Abstract
Z. G. Arakelova & A. A. Kravchenko. The estimation of investment appeal of minig enterprises. The article deals with the concept of investment appeal. Different approaches are mentioned. Much attention is given to estimation of investment appeal of mining enterprises. Integrated assessment is proposed. It is designed to identify the mine with more useful impact for investing.
Introduction
Every industrial enterprise is looking for opportunities how to increase the competitiveness and to achieve economic growth. Enterprises seek outside sources of financing in a context of limited resources. This demonstrates that question of investment opportunity is becoming more relevance.
Object of study: plot the investment appeal of mining enterprises.
Purpose: analysis of main approaches and assesses the investment appeal of coal mining enterprises.
The main tasks: the determination and calculation of integrated assessment of investment appeal of Donetsk mining enterprises.
Determination and approaches to analyze the investment appeal
Although, many authors pay attention to this subject, scientists still have not found common determination of investment appeal. Several explanations have been offered. For example, Nosova & Rusak (2014) define investment appeal as the balanced system of complex indicators, which determine the investing feasibility. According to Dontcov (2009), investment appeal is s general characteristic of advantages and disadvantages in the investing process. The investment appeal is commonly understood to mean an integrated assessments of enterprise as investment object. It includes productive capacity, financial status, management of enterprise, industry sector and concerns of investment players.
There are different approaches and methods to analyze the investment appeal, which are applicable for any economic system. The main approaches are:
– an approach based on an analysis of the financial indicators of enterprises;
– an integrated approach, which takes into account many aspects of the business entity;
– market-based approach, which is based on the stock market analysis;
– cost-based approach, in which the criterion of company’s investment appeal is the growth of its value.
Despite its universality, most of these methods only assess the financial side of object. As for the coal enterprises, the financial state plays an important but not the main role in the investment appeal.
Integrated assessment methodology
With regard to the coal enterprises it is reasonable to use integrated assessment of investment appeal. Firstly, we need to identify indicators that impact on investment attractiveness of coal mines. All indicators can be divided into two groups: mining engineering and economic. The mining engineering indicators have the greatest impact on the integrated assessment. The importance of this group is 0.7. A set of economic indicators characterizes the economic activity of the coal enterprises from the market point of view. These indicators are characterized as economic activity of the enterprise. The importance of this group is 0.3.
These indicators provide a comprehensive analysis of a mine. The first thing that needs to be done is to form a matrix A of dimension n × m:
where aij – is j-th index value for i-th object; n – the number of mines; m – the number of indicators taken into account. Each row {ai} corresponding to the same set of indicators for the various coal enterprises. Initial data for the calculation of the integral index is the value matrix of indices of all the mines.
Initial data for the calculation of the integral index is the value matrix of indices of all the mines.
Secondly, we need to determine a reference organization. For this purpose, in each column of the matrix A optimal value is selected (minimum or maximum index): – if improvement value of the index shows a positive trend, a reference index will be considered with a maximum value; – if improvement value of the index indicates the negative trends, the reference index will be considered with a minimum value. Due to the fact that most of the indicators have different dimensions and are not compatible, there is a necessity to bring them to the relatively dimensionless form:
где ajref, aij, ajmax, ajmin – the reference, the actual, maximum and minimum values of mines indicators correspondently.
Initial matrix is replaced by a matrix of relative deviations of the same dimension, and further calculations are carried out on this matrix:
Thirdly, it is necessary to reduce relative deviations from a reference of all factors for every mine to get integral index Ki.
The principle of integral index is: the less the value of the integral index is, the better enterprise matches version of the reference. The value of integral index will reflect level of its declining and estrangement from the reference. It is important to emphasize that the assessment objectivity is associated with the inclusion of different importance of individual indicators within the group. Without taking into account the importance of particular indicators, it is impossible to solve the problem of allocation of the most investment-appeal enterprise.
In the work Kalacheva et.al (2016) the importance level of the mining engineering and economic indicators of the 20-point scale is justified and numerically expressed. The indicators level and group importance have been determined by the experts. Indicators of different importance rate are defined as follows:
Integral index of investment appeal is calculated as follows:
where φj – the importance of the index in the group;
φср – the average value of importance of all parameters;
m – the number of indicators;
φj/φср – the indicators importance level of j-th figure in the group.
Thus, the integral index is calculated separately for each group of mining engineering and economic indicators:Km j, Kec j
.At the next stage the total integral indicator is calculated individually for each mine:
where Km i, Kec i – integral assessment for each mining engineering and economic indicators correspondently;
λm, λec – the relative importance of the corresponding groups of indicators.
Conclusion
Finally, it can be observed, that the developed technique is an assessment tool of investment appeal of coalmines according to the sector-specific. This classification of mines by investment appeal allows to identify the mine with more useful impact for investing.
The next step in the research is development possible variants of investment projects on increasing production capacity of a mine to assess economic efficiency in the mines of different investment appeal degrees.
References
1. Dontcov, S.S. 2009. Rating enterprise investment appeal by analyzing its reliability securities. Vladivostok: Fin-M
2. Nosova, O. V. 2014. Investment appeal of the enterprise. Moscow: Pb.Science:120–125.
3. Kuvshinov, M. S., Kalacheva, A. G. 2015. Development of the analysis of investment appeal of industrial enterprises. Chelyabinsk: Vestnik: 74–80p.
4. Rusak, N. A. 2014. Evaluation of investment appeal. Investment: Practice and Experience: 22–24.