{"title":"Application and Comparison of NPV and IRR Methods in the Company Investment Decision","authors":"Jinqiao Huang, Jianwen Tong, Peini Wang, Xilin Zheng","doi":"10.2991/aebmr.k.220307.012","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.012","url":null,"abstract":"In order to find out the application conditions of Net Present Value (NPV) and Internal Rate of Return (IRR) in practice, based on previous studies, the paper summarized the advantages and disadvantages of the two methods and explores the specific application conditions in corporate finance. The results showed that the NPV method can reflect the liquidity and overall profitability of investment, provide clear expectations, and be more comprehensive in risk measurement. However, the NPV method could not avoid the problem of cash flow uncertainty. Moreover, the opportunity cost is limited by the project and corporate transparency. It was also found that the IRR method can easily calculate the rate of return on investment and compare it with the industry benchmark return on investment, which has been widely used by practitioners. However, the IRR method may produce multiple values when the cash flow is not a fixed annuity, and the IRR is a ratio that cannot reflect the actual profit. Therefore, several modified NPV and IRR methods were introduced and discussed with their application conditions. In practice, to be noted, there may be inconsistencies between NPV and IRR for investment evaluation. Although both NPV and IRR are effective methods for company investment decisions, it is suggested that, the investment situations should firstly be analyzed before making decision of which methods to be chosen.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"105 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123686408","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Digital Financial Inclusion Innovation for Large and Medium-sized Commercial Banks","authors":"Ruijie Li","doi":"10.2991/aebmr.k.220307.500","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.500","url":null,"abstract":"Large commercial banks are critical financial entities in the development of inclusive finance, and they should play an essential leading role in the development of inclusive digital finance. Large commercial banks often face challenges in developing digital financial inclusion. Therefore, some banks have begun to explore the acceleration of digital transformation, accelerating financial technology, and reforming their business models. This article takes the Agricultural Bank of China as an example to explain its innovative measures and difficulties in inclusive digital finance. It provides a reference for large and medium-sized commercial banks to promote the development of inclusive digital finance.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125283342","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Exploring the Choice Behavior of Catering Consumers According to the EKB Model","authors":"Yao Shen","doi":"10.2991/aebmr.k.220307.398","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.398","url":null,"abstract":"This paper using the pioneering Engel, Collet, and Blackwell model, describes five continuous decision-making processes, problem identification, information search, evaluation of alternatives, purchase decision, and post-purchase behavior, to explore how catering consumers make decisions. Through the questionnaire survey, this paper has completed two objectives. One is to investigate the types of selected restaurants, analyze the relationship between them according to the needs of respondents. Another goal discusses the information sources of consumer preferences and the impact of prices on these sources. The findings show that the most frequently cited demand variables are time with family and friends and convenience. Most of respondents said they would consult information before choosing a restaurant, with popular sources of information including third-party institutions and online media. In addition, as prices rise, so does the number of respondents seek information. When respondents spend time with their family and friends, the most popular choice is casual dining.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"210 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116243659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Developing Strategies of Chinese Cosmetics Industry","authors":"Yifei Duan","doi":"10.2991/aebmr.k.220307.175","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.175","url":null,"abstract":"","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116400659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Forecast on S&P 500 Index Barrier Option with BSM Model","authors":"Shuqing Qi","doi":"10.2991/aebmr.k.220307.442","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.442","url":null,"abstract":"Instead of buying the stocks or shares directly, the call option gives a chance for owners to buy it at a specific predetermined price, which prominently decreases the risk for the customers. Thus, it plays a significant role in the economic market and be widely used in a considerable number of financial activities. This paper mainly focuses on forecasting the price of underlying assets and the payoff at maturity for the up-and-in call barrier option. The overall market is the S&P 500 index stock. In this paper, the BSM model is used to simulate the price of the asset in a certain period. After all, the sensitivity tests are applied to identify how many variations in those basic input parameters will impact the results for this model. The test on strike price shows it has an exponential positive relation with payoff; spot price shows a linear negative relation, and barrier price shows no connection with payoff when it's lower than the spot price. Otherwise, it represents a negative relation. Some discussions are also shown about the deficiencies and future studies based on this model in the end.