THE INVESTMENT ATTRACTIVENESS EVALUATION: METHODS AND MEASUREMENT FEATURES - Polish Journal of Management Studies

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THE INVESTMENT ATTRACTIVENESS EVALUATION: METHODS AND MEASUREMENT FEATURES

Abstracts > Vol 7

THE INVESTMENT ATTRACTIVENESS EVALUATION: METHODS AND MEASUREMENT FEATURES
Goncharuk A.G., Karavan S.

Abstract: Today,   enterprises operate   under the fierce competition .  So,   there is a need  of  quick reaction on   changes in external environment ,  and improvement of the performance.   Constant   development is   the key to success   for   any organization .  However, this   process requires   investment - the   growth   engine  for  the company. The only way to attract  the  capital and strengthen market positions is raising   the level of the investment appeal.  A pproaches  determination  of the investment attractiveness evaluation,   gives   a deeper   understanding of   this economic   category,   and   as a consequence   the possibility of   effective   investment   attractiveness management - one of   the main tasks for any enterprise.

Keywords: investments, investment attractiveness, evaluation, enterprise, financial ratios, approach .

Introduction

Crucial   step   in investor
s decision making  process  is the evaluation of the   investment attractiveness   of the enterprise.   It characterizes   operational activity,   market position,   and possible   risks associated   with the process of   investing. Investment attractiveness   of the company is   an economic category , demonstrating the  effectiveness   of functioning,   characterized by a set   of quantitative indicators   and qualitative   components   that cover various   aspects of business and   determine the   possibility of profits   maximizing for investors   (in comparison   with other objects   of possible   investment ) in  the presence of   a certain risk level.   Today, there   are several approaches , in which  developed   a large number of   methods   that   have their own features   and characterize the   investment attractiveness of   enterprises   from different sides.

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Summary

As a final point, we can conclude, that there is no single and completely faithful version of enterprise investment appeal evaluation. In the process of method choosing, many factors should be considered, including: the determination of goals, the availability of reliable information, business specific etc. We have already learned that there are different indicator systems, which we can use. These systems vary depending on the evaluation approaches of companies, but they still have to build the overall level of investment attractiveness which will characterize the organization in comparing with others or with the standard. Using any of the assessment approaches we need to remember about indirect (the state of economy, political situation etc.) and direct (market conditions) effect of environmental factors; they must be analyzed to examine the impact on the company, its investment appeal, to identify the opportunities and threats for the enterprise. Determination of the investment attractiveness level is very important for both investors and managers. They need to understand the company
s position on the market, its strengths and weaknesses to make sure what steps are necessary to take.


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METODY I FUNKCJE POMIARY OCENY ATRAKCYJNOŚCI INWESTYCYJNEJ

Sterszczenie: Obecnie przedsiębiorstwa działają w warunkach ostrej konkurencji. Tak więc istnieje potrzeba szybkiego reagowania na zmiany w otoczeniu zewnętrznym i poprawa wydajności. Ciągły rozwój jest kluczem do sukcesu każdej organizacji. Jednakże proces ten wymaga inwestycji silnika rozwoju organizacji. Jedynym sposobem aby przyciągnąć kapitał i umocnić pozycję na rynku jest podniesienie atrakcyjności inwestycyjnej. Określenie podejścia do oceny atrakcyjności inwestycyjnej daje lepsze zrozumienie tej kategorii ekonomiczneh a w konsekwencji możliwość efektywnego zarządzania atrakcyjnością inwestycyjną jako jedno z głównym zadań każdego przedsiębiorstwa.
Słowa kluczowe: inwestycje, atrakcyjność inwestycyjna, ocena, przedsiębiorstwa, wskaźniki finansowe, podejście


 
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