Financing Of Investment Projects Research Articles

Who funds whose infrastructure? Country dyadic analysis of global project finance loans

Global project finance investments have become one of the primary funding mechanisms for large infrastructure projects worldwide over the past few decades. This paper examines the country-level dynamics of global project finance loans from 1981 to 2018, using data from all project finance deals reported in the DealScan database. Our analysis reveals that most international project finance loans originate from banks and financial institutions in advanced democracies, while the recipient countries vary widely in terms of regime type and economic development. Through systematic visualization and statistical analysis, we find that transnational capital flows for infrastructure projects are more likely to occur between countries with similar political systems or between those with starkly different regimes. This finding indicates significant lending and borrowing between full democracies and closed autocracies, suggesting that investments raised in liberal democracies enable some of the most closed dictatorships to finance their infrastructure development. The study suggests that closed and repressive regimes might substantially benefit from the globalized project financing system, warranting increased attention from scholars in International Political Economy on political implications of the globalized project finance market.

Islamic securitizations, what they are and their developmental role, a study in the experiences of selected countries.

The research aims to present perspective of Islamic securitizations (instruments), their characteristics, and how they can contribute to achieving economic development, by shedding light on the applying experience in leading Islamic countries, namely Malaysia, Saudi Arabia, and the Emirates. This research has applied the descriptive and analytical approach by addressing the nature of Islamic instruments, their characteristics and their developmental role. The research has concluded a number of results, the most important results are as follows: that Islamic securitization is one of the means that contribute to achieving economic development as an effective financing tool by linking the financial sector with the real economy, and it contributes to achieving economic development by financing investment projects and eliminating the problem of unemployment. Islamic securitization has achieved remarkable development in Malaysia, as the local securitization market in Malaysia is an important platform for government agencies and investment companies in securitizations. The ratio of Islamic securitizations to GDP in the Kingdom of Saudi Arabia increased from 24.7% in 2012 to 39.34% in 2020. The United Arab Emirates ranked first among the Gulf Cooperation Council countries in issuing Islamic securitization with an amount of $63.644 billion.

STATE AND PROSPECTS FOR THE DEVELOPMENT OF ISLAMIC FINANCE INSTRUMENTS (SUKUK) IN RUSSIA AND ABROAD

The search for new sources of financing investment projects in modern Russia in the context of external sanctions and the implementation of geopolitical threats actualizes the problem of incorporating Islamic finance instruments into the structure of the financial market. The early twentieth century development experience of a number of foreign countries shows the steady growth of the assets of Islamic banks, investment funds and the volume of issuance of investment certificates (sukuk), which constitute the main segments of Islamic finance in the world. Islamic financial assets are widely represented in the Gulf countries, Southeast Asia, the Middle East and South Asia, and Africa. The implementation of the principles of Islamic finance in the Russian Federation is hampered by legal, cultural, historical and political factors. While there are certain Islamic financial products in Russia, there is no issue of sukuk at all. In this regard, the purpose of this paper is to study the principles of Islamic finance and the functioning mechanism of the market for the investment certificates (sukuk), possibilities and limitations of their implementation in the modern Russian economy. The author defines sukuk as an Islamic financial instrument used for securitization of assets, and identifies its differences from traditional bonds. Alternative approaches to solving the problem of compliance of sukuk with Sharia principles are analyzed. The prerequisites for realizing the potential of sukuk in modern Russia are determined and the obstacles to their issuance are formulated. It is concluded that the adoption of the Federal Law of 04.08.2023 N 417-FZ "On Conducting an Experiment to Establish Special Regulation in Order to Create the Necessary Conditions for Carrying out Partnership Financing Activities in Certain Constituent Entities of the Russian Federation and on Introducing Amendments to Certain Legislative Acts of the Russian Federation" and its implementation, taking into account its provisions of pilot projects in a number of Russian regions, will make it possible to intensify the process of incorporation of project financing instruments into the structure of the financial markets of modern Russia.

