Investment strategy is often static, punctuated by infrequent reviews. For most long-term investors, this practice results in large risks being taken that could otherwise be managed with a more dynamic investment policy. The bulk of this paper is aimed at analysing and describing two multi-period investment strategy problems – in order to derive potential dynamic strategies. Along the way, we s...

Assuming the loss aversion framework of Tversky and Kahneman (1992), stochastic investment and labour income processes, and a path-dependent fund target, we show that the optimal investment strategy for defined contribution pension plan members is a target-driven ‘threshold’ strategy, whereby the equity allocation is increased if the accumulating fund is below target and is decreased if it is a...

PE investment is comparatively mature in developed countries. Along with the growing of PE investment in China in recent years, hi-tech enterprises of high growth potential are favored by PE investor. However, hi-tech enterprises in China are short of sufficient skills of strategy for bringing in foreign capital and objective qualifications in introducing PE investment. Therefore, this article ...

We examine the problem of a risk-neutral investor who has to choose among two alternative projects of different scales under output price uncertainty. We show that as soon as investment in the smaller scale project is sometimes optimal, the optimal investment strategy is not a trigger strategy and the optimal investment region is dichotomous. Whenever the investor has the opportunity to switch ...

The study on the links between strategy, structure and performance has been for long time a fundamental and highly important research topic for the management researchers and practitioners. In this direction this paper presents a ‘holistic’ empirical investigation of the whole network of relations between business strategy (at a first level), information and communication technologies (ICT) inv...

The long-lasting controversy on the usefulness of cost-averaging as an investment strategy is revived by the increasingly more aggressive marketing for long term saving plans with new intensity. Albrecht et al. (2002) illustrated using a shortfall risk based approach that cost-averaging may be an efficient strategy compared to simple buy-and-hold-strategies. The contribution of this paper is a ...

The payoff distribution pricing model (PDPM) of Dybvig [13] is a powerful tool for measuring the inefficiency of any investment strategy in a multiperiod setting. In this study, we extend the PDPM in three major ways. Firstly, we develop an operational formula for computing the inefficiency amount of a strategy. Secondly, we use six different investment horizons spanning from one month to five ...