Countercyclical Financing as a Tool for Facilitating Investment Activity in Russia: An Overview of Approaches

2021 ◽  
Vol 27 (12) ◽  
pp. 932-942
Author(s):  
N. V. Tsekhomskiy ◽  
D. V. Tikhomirov
Keyword(s):  
Financial Analysis ◽  
Price Volatility ◽  
Risk Allocation ◽  
General Description ◽  
Project Financing ◽  
Investment Activity ◽  
Financial Flows ◽  
Investment Projects ◽  
Financing Mechanism ◽  
Key Indicators

Aim. The presented study aims to investigate the use of the project financing mechanism to increase the investment activity of businesses and to identify opportunities for the allocation of cyclical risks and the corresponding development of project financing conditions.Tasks. The authors briefly overview the investment climate and investment activity of large businesses in Russia; provide a general description of the project financing mechanism in the implementation of investment projects and the allocation of risks among participants; consider the factor of price volatility and the proposed structuring of project financing with allowance for potential changes in prices for the project’s products.Methods. This study uses general scientific research methods (analysis, synthesis, induction, deduction), including analysis of public information through the example of major Russian companies, analysis of the key indicators of investment activity, analysis of risk allocation options in the financial flows of projects. Specific methods of financial analysis are also used to examine the results of the implementation of investment projects.Results. The key indicators of investment activity of the major Russian companies are presented. The possibility of using the mechanism of project financing and risk allocation among participants is determined.Conclusions. The investment activity of a considerable part of large Russian businesses is moderate. At the same time, there is a huge potential for growth using either internal funds (profits, accumulated cash balances) or project financing instruments. An example of using the mechanism of accelerated repayment of debt financing is provided.

scholarly journals Project financing in the investment and construction complex

2021 ◽  
Vol 1 (8) ◽  
pp. 116-121
Author(s):  
O. E. Astafieva ◽  
A. V. Kozlovsky ◽  
N. A. Moiseenko
Keyword(s):  
Project Implementation ◽  
Digital Environment ◽  
Project Financing ◽  
Economic Interests ◽  
Factors Affecting ◽  
Information Base ◽  
Investment Projects ◽  
Financing Mechanism ◽  
Private Investors ◽  
Large Investment

The problems arising in organizations during the process of investment activities have been considered. The results of financing and implementation of projects and programs have been analysed and interpreted consistently. The issues of expediency of using the profitability indicators of the capital or assets of the company, which requires for the project implementation, have been touched upon. Approaches to the possibility of using the project financing mechanism, have been substantiated. Attention has been paid to the positive and negative aspects of the application of project financing for the company investment activities. It has been noted that project financing is usually used in the implementation of large investment projects, which combine the economic interests of the state and private investors. Particular attention has been paid to the issues of project and program management within the digital environment in order to provide a unified information base. The analysis of possible risks when using the project financing mechanism has been provided and the approaches to influencing the emerging risks have been defined. The result of the study was the formation of factors affecting the effectiveness of the project financing mechanism in the implementation of investment projects and programs.

scholarly journals Formation of institutional model of project financing in Ukraine

2021 ◽  
pp. 155-161
Author(s):  
M.I Zvieriakov ◽  
D.V Zavadska
Keyword(s):  
Large Scale ◽  
Institutional Environment ◽  
Financial Resources ◽  
Innovative Development ◽  
Project Financing ◽  
Normative Documents ◽  
Investment Projects ◽  
Financing Mechanism ◽  
And Performance

Purpose. Substantiation of the formation of the mechanism of project financing for solving issues of financial maintenance of infrastructural projects of innovative development in Ukraine. Methodology. The information base of the research is legislative and normative documents and results of scientific achievements of leading foreign and domestic scientists. The following methods, such as analysis and synthesis; comparison and systematization; observation; graphic, tabular; logical generalization are used. Findings. According to the results of the research, it is proved that to ensure sustainable economic growth and diversification of Ukraines economy, the importance of institutions for development and use of such a multi-instrumental form of reproduction of real investments as project financing, becomes actual. Based on the system approach, the features, elemental composition and subsystems of the project financing mechanism are determined. It is established that the current legislative basis for the formation of the project financing mechanism in Ukraine is fragmentary and needs further development. It is proved that the implementation of measures of state stimulation of the processes of financing the innovative development of Ukraines economy will be facilitated by the adoption of the Laws of Ukraine On The Bank of Development, On Syndicated Loan and the proposals for the formation of project financing developed in the research. Originality. For the first time, a comprehensive theoretical approach to the formation of the project financing mechanism in Ukraine has been implemented. The need is substantiated for highlighting such subsystems of the mechanism as providing subsystem (institutional environment of which is legislative support and regulatory bodies), transforming subsystem (financial instruments and participants of which are the Bank of Development, international financial organizations, banks, institutional investors, development institutions, project sponsors) and performance subsystem (financial resources in the required amounts, currencies and terms). The effective operation of the proposed mechanism helps to overcome the shortage of long-term financial resources needed for lending support of innovative enterprises that implement large-scale and capital-intensive investment projects and programs of national importance. Practical value. Introduction of the mechanism of implementation of the program for supporting the project financing development will allow accumulating considerable amounts of financial resources from various sources on a long-term target basis; increasing the level of investment and the number of innovative projects; reducing the total cost of funding and risks through their redistribution among participants of the project.