FORMATION OF ANALYTICAL SUPPORT FOR THE DEVELOPMENT OF THE ENTERPRISE`S INVESTMENT STRATEGY

The article is devoted to the formation of analytical support for the development of an enterprise's investment strategy. The study examines the approaches of scholars to defining the essence of the concept of “investment strategy”. The investment strategy is considered as a long-term plan of investment activity aimed at achieving certain goals by analyzing and selecting the most effective ways to achieve them, taking into account internal and external factors of development. According to the results of the study, the analytical support for the development of an investment strategy is formed, which is represented by a number of absolute and relative financial indicators, as well as an integral indicator of investment potential. Based on the results of the analysis, the downward dynamics of a number of indicators has been identified, the consideration of which is of particular importance in the development of an investment strategy. As a result, it was determined that the enterprise tends to reduce its investment potential, the level of the enterprise's ability to finance new projects from its own sources decreased during the studied period. Participation of the company in grant competitions and attraction of grant funds is considered as a perspective direction of attracting sources of financing for investment projects of Alan LLC

DETERMINANTS OF THE DIMENSIONS OF FINANCING FOR INVESTMENT PROJECTS TO CREATE JOBS DURING THE PERIOD 2002-2013: A QUANTITATIVE STUDY OF THE NATIONAL AGENCY FOR INVESTMENT DEVELOPMENT IN ALGERIA

The study aims to fix the determinants of the financing dimensions of investment projects completed during the period 2002-2013. The purpose of undertaking these investment projects is to reduce unemployment and create new jobs. The study is purely quantitative after a complete database was obtained for each of the 48 states of Algeria, according to the administrative division in that period, from the National Agency for Investment Development (NAID) in Algeria. The determinants of the dimensions of financing for investment projects were obtained after we used the statistical technique of multiple linear regression analysis. From the perspective of the objective database, the methodology used to analyze the data, and complete transparency in dealing with the research process, we can confirm that the research results are honest and reliable, and the results can be generalized and a strategy for promoting investment in Algeria can be drawn up on a correct basis.

Dynamics of green finance in the Russian Federation

Against the backdrop of the growing importance of sustainable development and environmental protection issues, the urgent need to increase the share of “green” investments in the financing of investment projects is substantiated. The study proposes to pay special attention to the formation of a solid regulatory framework in the field of green finance. The proposal includes the development of a strategy and concept for the development of green financing, as well as a law that would establish an effective mechanism for the implementation of green financing, taking into account the peculiarities of Russian reality. This mechanism should make private investment more attractive for financing projects and contribute to the creation of a set of measures, including ways to reduce the financial burden on the federal budget and the budgets of the Russian Federation constituent entities. We come to the conclusion that Russia should take into account global experience and practices in the field of green financing, as well as stimulate the introduction of concession agreements and public-private partnerships. The introduction of “green” financing will contribute to the preservation of natural resources and their further increase, which will allow the creation of innovative products, promote the development of scientific and technological progress, and also preserve the health of the nation, since products made in “green” financing projects are environmentally friendly.

The role of Islamic banks in financing renewable energy projects

The main goal of the study is aimed at determining the role of Islamic banks in financing renewable energy projects. The relevance of the study is due to the need for sustainable economic development of the energy sector of the world economy. Increasing interest in the world in renewable energy sources and networks, which will reduce the energy dependence of countries and reduce consumer tensions, confirm the need for research. Trends in the development of the energy sector in the world are considered. The basic directions in the development of renewable energy projects are conceptualized. The specifics of financing and investment attractiveness of renewable energy projects are highlighted. The investment trends of Islamic banks in renewable energy investment projects are structured. The role of Islamic banks is structured and financial instruments are highlighted with an emphasis on investment direction in the field of renewable energy. The results of the study contain trends in the development of the global energy sector and a statement of the key role of Islamic banks in financing investment projects for the development of renewable energy sources, which can be applied in practice when studying finance and planning investments in the field of energy.

