scholarly journals Methodological aspects of evaluating a company’s investment attractiveness

2021 ◽  
Vol 29 (1) ◽  
pp. 114-125
Author(s):  
Yulia V. Nemtseva ◽  
Yulia V. Vorozhbickaya
Keyword(s):  
Risk Assessment ◽  
Investment Decision ◽  
Investment Decisions ◽  
Investment Project ◽  
Risk Indicators ◽  
Operational Forecasts ◽  
Close Relationship ◽  
Beta Coefficient ◽  
Investment Object ◽  
Methodological Aspects

The actual problems of choosing tools for risk assessment and predicted profitability (attractiveness) of an investment object are studied. There is a close relationship between the financial multipliers DIV/FCF, P/E Shiller, EV/EBITDA and risk indicators, which gives the investor the opportunity to make additional operational forecasts when analyzing an investment project. A number of key financial multipliers (P/S, EV/S, P/OCF, P/FCF) have been identified, and it is not entirely correct to use them as criteria for making an investment decision. The expediency of using the EV/EBITDA multiplier for making forecasts about the volatility of the return on shares of a certain company is justified, since this is the only indicator among the financial multipliers selected for analysis that has a relationship with the beta coefficient. Recommendations for forming a sample of necessary indicators (multipliers) when making investment decisions by various stakeholders are proposed.

scholarly journals VERBAL ANALYSIS AND ITS APPLICATION FOR THE ASSESSMENT AND MANAGEMENT OF THE INVESTMENT PROJECT RISK IN CONSTRUCTION

2016 ◽  
Author(s):  
Galina Shevchenko ◽  
Leonas Ustinovichius
Keyword(s):  
Risk Assessment ◽  
Decision Making ◽  
Investment Decision ◽  
Investment Decisions ◽  
Investment Project ◽  
Project Risk ◽  
Investment Projects ◽  
Investment Decision Making ◽  
Investment Process ◽  
Verbal Analysis

The paper investigates the investment decision–making, risk assessment and management problems faced by all participants of the investment process in construction. The main object of paper – risk of investment projects in construction. Companies often have to make investment decisions under uncertainty and therefore the study emphasizes the need, for carryng out investigations, developing metodology and intelectual decision making system that would holistically assess the whole available information to the investment project, increase the accuracy of risk assessment, improve project information management, reduce project risk factors for the occurrence of potential and would make informed investment decisions. The created and described verbal analysis method of the real alternatyve classification was integrated into the proposed model and implemented in practice.

scholarly journals EXPLANATION OF THE BENEFIT OF THE INVESTMENT PROJECT ON THE CASH BASIS / IZRAŽAVANJE KORISTI INVESTICIONOG PROJEKTA NA GOTOVINSKOJ OSNOVI

2019 ◽  
Vol 16 (2) ◽  
Author(s):  
Dijana Kremenović
Keyword(s):  
Growth And Development ◽  
Investment Decision ◽  
Investment Decisions ◽  
Investment Project ◽  
Capital Budgeting ◽  
Investment Activity ◽  
Investment Projects ◽  
Investment Process ◽  
Additional Value ◽  
Cash Basis

Decisions about the choice of investment projects can significantly affect the destiny of the company, its competitive position in the market, market participation, the direction of further technological development, and even the survival of the company. The aim of this paper is, in the conditions of the current economic reality, to point out the significance of the choice of methods of expressing the benefit of an investment project. In this sense, we have explained in detail all currently applicable methods for assessing the viability of investment projects on a cash basis, comparing the good and bad sides of all the methods presented. In this connection, we especially pointed out the importance of the time value of money. The decision to apply the capital budgeting process, certainly, is the decision of the company itself. However, the outcome of investment activity is borne by a wider circle of consumers, which should be a sufficient reason to encourage education and the application of current methods in this area. If you want to realistically look at the investment process and evaluate the justification of an investment project, it is necessary to identify and analyse the effects of exploitation of a particular investment. In order to ensure the realization of the company’s basic strategic goals and thus ensure its growth and development, it is necessary to make decisions in which the company will focus its investment activities on this investment projects whose effects will ensure the highest return on investment. This work deals with the complex issues of making adequate investment decisions using a method for assessing the viability of investment projects on a cash basis. Bearing in mind the significance of investment activity, we can conclude that for the purpose of making a good investment decision, it is necessary to realistically look at the entire investment process and assess the justification of the implementation of the investment project. In this sense, we identify, measure and quantify the overall effects of the realization of a particular investment. Capital budgeting for the purpose of making an investment decision today is a generally accepted concept in developed economies. There is no doubt that there are many disagreements regarding the choice of the methods of assessing the viability of investment investments, and then the selection of criteria within a certain method. However, it is quite certain that the rich experience of developed countries undoubtedly points to the need for capital budgeting, investment project management, with particular emphasis on the use of discounted methods for assessing the viability of investment investment and respecting both economic and non-economic effects. Implicit benefits that the application of capital budgeting brings to the overall growth and development of the company, in terms of reducing uncertainty in making investment decisions, easier ranking of investment projects, exact measurement of expected benefits, transparency of investment activity criteria, attracting investors and ultimately creating additional value and greater degree of realization of strategic company goals.With this work, we pointed out the fact that capital budgeting is crucial in the process of making an investment decision and in that way has influenced enterprises to seriously deal with the choice of the method of estimating the profitability of investment projects that will surely result in additional value for the company.