scholarly journals WORLD MARKET OF PROJECT FINANCING: INDUSTRIAL STRUCTURE

2021 ◽  
Vol 119 (6) ◽  
pp. 119-130
Author(s):  
HANECHKO Iryna
Keyword(s):  
Large Scale ◽  
Industrial Structure ◽  
Cash Flows ◽  
World Market ◽  
Global Market ◽  
Bank Loans ◽  
Project Financing ◽  
Investment Activity ◽  
Investment Projects ◽  
Global Industry

Background. The domestic economy remains systemically underfunded due to lack of domestic financial resources and low investment attractiveness for foreign investors. The deepening of this problem is also caused by the situation with COVID-19, which has led to a decrease in global cash flows in the world. Obtaining cross-border investment flows in various sectors of the economy is associated with project financing, the development of co-financing and the use of PPPs. There is a question of research of modern tendencies of development of project financing which change according to present challenges, for the purpose of implementation of experience of foreign countries in the Ukrainian practice of development of investment activity. Analysis of recent research and publications has shown that in the context of abrupt changes, challenges and crises, leading to reduction oflong-term investments, the issue of using large-scale project financing to guarantee future profits (project financing) to develop priority sectors of the economy and individual regions of the country remains relevant. The aim of the work is to study the global industry trends in the development of project financing, taking into account the new socio-economic realities and justification of the feasibility of using world experience in Ukrainian practice. Materials and methods. The research methodology is based on a system of general scientific and special methods, in particular: abstract-logical, analysis, synthesis, comparison, grouping, generalization, graphical method, statistical methods for assessing the dynamics and structure. Legislative documents, scientific works of domestic and foreign scientists, statistical information became the information base of this research. Results. The modern tendencies of the global market of project financing, dynamics of its volumes and branch structure are investigated. The directions of project financing by the main sources are analyzed: bank loans and bond loans. The expediency of using international experience in the implementation of large-scale investment projects in various sectors of the economy of Ukraine using schemes and methods of project financing is substantiated. Conclusion. The introduction of experience in the implementation of investment projects using project financing schemes in Ukraine should contribute to the formation of demand for long-term investments, including foreign ones. This practice of project implementation allows to modernize the economy, increase the potential of regional development and integrate into global value chains.

Tax incentives of China’s investments in Zabaykalsky Krai: implementation of behavioral economic models

2020 ◽  
pp. 69-84
Author(s):  
Evgeniya Mikhailovna Popova ◽  
Irina Vitalevna Mezentseva
Keyword(s):  
Behavioral Economics ◽  
Tax Incentives ◽  
Human Mind ◽  
Investment Climate ◽  
Investment Activity ◽  
Investment Projects ◽  
Tax Incentive ◽  
Regional Budget ◽  
Subjective Aspect ◽  
Investment Process

Currently, the Russian regions apply a vast array of tools for regulating the investment process, including tax incentives. Active use of tax preferences is dictated by the fact that in the conditions of regional budget deficit, tax incentives, unlike subsidies, do not require direct budget expenditures for stimulating investment activity. However, the world experience demonstrates that tax incentives do not fall under the group of factors that strongly affect investment decisions. For determining the degree of preference of tax incentives in relation to other measures of regional support, a survey was carried among Chinese investors, who implement investment projects on the territory of Zabaykalsky Krai. The survey was based on a method of hierarchical analysis based on the special matrices by filed in by the investors. The acquired results displayed that out of ten measures of state support, tax incentives hold the eighth place. The calculated coefficient of the significance of tax incentives testifies to the low attractiveness of fiscal stimuli for the Chinese investors. The authora attempted to find the reasons for tax incentive not being in demand. The scientific novelty of this work consists in conducting the analysis of regional legislation that regulates the order of granting investment tax incentives based on the concept of behavioral economics. In the course of application of the provisions of behavioral economics, emphasis was made on the subjective aspect of the mechanism of preferential taxation. The reasonableness of considering such peculiarities of human mind as cognitive inertia and relativity is substantiated with regards to arranging the structure of tax incentives that would allow increasing the importance of tax incentives in formation of investment climate on the territory of Zabaykalsky Krai. The authors make recommendations on increasing the attractiveness of tax incentives among Chinese investors based on the concept of reference point and the effect of loss aversion.

