Journal articles: 'Financial investment project'

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Mishlanova, Marina. "Financial stability of investment and construction projects in terms of project financing." E3S Web of Conferences 138 (2019): 02021. http://dx.doi.org/10.1051/e3sconf/201913802021.

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The paper determines the relevance and purpose of the study. The characteristic and functions of a special purpose vehicle of project financing are presented. The conditions of project lending are described. The ways of ensuring financial stability of the investment and construction project at various stages of its life cycle are considered. At the preinvestment stage, the financial model and budget of the project are considered as a mechanism for ensuring the sustainability of the project. The directions of normative and methodological support for effective financial modeling and project budgeting in the context of project financing are identified. At the implementation stage, a cost control system for the investment and construction project was developed. A formal decomposition of the control system under study is proposed, and a functional description of the subjects of control is presented. The conditions of preserving the project within the budget and adaptive management of investment and construction projects are considered.

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Ievgen Tishchenko. "FINANCIAL MODEL OF INVESTMENT PROJECT AND PECULIARITIES OF ITS USE IN PROJECT FINANCING." European Cooperation 4, no. 44 (October 1, 2019): 65–78. http://dx.doi.org/10.32070/ec.v4i44.66.

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The article explores the main directions for improving the management of the investment process on the basis of the development and use of the financial model of the investment project, which is proposed to be considered as a decision making tool at all stages of financing. From a practical point of view, such a model is a digital form of presenting the results of the calculation and analysis of the main parameters of the investment project in order to assess the feasibility and effectiveness of its implementation. The purpose and main tasks of the development and use of the financial model of the investment project, which consists in ensuring its functionality, accuracy and reliability of the calculations, coverage of all stages of implementation and the main indicators of the project, informativeness, as well as ease of use for the purpose of effective project management, are determined. The basic principles of model formation, which include integrity, systemicity, uniformity, transparency and consistency, are distinguished. The methodology and sources for forming the Book of assumptions and input data collection for building a financial model are described. Its structure and conditions, which form the level of validity and reliability of the results of calculations, are determined. The sequence of actions of project managers regarding the development, verification and use of the financial model in project financing is characterized. The system of indicators, which, in a generalized way, characterize the main results of the project implementation, its investment attractiveness, sustainability and economic efficiency, is defined. The factors of sensitivity of the investment project to the influence of external and internal shocks are described. The necessity of using a single methodology and unification of the financial indicators and calculation processes used in the construction of the financial model to optimize financial flows and improve project risk management is proved

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Quintella, Vitor da Mata, Antônio Francisco de Almeida da Silva Jr, Jose Ricardo Uchoa Cavalcanti Almeida, and Marcelo Embiruçu. "Financial exposure and technology innovation investment." Academia Revista Latinoamericana de Administración 30, no. 4 (November 6, 2017): 547–64. http://dx.doi.org/10.1108/arla-06-2016-0165.

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Purpose The purpose of this paper is to identify, measure and optimise financial risk and its effect on returns from innovation projects on an accrual basis and on a cash basis in a commodity industry. Design/methodology/approach A hypothetical case study, based on a real case, of a petrochemical commodity industry in Brazil was analysed with commodities pricing rules based on actual contracts. Earnings at risk (EaR) and cash flow at risk (CFaR) measures were applied, as well as a metric proposed in this paper called cash balance at risk (CBaR). Findings The paper demonstrates that financial risk measurement and optimisation are important issues in the decision-making process in the petrochemical industry. EaR, CFaR and CBaR measures are helpful when used alongside standard procedures of project evaluation. The findings also show that innovative technologies, in certain conditions, may act as “natural hedging”. It was found that the time delay between revenues and expenses leads to financial risk exposure to changes in prices and foreign exchange rates. Projects can use financing and hedging to boost their results. Originality/value An innovative project was compared with an expansion project in a petrochemical industry. A model for petrochemical commodities contract pricing was added in an analysis that included financing and hedging. The findings in this paper suggest that it is important to consider financial risk measures in project evaluation.

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Shchukina, Tatiana, and Danil Bobrov. "Project Financing as a Promising Form of Investment Organization." Bulletin of Baikal State University 30, no. 2 (June 11, 2020): 292–99. http://dx.doi.org/10.17150/2500-2759.2020.30(2).292-299.

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The world practice of projects financing is growing rapidly, this is due to the fact that investments in the state budget or investor's own funds become insufficient for the implementation of infrastructure projects. The article is devoted to the study of such a form of investment organization as project financing. The approaches to the definition of the term «project financing» are considered and the principles characterizing this form of financial structuring of projects are determined. A comparative analysis of project financing with other forms of financing investment projects is carried out. The advantages and disadvantages of project financing in terms of state (budget) financing and corporate financing are revealed. Differences between project financing and venture financing are highlighted. The main factors contributing to the choice of project financing as a form of organizing investments in large capital-intensive projects, as well as factors hindering the widespread use of project financing in the economy of the Russian Federation, are substantiated.

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Mandrykin, Andrey, and Yulia Pakhomova. "Effectiveness assessment methodology financial processes in the digital economy." E3S Web of Conferences 244 (2021): 10003. http://dx.doi.org/10.1051/e3sconf/202124410003.

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In today’s rapidly changing world, the application of the achievements of scientific and technological progress, the development and implementation of investment projects become a competitive advantage and the key to the successful development of regions, clusters, corporations. In some of the most dynamic industries, investing becomes a matter of not just efficient operation, but also determines the presence of companies in the market. Applied research, and even more so fundamental, requires significant investments, the return on which at the first stages of the development and implementation of investment projects is difficult to predict. The end result is also obviously not predictable, which makes investing one of the most risky areas of activity of modern companies. Therefore, today the development and improvement of investment efficiency are the most important tasks. The institutional and economic environment of developing countries may not be the positive effect expected from attracting enterprise investment. These ambiguous results regarding the impact of investment form the motivation and problem of dissertation research. Identifying and improving methodological and economic parameters for increasing investment efficiency in the electricity industry will always be one of the main tasks for owners of enterprises and managers, which determines the relevance of the study. The article developed a methodological approach to assessing the efficiency of investment projects in the electric power industry taking into account the risks taken into account in calculating the discount rate for each phase of the life cycle of the project, which allows you to more accurately calculate the main indicators of the efficiency of the investment project.

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Blagoev, Dimitar, and Krasimir Petkov. "EQUITY CROWDFUNDING AS A TYPE OF PROJECT INVESTING." Trakia Journal of Sciences 17, Suppl.1 (2019): 234–42. http://dx.doi.org/10.15547/tjs.2019.s.01.039.

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PURPOSE The Article aims to present the potential and capabilities of the application of equity crowdfunding as an option to invest and to form investment portfolios for the individual investors. The emphasis is shifted from the widespread use of the concept of crowdfunding, as a cutting-edge source for providing capital for investment projects of innovative companies (especially suitable source for the so called Startup companies), to its use as a tool for establishing an investment portfolio based on appropriate balance between the rates of return and risk. METHODS Various authors' views on key concepts such as investments, projects, investment projects, equity collective investment, investment portfolios, etc. have been clarified and summarized. The investment process is explained in the context of creating a portfolio of investments using equity crowdfunding platforms. Conceptually, the essential characteristic of the project theory, the theory of collective investment, with its methodological and mathematical tools, are revealed. RESULTS On this theoretical basis and adaptation, a conceptual methodological model has been developed, to be used for selection of portfolio of investment projects for equity collective investment. The model focuses on the optimization of rate of return, given the risk nature of the financial investment instrument used in collective investment. CONCLUSIONS Conclusions are presented about the main advantages and the respective limitations of the type of investments, subject of the paper.

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Hsiao, Hsiao-Fen, Tingyong Zhong, and Hasan Dincer. "Analysing Managers’ Financial Motivation for Sustainable Investment Strategies." Sustainability 11, no. 14 (July 15, 2019): 3849. http://dx.doi.org/10.3390/su11143849.

