Investment Appeal of Modern Electric Power Generating Companies

Abstract

Nowadays, the conditions for the further reforming of Russian electric power industry and developing its generating companies are changing. However, the problems of attracting investments into this sphere and increasing the investment appeal of the involved companies remain unsolved. The purpose of the research is to assess the investment appeal of the modern wholesale and territorial companies generating electric power, mainly for portfolio investors. The assessment was primarily conducted using the method of financial ratios, taking into consideration the approach used by A. Zaporozhan, A. Petrova and M. Kalvarskaya for assessing investment appeal of generating companies at the initial stage of the reforming of Russian electric power sector. Specific amendments to this approach are suggested. These amendments concern the increase of the number of the assessed objective financial indicators and specification of their content. Componentwise ranking of companies according to their investment appeal was conducted. It allowed the author to identify leaders and outsiders. One can observe comparability of the obtained results with the assessment of the investment appeal of generating companies as far as the quality of their corporate management is concerned, conducted by the center for corporate development ТopCompetence, Association of Independent Directors and National Research University «Higher School of Economics».