Choosing the investment business model for the energy industry
Keywords:
Investment, taxes, budget, coal production, steel production, budget financing, economy, capital, profit.
Abstract
Investment by companies, which target growth of key labor productivity factors, labor attraction, modernization, and development, as well as reduction of production risks and higher investment attractiveness, is the main growth factor for emerging economies. However, the key drawbacks of the existing models of investment attractiveness assessment of state-sponsored projects are the absence of alternative financing from adjacent sources and the lack of the scenario approach when analyzing cash flows of a project. The authors’ scientific and practical research offers the choice of the best investment project model, ensuring a lower default risk, lesser expected losses for the state (in case of redeeming the loss, occurring in the case of breach of warranty), and a lower possibility of tax receipt shortfalls under the project. The measures imply the use of the scenario and probabilistic approach, ensuring consideration of all possible alternatives for an investment project of companies, engaged in the energy business, and, consequently, higher efficiency of budget spending.
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Ahlin, C., Pang, J. (2008). Are financial development and corruption control substitutes in promoting growth? Journal of Development Economics, 86(2), 414-433. DOI: 10.1016/j.jdeveco.2007.07.002
Ailawadi, K., Lehmann, D., Neslin, S. (2003). Revenue premium as an outcome measure of brand equity. Journal of Marketing, 67(4), 1-17. DOI I0.I007/978-3-322-90I45-3
Arkin, V.I., Slastnikov, A.D. (2016). Optimization of budgetary subsidies in the lending of investment projects. Journal of the New Economic Association, 1, 12-30.
Brock, W.A., Scheinkman, J.A., Dechert, W.D., LeBaron, B. (1996). A test for independence based on the correlation dimension. Econometric Reviews, 15(3), 197-235. https://doi.org/10.1016/S0186-1042(15)30006-1
Bykanova, O.A., Akhmadeev, R.G., Kosov, M.E. (2017). Assessment of the economic potential of sovereign wealth funds. Journal of Applied Economic Sciences, 12(1), 70-84.
Engle, R. (1982). Autoregressive conditional heteroscedasticity with estimates of the variance of United Kingdom inflation. Econometrica, 50(4), 987-1007. DOI: http://dx.doi.org/10.1063/1.4992759
Espinosa, С., Gorigotia, J., Maquieira, C., Vieito, J.P. (2014). Nonlinear behaviour in EMBI series from Eastern Europe: evidence of ‘window size effect’. Applied Economics Letters, 21(2), 107-112. http://dx.doi.org/10.1080/13504850600993614
Ferreira, P. (2017). Portuguese and Brazilian stock market integration: a non-linear and detrended approach. Portuguese Economic Journal, 2, 26. DOI: 10.1007 / s10258-017-0127-г 10.1007/s10258-017-0127-z.
Freedman, E., Neuzil, M. (2016). Environmental crises in central Asia: From steppes to seas, from deserts to glaciers. Taylor and Francis, 2(5), 126. DOI: 10.4324/9781315824840
Goodhart, C.A. (1988). The foreign exchange market: a random walk with a dragging anchor. Economica, 55, 437-480. http://EconPapers.repec.org/RePEc:aea:aecrev:v:76:y:1986:i:1:p:191-203
Ivashkovskay, I.V. (2013). Financial measurements of corporate strategies. The stakeholder approach, 2(5), 470-475.
Janekova, J.A. (2015). Monte Carlo Simulation – Risk Analysis tool of Investment project. Transfer inovacii, 32, 261-263.
Kosov, M.E. (2016). Economic practicability substantiation of financial instrument choice. Journal of Applied Economic Sciences, 11(8), 1613-1623.
Kuznetsov I.A., Malitskaya, V.B., Sukhova, V.E., Ivanova, A.V., Proskurina, I.Yu. (2017) Innovation activity of Russian business entities and its determinants. European Research Studies Journal, 20(3B), 395-402.
Lim, K.-P. and Brooks, R. (2011). The evolution of stock market efficiency over time: a survey of the empirical literature. Journal of Economic Surveys, 25, 69–108. DOI: 10.1111/j.1467-6419.2009.00611.x
Limitovsky, M.A. (2016). Investment projects and real options in emerging markets: Textbook. A manual for undergraduate and graduate students. Publishing, 4, 486-490.
Maltseva, S.V., Kotelnikova, P.V. (2015). Model of an optimal public-private partnership project in the telecommunications sector. Business informatics, 4, 24 – 31.
Norko, N. V., Krasova, E. V. (2017). Role of foreign investments in development of the economy and business in Russia. Azimuth of Scientific Research: Economics and Administration, 1(18), 157-160.
Panchenko, A.V., Abrakhmanov, A. A. (2014). Methods for assessing the effectiveness of innovative projects using real options. Russian Entrepreneurship, 10, 48-56.
Pinkovtskaia, IS, Balynin, I, Arbeláez Campillo, DF & Rojas-Bahamón, MJ (2019). Small business development in Russia: results of the assessment of sectoral structure and number of employees. Espacios, 40(7), 6.
Sazanov, A.A., Sazonova, M.V. (2016). Application of the Monte Carlo method for modeling economic risks in projects. Science and Modernity, 43, 228-232.
Skidmore, M. (1999). Tax and expenditure limitations and the fiscal relationships between state and local governments. Public Choice, 99(1-2), 77-102.
Telekhov, I.I. (2013). Problems of applying real options in the analysis of investment projects. Russian Entrepreneurship, 6, 143-148.
Theodossiou, P., Lee, U. (1995). Relationship between volatility and expected returns across international stock markets. Journal of Business Finance and Accounting, 22(2), 289-301.
Theriou, N. P. et al. (2004). The Cross-Section of Expected Stock Returns: An Empirical Study in the Athens Stock Exchange. Accounting and Finance in Transition, 1, 529-551.
Vladimirov, S.A. (2016). Questions of the economy of the effectiveness of public administration on the essence and key directions of effective state macroeconomic investment policy. Economics and Environmental Management, 4, 7 – 18.
Published
2019-06-25
How to Cite
Kosov, M., Akhmadeev, R., Smirnov, V., Popkov, S., Shmigol, N., & Chernov, A. (2019). Choosing the investment business model for the energy industry. Amazonia Investiga, 8(20), 544-558. Retrieved from https://amazoniainvestiga.info/index.php/amazonia/article/view/181
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