FINANCING LONG-TERM INVESTMENTS IN CORPORATE CAPITAL OF CORPORATION
After studying the materials of the chapter, the student must:
• economic nature and the main features of investment;
• classification of investments in fixed assets of corporations;
• the content and stages of the development of corporate investment policies;
• Sources of financing for long-term corporate investments;
• Investment crediting of real investments;
• New forms of investment in fixed capital corporations;
be able to
• Analyze the structure of long-term investments in fixed assets of the corporation;
• choose the cheapest sources of financing investment in fixed assets of the corporation;
• Develop the investment policy of the corporation;
• evaluate the effectiveness of real investment by the criteria of profitability, security and the payback period;
• technology of project financing of real corporate investments;
• procedure of registration of the leasing transaction;
• a methodology for financing real investments at the expense of the Corporation's own and attracted funds;
• a methodical tool for analyzing and evaluating the effectiveness of investment projects (programs) of the corporation.
Investments as an economic category
Production and scientific and technical activities of corporations are closely related to the volumes and forms of investments. Therefore, the dynamic development of the economy of the Russian Federation is impossible without radically improving the situation in the investment sphere and creating favorable conditions for increasing the business activity of all participants in the investment process. The decisive role in this process belongs to the state regulation of investments through a balanced financial and monetary policy aimed at activating investment activity in the real sector of the economy, primarily in industry.
Investments - - investing) is the investment of capital in any type of entrepreneurial activity with purpose of its subsequent increase. The capital gain received as a result of investment should be sufficient to compensate the investor for a refusal to use available funds in the current period, reward it for risk and compensate for losses from inflation in the future period. Therefore, investments express property and intellectual values that are invested in business for the purpose of generating income (profit) or achieving a different useful effect.
As an economic category of investment characterize:
• investment of capital into objects of entrepreneurial activity with the purpose of increment of initially advanced value (in the form of profit);
• monetary (financial) relations arising between participants in investment activities in the process of implementing various projects and programs (developers, contractors, banks, the state, etc.).
Special features of investment:
• their potential ability to generate revenue (profit):
• The investment process is associated with conversion to alternative types of corporate assets;
• in the process of investing use a variety of types of financial resources, which differ in demand, supply and the price of their attraction;
• the target nature of investing in various types of assets;
• availability of investment term (this period is always individual for each investor);
• Investments are carried out by legal entities whose citizens and state are called investors. They pursue their own goals, not always related to the extraction of economic benefits;
• The presence of a risk of capital investment, since the achievement of the final investment objectives is of a probabilistic nature.
Investments in the assets of the corporation are reflected on the left side of the balance sheet (asset), and the sources of their financing (in the form of own and borrowed sources) are on the right side (the balance sheet).
The main and generalizing feature of the division of all forms of investment is their systematization of the directions of investment of capital into three system-forming groups: material, intangible and financial. Material (physical) investments are associated with the acquisition of tangible (capital) assets and express a direct investment of capital within a corporation or a specific investment project. In this case, you can use your own and borrowed sources of capital.
Intangible (intangible) investments carry out in the objects of intellectual property:
• the exclusive right of the patent holder to an invention, industrial design, utility model;
• exclusive copyright for computer programs, databases;
• the exclusive right of the owner to the trademark and service mark, the name of the place of origin of the goods, etc.
To financial investments include investments in state and corporate securities, in charter (share) capitals of other corporations, loans to third-party legal entities, deposits in banks, etc. In contrast to material investments in real assets, financial investments in securities are often called portfolio investments, since in this case the main objective of an investor is to form and manage an optimal stock portfolio (a set of financial instruments).
Investment activity characterizes investment of investments and implementation of practical actions for profit or other useful effect. It can be aimed at the internal and external development of the corporation (for example, the absorption of other corporations). The investment cycle characterizes the movement of advanced capital within a specific corporation, which implies its direct participation in the investment process (preparation of design estimates, construction of the facility and its subsequent operation, liquidation of the facility).
The investment process is an open system in which, along with the customer, its counterparties (designers, contractors, banks, suppliers of equipment and material resources) are involved.
The main stages of investment (investment):
1) conversion of resources into capital expenditures, t.p. process of transformation of investments into specific objects of investment activity (actual investment);
2) the transformation of the invested funds into a capital value increment, which characterizes the specific consumption of investment and the receipt of new use value (in the form of production and non-production facilities put into operation);
3) the increase in capital value in the form of income (profit) obtained in the process of operation of a new corporation or an object is the ultimate goal of investment.
Therefore, the initial and final links of the chain are closed, forming a new relationship: income - resources - the end result, the accumulation process is repeated.
The source of capital gains and the purpose of investment is the profit derived from them. In practice, it is compared with investment costs (IZ) and determine their effectiveness (Eise):
The process of comparing investment costs and results is carried out continuously: before investing (when preparing a feasibility study for the project), during investment (during the construction of the facility) and after investing (during the operation of the facility).
The processes of investing and earning a profit can take place in a different time sequence. With the successive flow of these processes, profits are formed in full after the investment is completed. With their parallel flow, profit can be obtained until the investment process is fully completed (after commissioning the start-up complex, the production line, etc.). With the interval flow of these processes (investment - profit) between the period of completion of investment and the formation of profits passes a certain time. The duration of the temporary lag depends on the forms of investment and the specific features of specific investment projects.
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