scholarly journals The financing of envisaged capital investments in South Africa

2014 ◽  
Vol 11 (2) ◽  
pp. 583-590
Author(s):  
E. Conradie ◽  
Frederik J. Mostert ◽  
Jan Hendrik Mostert
Keyword(s):  
South Africa ◽  
Capital Structure ◽  
Capital Investment ◽  
Secondary Data ◽  
Capital Investments ◽  
Literature Study ◽  
Investment Projects ◽  
Starting Point ◽  
Specific Factors ◽  
Investment Process

The envisaging of capital investments is of prime importance for the economic growth and business development of a country, as it represents the starting point of the entire capital investment process. This paper focuses on the financing of envisaged capital investments and addresses amongst others the various sources of financing and the finance cost thereof, the related capital structure theories, as well as the determinants of the capital structure of an enterprise, which comprise of the economic and firm-specific factors. The objective of this research paper embodies the improvement of the financing decision-making when enterprises are envisaging capital investments. A literature study provided the secondary data and formed the basis of this research. To achieve the research objective, an opinion survey was done to obtain the perceptions of the business leaders in South Africa regarding the importance of the economic and firm-specific factors for the financing of envisaged capital investments, the associated problem areas as perceived by the firms, as well as the frequency of envisaging various types of capital investment projects by the respondents

scholarly journals Russian capital investment dynamics as an economic transformation factor

2019 ◽  
Vol 89 (10) ◽  
pp. 981-992
Author(s):  
Aleksey V. Alekseev ◽  
Natalia N. Kuznetsova
Keyword(s):  
Global Economy ◽  
Capital Investment ◽  
Large Scale ◽  
Economic Transformation ◽  
Capital Investments ◽  
Economic Activities ◽  
Investment Projects ◽  
Use Of Resources ◽  
Investment Process

By comparing Russian and American capital investment programs according to gross and per capita indexes, this article analyzes capital investments long-term dynamics in economic activities in general and manufacturing in particular. Results showed that Russian economic growths quality, determined by its 2000 capital investment structure did not correspond with the national economys long-term development aims. Moreover, investment activitys current fading appears consequent to that periods inappropriate investment politics. The existing Russian investment system aims to incorporate its economy into the global economy as a supplier of natural and, partly, agricultural resources, thus dooming manufacturing to stagnation at best. The authors reveal that activation of industrial politics, established on a fundamental power-of-the-state approach in the investment process, based on long-term strategic interests and the potential of market forces (namely, efficiency use of resources) allows launching large-scale investment projects to provide favorable conditions for creating an innovative national economy.

scholarly journals Capital structure, capital investment and profitability among Malaysian listed firms

2018 ◽  
Vol 7 (4.9) ◽  
pp. 14
Author(s):  
Yamunah Vaicondam ◽  
Ramakrishnan Ramakrishnan
Keyword(s):  
Capital Structure ◽  
Capital Investment ◽  
Moderating Effect ◽  
The Other ◽  
Capital Investments ◽  
Significant Positive Effect ◽  
Listed Firms ◽  
Empire Building ◽  
The Relationship ◽  
Positive Effect

Capital investments are referred as a critical managerial decision on firm's fixed asset for generating profitability. However, the empirical finding shows that not every capital investment has a significant positive effect on profitability. Literature indicates mixed results of examining the capital investment relationship with firm's profitability, which vary in respects to the debt structure. On the other hand, strong government reinforcement has pushed Malaysia up as one of the top ten countries with robust private capital investment in the year 2004. Since the capital investments are typically irreversible and hypothesized as profit generator, the first aim of this study is to examine the effect of the capital investment on the firm's profitability across firms and sectors. The second aim is to examine the moderating effect of capital structure on the relationship between capital investment and profitability across firms and sectors. This study utilized pooled ordinary least squares and fixed effect analysis across 708 non-financial Malaysian listed firms. The unbalanced datasets for the period 2001 to 2015 were employed to check the robustness of these results. This study suggested that capital investment has a strong significant positive effect on profitability measurements across Malaysian listed firms in non-financial sectors. On the other hand, the significant negative moderating effect of capital structure on the relationship between capital investment and return on capital across Malaysian listed firms reflected the perspective of empire building theory. In addition, the independent sample test engaged across sectors affirmed that moderating effect of capital structure are different across sectors. Thus, this study concluded the existence of moderating effect of capital structure on the relationship between capital investment and profitability. This study addressed the knowledge gap on the moderating effect of capital structure based on empire building theory.  

