Risk, Financing, Efficiency of Investments Implemented by Contemporary Enterprises
Journal Title: Oblik i finansi - Year 2021, Vol 1, Issue 2
Abstract
In the broad sense, any action that is taken in the hopes of raising future revenue can also be considered an investment. An investment always concerns the outlay of some asset today – money or tangible and intangible assets – in hopes of a greater payoff in the future than what was originally put in. The investment compensates for the time of “freezing” of funds, as well as the risk taken in the investment process. Integral components in each investment process are: a) time (recovery of benefits and capital commitments); b) circulation (allocation of general or own capital); c) risk (possibility of excess of actually incurred expenses over planned costs); d) benefits (expected effects from investment realization). Investments can be defined in the light of the above factors, which are fraught with the risk of long-term allocation of investment costs in order to recover benefits. Investments are such expenditures of funds, in which there is a long-term commitment of funds of money. The scale of the costs of their performance is higher than in the current, operating activities of businesses, and the impact of investment on the efficiency of operations and competitiveness is mostly longer. Investments increase not only modernized and new means of durability, intangible and legal costs, but also the value of working capital. This work is devoted to presentation and analysis of the process of financing investments made through joint ventures in the realities of the free market in a changing environment. Considerable attention was paid to the assessment of risk and efficiency of enterprises activities. It was found that the amount of risk is influenced by various factors, such as the complexity of the investment process and the instability of the environment in which the project is implemented. This creates uncertainty about the expected future benefits and often makes it impossible to assess the factors that affect the return on investment.
Authors and Affiliations
Stanislaw Szmitka
Keywords
Related Articles
- EP ID EP697588
- DOI 10.33146/2307-9878-2021-2(92)-107-115
- Views 110
- Downloads 0
Food Retail in Ukraine: Trends and Consequences of Crisis Transformations of the Food System
Sustainable transformations in some segments of the food system, which have recently occurred due to military conflicts, extreme climate events and epidemics, necessitate their in-depth study. Ensuring the population's p...
Організація і методика оцінювання резервів капіталу в бухгалтерському обліку
Процес резервування капіталу є важливим для підтримки економічного потенціалу підприємства, забезпечення фінансово-економічних умов провадження його діяльності у періоди невизначеності, а також збереження капіталу підпри...
Стан обліково-аналітичного забезпечення комерціалізації інтелектуальної власності в аграрній сфері
Метою статті є аналіз управлінського аспекту обліково-інформаційного забезпечення комерціалізації інтелектуальної власності, що передбачає визначення ключових векторів удосконалення економічного аналізу та вартісної оцін...
Relationship between Wastewater Quality and Corporate Stock Price
Almost all industrial players handle wastewater treatment in one way or another by themselves, no matter the industry or company’s size. Some companies have wastewater treatment plants, and others are considering investm...
Forensic Economic Research in Tax Dispute Resolution
Numerous contradictions in tax legislation lead to a large number of tax disputes. In such conditions, independent specialists need to be involved who, thanks to their qualifications and special knowledge, can research t...