Source Of Investment Financing Research Articles

The Capital Market and Economic Growth in Nigeria

The capital market offers access to a variety of financial instruments which are very essential for government and private businesses in need of long-term funds. The objective of this study is to determine the effect of capital market on economic growth in Nigeria being an alternative source of finance for investment. The data used for the study were obtained from the Central Bank of Nigeria Statistical Bulletin and World Development Indicators, spanning 1985-2021 and, analyzed using Auto-regressive distributive lag (ARDL) on Eviews. Value of transactions, all share index, government stocks, corporate bonds, equities and inflation rate; were the independent variables, while economic growth proxied by gross domestic product was the dependent variable. The results obtained showed that equities and all share index had positive and significant effects on economic growth in Nigeria. We therefore, recommend that the Securities and Exchange Commission should come up with measures that will boost investors’ confidence in the Nigerian capital market and make it a veritable alternative source of finance for businesses.

Зеленые инвестиции: инструменты и сектора классификации

Green investments can have both characteristics as sovereign-national and transnational. Green projects are risky and have a long payback period, and for their implementation it is necessary to consider attracting various sources of investment financing. The article presents the main characteristics of the green economy, examines the concept of green investment, and examines various tools of green finance. It was emphasized that companies can use alternative innovative sources of raising funds for green projects – green leasing, green bonds, syndicated loans or crowdfunding.

Credit factor of investment development of the Russian economy under sanctions

We need to prevent a “drawdown” of the Russian economic growth as a result of a large-scale outflow of foreign and domestic capital from the Russian economy under the influence of a repeated increase in sanctions pressure of the West since the beginning of the special military operation of the Russian Federation in Ukraine in 2022. Thus the regulatory authorities, responsible for credit and investment policy, should pay primary attention to measures that support bank lending for the purpose of investment development. It is the source of investment financing in our country that is key for the corporate sector which is not organisationally connected with the state. It is the source that is today’s subject to the greatest destabilising influence of external and internal factors. Firstly, foreign bank loans which were previously five times greater than other forms of foreign capital in replenishing fixed assets, have decreased significantly. Secondly, lenders from the East were unable to replace the “lost” volumes of Western loans and creditors, among which the American ones even rose from the 4th to the 2nd place by March 2023 due to reduced total volumes. Thirdly, in the list of Western sectoral sanctions, measures to break credit connections were the very first and still remain the most painful for the Russian business. Finally, the excessively high interest rate used by the Central Bank to cool currency profiteers and accelerated inflation even aggravates the problem of a compressed credit base for investment in capital stock.

The effects of foreign direct investment on the performance of small-medium enterprises: The case of Vietnam

Foreign direct investment (FDI) is one of the most important elements influencing countries' international economic integration. FDI establishes direct, consistent, and long-lasting interconnections between economies as well as encouraging innovative technology and know-how transmission across territories while allowing host economies to offer their goods more extensively on global markets. FDI is also a source of investment financing that creates the climate for appropriate policies. Aside from the obvious advantages for all economic sectors, attracting FDI in small and midsize enterprises (SMEs) has a variety of additional benefits. For example, an opportunity to participate in the global supply chain for parts and components; an opportunity not yet wholly established in most developing nations but is critical for industrialization and improving income distribution through job creation for low-skilled employees. This study compared the impact of FDI on the performance of SMEs in Vietnam to that of a group of ASEAN nations with comparable economic structures including Indonesia, Malaysia, and Thailand. The empirical evidence indicates that FDI has a negative effect on the performance of SMEs in the group of four ASEAN member countries while having a positive influence on Vietnamese SMEs.

Бюджетные инвестиции в стратегиях развития муниципальных образований

In recent years, in Russia, strategies for the socio-economic development of municipalities have become widespread, following the enactment of Federal Law No. 172-FZ "On Strategic Planning in the Russian Federation" in 2014. However, a prevalent issue in these strategies is the lack of an investment plan utilizing budget resources, which is essential for achieving key social indicators. Sources of investment financing are often either not included in the text of strategies or remain unspecified. Hence, the primary aim of this study is to reveal the factors contributing to the mismatch between the investment plans outlined in the strategy for the socio-economic development of municipalities and the actual capabilities of territories to secure the necessary financial resources. The study systematizes and compares empirical data to explore the socio-economic deve­lopment strategies of 15 municipalities in Sverdlovsk region. The goal is to shed light on the details of analy­zing and forecasting the financial resources of these territories. The results suggest that these characteristics are generally underdeveloped in most areas. To assess the real capabilities of municipalities in budgetary investments, data on capital investments in 2022 were analyzed, considering funding sources from federal, regional, and municipal budgets, both in gross and relative terms (per resident of the study area). On average, municipal budgets’ own funds allocated for investment constitute only 15 % of all budget resources earmarked for these purposes. Notably, the primary contributors to capital investments in Sverdlovsk region are funds from the regional (over a half) and federal budgets (just under a third). However, the distribution of these funds among municipalities is highly uneven, with the majority being directed toward the capital of Sverdlovsk region. The insights from this study can be valuable for government and municipal authorities in effectively implementing strategic planning and forecasting.