scholarly journals Effective Investment Decision for Fixed Assets Management

2020 ◽  
Vol 23 (1) ◽  
pp. 174-179
Author(s):  
Natalia Potryvaieva ◽  
◽  
Inha Pelypkanych ◽  
Oleksandra Potryvaieva ◽  
◽  
...  
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Investment Decisions ◽  
Investment Project ◽  
Management Decision ◽  
Managerial Decision ◽  
Use Of Resources ◽  
Fixed Assets ◽  
Fixed Assets Management ◽  
Assets Management

Introduction. Constant changes in economic and political situation create more stringent conditions for the survival of modern businesses while requiring effective management of the enterprise’s life cycle and also investing in a simple and expanded reproduction of fixed assets. An enterprise like any socio-economic organism needs constant development, growth and renewal, only these conditions ensure its competitiveness. Theoretical and methodological aspects of selection and evaluation of the investment decisions’ efficiency are constantly the focus of scientific world attention. However, it should be noted, the issues of choosing the most rational ways and stages of making an effective investment decision to manage the reproduction of fixed assets of the enterprise are not thoroughly studied, thus, they need further efforts to develop new proposals to improve their quality and prevent possible risks. Purpose. The purpose of the article is to study the factors and stages of making the appropriate investment decision to reproduce fixed assets with efficient use of resources. Results. The aspects of effective investment decision making for reproduction of fixed assets management are researched. It is proved that the attraction of sources of financing investment decisions is influenced by objective and subjective factors. The stages of making an investment decision in order to select the optimal sources of financing of the investment project are substantiated. It is found that the decision on the reproduction of the enterprise’s fixed assets should be comprehensive and aimed at both tangible and intangible components. Conclusions. Use of managerial approach in the process of reproduction of fixed assets investment lets making effective investment decision, which is implemented through some stages with appropriate methodological support. Taking into account the objective and subjective factors influencing the efficiency of the investment decision will help to avoid difficulties in managing the reproduction of fixed assets in the long run. The choice of financing source for an investment project is the most important management decision. The decision to reproduce the fixed assets of the enterprise should be comprehensive and aimed at both tangible and intangible components. The managerial decision may be considered as effective if it is directed to achieve the resource efficiency, obtained as a result of development and implementation of the investment decisions, where financial and material investments, qualified personnel, etc. can act as resources. This requires making and implementation of such decisions by qualified managers provided that the sequence of the stages would be followed, including collection of information, decision-making and ensuring effective implementation of the investment decision. Keywords: fixed assets; investment; reproduction; efficiency; management.

scholarly journals Investment Valuation of Modern Business Models

2021 ◽  
Vol 8 (2) ◽  
pp. 12-23
Author(s):  
I. M. Stepnov ◽  
J. A. Kovalchuk
Keyword(s):  
Business Model ◽  
Business Models ◽  
Investment Decision ◽  
Investment Decisions ◽  
Environment Change ◽  
Investment Decision Making ◽  
Modern Business ◽  
Investment Valuation ◽  
Investment Object ◽  
Business Metrics

The paper's purpose is to identify the changes in investment decision-making processes in the hybrid (traditional and digital) economy. It is hypothesized that business models and the digital environment change the classical prerequisites for making investment decisions, and this needs to be reflected in the investment valuation. Methods of system and critical analysis, value-oriented approach are used. The predominance of competition between business models (including within ecosystems), rather than organizations, and the reduction of the investor's need for the organizational and legal design of the investment object with a variety of digital solutions are established. It is argued that the investment potential of a modern business model is influenced by the organizational architecture, the infrastructure, the value formed by the consumer, communication and interaction with the immutability of the supply. The authors developed the business model's architecture with the allocation of nine basic elements and options for investment decisions in order to reflect the increasing design complexity and individualism of the business model. New cost factors for investment evaluation of business models are identified, including digital rent, pricing approaches, digital paradox, ecosystem protection from the market, etc. The qualitative features of an effective business model are established while maintaining a quantitative assessment based on the generated cash flow. The deduction is that as the complexity of business models increases and it is possible to integrate digital business metrics and traditional financial indicators. However, at present it is advisable to maintain the existing methodology of investment assessment, supplemented with new qualitative adjustments.

