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Abstract

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Theme urgency

At the present stage of development of Ukraine to ensure stable operation and sustainable development of enterprises require their respective financial support. Ukraine's need for investment, to date, approximately 340 billion annually. Research problems investing economy always was in the center of attention economics. This is because the investment form the basis of economic activity, defining the process of economic growth in general. Under any circumstances investments are most important means of support, structural changes in the economic system of technical progress, increase the quality of economic activity in the micro and macro levels. Investment processes is one of the most effective mechanisms of social and economic transformation. Topical at present is the profound theoretical study of new forms and methods of investment at the micro and macro levels. The main problem appears theoretical basis of criteria of efficiency investment costs of interconnection and interdependence of capital investments and structural changes in the economy, setting priorities in the sectoral structure of investments, as well as inside the main suspilnohospodarskyh areas: primary production (actual production), industrial and social infrastructure. No less important is also the study of sources and means of investment resources in modern economic conditions in Ukraine. Problems of investment software development companies in Ukraine, the subject of numerous works of domestic scientists, including Catan L., Kozlovsky B., Kopalova G., Meshkov A., Pohrischuk B., Khobta V. et al. However, the need for further coverage of the issue of optimizing the structure of sources of investment to ensure the development of business enterprises.

The objective is to further develop theoretical positions, methodological approaches and recommendations for determining study methods of forming investment sources as an important factor in the development of enterprises.

Accordingly, the goal set out the following tasks of this work:

  1. investigate the current status, problems and prospects of companies in Ukraine;
  2. analyze the structure of investments in enterprises of Ukraine, which have been made in recent years;
  3. analyze the existing legal framework of Ukraine in the sphere of investment;
  4. the essence of business entities;
  5. review the existing mechanisms of development of the enterprise;
  6. assess the advantages and disadvantages of existing methods of investment business;
  7. to investigate the mechanism of investment decisions, taking into account economic factors;
  8. improve the mechanism for making investment decisions, taking into account social and economic factors.
  9. identify factors and additional sources of growth in direct investment.

1. Investment conditions for strategic development of economic activities

In the first section of the master's work explores the fundamentals of strategic development of the enterprise essence of investment processes, as an economic category, and the need to elect the best sources of investment companies in the management process. We present classification of sources of investment by type of origin. It reveals the purpose and main objectives of the investment. The need for investment companies subject to the need for constant improvement of production efficiency and enterprise development through ever-changing business environment and to ensure the financial stability of companies (revenues of sustainable cash flow). Investment activities of the enterprise may be directed to the following objectives:

  1. Sustainable production (investment in current assets) and the extended play (investment in fixed assets);
  2. new markets and new markets of raw materials;
  3. increase the competitiveness of enterprise;
  4. Update existing logistics;
  5. increase in industrial activity;
  6. development of new business areas (diversification activities);
  7. maintain or enhance the value of their accumulated assets by investing in various financial instruments;
  8. professional development and training activities (investment in human capital);
  9. improve business by introducing new technologies (innovation investment);
  10. bringing the enterprise into compliance with legislation and environmental regulations.

In case of investments in fixed assets at their own expense companies can see that investments are not relevant to the needs . The largest investment in fixed assets took place in 2008 when it invested 233.1 billion. This was the greatest figure in the history of Ukraine's economy, but even this amount was lower than required for 87mlrd. USD. Due to the economic crisis in 2009 - 2011 рр. investments suffered significant decline and did not cover even half the required volume. By 2011, there is a negative tendency to decline in investment, but the situation is stabilized and in 2012, according to analysts is expected to increase investments in capital from its own funds.

According to reports on the socio-economic development of Ukraine in the period from 2002 to 2009 the share of own funds of enterprises for investment in fixed assets does not exceed 64%. This is because with all the benefits of using their own funds the amount is insufficient to ensure sustainable development, ie, enterprises are unable to invest in capital assets greater amounts. This is due to the limited results of own funds of enterprises. An important aspect of intensification of investment activity is the problem of foreign investments because of their efficient mobilization and allocation can be a source of operative reconstruction of production according to market changes, while ensuring a stable position on it and a significant increase competitiveness. Investments are funded from the reserve fund created by economic entities without fail in the event of termination of their activities to cover accounts payable and fund accumulation, accumulating earnings and other sources to create a new property, acquisition of capital assets working capital.