Financial Constraints and Investment Financing Decisions among Indian Firms in Post Sub Prime Crisis Era

The study investigated the sources of investment financing by Indian non-financial companies and the extent of dependency on internal funds to finance their investment projects since the U.S. Sub-prime mortgage crisis. A balanced panel of 359 firms for the period of 2006-2020 was estimated by GMM, Fixed Effect, Random Effect and OLS Pooled technique for three groups of firms. The result indicated that internal funds were highly important for all categories of firms. Further, higher investment cash flow sensitivity for the smaller firms demonstrated that these firms did not have easy access to capital markets compared to larger firms despite significant reform measures in the Indian financial market since 1991.

Formation of management reporting on long-term asset investment

Subject. This article focuses on the design of management reporting forms including information on the formation and use of sources of investment financing for the phases of the investment project of an agricultural organization. Objectives. The article aims to offer information support to manage investment in fixed assets of agricultural organizations, taking into account the identified problems. Methods. For the study, we used a systems approach, and the methods of comparison, systematization, and data generalization. Results. The article offers author-developed forms of management reporting on financing by investment project phase that disclose information about the planned and actual receipt of funds and provide operational numerical data on the volume and sources of financing of each particular phase of the investment project. Conclusions and Relevance. The implementation of the proposed recommendations on information support for investment activities will help the agricultural organization's management make a final decision taking into account possible financial risks and promptly monitor changes in the volume of financing for each particular investment phase of the project. The conceptual provisions of the study can be applied in the development of provisions, methods and procedures for management accounting for agricultural organizations.

Selected financial indicators as a tool for optimizing local government units management

Finances of each organization are the basic security of its existence and the main indicator of its profitability. In local government units public finances, despite many similarities, are governed by different rules than economic entities, if only because local governments have systemically guaranteed income in the form of state grants and subsidies. New and modern methods of financial management appear in self-government financial management. We can notice it both in the scope of sources of investment financing and the scope of information and data justifying or negating financial decisions and, consequently, local government management. Financial indicators as tools supporting the decision-making process of governing bodies are an important factor in decision-making, including the implementation of public tasks, satisfaction of social needs and expectations. Thanks to indicators local governments have analytical information, useful in the process of management taking into account social expectations comparable to other units. The indicators show where a given self-government unit is in relation to its competitors, allow for a comparable evaluation of the achievable results and for a social evaluation covering the expectations and needs of the community's inhabitants. It should be noted that the indicators are the effect of using data, which are very abundant on the local government and business market. We often deal with metadata covering the whole country and regions and their sources are more or less reliable. Reliability of sources is extremely important in public perception. It is guaranteed by institutions representing information collected on the basis of systematic reports, obtained in a uniform space for all local government units. Both data and indicators calculated on their basis, as well as reliable rankings presented, are tools used by mayors of communes, local communities, more and more often government institutions, funds, agencies and media presenting more and less reliable rankings.

Investment support for the development of agriculture in the region

The paper deals with the problem of investing in fixed capital of agriculture. In this regard, the priority task is to determine the sources of financing and forms of investment support for the development in the main branches of agriculture. The analysis is presented by considering the production of gross agricultural output in the Krasnoyarsk region by categories of farms, sources of investment financing in the region, and indicators that characterize the effectiveness of investment in agricultural fixed capital. In order to improve investment support for the development of agricultural organizations, it is necessary to form a mechanism for attracting investment in the future.

Migrant\u2019s remittance and investment financing nexus in Africa: Does investment climate matter?

Development economists have enjoined Africans to leverage on remittance as their main source of investment financing due to its constant and undisrupted inflows despite structural distortions and economic weaknesses compared to other sources of financial flows in recent time. This ignited the motivation for this study, to unveil the nexus between migrant’s remittance and investment financing and the modulating effect of the investment climate in this relation on a panel of 28 sub-Saharan African countries over the period 1995 to 2017. Using the panel autoregression distributive lagged estimation technique, the following empirical findings were established. First, the theoretical supposition underpinning the assumption in investment climate as a factor that motivates migrant’s remittance inflow to be channelled to investment received a clear empirical support. Second, it was established that the interaction between remittance and components of investment climate (government size and open market) enhanced the growth of private investment. Last, remittance is found to exert a positive effect on private investment in as much as the former does not exceed the threshold of 78%, above which private investment would decline off the quadratic curve. The study suggests the policy-makers channel deliberate efforts at improving not only the efficiency of the market, but government participation especially in the area of tax policy and fiscal financing.

