Impact of <scp>COVID</scp>‐19 on portfolio allocation decisions of individual investors

Himanshu, -; Ritika,; Mushir, Nikhat; Suryavanshi, Ratan

doi:10.1002/pa.2649

Cited by 25 publications

(19 citation statements)

References 37 publications

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“…A successful investor takes up all possible actions to get a decent return. Investors make financial decisions based on the risk and return of various assets, however, other factors influencing investment benefits are investment goals, time perspective, safety of the main entity, future security, market environment, and heuristics [75]. Market environment is an important portfolio distribution factor; thus, a question arises regarding how the pandemic has influenced the decisions regarding portfolio distribution.…”

Section: Real Estate Operationmentioning

confidence: 99%

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Sustainable Construction Investment, Real Estate Development, and COVID-19: A Review of Literature in the Field

et al. 2021

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Aspects of sustainable construction investment and real estate development (CIRED) and their interrelations during the period pre-, intra-, and post-COVID-19, are presented in the research. Applications of the topic model, environmental psychology theory, building life cycle method, and certain elements of bibliometrics, webometrics, article level metrics, altmetrics, and scientometrics make it possible to perform a quantitative analysis on CIRED. The CIRED topic model was developed in seven steps. This paper aims to present a literature review on CIRED throughout the pandemic and to look at the responses from the real estate and construction sector. This sector is a field that appears to be rapidly expanding, judging from the volume of current research papers. This review focuses on last year’s leading peer-reviewed journals. A combination of various keywords was applied for the review and the criteria for paper selections included construction investment, real estate development, civil engineering, COVID-19, and sustainability, as well as residential, industrial, commercial, land, and special purpose real estate, along with their risks, strategies, and trends. The articles reviewed for this paper, which analyzes three hypotheses, look at pre-, intra-, and post-pandemic CIRED. The three hypotheses were validated by analyzing scientific publications from around the world. Two innovative elements make this study stand out among the most advanced research on pre-, intra-, and post-pandemic CIRED. The first of the two innovations is the integrated analysis of the COVID-19 pandemic, COVID-19-related national policies, and business investment strategies relevant to CIRED and the interests of investors as well as on the impact a CIRED policy and investors make on the spread of COVID-19. In addition, this research demonstrates a marked increase in the effectiveness of a CIRED analysis, when the life cycle of a CIRED, the involved stakeholders with their own individual interests, the COVID-19 situation, and the external micro-, meso-, and macro-environments are covered comprehensively as a single entity.

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Section: Real Estate Operationmentioning

confidence: 99%

“…Risk-free assets are gaining more value. Insurance is the most desirable investment possibility, followed by gold, bank deposits, and public provident funds (PPF) [75].…”

Section: Real Estate Operationmentioning

confidence: 99%

Sustainable Construction Investment, Real Estate Development, and COVID-19: A Review of Literature in the Field

et al. 2021

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“…Change in investment strategies is being witnessed worldwide. Investors have started selling risky assets and shifting on to safe-haven investments like gold and silver (Ji et al, 2020 ; Himanshu et al, 2021 ). While gold has maintained its reputation as a safe-haven investment, cryptocurrency such as bitcoin has failed to prove its worth during financial crisis (Conlon and McGee, 2020 ; Corbet et al, 2020 ).…”

Section: Analysis Of Resultsmentioning

confidence: 99%

Modeling of factors affecting investment behavior during the pandemic: a grey-DEMATEL approach

2022

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The study intends to examine the cause-and-effect relationship between Covid-19 and the factors affecting investment behavior in a South Asian economy. The investment behavior is considered as an MCDM problem. To address this problem, the study employs MCDM approach i.e., a blend of both DEMATEL and Grey theory due to its potential to deal with subjective judgments of investors. The results indicate that Covid-19 is the leading cause behind financial stress, psychophysiological health outcomes, investors' perception about the market, and investors' strategy. Among sub-factors, portfolio allocation is the most influenced sub-factor. Alteration in portfolio is a major challenge for emerging countries which have become attractive destinations for global investors. Overall, the significant contribution of the paper is to establish the interlinkages among the factors affecting investment behavior, given the uncertainty triggered by the pandemic. Although the literature provides evidence on this problem during normal situations, analysis of investment behavior during severe crisis is still lacking. The research will be immensely useful to different stakeholders such as government, policymakers, financial advisors, and investors in making their strategic or operational decisions.

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“…This factor eventually discourages firms to make an active investment in fixed assets. Moreover, the empirical study performed by Himanshu, et al [27] illustrated adverse effect of covid-19 on decisions related to investment portfolio, which is much likely as industrial capital investment decisions. They have indicated the investor's behaviour regarding investment decisions and vowed that investor follow the pessimistic investment options during the spread of pandemic due to less return on investment.…”

Section: -3-regression Analysismentioning

confidence: 99%

Assessing the Impact of COVID-19 on Corporate Investment Behavior

et al. 2021

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The current wave of COVID-19 outbreak has created new strategical challenges for policy officials of the industrial sector across the world. The effect of COVID-19 is more in developing economies where industrial sector is already struggling for its stability. This study introduces the impact of COVID-19 on the corporate investment behavior of non-financial publicly listed firms of Pakistan. To achieve the objective, we employ the panel data ranging from 2010 to 2020 and apply the difference-in-differences (DID) model to quantifies the empirical relationship. The outcomes of DID model suggest that the pandemic period and treatment have a significant and negative impact on corporate capital investment behavior. During pandemic spread period, the enterprises have limited their investment into fixed assets due to less productive use of such assets. Similarly, industries that exist in high-impact areas face a negative investment growth rate due to quarantine policy, fewer social movements, and high installing cost of new machinery. However, this negative effect diminishes across those firms that have a quick cash inflow rate and more availability of bank loans. These two factors serve as a financial setback against the adversities of pandemic. By drawing upon the empirical reasoning on the effect of COVID-19, this study also presents possible solutions to alienate unfavorable impacts of this pandemic. Current analysis can be considered as an early attempt towards investigating the consequences of COVID-19 on investment decisions of industrial sector.JEL Classification: G32: G31: G40: C33 Doi: 10.28991/esj-2021-SPER-11 Full Text: PDF

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Impact of COVID‐19 on portfolio allocation decisions of individual investors

Cited by 25 publications

References 37 publications

Sustainable Construction Investment, Real Estate Development, and COVID-19: A Review of Literature in the Field

Sustainable Construction Investment, Real Estate Development, and COVID-19: A Review of Literature in the Field

Modeling of factors affecting investment behavior during the pandemic: a grey-DEMATEL approach

Assessing the Impact of COVID-19 on Corporate Investment Behavior

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