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The purpose of the research is to examine the importance of financial rewards and managers’ motivations, including sustainable investment projects. For that, the role of financial motivation for managers is analysed to understand strategic priorities for sustainable investment policies. Panel data for non-financial listed companies in China are used to determine the best-fit values of the proposed model, and the results of the Lagrange multiplier (LM) and Hausman tests are discussed for sustainable investment strategies. The results demonstrate that both low-paid and highly-paid managers in valuable project firms tend to be conservative and that managers consolidate their positions through underinvestment. This finding is clear evidence that managers are reluctant to take a risk on sustainable investment strategies. However, highly-paid managers of non-valuable project firms are generally willing to obtain high productivity through advanced technologies. The results are also generalized for strategies that are related to project managers’ financial motivation to increase the efficiency of sustainable investment decisions.

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Meszek, Wiesław, and Agnieszka Dziadosz. "Estimation of certain parameters of Black-Scholes model in analysing effectiveness of development investments." MATEC Web of Conferences 222 (2018): 01010. http://dx.doi.org/10.1051/matecconf/201822201010.

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The option pricing theory has wide applicability in corporate finance, but it is also increasingly used to analyze the effectiveness of non-financial (material) investments. In traditional investment analysis, a project or a new investment should be accepted only if the returns on the project exceed the hurdle rate; in the context of cash flows and discount rates, this translates into projects with positive net present values (NPV). There is no doubt that it does not take full account of the numerous options that usually relate to developer investment. However, in many cases, the valuation of real options is more difficult than the valuation of options for financial assets. In this paper, we will analyze one of the options, which isembedded in capital budgeting projects - the option to delay a project, especially when a the company has exclusive rights to the project. The value of the option is largely derived from the variance in cash flows – the higher the variance, the higher the value of the project delay option. The variance in the present value of cash flows from the project can be estimated in different ways, however, in the case of non-financial investment projects, these methods are very limited. We are analyzing the possibility of estimating this volatility, taking into account the fact that the forecasted cash flows may show varying volatility in individual years. The paper shows, that by using a probability-based valuation model (using the Crystal Ball techniques) it is possible to incorporate uncertainty into the analysis. The method of presented volatility estimation can be applied by taking into account the randomness of many input data to the project.

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Power, Gabriel J., Charli D. Tandja M., Josée Bastien, and Philippe Grégoire. "Measuring infrastructure investment option value." Journal of Risk Finance 16, no. 1 (January 19, 2015): 49–72. http://dx.doi.org/10.1108/jrf-05-2014-0072.

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Purpose – The purpose of this paper is to propose a risk-based framework to estimate the option value of infrastructure investment, accounting for the stochastic behavior of both financial and physical (engineering) variables. Design/methodology/approach – This study uses a real-options approach and computes the optimal investment dates and option values using Least Squares Monte Carlo, both the original Longstaff – Schwartz algorithm and the constrained Least Squares approach of Le tourneau – Stentoft. Findings – Real-option value for infrastructure investment is substantial. It is beneficial to model jointly financial and engineering risks to better understand the timing and real-option value of infrastructure investment. The analysis further shows which variables are option value drivers. Research limitations/implications – Future work could integrate financing constraints into the model, consider path dependency in the physical state variables or integrate sovereign risk, expropriation risk, operational risk or other project risks. Practical implications – Financial practitioners and investment managers interested in infrastructure risk finance or project finance will benefit from a novel framework to analyze infrastructure investments in which engineering and financial risks interact in a tractable way. Social implications – Public decision-makers will benefit from a better understanding of what determines the value of infrastructure investments, how real-option value affects optimal investment timing and how both are determined by financial and engineering risks. Originality/value – The analysis considers financial and engineering risks in a single framework to better understand option value in infrastructure investment. The framework and findings are useful both to risk finance and project finance practitioners and investors as well as engineers and public sector decision-makers.

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Kryukova, O. G., and A. V. Evdokimova. "RISK OF THE STABILITY INVESTMENT PROJECT." Strategic decisions and risk management, no. 4 (November 19, 2015): 70–77. http://dx.doi.org/10.17747/2078-8886-2015-4-70-77.

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The implementation of major investment projects in the gas sector is associated with different risks. To assess the impact of parameter changes on the financial result of the project is proposed to use the schedule "Spider", which allows you to clearly define how the results of the project NPV, depending on changes in values of the main input parameters of the project: selling price, capital expenditures, operating costs, production level. It determines the optimal structure of investment capital Monte Carlo.

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Tikhomirov, Dmitry, and Vladimir Plotnikov. "The minimisation of risks in project finance: approaches to financial modelling and structuring." MATEC Web of Conferences 193 (2018): 05069. http://dx.doi.org/10.1051/matecconf/201819305069.

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Complex investment projects require detailed and thorough analysis of numerous aspects and proper actions taken on all stages of their development. The article considers peculiarities of project finance, major risks of projects for the main participants, provides practical recommendations on approaches to project financial models, and brief review of recourse and debt service undertaking mechanism. The article is the result of practical experience and analysis of the problems of project finance based on implementation of the largest investment projects.

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Ostapiuk, Nataliia, Oleksandra Karmaza, Mykola Kurylo, and Gennady Timchenko. "Economic security in investment projects management: convergence of accounting mechanisms." Investment Management and Financial Innovations 14, no. 3 (November 28, 2017): 353–60. http://dx.doi.org/10.21511/imfi.14(3-2).2017.06.

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Implementation of business processes in Ukraine has become more structured in recent years. If previously the only goal was to get the most profitable investment and pay-off in the short term, and the attention to drawbacks and considerable riskiness of these projects was given already in case of their occurrence, now there is another management approach. Thus, the decision to attract additional funds involves a detailed analysis of the potential and existing risks of the project. The management focuses on continuous monitoring of the project implementation. Accordingly, it is necessary to develop an effective mechanism to evaluate an investment project, the effectiveness of its implementation, but from the perspective of the company’s economic security aimed at identifying and diversifying risks. As such, the accounting system of the enterprise’s economic safety management is presented as to the investment projects execution based on the convergence of budgeting, management, financial accounting and elements of the economic analysis and control. The proposed system of investment project management is based on the definition of responsibility centers during the investment project implementation. The developed plan of actions and methods is aimed at creating effective tools for identifying risk factors and monitoring the investment projects effectiveness. Such a system provides an opportunity to operate an investment project promptly and flexibly, following clearly defined management tasks within the chosen strategy of enterprise’s economic security. System management of investment project, which is a part of the overall business management, contributes to the achievement of goals set by the company at a given level of risks and financial performance.

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Ivanenko, Tetiana, Viktor Hrushko, and Anatolii Frantsuz. "Optimal investment decision making on the model of production enterprise with limited resources." Investment Management and Financial Innovations 15, no. 4 (October 23, 2018): 61–68. http://dx.doi.org/10.21511/imfi.15(4).2018.05.

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Investments are among the most important factors of national economic growth. Selection of optimal investment project is the first priority for any enterprise with limited financial resources. This study is dedicated to a choice among mutually exclusive projects, which are impossible to complete partially, so, one project must be chosen and all others must be rejected. An investor must find among all possible projects the one that allows to better achieve all investor’s aims. A mathematical model of multi-purpose multi-criteria investor decision making is proposed for investment project selection problem. Efficiency and riskiness of studied projects are evaluated using such indicators as profit, rate of return, payback period, marginal cost of capital, also taking into account subjective characteristics, namely the investor’s attitude towards financial risks, importance assessment of decision making criteria, etc. Decision making assessment methods for the situations of risk and uncertainty are applied to resolve the problem of optimal project selection, such as Wald’s pessimistic criterion, maximax optimistic criterion, as well as Hurwicz’s, Laplace’s, Bayes- Laplace, Hodges-Lehmann criteria, and Savage’s minimax risk criterion. Calculations carried out and results obtained indicate that the best investment project chosen that way will provide the highest absolute profit, despite certain disadvantages such as lower rate of return, longer payback period and higher risk than other projects.

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Astanakulov, O. T., and E. G. Sheina. "Improving the financial investment system as an object of business economics." Finance and Credit 26, no. 3 (March 30, 2020): 508–26. http://dx.doi.org/10.24891/fc.26.3.508.

