The University of Danang – Shu-te UniversityClass: SD MBA1

THESIS PROPOSAL

Student: Tran Thu HuongAdvisor: Shyh-Hwang Lee

Co-Advisor: Nguyen Thanh Liem

Master Program in Business Administration

Graduate School of Business AdministrationShu-te University, Taiwan

August, 2012

Title: A study on investor’s behavioral factors affecting on investment satisfaction in Danang industrial zones.

Key words:- Investment satisfaction- Investor’s behavioral factors- Investment risk- Industrial zone

Table of contents

1. Introduction:1.1 Research background1.2 Research motive1.3 Research purpose

2. Liturature review:2.1 Theoretical background on industrial investor’s behavioral2.2 Theory of investment satisfaction

3. Research method:3.1 Research model3.2 Research hypotheses3.3 Measurement of variable3.4 Data collection

4. Concluding remark5. References

1. Introduction1.1 Research background

1.1.1 Vietnam Industrial zones overview- Industrial zone is the area for industrial

development.- Industrial zone often be permitted by

government- With specific technical infrastructure and

legal.- 1957 year, Viet Nam government select Viet

Tri city for building first industrial zone.

Until the end of 2010:- 255 industrial zones to be established.- Total area nature land of 69,253 hectares.- Land for lease about 45,000 ha.- More than 3,900 foreign investment projects

with registered capital about USD 54 billion.- 4,664 domestic investment project with

registered capital about VND 310,000 billion.(Source: Planning and Investment Ministry, in Viet

Nam)

1. Introduction1.1Research background

1. Introduction1.1 Research background

1.1.2 Danang Industrial zones:

At present, there are 6 industrial zones:

- An Don Industrial zone

- Hoa Khanh industrial zone

- Lien Chieu industrial zone

- Hoa Cam industrial zone

- Wide – Open Hoa Khanh industrial zone

- Danang Aquatic Sevice industrial zones

1. Introduction1.1 Research background

At the end of 2010 year:

- 62 foreign investment project with registered capital of USD 551.75 million.

- 251 domestic investment project with registered capital of VND 9,820.04 billion.

(Source: Danang Industrial and Export Processing zones Authority)

1. Introduction1.2 Research motive

-There are infrastructure development company that exploite Danang Industial zones.

- Target of infrastructure development companies are create income offset cost. This company have some investment risk.

- In recent time, the attraction of investment in Danang Industrial zones is not effective.

- I'm working at Danang Industrial zones Infrastructure development and exploitation company.

1. Introduction1.3 Research purpose

- Understand investor’s behavioral factors.

- Find out investor’s behavioral factors affect on investment satisfaction.

- Study investment risk affect on investment satisfaction of enterprise in Danang Industrial zones.

- Show suitable marketing strategy of investment attraction in industrial zones.

2. Literature review2.1 Theory of investor’s behavioral

factors- It is the subjective action supply economic benefit.

- Its as building and developed for rent assets with the aim of recovery and security in earning benefit.- The investor's behavioral factors are considered:

+ Investment profitability.

+ Regulation and restrictions.

+ Investment risk.

+ Investment location.

2. Literature review2.1 Theory of investor’s behavioral

factors Investment profitability:

Profitability should provide better future benefit. It is the leading factor in investment satisfaction. (Park, 2001)

Regulation and restrictions:

The investor will focus on benefit that come from future through the understand of various regulation and restrictions. It including trend of investment, tax system, legal restriction. (Yoon, 1996)

The regulation and restriction have influence to investment risk. The investors know clearly it, they can be receive lower risk and higher earning rate. (Derek B., 2007)

2. Literature review2.1 Theory of investor’s behavioral

factors Investment risk:

It is defined that ease making benefit from investment and reasonable recovery of the principal.

Investment is not always guaranted, some time its have risk and investment can be loss some capital. (Bansal R., 1993). So when investment risk is higher, the earning rate is not be sure and especially the amount of investment capital can be loss, and it influencing investment satisfaction.

Investment risk were influenced by regulation and restriction. The investors must know clear flexsible regulation which has been set up by discussion between business and government. So business strategic deal with risk. (Derek B., 2007)

2. Literature review2.1 Theory of investor’s behavioral

factors Investment location:

Investment location prompt investors to impro future value of capital, benefit in future. They are relation to investment satisfaction. (Ring, 1985)

It is including population, lobor, infrastructure, local policy, income.

2. Literature review2. 2 Theory of investment satisfaction

- The investment satisfaction have identified:

+The benefit that investor retention making to group or organization.

+ The investor stays longer with organization- The investment satisfaction was consider as key in determining why investor leave or stay with organization.- The level of satisfaction is rather different, it depend on better price, policies and especialy behavior of investor.