2. Investment methods of enterprise development

The methodical development of the investment company and justify the investment policy of considering internal and external factors. The investment policy of a particular company formed by the light of its specific features, such as ownership, type of economic activity, life cycle phase, strategic priorities, financial and economic situation and technical Rivne production enterprises, the availability under construction and unidentified equipment, level of self-financing business. You must also consider the market products made now, the volume of sales, quality and price of these products, financial terms of investment in capital market benefits derived by investors from the state; terms of insurance and guarantees a non-commercial risks, the possibility now getting the equipment leasing and smth. [8-9]. Depending on the strategic goals of an enterprise may choose one of these types of investment policy: conservative, aggressive and compromise. Conservative investment policy. In this case a priority for investment companies to minimize investment risk level for some decrease in profitability of investments and growth capital. Compromise (moderate) investment policy aimed at the selection of investment targets, the level of profitability and risk are most close to the average market performance. Aggressive policy provides the investment of the company with projects that have significant levels of profitability and risk (above the average market level). Objectives and methods of implementation of investment policy change in different phases of economic cycle. In crisis and depression, when dominant survival strategy, to its investment policy is to preserve, support and strengthen the most viable and promising part of the capital, used to produce competitive products. In the phases of recovery and economic growth policy objective is to timely and comprehensive implementation of investments and innovations that promote the expansion of cultivated niche markets and win new ones [13]. Distinguish the following main stages of formulating the investment policy of the enterprise.

  1. Identify prospective investment. The volume of financial investment company that is not an institutional investor is defined amount of accumulated surplus funds, and the volume of its real investment depends on the planned increase in the volume of its industrial and commercial activities. Specified investments must correspond with the amounts of assets and can not in case of failures result in loss of ownership of enterprise.
  2. Identification of investment (financial investment instruments) based on the choice of destinations investment company. This choice is based on a comprehensive study and analysis of the status and prospects of the economy as a whole and individual sectors, the investment climate in the country, region, market products now or planned for release, the competitive environment, etc.
  3. Preparation of real investment projects and for financial investments - building a portfolio of investments.
  4. Selection of investment projects based on their assessment of economic performance under conditions of minimal investment risk and the greatest liquidity.
  5. Implementation of effective management realized investment projects (portfolio of financial investments).

As part of the investment policy of real investments are developed and implemented investment projects. Real investments are made on the basis of the project developed, which is a study of economic feasibility, scope and timing of capital investments, development according to the laws and standards set by the required project documentation (feasibility study) and the sequence and description of practical actions to implement the investment (business plan).

3. Recommendations for improvement of the optimal selection of enterprise investment resources for development.

The third part of the master's work includes recommendations for improving security investment resources of enterprises, proposes the introduction of mechanisms to assess the need for financial support. In the world of corporate finance most popular method of evaluation of the project, partly financed by debt, is a standard method WACC.

The first stage of the method WACC – this assessment of operational cash flows that are at the disposal of investors after paying corporate taxes, but excluding any charges that accrue as a result of the existence of the tax shield on interest payments. We call this amount due to tax "taxes including debt," because in this case the amount of fees assessed without discrimination of own and borrowed funds, ie, corporation tax is reduced by the amount of interest rate.

This method assumes that the company adopts a single target capital structure for the period of the project and to calculate the final value. Typically, such an assumption about the current and long-term capital structure shall be based on evidence as to the company itself and its company or similar to industry norms and ratios, such as providing interest. This method can be applied only if the enterprise has a single permanent capital structure.

This method assumes that the company is committed to support the permanent value of debt and equity over time. It works on the assumption that the debts of annually to maintain a certain ratio of debt and shares.

References

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Note!
In writing this abstract master's work is not completed. Final completion: December 2012. The full version's abstract and work can be obtained from the author or director after that date.