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Subject. This article explores the economic relations of economic entities concerning effective investment activities, combining elements of investment control and assessment of related risk. Objectives. The article aims to analyze and logically substantiate the stages and types of investment activities of enterprises and investment projects in-progress, as well as define a methodological approach to assessing project risks. Methods. For the study, we used a structural and logical analysis, and deductive reasoning. The methodological base of the study is based on the principles of the theory of finance, investment and risk management. Results. The article defines stages of assessing the financial condition of enterprises and proposes a methodological approach to assessing certain risks of an investment project based on the risk ranking by degree of probability and significance of an event through applying the expert assessment method. The article also presents a practice-oriented risk map for investment projects and clarifies the concept of Investment Control. Conclusions. The results of the study can help address the significant for the Russian economy issue of stimulating and developing investment activities at enterprises, as well as implementing and evaluating the effectiveness of investment projects at the micro-and macro-levels of the country's economy.

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Astanakulov, O. T., and E. G. Sheina. "Creating methodological means of analyzing and evaluating the feasibility of investment projects." National Interests: Priorities and Security 16, no. 10 (October 15, 2020): 1900–1920. http://dx.doi.org/10.24891/ni.16.10.1900.

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Subject. The article discusses the economic relations of entities and investors in articulating and implementing an investment policy and managing the investment of financial resources. Objectives. We determine distinctions of creating and using a business plan of an investment project, illustrating the case of an industrial enterprise, and evaluate its performance indicators. The study also provides recommendations for mitigating investment risks identified in monitoring. Methods. Research is based on methods of the structural logic analysis and expert assessments. We hypothesize that a new investment project will be more effectively developed and implemented if there is a correct and appropriate business plan of the project and inherent investment risks are pre-assessed. Results. We analyzed statistical and dynamic methods for evaluating investment projects, found their strengths and weaknesses. Consequently, we selected optimal financial results of investment project studies, which are presented as business plans. The article sets out the methodological approach to ranking investment project risks through materiality and probability indicators, which are point-based and depend on the expert assessment method. This will allow for a more detailed classification of all risks associated with capital investment. Conclusions and Relevance. The article presents the assessment and rationale of the business plan on the investment project for industrial waste recycling, through a set of methods for evaluating the effectiveness of the investment project, so as to improve financial position and liquidity of the enterprise in the long run.

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Bai, Fei Biao, Rong Hua Hou, Hua Liu, and Jian Mei Zhu. "Financial Analysis of Railway Construction Projects Based on Network." Applied Mechanics and Materials 97-98 (September 2011): 463–70. http://dx.doi.org/10.4028/www.scientific.net/amm.97-98.463.

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Based on analyzing the system and network characteristics of the railway financial analysis, it discusses the necessity of financial analysis based on network. Combining with a specific case, it analyses the related network, associated projects, with or without project and other key issues, then expounds the with or without project volume, identification and calculation of costs and benefits in detail. For cost calculation, it probes into construction investment estimate of this project, the associated investment estimate, operating costs, and other important issues. For benefits, it detailed analyses the increase of the number of transport products, improvement of transport quality and lower transportation costs three parts. Finally it concludes the necessity, objectivity and feasibility of network-based financial analysis in railway construction projects.

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Bidabad, Bijan, and Mahmoud Allahyarifard. "It-Based Usury Free Financial Innovations." American Finance & Banking Review 4, no. 1 (June 4, 2019): 39–49. http://dx.doi.org/10.46281/amfbr.v4i1.289.

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Despite development and extension of different ways of financing in financial markets, encompassing Islamic and conventional financing, the mechanism of Electronic Funds Transfer (EFT) of project financing both as borrowed and non-borrowed methods has not been considered at most. Moreover overall IT infrastructures development namely Real Gross Settlement System (RTGS), Automatic Clearing House (ACH), Scriptless Security Settlement System (SSSS) and International Bank Account Number (IBAN) for authentication process and the international meta bank network of Single Euro Payment Area (SEPA) and also international integrated banking networks including the Society For Worldwide Interbank Financial Telecommunication (SWIFT) and Interbank Information Transfer Network (Shetab), and other accomplished endeavors are not efficient in absorbing international contributions for project financing through foreign exchange funds in the different countries, satisfactory E-Payment mechanism in informative portal systems for investment projects are weak. In this way, the role of applying E-Payment systems for attracting foreign investment through retail resources mobilization and design of financial instruments with the capability of transacting in the secondary markets should be reconsidered. In this paper by having a glance at different types of investment project financing, we introduce a new project financing mechanism based on E-Payment with non-usury financial instruments to complete investment project financing chain in the form of Rastin Profit and Loss Sharing (PLS) banking.Sharia compliance of financing instruments in one side and accessibility in absorbing international retail foreign exchange sources on other side are two fundamental discussible items in this paper. In this way by designing a new system of "Non-Usury Scriptless Security Settlement System" (NSSSS) with non-usury mechanisms -avoiding legislative (Sharia) circumvention- can provide the two cited goals in designing non-usury financing instruments through IT-based non-usury financial innovations which includes of Rastin Certificates in Rastin PLS banking, and Non-Usury Bonds namely Rastin Swap Bonds.

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Desai, Vijaya S. "Risk Analysis Using Simulation Software Applied on a Road Infrastructure Project." International Journal of Risk and Contingency Management 4, no. 1 (January 2015): 53–62. http://dx.doi.org/10.4018/ijrcm.2015010104.

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Risk management in infrastructure projects has been a very important process to achieve the project objectives, namely: time, cost, quality, safety and environmental sustainability. Huge investments are made in infrastructure construction projects like roads, railways, ports, airports, electricity, telecommunication, oil gas pipelines and irrigation. This growing Increase in investment in infrastructure investment projects demands requires close monitoring of costs to ensure a net return. The evaluation of returns on investment at the conceptual stage plays a vital role in this phase. Software tools help in bringing out near accurate analysis of returns on investments and to support project viability under multiple circumstances. The paper presents an analysis of how software was applied to evaluate and mitigate risk during the case of a six lane road infrastructure project. The unit of analysis was the impact of cost of construction cost, interest rates for loans, methods of depreciation, revenue sharing on various financial indices: IRR, MIRR, DSCR and payback period. The interpretation was that software tools can be used to perform risk analysis, sensitivity analysis and scenario analysis. The case study makes a contribution to the body of knowledge by developing guidelines for using software tools in risk management.

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Wang, Yuning, and Xiaohua Jin. "Determine the optimal capital structure of BOT projects using interval numbers with Tianjin Binhai New District Metro Z4 line in China as an example." Engineering, Construction and Architectural Management 26, no. 7 (August 19, 2019): 1348–66. http://dx.doi.org/10.1108/ecam-07-2018-0259.

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Purpose Various factors may influence project finance when a multi-sourced debt financing strategy is used for financing capital investments, in general, and public infrastructure investments, in particular. Traditional indicators lack comprehensive consideration of the influences of many internal and external factors, such as investment structure, financing mode and credit guarantee structure, which exist in the financing decision making of BOT projects. An effective approach is, thus, desired. The paper aims to discuss these issues. Design/methodology/approach This paper develops a financial model that uses an interval number to represent the uncertain factors and, subsequently, conducts a standardization of the interval number. Decision makers determine the weight of each objective through the analytic hierarchy process. Through the optimization procedure, project investors and sponsors are provided with a strategy regarding the optimal amount of debt to be raised and the insight on the risk level based on the net present value, as well as the probability of bankruptcy for each different period of debt service. Findings By using an example infrastructure project in China and based on the comprehensive evaluation, comparison and ranking of the capital structures of urban public infrastructure projects using the interval number method, the final ranking can help investors to choose the optimal capital structure for investment. The calculation using the interval number method shows that X2 is the optimal capital structure plan for the BOT project of the first stage of Tianjin Binhai Rail Transit Z4 line. Therefore, investors should give priority to selecting a capital contribution ratio of 45 per cent for this investment. Research limitations/implications In this paper, some parameters, such as depreciation life, construction period and concession period, are assumed to be deterministic parameters, although the interval number model has been introduced to analyze the uncertainty indicators, such as total investment and passenger flow, of BOT rail transport projects. Therefore, more of the above deterministic parameters can be taken as uncertainty parameters in future research so that calculation results fit actual projects more closely. Originality/value This model can be used to make the optimal investment decision for a project by determining the impact of uncertainty factors on the profitability of the project in its lifecycle during the project financial feasibility analysis. Project sponsors can determine the optimal capital structure of a project through an analysis of the irregular fluctuation of the unpredictable factors in project construction such as construction investment, operating cost and passenger flow. The model can also be used to examine the effects of different capital investment ratios on indicators so that appropriate measures can be taken to reduce risks and maximize profit.