Pengaruh keputusan investasi, keputusan pendanaan, dan kebijakan dividen terhadap nilai perusahaan yang terdaftar di Bursa Efek Indonesia

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Dina Patrisia ◽  
Muthia Roza Linda ◽  
Ursa Yulianti
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Secondary Data ◽  
Sampling Technique ◽  
Total Sample ◽  
Manufacturing Companies ◽  
Positive Direction ◽  
Company Value

This study aims to analyze the effect of investment decisions, funding decisions, and dividend policy on the value of the company. This research is classified as causative research. The populations in this study are all Manufacturing companies listed on the Stock Exchange in 2012-2016. The sampling technique in this study is using purposive sampling technique with a total sample of 213 samples. The data used is secondary data. The data analysis method used is multiple regression. The results showed that investment decision variables affect the value of the company in a positive direction, funding decisions affect the value of the company in a negative direction, and dividend policy affects the value of the company with a positive direction on Manufacturing companies listed on the IDX. With this research, it is expected that researchers who can further conduct research related to factors that influence the value of the company whose impact is higher than what researchers have met. By using different proxy and data processing methods to produce more accurate data processingKeywords: Investment decisions; funding decisions; dividend policy; company value

PENGARUH GOOD CORPORATE GOVERNANCE (GCG) MAKRO EKONOMI SIZE TERHADAP INVESTMENT DECISION DAN VALUE OF THE FIRM DENGAN PROFITABILITAS SEBAGAI VARIBEL INTERVENING SERTA FINANCING DECISION SEBAGAI VARIABLE MODERATING (Studi Pada Perusahaan Jasan Konstruksi BUMN Yang Listed Di PT Bursa Efek Indonesia)

2019 ◽  
Vol 4 (2) ◽  
Author(s):  
Sugiarto Sugiarto
Keyword(s):  
Corporate Governance ◽  
Investment Decision ◽  
Investment Decisions ◽  
Partial Least Square ◽  
Least Square ◽  
Moderator Variable ◽  
Corporate Values ◽  
Good Corporate Governance ◽  
Financial Decision ◽  
Significant Size

The purpose of this study is to analyze variables that related to investment decisions and corporate values of companies which listed at Bursa Efek Indonesia. Samples of this research are; (1) PT. Adhi Karya (Persero) Tbk, (2) PT. Pembangunan Perumahan (Persero) Tbk, (3) PT. Waskita Karya (Persero) Tbk, (4) PT. Wijaya Karya (Persero) Tbk, selected by purposive sampling. Analysis of this research using Partial Least Square (PLS). The results show that the effect Good Corporate Governance (GCG) on profitability, investment decision and value of the firm is significant, Macro Economy to profitability is not significant, Macro Economy to investment decision and value of the firm is significant, Size to profitability and value of the firm is significant, Size to investment decision is not significant. Profitability to investment decision and value of the firm is significant. Investment decision to value of the firm is significant. Financial decision as a moderator variable on profitability linkage to investment decision is not significant. Financial decision as a moderator variable on profitability linkage to the value of the firm is significant. Financial decision on investment decision and value of the firm is significant.

scholarly journals Impact of Heuristics on Investment Decisions: The Moderating Role of Locus of Control

2020 ◽  
Vol 5 (1) ◽  
pp. 1-14
Author(s):  
Jeetendra Dangol ◽  
Rashmita Manandhar
Keyword(s):  
Decision Making ◽  
Locus Of Control ◽  
Investment Decision ◽  
Investment Decisions ◽  
Sampling Procedure ◽  
Moderating Effect ◽  
Moderation Effect ◽  
Investment Decision Making ◽  
Overconfidence Bias ◽  
The Impact

This paper aims to assess the impact of heuristics on the investment decision by analysing the effect of four heuristic biases, i.e., representativeness, availability, anchoring and adjustment, and overconfidence bias on rationality of Nepalese investor's investment decision-making and also examines the moderating effect of the internal locus of control in between. The study used 391 respondents based on a convenient sampling procedure, and structured questionnaire survey. The study result indicates that there is a significant relationship between irrationality in investment decision-making and all four heuristic biases. In addition, the study also concludes that locus of control has significant moderating effect in the relationship between investment decisions and three heuristic biases, i.e., availability, representative and anchoring bias. However, the study documents no moderation effect in case of relationship with overconfidence bias.

