Date of Submission:
Table of Contents
1. Executive Summary 2
2. Introduction to the report 3
2.1. Objective of the report 3
3. Introduction of the research topic 4
3.1. Aim of the study: 4
3.2. Estimating the findings and solutions: 4
3.3. Research objective(s): 5
3.4. Research Questions(s): 5
4. Literature Review 6
4.1. Defining the topic through different researches 6
4.2. Main issues highlighted by the research. 7
4.3. Similarities among the researches 9
4.4. Difference among the researches 10
5. Conclusion 11
5.1. Connecting the findings from the literature review to the research idea: 11
5.2. Further study of the topic 12
5.3. Collecting the data 13
5.3.1. Target respondents 13
6. References 14
There are a large number of potential companies that are entering into the market due to the advancement in technology and increasing number of opportunities for different organizations. These opportunities are in the form of obtaining investment from other sources as well as investing in other potential resources. There are many elements and variables that are to be considered while evaluating an investment decision and executing it in the company. These variables are identified from the socio-economic point of view that involves considering the social as well as economic background.
The factors are developed through an in-depth understanding and evaluations from different researches carried by experts and famous authors on the subject of economics. The report discusses the different approaches that are developed by these authors regarding developing a suitable investment decision that would be involving different elements on the basis of the theories that they feel are appropriate for the same. The decision of making investments in various liabilities, bonds and businesses depends on the evaluation and critical analysis of many socio-economic factors. These factors are discussed in the report along with the level of implication that each one of them have while adapting them in the market. The suitability of the factors have been obtained for implementing them during evaluating any business decision that is related to making decisions regarding investments.
The approaches developed by different authors have not only been studied but similarities and differences have been established. The results that have been obtained after evaluation and analysis of the expert work provided by the researchers and this findings are connected to the applicability of the concept on development of invest related decisions.
Introduction to the report
The report deals with obtaining the relationship between the various factors of socio-economic background and investment behavior. These relationship would be established on the basis of the influence that these factors have on the overall business of an organization. The objectives of the report are developed and are provided as follows:
Objective of the report
• Identify the elements that are required for developing investment related decisions.
• Establish the socio-economic factors that are prevailing in the societies and market across the globe.
• Measure the impact that socio-economic background or behavior has on the decision making process related to investing in any business.
• Develop the requirements of a stable socio-economic setting that is prevailing in the market.
• Establishing a connection between the stable socio-economic setting and a good economy.
All the firms that are engaged in financial activities like investment, bonds, etc. are the targeted audience. There are different elements of socio-economic background that are matter of great concern for carrying business with any organization. The socio-economic impact as well as its influence on the different functions in an economy are to be developed. It involves developing a future potential of the socio-economic characteristics that would help in the development and growth of any business and help in taking appropriate investment decisions.
Introduction of the research topic
In the 21st century, with the advancement in technology and other upgradations, there is a cut-throat competition among a large number of potential companies that are striving hard to establish a niche in the global market and obtain huge investments from different sources. It serves to be the need of the day to identify the critical factors that are responsible for obtaining the desired returns from the investments in the markets across the globe (Johnson & Lee, 2013).
The parameters that are related to the development and growth of any business in the cut-throat competition has generated deep interests in me to research on the topic and establish a relationship between the different theories of investments and socio-economic background. The requirement of adapting an accurate decision for making investment and its importance in determining the success of any business through various processes related to it motivated me to carry the research and develop a simulation of the factors that is required for the success of any business in the global market.
Aim of the study:
The aim of the study is to identify the relationship between the socio-economic background factors and investment related decisions that are taken in the organizations.
Estimating the findings and solutions:
The findings of the research would be very crucial in determining the growth of any business as each and every business has to make certain kind of investments. The report would help different organizations to evaluate the conditions prevailing in the market and develop critical analysis of the concepts that are to be studied before making any sort of investment in the market. The plans and strategies would be developed by the organizations accordingly and it would be ensured that the investment would have the potential to generate higher returns.
The research aims at identifying the concepts and themes related to evaluation of the socio-economic background that is concerning to any business. It involves development of certain research objectives that would provide the required clarity and they are:
• Identifying five different articles that have been developed by scholars on the socio-economic context.
• Developing similarities and differences between them.
• Obtain the future potential that these theories have for investments carried in different businesses.
1. What are the variables that are essential in understanding the activity of investment behavior along with a socio-economic background?
2. Why are the concepts related to each other?
3. How the concepts and theories are studied and developed related to each other and different constraints that are developed in them?
4. Where would these theories be applicable and obtain the feasibility of their entire application process?
5. Who would be benefitted from these theories through the adaptability of the socio-economic background for investment decisions?
There are many theories as well as works that establish the relationship between the socio-economic structure or background and the investments decisions that are taken in the organizations. Carrying an appropriate research of the topic includes understanding the researches developed by the scholars and expert authors and develop a critical evaluation of their researches so as to implement it on our topic.