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Mishchenko, Volodymyr, Svitlana Naumenkova, Viktor Ivanov, and Ievgen Tishchenko. "Special aspects of using hybrid financial tools for project risk management in Ukraine." Investment Management and Financial Innovations 15, no. 2 (June 15, 2018): 257–66. http://dx.doi.org/10.21511/imfi.15(2).2018.23.

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The relevance of the article is due to the need of using non-traditional tools for capital raising and hedging financial risks in Ukrainian conditions that allow investors to protect themselves against possible losses during the entire life cycle of the investment project. The study is based on the National Bank of Ukraine statistical data, data of Ukrainian commercial banks, as well as on the authors’ calculations based on empirical and economic-statistical methods. According to international practices, hybrid financial instruments were classified and the special aspects of their use in Ukraine were studied to manage the risks of project financing. Specific features of using the structured bonds for financing investment projects are determined based on the synthetic securitization scheme. The experience of Ukrainian banks was analyzed and the necessity to use financial instruments such as guarantees and letters of credit in risk management of project financing was substantiated. It has been established that forward contracts, currency swaps and over-the-counter currency options are the most acceptable instruments for hedging foreign exchange risks of project financing. Further studies of the problem should include the need for legislative regulation of using hybrid financial instruments, as well as methodological and regulatory support for the risk management of project financing at all stages of the investment project implementation.

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Apostolova, Kate. "Portigon v Spain: new frontiers for financial institutions in investor–state arbitration?" Arbitration International 36, no. 4 (November 5, 2020): 601–9. http://dx.doi.org/10.1093/arbint/aiaa045.

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Abstract Historically, financial institutions have preferred litigation over arbitration as a dispute resolution mechanism. In recent years, however, financial institutions have turned to international arbitration more often. This is reflected in the 2018 Queen Mary International Arbitration Survey which concluded that financial institutions are ‘contemplating arbitration with much greater interest than ever before’. In addition to incorporating international arbitration clauses more often in their contracts, financial institutions have become increasingly aware of the protections established by international investment treaties and are more actively seeking to benefit from the rights they establish for qualifying investors. A recent decision has revealed how important those rights could be. In August 2020, for the first time in investor–state arbitration, in Portigon v Spain, a tribunal found that a financial institution may seek protection under an investment treaty for project finance because project finance, in the form of long-term loans and swaps, constitutes a protected ‘investment’ under the relevant investment treaty. While the decision remains confidential as of the publication of this article, it is an opportune moment to review the proposition that project financiers may seek protection under investment treaties against state actions that affect adversely the projects they are financing.

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Nowak, Maciej. "INVESTMENT PROJECTS EVALUATION BY SIMULATION AND MULTIPLE CRITERIA DECISION AIDING PROCEDURE." JOURNAL OF CIVIL ENGINEERING AND MANAGEMENT 11, no. 3 (September 30, 2005): 193–202. http://dx.doi.org/10.3846/13923730.2005.9636350.

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The paper considers an investment projects selection problem. The evaluation of each project is usually a multidimensional problem. On the one hand, financial analysis is very important, on the other, however, technical, social, and ecological factors are taken into account too. While financial criteria are usually of quantitative nature, others are often based on qualitative judgments. As the analysis of each project is based on uncertain assumptions, so the problem can be considered as a discrete stochastic multiple criteria decision‐making problem. In this paper simulation, stochastic dominance rules and multiple criteria decision aiding procedure PROMETHEE II are employed for solving such a problem. While simulation technique is used for obtaining financial evaluations of projects, experts’ judgments are taken into account in order to evaluate project with respect to other criteria. Thus, quantitative and qualitative factors are considered in this approach.

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Ali, A. E. "Evaluation of investment projects using traditional and fuzzy methods of analysis." Mathematical machines and systems 2 (2020): 60–69. http://dx.doi.org/10.34121/1028-9763-2020-2-60-69.

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Financial analysis is one of the main tools and methods of modern investment design, where the projects are alternative or mutually exclusive, that is, the implementation of one of them makes it impossible or unreasonable to implement the others. It is understood that alternative investment projects have the same target orientation, that is, in the process of financial analysis, each of the alternative projects is considered independently, and the possible effect of its implementation is determined without communication with oth-er investment projects. In this regard, the paper considers approaches to solving the problem of multi-criteria assessment of investment project portfolio having an information on financial indicators of projects from reliable sources. Within the framework of the proposed approaches and the formed set of financial indicators, a comprehensive methodology for comparative analysis and selection of investment decisions is proposed, which is based on the application in a certain order and using the capabilities of the methods of comparative analysis of Paret and Bord, as well as fuzzy maximin convolution methods and fuzzy infer-ence, provided that the evaluation criteria are equally important. When using fuzzy methods of analysis, each of the financial indicators is considered as a qualitative criterion for evaluating the effectiveness of an investment project, which is interpreted by suitable fuzzy sets. Based on the results of the calculations, the ranking of hypothetical alternative investment projects was carried out using the considered multi-criteria evaluation methods and their comparative analysis was carried out, which ultimately allows fi-nancing the most effective projects.

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Ostrovskyi, І., and B. Yukhnov. "INTERNATIONAL EXPERIENCE IN PROVIDING FINANCIAL SUPPORT FOR LOCAL INVESTMENT PROJECTS." Series: Economic science 5, no. 158 (September 25, 2020): 79–84. http://dx.doi.org/10.33042/2522-1809-2020-5-158-79-84.

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The article underlines the prospect of studying international experience in the context of decentralization processes in Ukraine. Local authorities and self-governments solve problems of development of industrial and social infrastructure, expansion and modernization of means of production in the conditions of severe scarcity of financial resources. The purpose of the article is to summarize the European experience of financial support for local investment projects, in particular, energy efficiency of housing and communal services. The experience of European countries on the financial support of local investment projects is explored. In the Western literature on financial planning, the importance of cash flow analysis is essential. The development of a cash flow model is performed using the following tools of discounted cash flow analysis, net present value (NPV), internal rate of return (IRR). Financial modelling is a key part of all projects. Drawing attention to strategically important calculations is one of the main tasks in the implementation process. The basic approaches to risk management during the implementation of infrastructure projects are analyzed. Depending on the amount of information available, the risk can be assessed qualitatively or quantitatively. Quantitative risk analysis is performed to calculate risks in terms of cost and impact of time. Qualitative analysis is carried out on risks that have been prioritized for quality risk analysis and have a significant impact on the project. Public-private partnership agreements often do not fully take into account the interests of the financial sector. This limits the ability to attract funds from private investors, including international financial institutions, to local projects. The types of budget financing of local programs are separately identified in the form of project subsidies, government guarantees and targeted investment tax benefits. The main forms of project finance loan can be an investment bank loan, targeted bond loans, equipment leasing and commercial project loan. The experience of the Eastern European countries on the financial support of energy efficiency projects for housing and communal services is considered. The centres of energy efficiency centres or networks should become institutes for financial modelling of projects in Ukraine, according to the experience of Eastern European countries. Universities may be the starting points for such centres. Developing alternative models of energy-saving technologies or tariffs can be an information product and an example of creating a competitive environment in the housing and utilities system. Limited possibilities of the state budget in the context of rising external debt, deterioration of the level and quality of life of citizens, increasing the complexity of business activities require the need for further theoretical alternatives using the experience of other countries, taking into account their own experience and achieving social consensus. Keywords: decentralization, investment projects, financial modelling, financial risks, energy efficiency.

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Bakkoury, Zohra, Driss Ouazar, and Godfrey Walters. "EVAPRO: economic and financial evaluation of water supply projects." Journal of Hydroinformatics 6, no. 2 (March 1, 2004): 109–21. http://dx.doi.org/10.2166/hydro.2004.0010.

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The present paper describes a computer-based system for water supply project appraisal called EVAPRO, standing for EVAluation of water PROjects. The aim of EVAPRO is to facilitate economic and financial assessment of water supply projects under different investment and operating scenarios, and changes to initial system configuration. The software consists of automating the feasibility study of water projects using information about population and water demand forecasts, potential water resources, investment decisions, financial resources and water pricing policy. It embodies a set of tools, including linear programming techniques, numerical methods and financial calculations, and combines operational optimization with financial analysis to assess the feasibility of water supply projects.The software is intended for water production and distribution agencies and aims to assist engineers and decision-makers in water supply project evaluation and feasibility assessment.

