Theoretical bases of investment, Essence of investments, their role in modern economy - Investments. Investment analysis

Theoretical bases of investment

As a result of studying the material in this chapter, the student must:

know

• The concept and classification of investments;

• Participants in the investment process;

• forms and methods of state regulation of investment activity;

• The mechanism of the investment market;

be able to

• use the information contained in regulatory documents to make managerial decisions;

• Develop investment objectives;

• determine the type of investments and investors' tin;

own

• a conceptual apparatus in the field of investment.

The essence of investment, their role in the modern economy

Currently, the sustainable development of a corporation is directly dependent on investment. There are many modifications of this concept that reflect the multiplicity of approaches to understanding their economic essence. It should be noted that in the economic literature of the Soviet period this term was not used, it was replaced by the concept of "capital investments" (except for the translated literature). In 1981, the USSR developed a methodology for determining the economic efficiency of capital investments, in which investments "act as investments not only in fixed assets, but also in the growth of working capital". The concept was clarified only in 1991 by the RSFSR law of 26.06. 1991 № 1488-1 "On investment activity in the RSFSR": "Investments are cash, targeted bank deposits, shares, shares and other securities, technologies, machinery, equipment, licenses, including trademarks, loans , any other property or and property rights, intellectual values ​​invested in the objects of entrepreneurial and other types of activities in order to obtain profit (income) and achieve a positive social effect. "

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In the Law on Investment Activities in the form of capital investments, the following definition is given: Investments - money, securities, other property, including property rights, other rights having monetary valuation, invested in objects of entrepreneurial and (or) other activity for the purpose of obtaining profit and (or) achieving another useful effect. " The definition shows the scope of the investment, but, in fact, investment represents a deferred consumption in order to increase capital. As part of this process, resources are converted from current costs to future revenues.

Physical and legal (organization) persons in the process of their functioning carry out investment activities - investment and implementation of practical actions for profit and/or other beneficial effect.

Objects of investment activity are newly created and modernized fixed assets, securities, special purpose money deposits, scientific and technical products, other property objects, as well as property rights and intellectual property rights. The classification of investments is presented in Table. 1.1.

Table 1.1

Investment types

Classification features

Forms of investment

Attachment objects

- Real (design); financial (portfolio)

In terms of investment

- Short-term (up to 1 year);

- medium-term (from 1 to 3 years); long-term (from 3 years and more)

On the sphere of investment

- Production; non-productive

By ownership of investment resources

- Private;

- public;

- foreign;

- mixed

By Region

Inside the country; - abroad

Industry-Specific

In the industry (fuel, energy, chemical, petrochemical, food, light, woodworking and pulp and paper, ferrous and non-ferrous metallurgy, machine building and metalworking, etc.)

- in agriculture;

- in construction;

- in transport and communication

On the direction of action

Initial (net investment), made upon the acquisition or establishment of a corporation;

extensive, aimed at expanding production capacity;

reinvestment - the investment of released investment funds in the purchase or manufacture of new means of production;

gross investment, including net investment and reinvestment

By the nature of participation in the investment process

Immediate - the investor independently participates in the choice of the investment object;

mediated through financial intermediaries, which include banks, investment funds, etc.

Reported in the Balance Sheet

Gross, characterizing the total volume of corporate spending on capital investments for the quarter, six months, nine months or a year;

- net, characterizing the increase in fixed capital for the year, taking into account depreciation

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Without investments, the normal functioning and development of the country's economy is impossible, since the availability of funds for those who can reasonably manage them is a necessary condition for economic growth.

The main goal of investment activity is to preserve, increase the value of the invested funds and obtain a positive income or effect at an acceptable risk level for the organization. The goal should be specific, measurable and time-oriented. An example is the goal formulated for a portfolio management strategy: "Provide profitability during the quarter by increasing the market value of shares of at least 90% per annum."

Investors send free financial resources to capital investments or securities, making financial investments (Table 1.2, a more detailed classification is presented in Chapters 6 and 7).

To improve the efficiency of investment investments, it is customary to form a portfolio that can consist of various types of securities, real estate and projects. Portfolio management is expressed in the selection of tools, planning and implementation. The management process is aimed at preserving the basic investment quality of the portfolio and those of its properties that would be in the best interests of the corporation.

Table 1.2

Classification of capital investments and financial investments

Classification

tags

Forms of investment

Classification of financial investments

By types of securities:

- equity securities (shares, share in the authorized capital of the organization, investment units);

- debt securities (bonds, bills of exchange, deposit certificates, state treasury bills, etc.);

- derivatives

For the purpose of the attachment:

- direct (strategic), giving the right to participate in the management of the corporation;

- portfolio, not giving the right to influence the work of the corporation

Classification of investments in the form of capital investments

- Defensive - to reduce the risk of acquiring raw materials, components, to maintain price levels, to protect against competitors, etc.

- Offensive - to search for new technologies and developments in order to maintain high scientific and technological level of the products;

- social - to improve working conditions;

- mandatory - to satisfy state requirements in terms of environmental standards, product safety, other operating conditions that can not be provided by improving management;

- representative - to maintain the prestige of the corporation

Let's consider in detail the structure of investments of Russian organizations. The largest share in the structure of investments is made by investments in non-financial assets (Table 1.3).

Table 1.3

Structure of investments in non-financial assets, in % to the total

Investments in non-financial assets

Year

2000

2005

2010

2011

2012

Investments in fixed assets

98.4

98.2

98.7

98.4

98.2

Investments in intellectual property objects

1.5

0.8

0.4

0.5

0.5

Investments in other non-financial assets

0.1

0.7

0.5

0.7

0.7

Costs for research, development and technological work (R & D)

0.3

0.4

0.4

0.6

Note. Data are given without taking into account small business entities and the volume of investments not observed by direct statistical methods. Data for 2013-2015. None.