3. Research method3.1 Research model

Investment Profitability

Investment risk

Investment location

Regulation and

restriction

Investment satisfaction

H1

H3H2

H4

3. Research method3.2 Research hypothese

H1. Investment profitability have positive affect in investment satisfaction.

H2. Regulation and restriction have negative affect on investment risk.

H3. Investment risk have negative affect on investment satisfaction.

H4. Investment location have positive affect on investment satisfaction.

The investor’s behavioral factor is construct, it is including 4 concept:

- Investment profitability

- Investment security

- Statute and regulation

- Investment location

3. Research method3.3 Measurement of variable

Independent variable:

- Investment profitability

- Statute and regulation

- Investment location

Mediating variable:

- Investment risk

Dependent variable:

- Investment satisfaction

3. Research method3.3 Measurement of variable

3. Research method3.3 Measurement of variable

Variables MeasuresInvestment profitability Guarantee income in inflation

Increase of capitalEarning rate levelPossibility of lease

Investment risk Ownership reputationMaintaining capital intactPossibility of implication capitalPossibility of development capital

Regulation and restriction

Various restrictionDevelopment policyInvestment-related approval

Investment location Education levelPopulation and transportationLocation of public facilitiesLocation income

Investment satisfaction Land to investInvestment decidedExperience of investment

3. Research method3.4 Data collection

Subject in this study are enterprises in Danang industrial zones, because:

They have experiences in investment They are expected that cucessful in receiving future income They can do exaxtly questionnaire and resul of this study is guarantied objectivity of relationship.

- Sample size: 150 enterprise and data collected will be 120 sample, because the larger sample, the desired precision of estimate greater.- Use five – point likert scale in questionnaire. Using Likert scale because it allows researcher to quantify opinion based iterms. This study base on categories scale.

3. Research method3.4 Data collection

3. Research method3.5 Description data

Using SPSS 13.0 for Windows to statistical analysis. According to that, building a SPSS dataset, it including sample in row, variable in colunm. Affter that description data

- Descripe sample structure

- Descripe variable: metric, non-metric

3. Research method3.6 Method of statisties analyze

- Obtain descriptive statisties and correlation analysis function of SPSS to analyse factors.- Using Linear regression of SPSS to analysis hypotheses of research model.

4. Concluding remark

- Provide knowlegds in investor’s behavioral affecting on investment satisfaction in Danang industrial zone.

- Making suitable strategic marketing of investment in industrial zones for investors.

- Improving investment attractive into Danang industrial zones.

2012

Activities and Milestones

Aug • Study Tour to STU/Thesis Proposal Meeting

• Chapter 1 completed (Introduction)

Sep • Chapter 2 completed (Literature Review)

Oct • Chapter 3 completed (Research Design)

• Finalize the questionnaire, start to collect data

Nov • Chapter 4 completed (Research Results)

Dec • Chapter 5 completed (Conclusion)

2013

Activities and Milestones

Jan • Full thesis completed and submitted

• Application for thesis oral defense

Feb • Oral defense/examination

Mar • Thesis revision• Thesis finalization• Advisors’ review and

approval/disapproval of the

• finalized thesis

Apr • Graduation procedure

Current Progress and Following Schedule

4. Concluding remark

a. Ahn JK. Theory of real estate appraisal. Seoul: Hyungsul Publishing Co.; 1998. P. 10-58

b. Gabrino E., Jonhson MS. The different roles of satisfaction, trust, commitment in customer relationship. J Market 1999; 63(2): p.70-87

c. Shim G., Lee S. and Kim Y. (2008). Joural of Business Research: How investors behavioral factors influence investment satisfaction, trust in investment company, and reinvestment intention. Elsevier, 61(2008), p. 47-55

4. References

d. Hoang N., (2010). Investing in economic zones, Industrial park in Viet Nam: Twenty years of history. Hanoi publishing house, p. 14-19

e. Reichheld, F.F (1996). Learning from customer defections. Harvard Business review, march, p.56-69.

f. Chang YH. (1987) Study on the land value fluctuation system of seoul. Geography. J Korean Geogr Soc, 36, p. 45-65

g. Ross SA., Westefield RW., and Jordan BD., (1995). Fundamentals of corporate finance. 3rd ed. Homewood, IL: Richard D. Irwin, Inc., p. 36-42

4. References

h. Bansal R., Hsieh DA, Viswanathan S. A new approach to international arbitrage pricing. J Finance 1993; p.48:182-90

i. Park SD. Securitization of real estate as an investment point, vol.11. Japprais, Korea apprais Board; 2001. P.56-57

k. Yoon JS. Study of the determinants of land value in the development restriction area. Doctoral dissertation. Graduate school, Daegu University; 1996. P. 15-37

l. Ring AA.Real estate principles and practices. 10th ed. Upper Saddle river, NJ:prentice-hall; 1985.

4. References

Thank you for your attention