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Tashbaev, М., B. Abdullaeva, and А. Beisenov. "RISK - MANAGEMENT OF INVESTMENT PROJECTS USING QUALIMETRIC ANALYSIS." ASJ 1, no. 46 (March 15, 2021): 64–67. http://dx.doi.org/10.31618/asj.2707-9864.2021.1.46.87.

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This article discusses an in-depth analysis of the financial risks of investment projects based on the assessment of financial stability indicators, and the determination of the company's solvency class. This analysis allows you to determine whether an enterprise presenting an investment project on the market is capable of paying off its obligations and minimizing the investor's risks

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Kulakov, Nikolay, and Anastasia Blaset Kastro. "Evaluation of Financial Instruments Possessing Non-Conventional Cash Flow." Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438 12, no. 2 (July 2, 2018): 7–17. http://dx.doi.org/10.17323/j.jcfr.2073-0438.12.2.2018.7-17.

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Investments are often justified and accepted based on the IRR as the main criterion of profitability. However, that criterion is hardly ever used to evaluate some financial instruments (e.g. short sales, options, futures and swaps). This is partially due to the fact that some instruments possess a cash flow describing a borrowing rather than an investment. Others have a non-conventional cash flow and, consequently, the IRR may be meaningless or impossible to determine. We describe a non-conventional cash flow of a financial instrument as a non-conventional project consisting of a sequence of single-period (simple) projects. Each simple project has only two cash flows with opposite signs therefore the IRR for the simple project is always determined. If there is a decomposition in which each simple project has the same IRR value, then that value is the IRR of the non-conventional project. If a decomposition of the non-conventional project into simple projects with the same IRR is impossible, the non-conventional project’s IRR does not exist. If a simple project is an investment then the IRR is a rate of return for an investor. If a simple project is a loan then the IRR is an interest rate for the borrower, but not for the investor. Therefore the NPV method estimates a non-conventional project for two different participants simultaneously that leads to problems with definition of IRR. In order the loan’s IRR would be a rate of return for the investor, but not an interest rate for the borrower, the sign of IRR should be replaced to opposite one. The paper discusses how to use the Generalized Net Present Value (GNPV) method to calculate a yield of the financial instrument with non-conventional cash flow. The function GNPV(r, p) depends on two rates: finance and reinvestment ones that determine a cost of funding and a rate of return, respectively. The equation GNPV (r, -r) = 0 is investigated in the paper. The solution of that equation is the Generalized Average Rate of Return (GARR). We suggest using the GARR as a new measure of a yield for evaluating financial instruments possessing a non-conventional cash flow and estimating a portfolio’s performance over period with contributions and withdrawals.

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King, Malcolm, and Laurie Mcaulay. "Information Technology Investment Evaluation: Evidence and Interpretations." Journal of Information Technology 12, no. 2 (June 1997): 131–43. http://dx.doi.org/10.1177/026839629701200205.

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Structures are important to the practice of information technology (IT) evaluation. Structures, as evidenced by 14 case studies and the words of six financial directors, are defined here as organizational responses, including user committees and responsibility accounting, quantitative assessments of IT projects, such as financial appraisals, and qualitative assessments. Structures in practice seem to allow for a changing world in which projects are accepted according to business needs and subsequent actions lead accepted projects to be adapted and managed as time passes. In order to manage IT technology in this way, structures alone are important but not sufficient. Active individuals have an important role to play and credibility becomes an important factor in evaluation and implementation. The credibility of IT management is created by its selling of the project in the first place and then by its ability to manage the project in a responsive way. Credible strategists are at least as important as a strategy to the evaluation of IT.

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Rudnicki, Maciej. "Metody oceny ekonomicznej i finansowej publicznych inwestycji w dziedzinie ochrony środowiska." Studia Ecologiae et Bioethicae 3, no. 1 (December 31, 2005): 329–38. http://dx.doi.org/10.21697/seb.2005.3.1.20.

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Nowadays, the realization of public, infrastructural investments in the area of environmental protection, is inseparably connected with financing them from various sources, public and private. The majority of funds which finance the investments like this, have very strict criterions of economical and financial evaluation of investment project. Although the public proecologic infrastructural investments concern the area of public services, they are treated like typical economical undertakings by financial institutions. Often , it turns out that well prepared and well organized undertaking does not meet the economical or financial demands of the fund which finances the investment. It is worth, then , to pay attention to some issues about criterions of economical and financial evaluation which are used in respect of public, infrastuctural, proecological investments. The author focused on criterions which are universal so that they recognized and used by many financial institutions and European Committee, European Investment Bank and National Fund of Environmental Protection and Water Economy.

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Atmo, Gigih, and Colin Duffield. "Improving investment sustainability for PPP power projects in emerging economies." Built Environment Project and Asset Management 4, no. 4 (September 2, 2014): 335–51. http://dx.doi.org/10.1108/bepam-10-2013-0051.

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Purpose – Many electricity projects in Asian emerging economies involve private finance using Public Private Partnerships (PPPs) yet problems remain in terms of project initiation, commercial structuring, and financial arrangements. The motivation to pursue previous PPP power projects has been unduly influenced by the ability to attract finance rather than an independent assessment of value for money (VfM) of the project. The purpose of this paper is to present the development of VfM framework for improving investment sustainability of PPP power projects in Asian emerging economies. Design/methodology/approach – The drivers for achieving VfM in projects involving both public and private participants have been determined by a critical review of international practices and the development of sustainable energy systems using grounded theory. These drivers have been used to cross-analyse six Asian PPP power projects. Findings – The evaluation of the case study projects identifies the key determining linkages between the project structure, financial and commercial arrangements, and technical solutions with the ultimate project outcomes. It has been established that project outcomes can be improved through the inclusion of VfM considerations, energy security, and environmental sustainability. On the basis of this investigation, a conceptual governmental decision framework for future investment in PPP power projects is proposed. Originality/value – Advocating a VfM framework for assessment of PPP power project proposals in Asian emerging economies is a new approach and offers enhanced benefits both to the public and private sector.

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Naumenkova, Svitlana, Ievgen Tishchenko, Svitlana Mishchenko, Volodymyr Mishchenko, and Viktor Ivanov. "Assessment and mitigation of credit risks in project financing." Banks and Bank Systems 15, no. 1 (March 6, 2020): 72–84. http://dx.doi.org/10.21511/bbs.15(1).2020.08.

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Lending to long-term investment projects in fragile countries requires additional financial instruments to control the sustainability of project cash flows and to increase the borrower’s financial discipline in debt servicing. This paper analyzes the special aspects of using financial covenants as credit risk mitigation instruments in project financing in Ukraine. It also argues that regulatory requirements to maintain financial strength indicators at the appropriate level have an indirect impact on the change in project finance loan rates. The study primarily aims at developing approaches to defining a credit rate corridor for an investment project, depending on changes in the values of financial sustainability indicators. The implementation of the proposed approach allows increasing the validity of credit risk components for investors and optimizing capital value for borrowers.As required by international practice, violation of covenant terms is the trigger for satisfying the creditors’ claims. According to the authors’ conclusions, the use of financial covenants as a tool for protecting the creditors’ interests should not be an instrument of unreasonable financial pressure on borrowers. The study reveals benefits and drawbacks of using financial covenants to mitigate credit risk and reduce the probability of a borrower default in the field of project financing in Ukraine.

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Žilinskas, Vytautas Jonas. "OPTIMAL SELECTION METHOD FOR INVESTMENT PROJECT." Business, Management and Education 8, no. 1 (December 20, 2010): 21–36. http://dx.doi.org/10.3846/bme.2010.02.