scholarly journals Risk assessment of ice dams for water diversion projects based on fuzzy fault trees

2021 ◽  
Vol 11 (2) ◽  
Author(s):  
Mengkai Liu ◽  
Xiaoxia Dong ◽  
Hui Guo
Keyword(s):  
Risk Assessment ◽  
Fault Tree ◽  
Fault Tree Analysis ◽  
Northern China ◽  
Indicator System ◽  
Water Diversion ◽  
Risk Indicators ◽  
Scoring Method ◽  
Study Results ◽  
Dam Risk

AbstractIce dams are among the important risks affecting the operational safety and water conveyance efficiency of water diversion projects in northern China. However, no evaluation indicator system for ice dam risk assessment of water diversion projects has been proposed. Therefore, in this paper, based on the formation mechanism of ice dams, the risk assessment indicator system and the possibility calculation model of ice dams were both proposed for water diversion projects based on the fuzzy fault tree analysis method. The ice dam risk fault tree constructed in this study mainly includes three aspects: ice production, ice transport, and ice submergence conditions. Eighteen basic risk indicators were identified, and 72 minimum cut sets were obtained by using the mountain climb method. Eight risk indicators were determined as the key risk indicators for ice dams, including meteorological conditions, narrowed cross section, sluice incident, erroneous scheduling judgment, ice cover influence, flat bed slope, control structures, and ice flow resistance of piers. Then, the canal from the Fenzhuanghe sluice to the Beijumahe sluice of the Middle Route of the South-to-North Water Diversion Project was taken as the research object. Combined with the expert scoring method, the ice dam risk probability of the canal was determined to be 0.2029 × 10−2, which was defined as a level III risk, which is an occasionally occurring risk. The study results can support ice dam risk prevention and canal system operation in winter for water diversion projects.

Framework for Colorectal Cancer Health Needs Assessment in North and Central Asian Countries

2021 ◽  
Vol 6 (09) ◽  
pp. 569-575
Author(s):  
Rebecca Pratiti
Keyword(s):  
Colorectal Cancer ◽  
Risk Assessment ◽  
Disease Risk ◽  
Population Attributable Risk ◽  
National Income ◽  
Risk Indicators ◽  
Asian Countries ◽  
Central Asian ◽  
Central Asian Countries ◽  
Per Capita

Colorectal cancer (CRC) is the third leading cause for cancer worldwide. Prevalence of CRC is increasing in North and Central Asian Countries (NCAC). European guidelines encourage member countries to allocate resources for primary prevention of CRC through screening. Though, cost-effective screening is becoming a priority. A framework for health priority determination to prioritize CRC screening was developed. Public health websites were accessed to abstract epidemiologic data. The framework included prioritization by absolute risk (incidence, prevalence), relative risk (CRC ranking for national cancer deaths) and population attributable risk for the disease. Risk indicators were identified for the NCAC. Further detailed risk assessment scoring was completed to assess the CRC disease burden. Statistical analysis was performed for correlation. Variables included in risk assessment were population, life expectancy, gross national income per capita, percent GDP spent on health expenditure, total expenditure on health per capita, age standardized mortality to incidence ratio, cancer ranking by incidence and smoking prevalence. Risk assessment showed Kyrgyzstan, Georgia, Belarus and Armenia have more than expected CRC burden. Tajikistan, Turkmenistan and Latvia have lower than expected CRC burden. Conclusion: Identifying high CRC burden countries to prioritize screening is important. Uniform and comparable CRC risk indicators for the region is needed. Health need assessment and priority setting is important for better distribution of resources. Countries with lower risk score may implement preventive policy to reduce CRC risk factors and countries with higher risk could adapt mitigating policy for early diagnosis of CRC.

Insider Trading Laws and Corporate Governance Impact on Investment Decision

2021 ◽  
Vol 3 (2) ◽  
pp. 126-137
Author(s):  
Sadaf Khan ◽  
Ubaid Ur Rehman
Keyword(s):  
Corporate Governance ◽  
Insider Trading ◽  
Positive Impact ◽  
Investment Decision ◽  
Investment Decisions ◽  
Future Research ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Government ◽  
The Impact

This research aims to analyze the impact of insider trading laws and corporate governance on investment decisions. For this purpose, the data of 400 potential and actual investors employed who provided their feedback on a structured questionnaire. When the data is collected, it was cleaned. The normality of data and reliability of items were also checked and within limits. Simple Regression was applied to test hypotheses. It was concluded that the perception of insider trading laws and corporate governance have a positive impact on investment decisions. The study has wide implications and the government and corporation both can be beneficial from its insight and findings, and exercise good corporate governance practices and follow stringent insider trading laws. The study also paves the way for future research.

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