Defining the topic through different researches
The socio-economic background is derived from two terms social and economic. The social term includes the various roles and responsibilities that any corporate or specific business have to fulfil. There has to be a special concern regarding the social impacts of the decisions that are taken by the organization through investing in different available mediums and potential businesses. All the above mentioned factors have been discussed by Milne, Markus J., and Christian CC Chan. In their article that connects the social disclosures that are involved in the process of decision making in the corporates (Milne & Chan, 1999).
The concept of online investing started gaining popularity around 2005. It has been discussed by Prabhudev Konana and Sridhar Balasubramanian in their article. They have determined the “socio-economic and psychological model (SEP)” that is related to the use of technology for carrying various functions of a business. The SEP model that has been provided by them involves different disciplines that are related to making investments in businesses across the globe (Konana, 2005).
There is a methodological approach that is developed by few authors on the term socio-economic processes that are required to be evaluated for brining innovation and development in an organization. Methodological model or approach helps in developing a systematic approach towards the process of inculcating innovation in an organization (Bezrukova, Morkovkina, Russia, Shanin, & Popkova, 2013).
There are various factors that are responsible for developing the decisions that are related to investing in a capital market. It has been explained and discussed by one such researcher named as Tomola Obamuyi. In his article, the decisions that are taken relevant to the investment in the capital market by different organizations have been linked to the socio-economic factors and attributes that are existing in the global society (Obamuyi, 2013).
Considering the above factors, there has been a survey carried by two researchers that help in identifying the factors that are impacting various decisions that are taken related to investing in different bodies. For this purpose, the decisions that are taken for investing in Nairobi Stock Exchange by 42 investors have been evaluated and discussed (Jagongo & Mutswenje, 2014)
Main issues highlighted by the research.
The adaptability of the socio-economic theories and ideologies serves to be the most critical issue for any organization that is looking to invest in a specific business with the aim of maximizing its returns and increasing their profitability. The main issue tends to be the evaluation of the effects that a particular investment decision would have on the global market and on the lives of the people that are connected to it. Understanding the potential of several small factors that are related to the social, economic and political behavior of any organization is significant.
In the first research, the roles that are concerned to the development of decisions regarding investments from the socio-economic point of view has been highlighted. It emphasizes on the social impact that the decisions taken by the organizations have on the society. The magnitude of such decisions related to investment have been obtained through an experiment carried on the investors that are regularly involved in providing assistance other people as well as are involved in investing large sum by themselves (Milne & Chan, 1999).
In the second research, the researchers have established the behavior and attitude of the investors that are investing through online resources. The marketing phenomenon involved in such businesses is studied and obtained for implementing the SEP model developed in the research (Konana, 2005).
In the third article the author has somewhat tried to obtain the statistical evaluation of innovation and its effects on the investment making decisions of the organization.it highlight the issue of investing in the firm or other sources only after observing innovation across its functioning (Bezrukova, Morkovkina, Russia, Shanin, & Popkova, 2013).
The issue regarding understanding the factors that are influencing the investment decisions in an organization are obtained through a survey in the fourth article. These issues are related to the NSE and the investment decisions that are taken in it by the investors across the globe. They have provided with an insight regarding the elements to be evaluated and analyzed for making individual investment decisions in the market (Obamuyi, 2013).
The effects of the investment related decisions that are to be developed by the investors in Nigeria and its impact on the individual investing potential of the people that are executing individual investment has been obtained in the fifth article (Jagongo & Mutswenje, 2014).
Similarities among the researches
In all the researches that have been discussed, there has been effective implementation of the socio-economic theories, model or ideologies on the various decisions related to making investments in the global market. The context of these articles takes us to a common platform that deal with the application of the socio-economic theories, ideologies and factors for taking the decisions regarding investments in different mediums. There is a common theme in all the articles and they are similar in the way they develop the structure of their research. Different theories are studied in all the researches and on the basis of that a conclusion has been obtained. The articles are mostly based on collection of data and using quantitative methodology for research (Jagongo & Mutswenje, 2014).
All the five researchers have developed few common factors that are to be considered while making an investment in any business. These factors include the Return on Investment strategy, approach to maximize the wealth through increasing the profits. There is an individual assessment carried out for the factors that are identified in each of the article and this assessment has been concluded along with its future potential in each of the researches.
There has been a similar concept of evaluating the capital market and the potential that it has for providing return on Investment (ROI) has been used in all the researches. The attributes and characteristics that are associated with making investment, sharing the bonds, identifying the correct time for withdrawing the returns and then identifying other sources of investment are the prime elements that are discussed in all the five researches.
Difference among the researches
All the researches are different from the perspective of their approach towards the investment decisions that are to be taken in a business. They differ in the rationalities that are derived in each one of them. The concepts developed in them are such that they help in obtaining different views and dimensions to the concept of decision making process for investment considering the socio-economic background as well as behavior.
In the first article, there is a use of experiment that is carried out for identifying the impact that social disclosures have on the investment that is carried out by a company or in a company (Milne & Chan, 1999). On the other hand, the second article deals with the concept of online investing by a firm through developing and evaluating the SEP model (Konana, 2005). The third article is different from all the other articles as it focuses on methodological model that considers the systematic process to be evaluated for making investment related decisions (Bezrukova, Morkovkina, Russia, Shanin, & Popkova, 2013). On the contrary, the fourth article deals with the factors that are influencing the investment decisions from the NSE point of view (Obamuyi, 2013).