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Under the modern world market conditions the investment activity of enterprises is increasing. Therefore, one of the main aspects of the investment activity guarantee is a selection and apprehension of the main principles of the investment control and possi-bilities of different uses of the investment instruments. For the optimum selection of the investment projects it is suggested to use a formalistic experimental author’s modified method of priority allocation and selection, which gives an opportunity to evaluate the investment project according to different partial criteria and their meaning of importance. Working out this way a complex evaluation of each chosen investment project is obtai-ned. Using the suggested MPSP (modified method of priority allocation and selection) the investment projects are evaluated with qualitative and quantitative criteria. So this method can be used when qualitative criteria of evaluation are predominated. Formalis-tic methods of analysis cannot be used to establish quantitative criteria and those small projects when it is relatively too expensive to apply other usual methods of the financial economic analysis. Method MPSP selection is universal and ordinary so it can be used to establish the efficiency of different projects, to classify projects, to model the strategy of the state economy. If you like to control the realization of the chosen investment project more effectively and rationally it is suggested to use PERT (Program Evaluation and Review Technique).The main control elements of the investment project are reviewed in the article using PERT which is useful to draw up an optimistic reticular schedule of the investment work implementation.

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Kuznetsova, D. D., and T. M. Rogulenko. "THE APPLICATION OF MODERN TOOLS OF PREINVESTMENT ANALYSIS." Vestnik Universiteta, no. 4 (May 27, 2019): 132–40. http://dx.doi.org/10.26425/1816-4277-2019-4-132-140.

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The stability and financial return on investment projects of the domestic oil industry is influenced by many factors: the dynamics of the key rate of the Central Bank of the Russian Federation, foreign and national currency rates, as well as the political and economic situation of the country on the world stage and the behavior of oil exporting countries and OPEC participants. In addition to financial quantitative indicators, it is important for a potential investor to assess other types of risks, that he may face during the implementation of the investment project. The article deals with the tools of pre-investment analysis, applied by oil refining companies in the analysis of future financial flows from implemented investment projects.

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Ahamer, G. "International Financial Institutions Ask to Contribute to Climate Protection." Finance: Theory and Practice 25, no. 4 (August 24, 2021): 6–23. http://dx.doi.org/10.26794/2587-5671-2020-25-4-6-23.

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The aim of this article is to show in which way international financial institutions (IFIs) can contribute to climate protection projects. The principles of IFIs’ project cycles are explained in the context of the new blending tool. The cooperation with other donors stands in the centre of EU project funding and the notion of leveraging allows to quantify the cooperative effect among different donors. The bulk of this article describes the most relevant IFIs and national development banks with an international focus: Green Climate Fund (GCF), European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), French Development Agency (AFD), German Development Bank (KfW), World Bank (WB), Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB). For all these IFIs, descriptions are provided and their main fields of actions identified. The procedure of application (the “project cycle”) is illustrated and an overview of their strategies is given. Thus, this article seeks to provide practical guidance on how to cooperate with IFIs and to direct funds into substantially valid and responsible climate projects.

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Kharchenko, Volodymyr, and Hanna Kharchenko. "Simulation Modeling in Assessing the Effectiveness and Risk of Investment Projects." Modern Economics 22, no. 1 (August 27, 2020): 119–24. http://dx.doi.org/10.31521/modecon.v22(2020)-19.

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Introduction. The article deals with the modeling features in the implementation of investment projects using the Monte Carlo method. The purpose of the article is to substantiate the feasibility of using economic and mathematical models to identify the risks of investment projects in agricultural production, taking into account the randomness of factors. Results. The expediency of using this method during the analysis of projects in agriculture is determined. This type of modeling is a universal method of research and evaluation of the effectiveness of open systems, the behavior of which depends on the influence of random factors. Particular attention is paid in such cases to decisions on the implementation of investment projects. The expediency of using this method in the analysis of projects in agriculture is determined. The main characteristics of the investment project are considered: investments involve significant financial costs; investment return can be obtained in a few years; there are elements of risk and uncertainty in forecasting the results of the investment project. The algorithm of the analysis of investment projects consisting of various stages is offered. The importance of investigating the risks of investment projects in agricultural production is substantiated. It is investigated that the basis of the Monte Carlo method is a random number generator, which consists of two stages: generation of a normalized random number (uniformly distributed from 0 to 1) and conversion of a random number into an arbitrary distribution law. The task of choosing an investment project for a pig farm is proposed. The calculations revealed that the amount of the expected NPV is UAH 63,158.80 with a standard deviation of UAH 43,777.90. The coefficient of variation was 0.69, so the risk of this project is generally lower than the average risk of the investment portfolio of the farm. Conclusions. The results of the analysis obtained using the method of Monte Carlo simulation are quite simple to interpret and reflect the change of factors over a significant interval, taking into account the probabilistic nature of economic factors. Thus, this method allows the implementation of the investment project to assess the impact of uncertainty on the final result of the project.

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Hau, Vu, Munir Husein, Il-Yop Chung, Dong-Jun Won, William Torre, and Truong Nguyen. "Analyzing the Impact of Renewable Energy Incentives and Parameter Uncertainties on Financial Feasibility of a Campus Microgrid." Energies 11, no. 9 (September 14, 2018): 2446. http://dx.doi.org/10.3390/en11092446.

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The popularity of microgrids is increasing considerably because of their environmental and technical advantages. However, the major challenge in microgrid integration is its financial feasibility due to high capital costs. To address this obstacle, renewable energy incentive programs, which are the motivation of this study, have been proposed in many countries. This paper provides a comprehensive evaluation of the technical and financial feasibility of a campus microgrid based on a techno-economic analysis using the Microgrid Decision Support Tool, which was implemented to support decision-making in the context of microgrid project investment. A method for microgrid design aiming to maximize system profitability is presented. The optimal microgrid configuration is selected depending on financial indices of the project, which directly address the returns on an investment. Most importantly, this analysis captures all the benefits of financial incentives for microgrid projects in California, U.S., which presents a key difference between the California market and other markets. The impact of incentives and uncertain financial parameters on the project investment is verified by sensitivity analysis. The outcomes show that the optimal configuration generates significant electricity savings, and the incentives strongly determine the financial feasibility and the optimal design of a microgrid.

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Amallah Binhaq, Arsi. "Design Platform Financial Aggregator in Agriculture." Jurnal Sistem Cerdas 2, no. 1 (April 30, 2019): 34–46. http://dx.doi.org/10.37396/jsc.v2i1.16.

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Investment in agriculture is an important factor to increase country’s revenue. At this time, investment in agriculture was decreased because of low interest from investor to join the agriculture project. This problem can be minimized by giving some information that relevant with investor’s need. Financial Aggregator is the one paradigm for collecting data to get some insight for financial transaction. This paradigm supported by technique called web scraping. Concept financial aggregator can be delivered by designing platform that contain accurate information for investor and farmer to increase their productivity especially in agriculture project. This platform will give analysis data of some agriculture startup and transform it into information that help investor to choose best investment in agriculture.

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Zwirowicz-Rutkowska, Agnieszka. "On the use of IT investment assessment methods in the area of spatial data infrastructure." Geodesy and Cartography 65, no. 1 (June 1, 2016): 111–22. http://dx.doi.org/10.1515/geocart-2016-0005.

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Abstract One of the important issues concerning development of spatial data infrastructures (SDIs) is the carrying out of economic and financial analysis. It is essential to determine expenses and also assess effects resulting from the development and use of infrastructures. Costs and benefits assessment could be associated with assessment of the infrastructure effectiveness and efficiency as well as the infrastructure value, understood as the infrastructure impact on economic aspects of an organisational performance, both of an organisation which realises an SDI project and all users of the infrastructure. The aim of this paper is an overview of various assessment methods of investment as well as an analysis of different types of costs and benefits used for information technology (IT) projects. Based on the literature, the analysis of the examples of the use of these methods in the area of spatial data infrastructures is also presented. Furthermore, the issues of SDI projects and investments are outlined. The results of the analysis indicate usefulness of the financial methods from different fields of management in the area of SDI building, development and use. The author proposes, in addition to the financial methods, the adaptation of the various techniques used for IT investments and their development, taking into consideration the SDI specificity for the purpose of assessment of different types of costs and benefits and integration of financial aspects with non-financial ones. Among the challenges are identification and quantification of costs and benefits, as well as establishing measures which would fit the characteristics of the SDI project and artefacts resulting from the project realisation. Moreover, aspects of subjectivity and variability in time should be taken into account as the consequences of definite goals and policies as well as business context of organisation undertaking the project or using its artefacts and also investors.

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Sheen, J. N. "Investment Profitability Analysis for Wind Power Project in Taiwan." Applied Mechanics and Materials 835 (May 2016): 753–59. http://dx.doi.org/10.4028/www.scientific.net/amm.835.753.

