial purposes;
  • distribution of the content to promote or market a person, product, course, service or organization;
  • text and data mining for the purpose of creating a saleable product or product which benefits from promotional or advertising revenue;
  • use of the content by a commercial entity or individual for the purposes of remuneration, directly or indirectly through sale, licensing, promotion or advertising;
  • linking to the content (in an email, webpage, portable electronic device or otherwise) for the specific purpose of marketing or advertising a person, product, course, service or organization for commercial benefit.

For further details and permission requests, please contact


Editorial Board members and reviewers constantly work on increasing the efficiency of manuscripts evaluation and selection of the papers that present extreme importance to the scientific field. In this respect, there are factors that result in a rejection of a significant share of papers submitted for publication. The reasons for rejection can be different. Main reasons are listed in Peer Review and Research Misconduct Policies.

LLC “CPC “Business Perspectives” emphasizes that in no case place of work or country of residence of the scientist, his racial or religious affiliation can be the reason for rejection.

In this respect, we ask the authors to pay attention to necessity of observing publication ethics principles. Submitted manuscripts should be relevant in content and comply with the aim, tasks and specialization of the journal.

The language of the manuscript should be professional, and the format should comply with the standards given. Weak English and incompliance with the format standards will not obligatorily lead to rejection, but can delay paper acceptance until the author makes the amendments. The acceptance rate for the journal is calculated as a number of manuscripts accepted for publication compared with total number of manuscripts submitted in one year.

This rate demonstrates gradual and steady decrease. By now, it is 31%.

To have a clear vision about period of consideration and process of review of your paper, authors can always contact the editorial assistant. Period of paper consideration is not fixed and can be changed depending on different factors, but our employees will keep you informed about the status of the publishing process.

The average time it takes to make a publication decision after receipt of submitted manuscript is 82 days.

Number of articles published in “Investment Management and Financial Innovations”:

2004 – 40
2005 – 50
2006 – 48
2007 – 41
2008 – 55
2009 – 80
2010 – 53
2011 – 56
2012 – 54
2013 – 72
2014 – 71
2015 – 99
2016 – 118


The author may deposit pre-print version of the paper (manuscript by the author, submitted to the journal, before peer-review and without any editorial amendments) to any platform anytime with acknowledgement to the Publisher and the Journal (acknowledgement should be made as follows: "This is a pre-peer-reviewed version of the paper submitted for publication to [name of the Journal] published by LLC "CPC "Business Perspectives").

The author may deposit post-print version of the paper (accepted version of the manuscript after peer-review and content amendments, but before copyediting, typesetting and proof correction) to the author's personal website, provided that it is non-commercial, and to the repository of the author's institution, where it can be made publicly available immediately upon publication, with acknowledgement of the Publisher and the Journal (acknowledgement should be made as follows: "This is an accepted peer-reviewed version of the paper. The published version of the article is available at LLC "CPC "Business Perspectives" at[DOI of the article]").

The Author may deposit published version of the paper (final edited and typeset version that is made publicly available by the Publisher and can be considered an article) to any institutional repository, and distribute and make it publicly available in any way with acknowledgement to the Publisher and the Journal (acknowledgement should be made as follows: "This is a published version of the paper, available at LLC "CPC "Business Perspectives" at[DOI of the article]").


Article processing charge (APC) is paid by authors only after the paper had been reviewed and accepted for publication. APC cover the costs of publication process, including peer-review administrating, copy editing, hosting the files etc. Business Perspectives does not employ submission or reviewing charges.

Article processing charge for “Investment Management and Financial Innovations” is 595 €. Please request an invoice (or information about other methods of payment) from an editorial assistant or follow the link to Pay online.
If authors want the size of the article to exceed established limit (6000 words), they should contact an editorial assistant to elaborate on publication details.

Please pay attention that LLC “Consulting Publishing Company “Business Perspectives” can’t receive payments from high-risk and non-cooperative countries. The jurisdictions list

After the issue is published, the corresponding author will receive one printed copy of the issue free of charge (additional copies are available for ordering from an editorial assistant).

LLC “CPC “Business Perspectives” is considering discounts and waivers for particular cases and individuals. For this purpose authors should send an e-mail to the editorial assistant requesting a discount and specifying the reason.

14 volumes and 83 issues