The largest proportion is investment in fixed assets. If you consider this indicator in the dynamics, you can see that it is practically stable and accounts for slightly more than 98% of all invested investments. In second place are investments in intellectual property. This indicator for the period from 2000 to 2012 decreased by 3 times and amounted to 0.5% of the total amount of investments made at the end of 2012.

It should be noted that investments in other non-financial assets, as well as in R & D expenses and technological work have slightly increased, but still do not exceed 1% of the total investment.

In connection with the fact that the main direction of investment is fixed capital, we will consider in more detail the data of investment (Table 1.4). Investments are mostly directed to construction. Their size in actual prices varies significantly from 1577.3 billion rubles. in 2000 to 5,592.4 in 2012; on average, the growth over the study period (2005-2014) was 36.13%. However, as a percentage of total investment in fixed assets, they change insignificantly. Thus, the change is from 54.5% in 2000 to 61.1% in 2010, i.е. less than 10% for the period under study. The amount of investments aimed at the modernization and reconstruction of fixed assets during the period increases by an average of 43.8%, but their share in the total investment remained virtually unchanged. The amount of funds allocated for the purchase of fixed assets also increased by an average of 45%, however, their share varies insignificantly.

Table 1.4

Directions of investment in fixed assets

Investments in fixed assets

Year

2005

2010

2011

2012

2013

2014

Billion rubles, in actual prices

Construction

1577.3

4047.7

4908

5592.4

-

Modernization and reconstruction

626.6

1244.8

1633.5

1863.4

-

-

Acquisition of new fixed assets

689.3

1332.5

1903.7

2112.1

-

-

Total

2893.2

6625

8445.2

9567.9

13450.2

13527.7

Percentage of total

Construction

54.5

61.1

58.1

58.4

-

-

Modernization and reconstruction

21.7

18.8

19.3

19.5

-

-

Acquisition of new fixed assets

23.8

20.1

22.6

22.1

-

-

Note. Data are given without taking into account small business entities and the volume of investments not observed by direct statistical methods. Data for 2013-2015. None.

In addition to investment in fixed assets, Russian organizations made financial investments (Table 1.5). The annual growth from 2000 to 2012 in this sector was 43.8%. At the same time, the average annual growth of short-term investments (45.77%) outpaced the average annual growth in long-term investments (33.86%).

Table 1.5

Financial investments of organizations

Year

Total, billion rubles. in actual prices

Including

Percentage of total

long-term

briefly

Urgent

long-term

briefly

Urgent

2000

1245

283.6

961.4

22.8

77.2

2001

2429.8

470.2

1959.6

19.4

80.6

2002

2091.3

425.7

1665.6

20.4

79.6

2003

3390.5

978.2

2412.3

28.8

71.2

2004

4867.6

853.5

4014.1

17.5

82.5

2005

9209.2

1848.9

7360.3

20.1

79.9

2008

26,402.4

4545.4

21857

17.2

82.8

2009

22,745

4863.4

17,881.6

21.4

78.6

2010

41,274.8

4897.3

36,377.5

11.9

88.1

2011

66 634

7163.4

59,470.6

10.8

89.2

2012

67,724.8

7013

60 711.8

10.4

89.6

Accumulated (at the end of 2012)

24,788.3

18,870.3

5918

76.1

23.9

Note: Data for 2013-2015. None.

The size of financial investments changed in leaps and bounds. The sharp decline was recorded in 2002 and 2009, which is explained by the unstable political situation in 2002 and the financial crises in 2009. At the same time, it should be noted that in 2002 both short-term financial investments and long-term investments fell sharply. In 2004, long-term financial investments of organizations were drastically reduced, but the total amount of investments increased due to the outflow of funds to short-term investments. In 2009, after the crisis, organizations continued to finance long-term financial projects, while the increase in funds was 6.9%. Short-term financial investments in this period fell sharply (18.18%).

It should be noted that physical persons begin to actively carry out operations in the investment market. They send their funds to bank deposits, purchase of real estate and pension savings; are much less likely to purchase financial instruments from investment funds.

In accordance with Art. 4 of the Law on Investment Activity subjects of investment activity are: investors, customers, performers, users of investment activity objects, as well as suppliers, legal entities (banking, insurance and intermediary organizations, investment exchanges) and other participants in the investment process. Let's consider them in more detail.

As investors are subjects of investment activities that invest their own, borrowed or attracted funds in the form of investment and ensure their targeted use. They include:

- bodies authorized to manage state and municipal property or property rights;

- citizens, organizations, business associations and other legal entities;

- foreign individuals and legal entities, states and international organizations.

For the implementation of large-scale projects, many investors pool their funds with a view to implementing a joint project. It should be noted that they can perform a variety of functions of participants in the investment process. In particular, investors have the right to act as investors, customers, creditors, buyers. As a customer, investors, as well as other individuals and legal entities authorized by the investor to implement the project, can act, without interfering in the business activities of the participants in this process. In the event that the customer is not an investor, he may have the right to own, use and dispose of investments within the limits established by the contract.

The objects of investment activity are used by investors, individuals and legal entities, state and municipal bodies, foreign states and international organizations. If the investor is not the user of the object being created, then the relationship between him and the investor is determined by the contract.

Russian legislation provides for the possibility of combining the functions of participants in the investment process.

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