Investment allocation in Slovakia and Ukraine in terms of effective corporate tax rates

Since countries differ in their traditions, cultures or different tax systems, investment allocation can be a difficult task for some investors. Effective tax rates present indicators of the real corporate tax burden and consider the impact of all legislation elements. This paper deals with the effective taxation of selected intangible and tangible assets. The analysis will be processed by calculating average and marginal tax rates (EATR and EMTR) according to the methodology of the Centre for European Economic Research (ZEW). Then, the relationship between these two tax rates was calculated, and the relationship was identified that evaluates the most optimal criteria between location, amount and source of investment financing. The analyzed period is the year 2020. The analysis is a quantification of the amount of the tax rates for a hypothetical investment. The next step in the analysis is a calculation of the tax shield, which expresses tax saving of investment and the economic income of project, including taxation, and means financial benefit for an investor. The results have shown that Ukraine is a better choice for the investor, as this country reached lower values of effective tax rates for all other types of assets, except land, than Slovakia. In the case of own funds financing, there is a difference between 10.7% and 11.6%, and in the case of debt financing, the difference ranged from 10.8% to 11.7%. The exception was land, the rates for which were higher than in Slovakia by 0.70%. This paper has confirmed the research hypothesis that Ukraine is a more tax-attractive country than Slovakia. AcknowledgmentThis research was supported by VEGA project No. 1/0430/19 “Investment decision-making of investors in the context of effective corporate taxation”.

Innovation development of industry as the basis of socio-economic growth of the regions of the Arctic zone of the Russian Federation

It is shown that there is a need of scientifically based technologies and a significant increase in the innovation activity of resource enterprises aimed at the transition to modern progressive industries as the most important mechanism for improving the socio-economic development of the Arctic. Studies and calculations of innovation susceptibility, innovativeness, activity, economic and social development, state of the budgets of the Arctic regions, financial results of organizations, sources of investment financing in fixed assets, costs for developing and implementing innovation projects across the entire spectrum of industrial enterprises was carried out. The analysis of innovation susceptibility, innovativeness, activity, economic and social development showed that there is a differentiation of indicators of the Arctic regions associated with differences in innovation development. As a result of research it is determined that the budgets of the Arctic regions in different periods are characterized by a deficit and are not able to provide effective innovation activity and consequently economic growth. The main source of investment is the own funds of enterprises which are not enough for the development and implementation of innovation technologies. State stimulation of industry for the transition to a scientific and innovation development path is required.

APPLICATION OF THE ECONOMIC AND MATHEMATICAL METHOD OF THE OPTIMAL SOLUTION OF THE PROBLEM OF MODELING INVESTMENT PROCESSES

In modern business environment an important issue for businesses is finding the funds to solve key problems associated with upgrading and purchasing new technologies. It should be noted that the lack of clear and practical guidelines for determining the amount of annual investment by industrial enterprises in the course of its financial and economic activities necessitates the need for additional scientific research in this area. The article substantiates the approaches to determining the economically feasible volume of investments in view of the specificity of industrial and economic activity of industrial enterprises. It was proposed to form five own investment projects. The optimal scenario of the organization of the investment process will provide maximum profit for the enterprise in the end period. The calculated dynamic scheme of financial flows indicates high efficiency of the investment process. This increase can be obtained from own funds, loans granted in the first and second year and reinvestment of profits in the respective projects. The modeling of competitions of investment projects was improved, the distinctive feature of which is to create the optimal scenario for the organization of the investment process. To determine the specific amount of investment each year it is necessary to determine what the company considers as a strategic development priority for itself: saving current positions and maintaining a static equilibrium or obtaining competitive advantages in order to ensure dynamic development. It is proposed to consider the following alternatives: to distribute the required amount of investment costs by years depending on the technical capabilities and the state of the fixed assets and financial capabilities; make changes to the scale of the investment project and find sources of optimization of the operational process; create variations in sources of investment financing; determine the possible period of retention of competitive advantages and their impact on the value of the enterprise; to promote the development of cooperation between the enterprise and educational and research institutions in the field of improving the innovative activity of the enterprise.Key words: investment project, modeling, financial flows, investments, potential, efficiency.

THE MAIN TRENDS OF INVESTMENT ACTIVITY IN REGIONS OF THE RUSSIAN FEDERATION

Investments as a factor of increase in level of economic development of the country and its regions have been considered. The analysis of macroeconomic indicators, which characterize the conditions and results of investment activity, has been carried out. Special attention has been paid to studying of investment activity in regions of the Russian Federation based on the system of the indicators, reflecting the volumes of investment, their directions and structure. The results of the groupings of the subjects of the Russian Federation on average annual growth rate of investment for 2012-2017 and the amount of investment per one employed person have been adduced. The analysis of the sources of investment financing and the results of investment activity has been given. The results of a survey of organizations on estimation of the factors, which limit the investment activity in the subjects of the Russian Federation, have been reviewed.