In the 5th research article, different financial theories have been discussed and evaluated. These theories include the conventional financial theory, traditional economic theory, six factors related to investment by Porter and the different attributes and variables that are discussed in these theories. It has been observed that each one of these theories have certain level of understanding that can be derived on the basis of the nature of the investors that have been described in them. Thus, it can be stated that the fifth research article not only summarizes the use and characteristics of different financial theories but it also encapsulates the factors that are to be considered for an ideal investment to be made by the organizations that would be considering the socio-economic background (Jagongo & Mutswenje, 2014).
Thus, it can be stated the articles that have been discussed in the above section of literature review have a considerable implication on the decisions that are to be taken regarding investing in different concepts, plans and firms. It helps in establishing the future potential that can be obtained through implementation of the socio-economic background on the business and generate good amount of returns from the investments that are made in them. Thus, a specific research about the developed evaluation and analysis of the articles would help in obtaining the level of implication that can be derived from the report. It is discussed in the following sections. The articles that have been researched have helped in developing a critical approach that would be useful in developing a systematic approach towards the process of decision making
Connecting the findings from the literature review to the research idea:
There are different researches discussed in the above section and each one of them are in some way related to the development of investment decisions on the basis of socio-economic considerations that are to be made while developing such decisions. The findings from these literatures have helped in determining the actual implementation of the socio-economic model would be very useful in obtaining a successful and relevant decisions related to capital investing. The articles that have discussed in the above section have developed the concept on the basis of formulated data that was collected in most of them through different mediums like survey and questionnaire. The demonstration of the socio-economic model has been established in different manners through all the articles. But, it can be stated that each one of them can be linked to the research idea that is taken for the report. The findings help in understanding the importance of investing in feasible concepts and ideologies and evaluating this feasibility on the basis of the social as well as economic effect that the decisions would have has been obtained.
Further study of the topic
Evaluating and implementing the socio-economic factors in making investment decisions has a very bright potential in it. It helps in providing a foundation for understanding the critical elements that are required for increasing the profitability and obtaining a large return of the investment that is carried out. The investment that is carried out in different product, services and other commodities has also been discussed and it has been stated that it would be very useful in obtaining positive results through the capital market. The capital market is very critical to be evaluated and carrying an extensive research of such market would help an organization to understand the potential benefits that the investment made by them would generate from the market.
Evaluating the topic as per the factors that are existing in the market regarding the investment potential that can be derived from different socio-economic considerations is the need of the day. It is becoming very significant to contribute to the well-being of the nature as well as to the social and economic conditions of the country. it will help in maximizing the outputs that can be generated from the investments that is made pertaining to different fields and through different mediums.
Collecting the data
All the articles are very well evaluated in the section above along with its critical analysis. The future potential of the research has also been determined. It can be stated that the data regarding the research that is to be carried out by us can be collected from people working or belonging to different fields related to the financial and investment sector. The data that would be collected through questionnaire from the respondents in such a way that maximum responses would be obtained. The data that is to be collected has to be initially developed and evaluated in order to obtain its suitability for carrying the research on the investment decision that is to be made in businesses across the globe.
The respondents would be provided with sufficient time to fill the questionnaire. It has to be ensured that the information provided by them would be kept confidential and that their name would not be used in any research or research related content. Special consideration of their confidentiality and security has to be carried out and they have to be assured that it will be taken care of in the best possible way. The respondents can be of any origin and they can be of any age group. But, the basic criteria would be that the participants should be from any company that is related to or is involved in making investments and other such financial functions. The person should also be holding a designation that involves transfer of funds, financial resources and provides exposure regarding the investments that are to eb made in the market.
Thus, it can be observed from the revaluation of the above discussed research articles and using the findings for future potential would help in the overall well-being and good of the social as well as economic paradigm of the country.
Bezrukova, T. L., Morkovkina, S. S., Russia, B. B., Shanin, I. I., & Popkova, E. G. (2013). Methodological approach to the identification of predictive models of socio-economic processes for investment and innovative development of enterprises. World Applied Sciences Journal, 1443-1449.
Jagongo, A. O., & Mutswenje, V. S. (2014). A survey of the factors influencing investment decisions: the case of individual investors at the NSE. International Journal of Humanities and Social Science , 1-11.
Johnson, K., & Lee, H. (2013). Impact Investing: A Framework for Decision Making. Cambridge Associates LLC.
Konana, P. &. (2005). The social–economic–psychological model of technology adoption and usage: an application to online investing. . Decision Support Systems, 39(3), , 505-524.
Milne, M. J., & Chan, C. C. (1999). Narrative corporate social disclosures: how much of a difference do they make to investment decision-making? The British Accounting Review, 31(4), , 439-457.
Obamuyi, T. M. (2013). Factors influencing investment decisions in capital market: A study of individual investors in Nigeria. . Organizations and markets in emerging economies, 141-161.