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116412563","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Research on the Impact of Advertisement on Consumer Behavior","authors":"Bo Fan","doi":"10.2991/aebmr.k.220307.438","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.438","url":null,"abstract":"Marketers use various media platforms to influence consumer behavior and maintain customer loyalty in the market. In this connection, it is imperative to note that various advertisements on the media platforms contain diverse information concerning the products. This engages the consumer to develop an interest in the products offered by organizations. Changes in consumer behavior have been highly associated with digitalization in today’s market. Hence, there is a need to examine how advertisements shape consumer behavior to develop a positive relationship with the consumers in the market. The main focus of this paper is the impact of advertisement on consumer behavior. This study used an online survey as the primary method of data collection. The data used in this research paper was collected from 600 online participants. Various ages and educational levels; gender parity was also considered. Moreover, the research applied statistical tools including Kruskal-Wallis (K-W), Exploratory Factor Analysis (EFA), and Cronbach Alpha to analyze the collected data. Based on the content of the study results, advertisements such as newspaper advertisement is associated with changes in consumer behavior. Moreover, internet and television advertisements were also found to influence consumer behavior by giving consumers the platform to gain a conclusive understanding of the nature of products presented in the marketplace. According to the data collected, marketers have invested in magazine and newspaper advertisements to shift consumer behavior to gain their loyalty to the products offered in the market. This research is crucial to marketing managers since they can get an idea of how they should increase the objectivity of their advertisements and which media is appropriate for their advertisements. all five decision-making processes: problem recognition, information search, evaluation of alternatives, purchase, and post-purchase.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"64 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116465485","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Impact of Covid-19 on the Economy in Different Countries","authors":"Runlin Li, Zimu Ma, Tianle Sui","doi":"10.2991/aebmr.k.220307.208","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.208","url":null,"abstract":"","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122394317","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"An Empirical Study on the Relationship between Foreign Direct Investment and Economic Growth in Eastern China—Based on the PVAR Model","authors":"Xue-de Yu","doi":"10.2991/aebmr.k.220307.285","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.285","url":null,"abstract":"Over the years, the research on foreign direct investment, economic growth, and financial development has attracted a lot of attention in business studies at home and abroad. Foreign direct investment is widely considered to have an important impact on economic development. The introduction of foreign direct investment not only directly or indirectly affects the regional economic development, but also has a comprehensive impact on the regional export trade, employment, international payments and other aspects of the national economy. Taking the eastern region of China as the research object, this paper studies the relationship between foreign direct investment and regional economic growth by establishing PVAR model, in order to contribute to regional economic development.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122538060","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Evaluation of Highland Barley Industry Development Level in Qinghai Province","authors":"P. Zhihong, Ding Shengxi Si","doi":"10.2991/aebmr.k.220307.431","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.431","url":null,"abstract":"Rural revitalization is a necessary link to realize the goal of national rejuvenation and people's happiness in China, and the key to promoting rural economic development. It is worth discussing how to seek the maximum optimization and upgrading of industries in the right opportunity to stimulate the development of rural economy. Taking Qinghai Province as an example, this paper establishes an evaluation index system, analyzes the comprehensive development index of highland barley industry in Qinghai Province based on the development data of highland barley industry in Qinghai Province obtained by literature research and questionnaire survey, using analytic hierarchy process, fuzzy comprehensive evaluation method and other measurement tools, and concludes that there are obvious loopholes in the promotion and marketing of highland barley industry in Qinghai Province, which can provide reference for the development path of highland barley industry in Qinghai Province.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122571341","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Leadership Influences Employees’ Unethical Pro-organizational Behavior: A Case Study of Transformational Leadership","authors":"Cheng-Yu Yang, Zhi-Tao Chen","doi":"10.2991/aebmr.k.220307.041","DOIUrl":"https://doi.org/10.2991/aebmr.k.220307.041","url":null,"abstract":"Through literature collection, it is found that in the fiercely competitive business environment, unethical pro-organizational behavior widely exists in today's organizations, and have a certain potential destructive effect on the organization itself and the entire society. Therefore, how to reduce the unethical pro-organizational behavior has become a focal issue in the field of enterprise and human resource management. Based on social learning theory, this study is expected to enrich the research on the mechanism of transformational leadership on unethical pro-organizational behavior, explore the possible negative effects of transformational leadership, and provide theoretical guidance and theoretical guidance for organizations on how to reduce employees’ unethical pro-organizational behavior. Based on the detailed data obtained from the questionnaires of more than 200 people from various industries in Zhejiang Province, this research concludes that the moral level of employees affected by leadership and the sense of organizational social responsibility affected by leadership will affect employees' unethical pro-organizational behavior. Through the analysis of this research, the following suggestions are summarized: 1. Strengthen moral construction and avoid unethical behavior; 2. Provide job support to reduce the perception of job insecurity; 3. Be alert to the potential risks of malignant management and reduce the occurrence of malignant management.","PeriodicalId":333050,"journal":{"name":"Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122967346","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}