Reasons, trends and problems of international high-tech projects

The article considers the main reasons for the countries’ participation in international high-tech projects. It is shown that till now the experts’ dispute about the terms «high-tech», «innovative», «scienceintensive» products classifying has not abated. The article suggests classification criteria for these products, and marks signs of high-tech projects. It is shown that after a high-tech exports increase in 2000, the share of high-tech products fluctuated in the recent years at the level of 17–18.5 % and despite the decrease in economic growth rates, in demand and in the volume of international trade in virtually all countries, any long trend of decline or growth of this indicator in the ten-year period was not observed. Trends of economic development, the level of national economies competitiveness are analyzed. While analyzing data concerning the 39 developed countries a heterogeneity in terms of R & D funding, investment volumes and exports of high-tech products is shown. In spite of stagnation, the trend to develop high-tech industries and search for new sources and models for financing high-tech products remains. An important area of international cooperation is the participation in international high-tech projects complicated by economic sanctions against Russia. To realize the effective participation of Russia in international hightech projects it is important to choose right partners, investment mechanisms and instruments of investment activity, to locate intangible assets, and to optimize the available sources of investment financing.

Are Employee Option Proceeds a Source of Finance for Investment?

Are Employee Option Proceeds a Source of Finance for Investment?

Статистический анализ инвестиций в основной капитал в России за период 2001–2012 гг. и общая оценка сложившейся инвестиционной ситуации как фактора экономического роста

Article is devoted to the analysis of volumes and dynamics of fixed investment of the Russian Federation for the 20012012 period, studying of sources of investment financing, identification of structure of investment on economy branches and assessment of the investment situation in Russia. In the course of the analysis the author revealed the time periods by criterion of nature of investment dynamics and the factors defining dynamics, offered classifications of investment by financing sources and by economy branches, calculated the yield of gross fixed capital formation.

Sources of investment financing and their impact on economic growth of the Republic of Serbia.

The aim of this paper is to point out to the important issues of investments in Serbia, with particular focus on the fact that investments can never be the objective but only the generator of economic growth, its pace, development structure and stability. With this in mind and depending on economic cycle and its phases, the connection between the amount and structure of investments and economic growth is studied as well as the investment behaviour as part of global demand and spending in the function of total consumption. In the analysis of investments and their financing effects on economic growth of Serbia, relevant studies and articles were used, together with the reports and publications of competent institutions. The results of the analysis indicate the crisis of investments and their financing method in Serbia which has been accumulating for many years now, with an increasing foreign debt arising from predominantly external investment financing. The main conclusion is that for every economy, programming and monitoring of necessary investments, their economic, technical and regional structure as well as financing system is of strategic importance.

Ownership structure and investment finance in transition economies A survey of evidence from large firms in Hungary and Poland1

AbstractUsing survey data on 157 large private Hungarian and Polish companies this paper investigates links between ownership structures and CEOs’ expectations with regard to sources of finance for investment. The Bayesian estimation is used to deal with the small sample restrictions, while classical methods provide robustness checks. We found a hump‐shaped relationship between ownership concentration and expectations of relying on public equity. The latter is most likely for firms where the largest investor owns between 25 percent and 49 percent of shares, just below the legal control threshold. More profitable firms rely on retained earnings for their investment finance, consistent with the ‘pecking order’ theory of financing. Finally, firms for which the largest shareholder is a domestic institutional investor are more likely to borrow from domestic banks.

Biotechnology and the UK 2000-05: Globalization and innovation

This paper discusses some selected topics seen as being most important in currently affecting the development of biotechnology in the UK. The importance of demand side factors such as the role of professional experts, regulatory bodies, retailers, public opinion and political activity in stimulating or discouraging innovation in biotechnology is discussed. Supply side factors are then analysed, particularly the major changes in the organizations which generate biotechnology innovations - especially collaborative alliances and network firms, and the restructuring of the chemical, pharmaceutical and agro-food industries which use biotechnology, via merger, acquisition, demerger and divestment. Two important aspects of the infrastructure for innovation, which are rapidly changing and generating debate and concern, are then considered. These are intellectual property regimes on the one hand, and corporate governance and the sources of finance for investment on the other. The issue of globalization of innovative activity in biotechnology and in the industries which use it is addressed next, and it is concluded that collaborative alliances are the main mechanism by which overseas sourcing of technology is taking place. Finally, future trends and some policy implications are considered.