Real options in business valuation and investment

2018 ◽  
Author(s):  
Андрей Гусев ◽  
Andrey Gusev
Keyword(s):  
Graduate Students ◽  
Real Options ◽  
Scientific Publication ◽  
Investment Analysis ◽  
Investment Activity ◽  
Business Valuation ◽  
Investment Projects ◽  
University Teachers ◽  
Specific Calculations

In the presented monograph discusses the major problems associated with the development of methods of investment analysis and application of real options method in the assessment of efficiency of investment projects and valuation of enterprise (business). Disclosed the content of the basic models of evaluation of real options, a classification of real options, the theoretical principles supported by specific calculations. Scientific publication intended for graduate students, University teachers, scientific employees, specializing in the field of management of investment activity of enterprises and business valuation.

USING PROJECT MANAGEMENT TOOLS TO IMPROVE THE EFFICIENCY OF INVESTMENT PROJECTS IN CONSTRUCTION

2021 ◽  
Vol 14 (1) ◽  
pp. 83-88
Author(s):  
Svetlana Mikhailovna SYCHEVA ◽  
◽  
Elena Yury’evna KUZMINA ◽  
Keyword(s):  
Project Management ◽  
Construction Industry ◽  
Integrated Approach ◽  
Construction Sector ◽  
Management Tools ◽  
Investment Projects ◽  
Key Characteristics ◽  
Project Costs ◽  
Team Project ◽  
Key Indicators

The article discusses the features of the implementation of investment projects in the construction industry, the main trends in project management in this area. The importance of the construction industry for the country’s economy is substantiated, the key indicators of the construction sector and its contribution to GDP are highlighted. The analysis of the development of the construction industry for the period from 2009 to 2020 is carried out. The reasons for the decrease in investment in construction are identified, among them the most important ones are highlighted. In the article discusses the key characteristics of the construction industry in our country. The conclusion is made about the need for a systematic and integrated approach to the management of investment projects. The authors propose to use the tools of project management to improve the efficiency of the implementation of investment projects. The main tools of project management (tools for defragmentation of work, tools for managing the time in the project, tools for managing resources for project implementation, tools for managing project costs) are named and examples of their use are given. The concepts of «team», «project management team», «matrix of responsibility» are considered.

scholarly journals ECONOMICAL AND FINANCIAL ANALYSIS OF AVIARIES FOR THE INTEGRATION OF BROILERS UNDER CONDITIONS OF RISK

2015 ◽  
Vol 39 (3) ◽  
pp. 240-247 ◽  
Author(s):  
Danilo Simões ◽  
João Paulo Ribeiro ◽  
Pedro Rodrigo Gouveia ◽  
Josiane Corrêa dos Santos
Keyword(s):  
Monte Carlo ◽  
Monte Carlo Method ◽  
Financial Analysis ◽  
Financial Risks ◽  
Financial Return ◽  
Financial Investment ◽  
Flow Models ◽  
Investment Projects ◽  
Broiler Production ◽  
Technological Level

Financial investment projects are characterized by uncertainties. When quantified, these will determine the probability of their occurrence and the condition of risk. This information might be analyzed via simulation of Monte Carlo Method, which will establish the level of associated risk. To understand the financial risks of broiler production in integration system, cash flow models for aviaries were formulated with different technological levels. Using deterministic techniques, the value of the main economic viability indicators were calculated, which were incorporated to the risk through a probabilistic model of pseudo-random numbers, generated with Monte Carlo Method. The uncertainties associated to financial projects show that broiler production in different integration systems is economically viable. However, the best financial return and smallest risk are obtained with an aviary which contains low technological level and the least financial investment.

scholarly journals Investment projects and development of municipal and regional investment policy

2018 ◽  
pp. 63-67
Author(s):  
I. V. Bolganova
Keyword(s):  
Corporate Culture ◽  
Investment Policy ◽  
Rational Approach ◽  
Infrastructure Development ◽  
Investment Climate ◽  
Investment Activity ◽  
Climate Conditions ◽  
Investment Projects ◽  
The Social ◽  
Skilled Personnel

The article examines the relevant issues related to the investment projects, the creation of investment programs and to carrying out the investment policy on the municipal and regional levels. Any municipality has to solve a lot of problems concerning a decent level of economic and social development of the area and the life standard of their residents. In conditions of the constant shortage of financial resources needed to solve the objectives, the investment policy becomes the major tool. Its main aim is not only to attract extra resources but also to distribute them properly. It requires both some certain legal conditions which allow correct evaluation of the social and economic situation in the municipalities, investment climate, conditions for the investment activities infrastructure development and the properly developed business, investment and corporate culture of the population.For most of the Russian territories the problem of attracting investments into the real production sector remains urgent. The solution of this problem requires rational approach to the determination and selection of the most appropriate investment directions and the evaluation of the perspective investment projects development – suggestions and activities aimed at the achievement of the particular economic, social, ecological and other objectives requiring capital funds.The relevance of the examined problem leads to another important issue connected with the training of a highly skilled personnel capable of giving proper evaluation of the political situation in the country, specific features of tax policy, microeconomic indexes of the certain area and other factors essential for the investment activity.

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