scholarly journals Methodology for Determining the Factors that Affect the Current State of Implementation of Investment Strategies in Public Administration

2019 ◽  
Vol 8 (6) ◽  
pp. 4484-4487
Keyword(s):  
Public Administration ◽  
Investment Project ◽  
Business Plan ◽  
State Regulation ◽  
Investment Strategies ◽  
Capital Investments ◽  
Business Plans ◽  
Investment Projects ◽  
Project Monitoring ◽  
Investment Process

The main feature of the modern state investment policy is the creation of conditions for extending extra-budgetary sources of financing of capital investments and attraction of investments of own and foreign investors in the economy of the country based on the further improvement of the regulatory framework and state support of productive investment projects. State regulation of the investment process is carried out to implement economic, scientific and social policies. The constructed classification can be used by the heads of public administration institutes in developing business plans for investment projects, creating a model for managing an investment project, monitoring the implementation of a business plan for an investment project, developing regulatory management decisions aimed at adjusting the business plan and actions of executors of the investment project.

scholarly journals Risk analysis and evaluation of capital investment projects

2001 ◽  
Vol 4 (2) ◽  
pp. 398-411 ◽  
Author(s):  
J. H. Hall
Keyword(s):  
Risk Analysis ◽  
South African ◽  
Capital Investment ◽  
Cash Flows ◽  
Capital Investments ◽  
Investment Projects ◽  
Analysis And Evaluation ◽  
Subjective Estimates ◽  
The Empirical Analysis ◽  
Risk Concept

In determining the feasibility of projects where capital investments are concerned, various methods are used. The focus of these methods is on return per se, so it is often asked to what extent any of these methods take the risk concept into account. The main objective of this study was to investigate the importance of risk with regard to capital investment projects. Secondly, with the aid of an empirical study, the study tried to establish whether risk is incorporated when South African companies evaluate capital investment projects. The empirical analysis indicated that risk analysis and evaluation in practice are to a large extent neglected by South African companies. It was found that nearly a quarter of companies estimate their annual cash flows using management subjective estimates alone.

scholarly journals Is Capital Structure Important in Contemporary Finance Relations?

2020 ◽  
Author(s):  
Dean Učkar
Keyword(s):  
Capital Structure ◽  
Financial Markets ◽  
Behavioral Finance ◽  
Financial Risk ◽  
Stock Exchange ◽  
Investment Projects ◽  
Starting Point ◽  
The Subject ◽  
The Impact ◽  
Negative Link

t The various combinations of sources of financing that a business uses in its operations have multiple impacts on the generation of its cash flow. Such influence can be viewed from the aspect of forming the total cost of financing the company, from the aspect of investments where such an indicators represents the minimum level of required profitability of investment projects, as well as from the aspect of investors in an enterprise where different capital structure carries with it a different level of financial risk. It is therefore not surprising that there is considerable scientific interest in this issue and numerous researches conducted on this topic. Moreover, the relevance of the subject is also evidenced by the fact that there are numerous theories on the formation of capital structure and its consequences on the valuation of the company, that is, the influence on the market value of the company's shares. This paper will determine the average values of the formation of the capital and financial structure of Croatian companies listed on the Zagreb Stock Exchange. The analysis of 30 companies over a ten-year period from 2009 to 2018 will seek to show the impact that the formed capital structure has on profitability. By establishing a negative link between the selected debt indicators and the profitability indicators, the validity of contemporary capital structure theories, which have their starting point in behavioral finance and are specific for developed financial markets, has been rejected.

