At the time of this writing, the master's thesis has not yet been completed. Estimated completion date: May-June 2021. The full text of the work, as well as materials on the topic, can be obtained from the author or his manager after that date.
1. The concept of investment attractiveness of an enterprise and factors of its determination
2. Methodological approaches to the analysis of the investment attractiveness of an enterprise
3. A set of measures to increase the investment attractiveness of the enterprise
In a modern market economy, investment attractiveness is one of the most important characteristics, the state of which determines the level of successful functioning of the market system of regions, industries, states, as well as the current specifics and prospects of the activities of individual business entities.
The investment attractiveness of an enterprise for any investor is determined by the degree of profitability, liquidity, financial stability, and business activity of the enterprise. On the basis of certain criteria, investors establish the requirements that are presented to enterprises when investing funds.
The main theoretical and methodological provisions, reflecting the essence of investment, investment attractiveness, its assessment and ways to increase, are studied in the works of Russian scientists V.V. Alaverdyan, E.V. Bakulina, M.N. Kreinin, S.A. Zdorovenko, N.I. Lakhmetkina, G.P. Pribytkova, I. V. Sokolnikov, P.A. Strekha, Yu.A. Yukhtanova, A.V. Bratenkov et al., And, accordingly, each of the scientists has his own point of view regarding the features of investment attractiveness, the specifics of its formation and methods of its assessment.
The aim of the thesis is the development of theoretical provisions and the formation of methodological recommendations in the field of managing the investment attractiveness of an enterprise.
To achieve the goal of the work, disclose the essence of the object and the subject of research, the following tasks of scientific research were formed and solved:
The object of work is the investment processes carried out at enterprises in modern economic conditions.
The subject of the research is the tools for forming the investment attractiveness of a modern enterprise.
In a modern market economy, investment attractiveness is one of the most important characteristics, the state of which determines the level of successful functioning of the market system of regions, industries, states, as well as the current specifics and prospects of the activities of individual economic entities.
The investment attractiveness of an enterprise is a complex indicator characterizing the feasibility of investing in a given enterprise [1].
Investment attractiveness depends both on external factors characterizing the level of development of the industry and the region where the enterprise is located, and on internal factors - activities within the enterprise.
Factors influencing the investment attractiveness of the enterprise. Figure 1 shows the most important factors affecting the investment attractiveness of an enterprise, which must be assessed by investors and creditors in order to make a decision on the allocation of funds for the implementation of an investment project [2].
The most important factors affecting the investment attractiveness of an enterprise (animation: 7 frames, 10 cycles of repetition, 140 kilobytes)
Other factors that determine the investment attractiveness of an enterprise are classified into:
Each of the above factors can be characterized by different indicators, which often have the same economic nature [3].
Investment attractiveness from the point of view of an individual investor can be determined by a different set of factors that are of the greatest importance in choosing a particular investment object.
Understanding the essence of the economic category of investment attractiveness and the systematization of the factors formed by this category will allow in further sections of the work to give sound recommendations for increasing investment attractiveness.
In the current economic environment, there are several approaches to assessing the investment attractiveness of enterprises. The first is based on the indicators for assessing the financial and economic activities and competitiveness of the enterprise. The second approach uses the concept of investment potential, investment risk and methods for evaluating investment projects. The third is based on the valuation of the enterprise. Each approach and each method has its own advantages, disadvantages and limits of application. The more approaches and methods will be used in the assessment process, the more likely it is that the final value will be an objective reflection of the investment attractiveness of the enterprise [4].
The investment attractiveness of the enterprise includes:
Table 1 compares some of the techniques used in domestic and world practice. As can be seen from the comparison, in many methods, one of the main factors for assessing and predicting the future state of the analyzed organization is the assessment of its management system. This trend is in line with theoretical studies that directly link the state of the organization with the effectiveness of its management and control by shareholders over managerial decision-making.
| Method name | The sides of the enterprise, analyzed using quantitative indicators | The sides of the enterprise, analyzed using qualitative indicators | Purpose of the analysis |
| System of Comprehensive Economic Analysis of Moscow State University M.V. Lomonosov (KEA) | Analysis of the use of production assets;Analysis of the use of material resources; | Analysis of the organizational and technical level, social, natural, external economic conditions of production | Evaluation of the efficiency of the enterprise |
| Bank of France methodology | Performance appraisal;Credit score assessment;Solvency assessment | Assessment of leaders | Assessment of the reliability of the enterprise as a borrower |
| Bank of England methodology | Market risk;Profit;Liabilities | Market risk;Business;The control;Organization;Control | Assessment of the reliability of a commercial bank |
| US Federal Reserve Methodology | Capital, assets, profitability, liquidity | Management | Assessment of the reliability of a commercial bank [6] |
Thus, in many methods of assessing the investment attractiveness of an enterprise, one of the main factors for assessing and predicting the future state of the analyzed organization is the assessment of its management system, but none of them fully covers the possible field of factors influencing the investment attractiveness, determined on the basis of the theoretical model of the firm chosen for the purposes of this study.
If the company needs to attract investment, the management should formulate a clear program of measures to increase investment attractiveness.
Almost any line of business nowadays is characterized by a high level of competition. To maintain their positions and achieve leadership, companies are forced to constantly develop, master new technologies, and expand their areas of activity. In such conditions, the moment comes periodically when the company's management realizes that further development is impossible without an inflow of investments. Attracting investment to a company gives it additional competitive advantages and is often a powerful growth vehicle.
Having analyzed the strengths and weaknesses of the enterprise in question, we have created a set of recommendations to increase the investment attractiveness of the enterprise.
To determine what measures should be taken to increase investment attractiveness, it is necessary to diagnose the existing state of a particular enterprise. Donetsk region as a region with rich trade and economic indicators has great potential for development. But this cannot be achieved only by attracting state funding for the region.
To increase the investment attractiveness of enterprises in the region, the regional leadership in particular should contribute to the development of the region's infrastructure, and encourage enterprises investing in infrastructure development.
ŒíîIn this work, I have examined the essence of the category "investment attractiveness". There are several interpretations of this definition, but, summarizing them, we can formulate the following definition of the investment attractiveness of an enterprise - this is a system of economic relations between business entities regarding the effective development of business and maintaining its competitiveness. Based on the accumulated domestic and foreign experience, it has been proved that the investment attractiveness of enterprises is the main mechanism for attracting investment into the economy.
The work will reveal the subject-object of research, solve the problems, and as a result, the goal of the work will be achieved. In turn, achieving the goal of the work will allow obtaining scientific results.