The economic value, utility and cost of an investment enterprise’s activity

Abstract

The purpose. The purpose of the article is to define the substantive aspects and to formulate the terms of the utility, economic value, and cost of an investment enterprise’s activity. These terms clarify the sense and meaning an investment activity in the value creation of an enterprise for its stakeholders. Method. The theoretical base is the research of Ukrainian and foreign scientists about a utility and value, an investment activity, a value-oriented management, theory of stakeholders. Methods of research are based on the methods of generalization and systematization, analysis and synthesis, induction and deduction. Results. There is research on an investment enterprise’s activity as an organic and inseparable part of an economic activity. The article is defined that the investment objectives are drivers of value creation. In addition, the results of an investment enterprise’s activity are indicators that characterize its contribution in the formation of the economic enterprise’s activity results. Scientific novelty . The author’s definitions of the utility, economic value, and cost of an investment enterprise’s activity are given. The definitions characterize these terms as a process rather than as general terms that are characterized as a result. A cost of an investment enterprise’s activity is considered as a monetary form of an economic value, which reflects the integration of an economic utility and its investment expenditure. The link among the utility, economic value, and cost of an investment enterprise’s activity is considered. It reflects the step-by-step influence and meaning of an investment enterprise’s activity in the formation of the results of an economic activity. The results are afterwards reproduced in market capitalization and enterprise image, which, as a result, affect an enterprise’s value for its stakeholders. The practical significance . The article results can be applied to an enterprise’s management when the future objectives of investing are defined. They can be helpful in creation of the base value of an economic enterprise’s activity in order to improve the value of the enterprise.