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Vorobyova Kate

Kate Vorobyova 

Faculty: Economic

Qualification: Economics of enterprise

Theme of Graduation Thesis:

Financial support of investment processes

Scientific adviser: Ph.D., assoc. Fischenko Oksana 


Resume

Financial support of investment processes


Actuality

Investments are the most important means of ensuring the conditions to overcome the economic crisis, to do structural changes in the national economy, to provide technical re-equipment of enterprises. Of course, resumption of normal investment activity in Ukraine is the guideline of development and stabilization of the market economy.

Now financing of investment is the most important thing. There are some problems associated with the need to improve the efficiency of financial investment, such as effective use of enterprise own funds or borrowing funds, or determining the optimal structure of its own and borrowed resources.

Purpose of the master's work is the development of theoretical, methodological approaches and creation of recommendations for the improvement of the financial support of investment activity.

Main results

Financial support from the position of Investment Development — is formation of sufficient funds for self-financing, lending funds or usage of budget funds to finance all areas related to specific investment projects.

The main purpose of financing investment is to identify and provide financial resources for activation and implementation of investment projects in a particular area and, in turn, promote economic development and overcome the economic crisis of the region and country.

In Ukraine the investment management policy is very important. Indeed, in 2009 there was a decline in capital investment. In 2009 capital investment in fixed capital amounted to 151 777 million, which is considerably less than the size of investments in 2008 (233 081 mln.hrn). (im.1)

Image 1 — Dynamics of GDP and investments in fixed assets

Image 1 — The dynamics of GDP and investments in fixed capital

The investments — economic resources and intangible values which are invested in capital (physical or human) or directed to expansion or modernization of the production machinery in order to increase investment, profit or social impact.

Investment is the start of the investment process, which covers all stages of cycle by its duration and influence.

Modern investment process — an activity of all participants of market economy in the capital increase, which is directly linked with the dynamic development of the economic system as a whole.

As the rule, sources of funding investment processes are divided into budget and off-budget. To budget funds include state and local budgets. Own sources of capital investment credit, investment tax credit, leasing, forfaiting, project and venture financing and others are the off-budget funds.

In the work there are the model, which estimates the economic efficiency of investment projects and provides calculation of industrial, administrative, financial, information, materials, labor, legislative, consumer, price, currency, inflation and international risk factors and possible actions of the importance of the risk. This will more accurately assess the impact of the risk of investment in national and foreign projects.

Process of determining the optimal structure of financing investment processes are in the third section of the master's work. There are deployed every step of the optimizing structure of financing investment algorithm.

Also in my work you can see stages of developing the capital budget of investment project. It’s important because you have to create it on the enterprise if you want to have a financial stability and achieve the desired financial results from the effective implementation of the project.


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