Priorities of Financial System Regulation in the Context of New Challenges for Russia

The article examines the issues of regulating the Russian financial system in the context of new challenges. The necessity of state regulation of the financial system development as a condition for the formation of financial relations that ensure the effective development of the economy is substantiated. The process of countering the impact of sanctions on the Russian financial system is analyzed, and it is shown that the increase in the system’s resistance was determined by measures reforming it during the pre-sanctions period. An assessment of the regulatory measures taken in the Russian financial system was carried out in accordance with the effect obtained. In order to assess the potential of adapting the financial system to existing and new challenges, the authors considered the financial indicators of the development of the credit, investment and financial markets, which revealed the development of a positive trend in the credit market due to the adaptation of the banking system to new conditions. The Russian investment market, on the contrary, shows negative trends related to the impact of sanctions, which have paralyzed the inflow of foreign investment. The authors prove that the reason for the development of the current situation is the lack of targeted support from government agencies to ensure the development of financial instruments for financing investment projects at the expense of internal sources of investment attracted from the financial market. The analysis of the financial market has shown that there are discrepancies between the activity of individuals in the financial market to open brokerage accounts and the actual transactions for the purchase of financial instruments due to the low level of financial literacy and lack of experience in conducting financial transactions for a significant majority of participants. To overcome this gap, the authors propose to introduce differentiation into the current system of improving financial literacy of the population by classifying participants by age, orientation to financial transactions, level of risk attitude, and also to include financial organizations that sell financial products to the population in this system.

ЛЬГОТНЫЕ ПРОГРАММЫ ФИНАНСИРОВАНИЯ, КАК ОДИН ИЗ ИНСТРУМЕНТОВ РЕАЛИЗАЦИИ ИНВЕСТИЦИОННЫХ ПРОЕКТОВ ИНЖИНИРИНГОВОГО ДИВИЗИОНА ГК «РОСАТОМ»

The article analyzes the changes in the conditions for the implementation of investment projects of the Engineering Division of Rosatom State Corporation as a result of the sanctions burden and changes in general economic situation. The influence of the key rate of the Central Bank of the Russian Federation on investment activity and the choice of sources of financing investment projects is shown. At the present stage, preferential financing programs are becoming particularly important as an effective tool for implementing investment projects. Analysis and monitoring of their use is presented in this article.

THE NEED FOR INVESTMENT PROJECT MONITORING IN EFFECTIVE BUSINESS MANAGEMENT

Modernization of the economy, technical-technological rearmament of priority sectors, production of competitive products on the world market, and increase of the country's export potential are among the urgent issues today. The implementation of these tasks cannot be imagined without investments. That is why we are paying serious attention to the financing of investment projects in our country. Because the investment project is an important factor that ensures the growth of the economy and the development of production.

Unconventional monetary policy, financial frictions, and the equity tandem

A key feature of many DSGE frameworks designed to model Quantitative Easing (QE) is that net worth only plays a relevant role on bank’s balance sheets. In reality, however, net worth of borrowers and lenders plays a relevant role in financing investment projects. I show that this equity tandem has important implications. Net worth of non-financial firms acts as a first line of defense, since non-financial firm’s balance sheets are hit in the first place by real sector shocks. Modeling the equity tandem increases the resilience of the model and, therefore, implies smaller gains of unconventional monetary policy. A novel insight from the simultaneous modeling of borrowers and lenders net worth is that by decreasing the cost of external finance a QE policy is redistributing net worth from banks to non-financial firms. Additionally, considering the reverse operation, a credibly announced Quantitative Tightening (QT), helps to stabilize the spread between the return to capital and the deposit rate during the zero lower bound period. However, different anticipated QT paths are shown to have little consequences for output and inflation.

Ways to increase ecotourism services in the international tourism market

The experience of foreign countries and international organizations regarding the development of ecological tourism was analyzed, and the activities of progressive, scientifically based global practices were investigated. The main problems that prevent the implementation of international experience in the Ukrainian space have been identified, namely: lack of state support for the development of rural, ecological (green), agrarian tourism; low level of information support; imperfection of the legislative and regulatory framework; limited amount of investment resources; insufficiently practical application of the mechanism of public-private partnership when attracting non-traditional sources of financing investment projects; low level of activity of local authorities in the development of ecotourism; lack of tax benefits for persons involved in the provision of ecotourism services. The priority directions for developing ecotourism in Ukraine are given, taking foreign experience into account. The importance of developing and popularizing Ukrainian ecological tourism on international markets as an element of ensuring a stable situation in the tourism industry is noted. Ecotourism products on the international tourist services market were studied. The types and classifications of ecotourism products, organization, and promotion of tourist services in the international tourist market were studied. It has been established that ecological tourism is gaining more and more popularity and occupies a significant place in the tourism industry. It was determined that the emergence of a new type of tourism has a positive effect on the economic development of countries. The most popular in ecological tourism are tours to those countries where there are still priceless natural resources. It was analyzed that the primary goal of ecotourism is the study and preservation of the environment, the preservation of priceless landscapes. This is the main difference from other types of tourism. The potential for the development of international ecotourism is significant. However, it needs to be used more. Thus, one of the main tasks in the field of tourism development is the creation of ecological paths and ecotourism paths. Ecological tourism can be a specialization that will become a competitive alternative to irrational economic activity and, with the support of state institutions, a natural mechanism for ensuring the region's sustainable development. Thus, the development of international ecotourism is a necessary prerequisite: the availability of resource potential, a harmonious combination of natural and anthropogenic objects, and a network of tourist routes that can become the basis of road tourist routes. Keywords: eco-tourism, prospects, solutions, problems, implementation, tour

