ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

Alternative investments as a financing tool for small and medium enterprises

Thomas Poufinas and Maria Polychronou

Correspondence: Thomas Poufinas,

Department of Economics, Democritus University of Thrace, Greece

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Alternative investments more than ever have come to the spotlight as they have attracted over the last few years the interest of asset owners and asset managers. The former are nothing but individual or institutional investors, such as pension schemes. The latter are the individuals or organizations that direct or allocate the available assets to the appropriate securities. Over the last decade there has been a shift from traditional, listed equity and fixed income to venture capital - private equity, private debt, exchange traded funds, and other investment means, also known as alternative investments. In this paper we investigate the parameters that affect small and medium enterprise financing through exchange traded funds and venture capital. We employ econometric models to find the link between the exchange traded funds and venture capital that invest in small and medium enterprises in a country and the economy of the relevant country. We find that the overall condition of the economy of a country as represented by the macroeconomic figures and certain indices is important for the choice of the country for the domiciliation, size or availability of exchange traded funds and venture capital.


  alternative investments, exchange traded funds, venture capital, small and medium enterprises, financing.


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Agricultural Aid, Agricultural Productivity and its Volatility: A Note

Eskander Alvi, Debasri Mukherjee and James Squires

Correspondence: Debasri Mukherjee,

Western Michigan University, USA

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We examine the effectiveness of multilateral foreign-aid that can potentially enhance agricultural production from various angles. Our analysis reveals that although such aid does not always enhance agricultural productivity, volatility of such aid seems to have strong association with the volatility of production. Also volatility adjusted agricultural aid can enhance volatility adjusted mean agricultural output.


  Foreign Aid, Agricultural output, Agricultural risk-volatility, Panel Data


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Infrastructure Investment and the Indian Economy

Atrayee Ghosh Roy

Correspondence: Atrayee Ghosh Roy,

Minnesota State University, USA

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The purpose of this paper is to investigate the growth effect of physical infrastructure investment in India. Using time-series data for the 1980-2014 period, this paper attempts to empirically test whether India’s inefficient executions of infrastructure investment projects can impede its impressive economic growth potential. A simultaneous equation model is developed to address the problem of a bi-directional relationship between physical infrastructure investment and economic growth. The results find that the contribution of physical infrastructure investment to national economic growth is negative and statistically significant. Furthermore, the results also indicate that physical infrastructure investment in India is not keeping pace with its rapid economic growth.


  Infrastructure investment, economic growth, simultaneity, stationary


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Financial crisis and corporate failure: The going concern assumption Findings from Athens stock exchange

Olympia Gkouma, John Filos and Evangelos Chytis

Correspondence: Evangelos Chytis,

Technological Educational Institute of Epirus, Department of Accounting and Finance, Greece

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Corporate failure may be defined as the situation where a business unit becomes insolvent and progressively moves towards bankruptcy or into liquidation. The recent financial crisis has deteriorated dramatically the financial conditions in which the business units operate and has a significant impact on the companies that experience corporate failure. The going concern assumption constitutes a fundamental accounting principle for the preparation of financial statements and is even more important in times when global economy is facing such a financial crisis. The independent auditor’s report attribute credibility to the financial statements prepared by management. The purpose of this paper is to develop a reliable model that classifies the risk of corporate failure on six levels using financial analysis ratios. The model is developed based on financial data of Athens Stock Exchange (ASE) listed firms for the year 2011.


  IFRS, Going Concern, Insolvent, Auditor’s Report


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Stock Market Visualization

Zura Kakushadze and Willie Yu

Correspondence: Zura Kakushadze ,

Quantigic Solutions LLC, USA

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We provide complete source code for a front-end GUI and its back-end counterpart for a stock market visualization tool. It is built based on the “functional visualization” concept we discuss, whereby functionality is not sacrificed for fancy graphics. The GUI, among other things, displays a color-coded signal (computed by the back-end code) based on how “out-of-whack” each stock is trading compared with its peers (“mean-reversion”), and the most sizable changes in the signal (“momentum”). The GUI also allows to efficiently filter/tier stocks by various parameters (e.g., sector, exchange, signal, liquidity, market cap) and functionally display them. The tool can be run as a web-based or local application.


  stock market, visualization, mean-reversion, momentum, signal, quantitative, sector, industry, sub-industry, liquidity, market capitalization, color-coding, exchange, functionality, source code, visual effects, trading, tickers, stocks, equities, filtering, tiering, industry classification, volatility, price, volume


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Testing the Growth Links of Emerging Economies: Croatia in a Growing World Economy

Thomas Ziesemer

Correspondence: Thomas Ziesemer,

Department of Economics, Maastricht University, Netherlands

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We estimate a dynamic simultaneous equation model for 16 variables of the Croatian economy in order to test the links of growth with education, R&D, trade, savings and FDI. In order to motivate the choice of variables we review the related theories of growth and look at the relevant data. Permanent shocks increasing the intercepts of the equations for education, R&D, trade, savings and FDI show that most of growth links work well in Croatia, but they also enhance foreign imbalances. Policies to balance the two aspects are briefly discussed. All results should be interpreted with caution due to the small data sample we have up until now.


  Growth, open economy, education, R&D, Croatia


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Notes on Fano Ratio and Portfolio Optimization

Zura Kakushadze and Willie Yu

Correspondence: Zura Kakushadze ,

Quantigic Solutions LLC, USA

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We discuss - in what is intended to be a pedagogical fashion - generalized "mean-to-risk" ratios for portfolio optimization. The Sharpe ratio is only one example of such generalized "mean-to-risk" ratios. Another example is what we term the Fano ratio (which, unlike the Sharpe ratio, is independent of the time horizon). Thus, for long-only portfolios optimizing the Fano ratio generally results in a more diversified and less skewed portfolio (compared with optimizing the Sharpe ratio). We give an explicit algorithm for such optimization. We also discuss (Fano-ratio-inspired) long-short strategies that outperform those based on optimizing the Sharpe ratio in our backtests.


  Portfolio, Stocks, Equities, Optimization, Sharpe Ratio, Fano Ratio, Risk, Return, Expected Return, Alpha, Specific Risk, Idiosyncratic Risk, Factor Loadings, Factor Covariance Matrix, Risk Factor, Volatility, Variance, Covariance, Correlation, Bounds, Trading Costs, Constraints, Regression, Weights.


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