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In this paper, fuzzy financial evaluation models are derived to analysis investment financial profitability and possibility for wind power generation project in Penghu, Taiwan. The financial subsidy and feed-in tariff (FIT) are two effective market mechanisms to promote wind power development in Taiwan. The performances of the proposed fuzzy profit models are verified by considering their application to a simulation case. The study shows the fuzzy financial indexes of the simulated 2,400 kW wind power project may little uneconomic possibility, with negative net present value, with benefit cost ratio smaller than 1, and with payback years longer than its life span, in both two scenarios. The FIT rates should be revised to match wind power current market to give more attractiveness for potential investors. The studied results are also consistent with those provided by the conventional crisp models, and provide readily implemented possibility analysis tools for use in the arena of uncertain finance.

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Ademola, Samuel Alaba, Aishat Sarki Musa, and Idachaba Odekina Innocent. "Moderating Effect of Risk Perception on Financial Knowledge, Literacy and Investment Decision." American International Journal of Economics and Finance Research 1, no. 1 (February 27, 2019): 34–44. http://dx.doi.org/10.46545/aijefr.v1i1.60.

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Financially unsophisticated investors who consistently make sub-optimal financial decisions may suffer lasting consequences for long-term wealth accumulation and welfare. This study examines moderating effect of risk perception on financial knowledge, literacy and investment decision. Data was collected from 378 investors through the aids of structured questionnaires. The research hypotheses were tested using partial Least-square (PLS) regression. The findings reveals that there is positive and significant effect between financial knowledge, risk perception and investment decisions, while positive but insignificant effect was found between financial literacy and investment decisions. However, risk perception moderates the effect of financial literacy, investment knowledge on investment decisions. It recommends that investors, policymakers and individuals investors should embark on various educational programmes, to further influence the level of their investment decisions before committing their hard earning fund into project.

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Semenova, Galina. "Investment in ecology." E3S Web of Conferences 258 (2021): 06062. http://dx.doi.org/10.1051/e3sconf/202125806062.

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Investing money in environmental protection measures is an investment project. The ecological problem is one of the global problems of our time. Disposal of household waste and their pollution of the environment is currently one of the most serious environmental problems in Russia. Human waste products also significantly affect the pollution of water bodies, since water that is used in cities for the needs of the population from the sewage system often enters directly into open water bodies, bypassing the system of treatment facilities, the quality of which leaves much to be desired: most of them almost cannot cope with their functions due to outdated and deteriorated equipment. In Russia, the national project “Ecology” has been adopted, since the need for the introduction of new technologies that do not harm the environment has long been acute. The subject of the study is the investment of enterprises and organizations in environmental innovations for the preservation of natural resources. The purpose of the study is the necessity and significance of investments in high-tech projects to improve the environmental situation and reduce emissions of pollutants into the air. Methodology. The financial support of the new national project “Ecology” has been studied. The companies that successfully implement the latest technologies in their production, focused on reducing the harm caused to the environment, thereby attracting investments in their projects, are highlighted. Results. Enterprises will be able to attract investments for the development of their own production only if they are attractive to investors, for whom such aspects of work as the introduction of modern technologies, taking into account the minimization of harm to the environment, are extremely important.

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Jose, Prakash Arul, Rajesh Prasanna, and Fleming Prakash. "New Construction Methodology - A Strategic Approach of Financial and Market Feasibility for Geothermal Cogeneration Plant." Advanced Materials Research 984-985 (July 2014): 774–83. http://dx.doi.org/10.4028/www.scientific.net/amr.984-985.774.

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Abstract-While constructing the geothermal cogeneration plant the success of the projects depends upon its financial and market feasibility. A new optimization method is used to estimate financing requirements of investment projects will be presented, as well as a new method to predict the optimal year to sell the investment. A case study is used to illustrate the use of a model to assess the financial feasibility of a geothermal cogeneration plant. The conclusion is that Net Present value , Internal rate of Return and Modified Internal rate of Return should be used to assess financial feasibility of investment projects. In addition to calculating the financial feasibility criteria, assessment models should allow the user to perform sensitivity analysis, scenario analysis, and simulation to analyze risk associated with the investment project. Risk probability matrix is used to obtain the risk priority , which then continued with financial analysis for the feasibility study and also sensitivity analysis. The study shows that the parameter investment value will be increased when treatment is done on risk.Keywords:Financial and market feasibility, Geo thermal cogeneration plant, Environmental Aspects, Sensitivity analysis.

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Переверзева, В., and V. Pereverzeva. "PROJECT FINANCING AS A TOOL FOR REGIONAL PROJECT LENDING." Bulletin of Kemerovo State University. Series: Political, Sociological and Economic sciences 2018, no. 2 (March 25, 2018): 128–32. http://dx.doi.org/10.21603/2500-3372-2018-2-128-132.

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<p>Further development of single-industry towns, as well as solution of their acute socio-economic issues demand modernization, redevelopment of city-forming enterprises on an innovative basis, formation of a new «image», all of which is impossible without attracting significant financial resources. In the conditions of limited budget financing, aggravated by the necessity to implement major investment projects, only the most effective methods of financing investment activities should be applied in single-industry urban environment. It is justified that in monocities, whose economy is characterized by a high level of risks, it is advisable to use such method as project financing for financing investment processes. World experience in managing the economy in risky and crisis situations shows that project financing is the most effective and sustainable form of financing, which justifies the significant legal and administrative costs inherent to its implementation. Regional analysis of the world market of project financing allows us to conclude that this form of financing is especially useful for countries and regions with underdeveloped institutions.</p>

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Levandivsky, O. "Theoretical essence of investment and investment-one process in investing firm energy enterprises." Ekonomìka ta upravlìnnâ APK, no. 2(151) (December 16, 2019): 96–103. http://dx.doi.org/10.33245/2310-9262-2019-151-2-96-103.

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The article examines the theoretical nature of investment and the investment process in investing in agricultural enterprises. It is noted that the investment theory began to take shape simultaneously with the world market, the development of which was caused by the great geographical discovery of the XV-XVI centuries. The investment theory of the era of mercantilism is considered. It was proved that they identified the wealth of the nation with money, and money with precious metals. In the works of physiocrats, investment was considered as a process aimed at restoring and increasing capital, with the help of which not only production in agriculture is carried out, but national wealth as a whole grows. Representatives of the school of neoclassical direction, it was determined that the proposal is governed by the bank interest rate, which acts as the offer price in the capital market, and demand - the rate of return on invested capital, which gets the entrepreneur. It is proved that in the broad sense of Keynesian investment theory can be considered protectionist, since it promotes the protection of the national economy from foreign investment. Based on an analysis of investment research, leading foreign and domestic scientists have made certain conclusions in determining the nature of investments and the investment process in investing in agricultural enterprises. Considered the main factors affecting the volume of investment. Focused on an investment project. It has been proven that the development and implementation of an investment project (primarily a production focus) under market conditions consists of three phases: pre-investment (a preliminary study before the final investment decision); investment (design, contract, contract, construction) and production (phase of economic activity of the enterprise). In turn, these phases are divided into stages and stages: investment motivation, forecasting and programming of investments, rationale for investment, insurance of investments, government regulation of the investment process, investment planning, financing of the investment process, design and pricing, provision of investments with material and technical resources, development of investments, preparation for production, previous delivery and acceptance into operation, final Dacha facility. The significance of the investment component of the development and operation of an agricultural enterprise is described, the role of which is exacerbated in the context of the instability of the economic environment and the permanent lack of financial resources. Keywords:investment project, financial resources, net profit margin, lending rate, inflation.

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Zvieriakov, M. I., and D. V. Zavadska. "Formation of institutional model of project financing in Ukraine." Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu, no. 3 (2021): 155–61. http://dx.doi.org/10.33271/nvngu/2021-3/155.