Financing investment projects in the IT sector of the Russian economy

The purpose of the article is to analyze the specifics of financing investment projects in the IT sector of the Russian economy. As part of the paper’s research objectives systemic aspects and peculiarities of investment in the IT sphere, state of the Russian IT market, and trends in its development have been considered. IT investment types and characteristics have been analyzed. Research methods include data systematization and generalization on the topics of modern research on the peculiarities of financing investment projects in the IT sector of the Russian economy. The developed target mechanism allows to consider system aspects of investment and improve validity of the most effective option choice for the IT sphere, which is a new scientific result obtained by the author. Based on the proposed sequence of using the target mechanism, it is possible to develop effective algorithms for decision-making on investment in the IT sphere.

NATURE, TYPES AND FACTORS AFFECTING INVESTMENTS

The very fact that the concept of investments, as the main economic concepts of modernization of the economy, has entered our lives today widely and quickly shows its essence and importance, necessity, and creates the need to reveal it. This concept brings with it the discovery of many new concepts and economic knowledge, such as the concept of investment projects, the implementation and financing of investment projects, their technical and economic justification and expertise, project analysis, evaluation and monitoring of the effectiveness of projects, and their discovery in our economic life today. making us realize how important it is.

Сравнительная характеристика моделей финансирования инвестиционных проектов акционерных обществ

The article considers the role of investments in the modern economy. A comparative analysis of the models of financing investment projects of joint-stock companies is carried out: equity financing; debt financing; mixed financing. The main parameter of the effectiveness of the investment project, which is the net present value of the cash flow of shareholders who purchased additionally issued shares, has been analyzed. The effectiveness of financing from borrowed funds is calculated, as well as the calculation of mixed financing. The optimal scheme of financing the investment project was determined by selecting the ratio of the share of borrowed and own funds, taking into account the financial capabilities of the economic entity, the interest rate on the loan and the rate of return on equity. The advantages and disadvantages of each model are noted. The indicators of net present value of different financing schemes are given. The model of mixed financing is considered the most effective, it is implemented through the involvement of both legal entities and individuals in the investment project, and, in some cases, of the state. It is emphasized that the reasonable attraction of financing sources and their rational use, developing an effective capital structure contribute not only to the development of the organization's activities, but also increase its competitiveness and investment attractiveness. Conclusions are drawn about possible implementing the model of public-private partnership. Graphs of indicators of the net present value of shareholders and enterprises in different models of financing investment projects of joint-stock companies are presented.

Impact of financial leverage on the performance of tourism firms in the MENA region

Purpose – Leverage refers to the use of borrowed capital to finance investment projects. The question of how much debt is optimal for a firm has always been challenging for business managers and scholars alike. Most empirical studies have tried to achieve this, but no conclusive findings have been produced yet. The debt-equity balance changes with the industry, and what is optimal for one industry may not be so for another. Our study aims to determine the impact of leverage on the financial performance of tourism firms in the MENA region. Methodology – To this purpose, we have collected data from a sample of 71 listed firms from the tourism sector. We have employed pooled and static panel regression, using published financial information from 2010 to 2021 in the MENA region. We obtained an unbalanced and cross-sectional panel of 768 firm-year observations from the 71 firms used in the study. Findings – The findings reveal that leverage represented by the debt ratio and equity ratio has a significant negative impact on the financial performance of tourism firms represented by ROA and ROE. Conclusion – The implication of the study findings is that debt levels beyond a certain level can be detrimental to firm performance. Consistent with the trade-off theory, managers must carefully balance the advantages and disadvantages of borrowings over their own capital. Keywords: MENA, tourism industry, performance, profitability, leverage, capital structure. JEL Codes: M41, Z33