scholarly journals FORMATION OF MEHTODOLOGICAL PRINCIPLES FOR ASSESSING ECONOMIC EFFICIENCY OF INVESTMENT PROJECTS FOR CREATION AND DEVELOPMENT OF SEAPORTS AND TERMINALS

2019 ◽  
pp. 125-132
Author(s):  
Marina Vladislavovna Sabaydash
Keyword(s):  
Capital Investment ◽  
Economic Effect ◽  
Capital Investments ◽  
Complex Composition ◽  
Sea Transport ◽  
Investment Projects ◽  
Technological Processes ◽  
Comparative Efficiency ◽  
Modern Computer ◽  
Technical And Economic Indicators

The article presents the methods for evaluating the effectiveness of investment projects developed by foreign, Soviet and later Russian scientists that made it possible to formulate principles for evaluating the effectiveness of projects of creating and developing seaports and terminals. The basic economic law of socialism in 1952 has been analyzed, according to which the development of the command economy was exhausted by planned extensive and intensive economic growth in the absence of inflation and risks. There has been studied the typical methodology for determining the effectiveness of capital investments and new equipment developed in 1960 and proposing to use two groups of indicators: general and comparative efficiency. It has been stated that the main drawback of this and later methods is to reject the indicator of absolute economic effect. There are given formulas for calculating the payback period and the effect of increasing operation of sea transport due to capital investments. There has been defined the principle of alternativeness based on accounting for the opportunity costs of neoclassical economics. Modern computer technologies make it possible to accurately simulate the technological processes of the port terminal and, using the results, to calculate the technical and economic indicators of their activities. The principle of alternativeness consists in considering all possible options for organizing technological processes at the terminal and choosing the option with best values of performance. The principle of alternativeness should be used to assess the effectiveness of the project as a whole and to evaluate the effectiveness of each participant. Projects of building and development of seaports and terminals are characterized by a complex composition of participants; they always impact the state interests and are a form of public-private partnership. The main infrastructure of seaports and land plots are in federal ownership. The implementation of the principle of alternativeness becomes possible when using the capital investment budget method.

scholarly journals Ways of improving the efficiency of capital investments into the infrastructure in order to adapt it to ensure accessible environment

2021 ◽  
Vol 2021 (4) ◽  
pp. 591-600
Author(s):  
Timofey M. SHMANYOV ◽  
◽  
Victoria I. ULYANITSKAYA ◽  
Igor V. VANYUSHIN ◽  
Marina S. PUKHOVA ◽  
...  
Keyword(s):  
Graphical Models ◽  
Comparative Advantage ◽  
Capital Investment ◽  
Practical Importance ◽  
Capital Investments ◽  
Dynamic Changes ◽  
Investment Projects ◽  
Full Life Cycle ◽  
Proposed Model ◽  
Functional Areas

Objective: Formation of a unifi ed approach and adaptation of infrastructure facilities through the prism of rational use of capital funds and through the principle of comparative advantage based on opportunity cost. Methods: The main tools of analysis and management, the principle of comparative advantage, dynamic changes, schemes graphical models describing algorithms or processes, etc. are applied. Results: An analysis of possible ways of capital investment is carried out, with the fi nal comparability of the conditions and amounts spent on the adaptation of the main functional areas and infrastructure elements, taking into account the principles of “universal designˮ and “reasonable adaptationˮ. Practical importance: The proposed model is dynamic and can be applied as a criterion for the effectiveness of investments, both for individual investment projects and for investment programs in the full life cycle, including the operational stage.