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Purpose. Substantiation of the formation of the mechanism of project financing for solving issues of financial maintenance of infrastructural projects of innovative development in Ukraine. Methodology. The information base of the research is legislative and normative documents and results of scientific achievements of leading foreign and domestic scientists. The following methods, such as analysis and synthesis; comparison and systematization; observation; graphic, tabular; logical generalization are used. Findings. According to the results of the research, it is proved that to ensure sustainable economic growth and diversification of Ukraines economy, the importance of institutions for development and use of such a multi-instrumental form of reproduction of real investments as project financing, becomes actual. Based on the system approach, the features, elemental composition and subsystems of the project financing mechanism are determined. It is established that the current legislative basis for the formation of the project financing mechanism in Ukraine is fragmentary and needs further development. It is proved that the implementation of measures of state stimulation of the processes of financing the innovative development of Ukraines economy will be facilitated by the adoption of the Laws of Ukraine On The Bank of Development, On Syndicated Loan and the proposals for the formation of project financing developed in the research. Originality. For the first time, a comprehensive theoretical approach to the formation of the project financing mechanism in Ukraine has been implemented. The need is substantiated for highlighting such subsystems of the mechanism as providing subsystem (institutional environment of which is legislative support and regulatory bodies), transforming subsystem (financial instruments and participants of which are the Bank of Development, international financial organizations, banks, institutional investors, development institutions, project sponsors) and performance subsystem (financial resources in the required amounts, currencies and terms). The effective operation of the proposed mechanism helps to overcome the shortage of long-term financial resources needed for lending support of innovative enterprises that implement large-scale and capital-intensive investment projects and programs of national importance. Practical value. Introduction of the mechanism of implementation of the program for supporting the project financing development will allow accumulating considerable amounts of financial resources from various sources on a long-term target basis; increasing the level of investment and the number of innovative projects; reducing the total cost of funding and risks through their redistribution among participants of the project.

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Sundjaja, Arta Moro. "Perencanaan Keuangan untuk Mencapai Tujuan Finansial." ComTech: Computer, Mathematics and Engineering Applications 1, no. 1 (June 1, 2010): 183. http://dx.doi.org/10.21512/comtech.v1i1.2218.

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Financial planning of individuals started a trend in Indonesia in recent years. This paper will attempt to design an individual financial planning. Object of this project include individual financial planning and financial management, investment planning, financial planning elements, prepare an emergency fund and retirement funds, education costs and achieve other financial goals. Of this paper is expected to increase the knowledge of individuals in managing finances and choosing the right media investments and achieve their financial goals.

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Ngoc Linh, Nguyen, Xiao Wan, and Hoang Thi Thuy. "Financing a PPP Project: Sources and Financial Instruments—Case Study from China." International Journal of Business and Management 13, no. 10 (September 27, 2018): 240. http://dx.doi.org/10.5539/ijbm.v13n10p240.

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The Public-Private Partnership (PPP) model is often referred to as a new effective way in funding issue solving for infrastructure development and management. A PPP model project involves numerous of stakeholders and the most typical and basic PPP model comprised of three actors: Government, the private sector and financial institutions. Based on the features of PPPs, the differences between PPP model and traditional financing methods are clearly demonstrated through the financing period; investment and financing subject; property ownership; financing credit basis; financing purposes; source of repayment; guarantee; and degree of financing risk. On the other hand, the selection of a suitable structure from the financial source is based on the choice of the best combination of equity and debt. In terms of project financing structure, it can be divided into three main sections: equity contributions, debt contributions and mezzanine/Subordinated contributions. Moreover, according to the characteristics of different PPPs, the financial structure of the project will be determined to optimize the financial benefits of the project. Furthermore, for each stage of the project, financial instruments will be used appropriately. This paper will deliver a summary and review of PPP projects, as well as the stakeholders involved in implementing a project under a basic PPP model. In addition, this paper will discuss the financial structure of a project, and the PPP project financial instruments that commonly used will also be clearly analyzed. Based on the in-depth knowledge of the PPP model, the paper will depend on the development situation of the PPP model in some countries, especially China, to provide visual examples of each financial instrument.

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Korytárová, Jana, and Barbora Pospíšilová. "Evaluation of Investment Risks in CBA with Monte Carlo Method." Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 63, no. 1 (2015): 245–51. http://dx.doi.org/10.11118/actaun201563010245.

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Investment decisions are at the core of any development strategy. Economic growth and welfare depend on productive capital, infrastructure, human capital, knowledge, total factor productivity and the quality of institutions. Decision-making process on the selection of suitable projects in the public sector is in some aspects more difficult than in the private sector. Evaluating projects on the basis of their financial profitability, where the basic parameter is the value of the potential profit, can be misleading in these cases. One of the basic objectives of the allocation of public resources is respecting of the 3E principle (Economy, Effectiveness, Efficiency) in their whole life cycle. The life cycle of the investment projects consists of four main phases. The first pre-investment phase is very important for decision-making process whether to accept or reject a public project for its realization. A well-designed feasibility study as well as cost-benefit analysis (CBA) in this phase are important assumptions for future success of the project. A future financial and economical CF which represent the fundamental basis for calculation of economic effectiveness indicators are formed and modelled in these documents. This paper deals with the possibility to calculate the financial and economic efficiency of the public investment projects more accurately by simulation methods used.

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Jenkins, Mauricio, and Leo Miguel Guevara. "Financing renewable energy: La Esperanza Hydroelectric Project." Management Decision 52, no. 9 (October 14, 2014): 1724–49. http://dx.doi.org/10.1108/md-11-2013-0585.

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Purpose – This is a teaching case to be used in courses on funding and execution of renewable-energy projects, sustainable development, project finance or management of financial institutions. The case has been successfully used in courses at the graduate level as well as in executive education. The purpose of this paper is to achieve the following specific objectives. First, to illustrate the adjusted present value (APV) methodology to value investment projects in a project finance setting. Second, to show how APV methodologies can be used to value investment projects with subsidized financing and temporary fiscal incentives. Third, to understand how financial institutions use debt service coverage ratios to measure the capacity of projects to repay debt obligations. Design/methodology/approach – The primary source of information for the study case came from in-depth interviews with senior officials from E+Co and project sponsors. Documents from E+Co's loan approval process and investment committee minutes were also consulted. Also a site visit was performed. Findings – The case is quite interesting along several dimensions. To begin with the case deals with an important (and somewhat difficult decision) the general manager of a financial institution has to make. From a technical point of view, the case involves an APV analysis and requires the estimation of the value added (or destroyed) by several collateral effects of debt in the capital structure of the project (something seldom treated in formal courses or standard finance textbooks). In addition, even though standard financial analysis would probably have led to select on alternative course of action, the authors know the protagonist of the case actually decided to do something different based on an additional analysis (a nice postscript for the case, therefore). Research limitations/implications – Been a case study, the findings may be quite particular of the particular situation and context. However, the case provides good insight into the difficulties and problems entrepreneurs face in developing economies as well as in funding small renewable energy projects around the world. Practical implications – The case provides a number of important lessons and learning opportunities for sponsors of renewable energy power projects and managers of financial institutions. Originality/value – Please refer to the findings section above.

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Han, Zhe, Juan Diego Porras-Alvarado, Jingran Sun, and Zhanmin Zhang. "Monte Carlo Simulation–Based Assessment of Risks Associated with Public–Private Partnership Investments in Toll Highway Infrastructure." Transportation Research Record: Journal of the Transportation Research Board 2670, no. 1 (January 2017): 59–67. http://dx.doi.org/10.3141/2670-08.

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The demands for delivering highway services keep growing worldwide. However, funding from government and public agencies alone cannot cover the capital needed to operate and maintain existing highway systems, much less to construct new ones. Public–private partnerships (PPPs) are an innovative funding mechanism for highway agencies to use private capital and expertise in transportation infrastructure projects so as to increase funding options to bridge the budget gap. Even though parties involved in PPPs take different roles and responsibilities, there are still risks taken or shared by the public and private sectors. In particular, assessing risks associated with the potential returns of investments is of great importance to the private and public sectors. This paper presents a methodological framework for assessing the investment risks of PPP toll highway projects, which may help decision makers. The financial viability associated with the components of a project is considered and analyzed, and the Monte Carlo simulation technique is applied to evaluate the overall project risks. Finally, a numerical case study is conducted to demonstrate the application of the proposed method. The risk analysis provides statistical distribution of investment returns for the project under analysis, which will supply decision makers with direct information to estimate the project’s overall financial risks and develop corresponding risk control measures. The risk simulation results are interpreted so that quantitative information can be provided to agencies to establish investment decision criteria.

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Journal articles on the topic 'Financial investment project'

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