Availability of bank loans for economic entities in Kazakhstan: assessment of the interrelation of influencing factors

Currently, the credit opportunities of the financial and credit sector are strategically important in ensuring the full development of economic entities, modernization and diversification of production, financing of investment projects. In Kazakhstan, in order to implement state programs, strategies for the development of the financial and credit sector are being developed, modern mechanisms for regulating and stimulating the lending activities of second-tier banks are being used. At the same time, it is noted that the target indicator for expanding the participation of banks in financing the economy has not been reached due to the negative impact of macroeconomic and geopolitical factors, including a decrease in business activity, the dependence of large enterprises of Kazakhstan on external borrowings and others. The article substantiates that the limited access to credit resources is a serious obstacle for economic entities, including small and medium-sized enterprises. A comprehensive solution to the problems in this area is needed to improve the process of interaction between credit institutions and economic entities. Increasing the availability of loans for the real sector of the economy can be achieved through the use of digital technologies, including big data analytics and artificial intelligence in decision-making and the formation of credit conditions.

Small Business Investment processes financing package

The investment importance, their financing issues at the small business level reflect the current agenda of the state socio-economic development. The investment market is a set of objects and subjects actions through the investment services implementation. In general, the Russian investment market tasks are: innovative projects implementation; development of the investment potential of the market as a whole. The article defines the small business role, it presents the financial support forms for small businesses. The authors come to the conclusion that the “project finance” category is a complex tool that can be presented in different forms and types. A similar point of view has developed due to the lack of consensus among researchers and practitioners; the main features of financing investment projects in the small business segment are highlighted: the lack of their own funds to finance investment projects; the attracting financial resources difficulty in investments using credit instruments (lack of collateral); underdevelopment of small business.

РЕСТРУКТУРИЗАЦИЯ ИНВЕСТИЦИОННОГО КАПИТАЛА В УПРАВЛЕНИИ РИСКОМ ФИНАНСОВОГО ЛЕВЕРИДЖА ПРЕДПРИНИМАТЕЛЬСКИХ СТРУКТУР

Carrying out investment activities in the context of modern macroeconomic and geopolitical uncertainty is associated with many different financial and economic risks. They can not only reduce the effectiveness of investment processes, but also lead to the financial insolvency of the entity as a whole. A striking example of such a critical threat is the risk of financial leverage. It is based on the irrational use of equity and borrowed capital. Approaches to leveling out this problem involve, on the one hand, the provision of specialized regulatory influence at the state level on the parameters of attracted capital. On the other hand, practical local decisions of management personnel are formed on restructuring the sources of financing investment projects. At the same time, the first group of methods is actively and specifically applied by the Government of the Russian Federation according to the end of 2023, but the second group is actually “at the mercy” of the professionalism of risk managers. The purpose: the formation of scientific and practical recommendations for the restructuring capital of business structures in order to maximize the effectiveness of investment projects in the conditions of stabilization (preservation) of financial stability. Methodology: based on an assessment of the risks of using capital for a specific research object of the research object, practical recommendations for leveling the risks of financial leverage are formulated. As a result, when implementing an investment project, in order to stabilize the financial stability of the company, the use of five promising areas of capital restructuring is justified. Among them, a certain variability between scenarios can be noted. Firstly, to increase equity and simultaneously reduce borrowed capital. Secondly, to exclusively reduce the company's liabilities and reduce the value of its property. And thirdly, to expand the property complex by attracting new co-investors (attracting new equity capital without the possibility of management). In this case, the direct selection of the optimal and most effective approach should be made not only on the basis of the selected particular features, but only after calculating all costs, as well as after analyzing all updated profitability parameters.

Actual issues of increasing the role of bank loans in financing investment projects of enterprises in the real sector

Actual issues of increasing the role of bank loans in financing investment projects of enterprises in the real sector