ANALYSIS OF CAPITAL INVESTMENT DYNAMICS IN UKRAINE

2017 ◽  
Author(s):  
Petro Viblyi ◽  
◽  
Roksolana Skip ◽  
Keyword(s):  
Capital Investment ◽  
The State ◽  
Fundamental Parameter ◽  
Capital Investments ◽  
Tangible Assets ◽  
Reproduction Process ◽  
State And Local ◽  
Social Product ◽  
Time Required ◽  
Investment Process

Capital investment plays an important role in ensuring sustainable economic growth. After all, they are a fundamental parameter of the reproduction process, which determines the possibilities of sustainable and long-term economic and social development of the country. The article is devoted to the analysis of the essence and main trends of capital investments in Ukraine, which play an important role in the development of Ukrainian enterprises, individual industries and the economy as a whole. The investment process occupies a leading place in the reproduction of the social product. The article analyzes capital investments by types of assets, considers their dynamics, in the course of this study it was found that more than 95% of capital investments are tangible assets. That is why special attention was paid to the study of capital investment in tangible assets. It is revealed what factors and phenomena influence the volume of capital investments in different types of assets, the tendencies of changes are analyzed. According to the results of the analysis, it was determined that the dynamics during 2010-2019 was positive, but the volume of capital investment is insufficient to ensure the normal development of economic processes. An analysis of the issue of sources of financing of capital investments was carried out, as a result of which it was found that the main source of financing of capital investments is the own funds of enterprises and organizations, and the share of all domestic investments is over 97%. This phenomenon is negative and indicates the reluctance of foreign investors to pursue investment policy in Ukraine, the reasons for this are also disclosed in the article, as well as proposed measures that will improve investment attractiveness. The volume of capital investments from the state (funds of the state and local budgets) has been changed, and the factors that influenced these changes have been considered. It also looked at how capital investment has changed in 2020 due to the Covid-19 pandemic, and which industries have suffered the most from underfunding. The article makes assumptions about the time required to return to the volume of capital investment at the level of 2019.

scholarly journals Assessment of the impact of the duration of construction on the effectiveness of the investment project

2019 ◽  
Vol 135 ◽  
pp. 04021 ◽  
Author(s):  
Elena Mikhaylova
Keyword(s):  
Economic Efficiency ◽  
Capital Investment ◽  
Investment Project ◽  
Mathematical Expression ◽  
Analytical Description ◽  
Mathematical Apparatus ◽  
Investment Projects ◽  
Investment Process ◽  
Quantitative Indicators ◽  
The Impact

The article discusses the relevance and necessity of assessing the impact of the duration of construction on the economic efficiency of investments. Using a mathematical expression, the profit received by the investor during the life cycle of the direct investment process is described. The peculiarity of investment projects involving the creation of capital investment (real estate), is the period of time during which profit is impossible. This period of time is equal to the duration of construction, including installation of technological equipment and commissioning. An analytical description of the degree of influence of the duration of construction on the indicators of economic efficiency of the investment project (profitability and profitability of property) is proposed. On the basis of the learned expressions, a numerical experiment was performed and graphs were constructed. The results of the research prove the possibility of analytical description of the degree of influence of the duration of construction on the quantitative indicators describing the investment project (profitability (Bank interest), profitability of the created property). It seems that the described approach allows to carry out forecasts which reliability surpasses the results obtained, for example, by means of expert estimations. The proposed mathematical apparatus is much simpler than the methods of probability theory and fuzzy set theory.

scholarly journals Determination of Islamic Capital Structure: A Literature Review

2021 ◽  
Vol 7 (1) ◽  
pp. 146
Author(s):  
Muhammad Anwar Fathoni ◽  
Tasya Hadi Syahputri
Keyword(s):  
Literature Review ◽  
Capital Structure ◽  
Secondary Data ◽  
Qualitative Approach ◽  
Sales Growth ◽  
Literature Study ◽  
Management Decisions ◽  
The Capital Structure ◽  
Descriptive Qualitative

This study aims to examine the capital structure in Islamic economics, in terms of components, characteristics and factors that affect the capital structure. This research is a literature study that used a descriptive-qualitative approach. The data used in this research is secondary data. The results show that the decision to formulate the capital structure must be made appropriately so that the company avoids various risks. The capital structure in Islam prohibits the elements of Maysir, Gharar, Riba in it. In general, the factors that influence the capital structure are liquidity, profitability, sales growth and asset structure. However, it all returns to the types and characteristics of the company and the company's management decisions.

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