Keleinikova S.V.Saransk Institute of Cooperation, Branch of Russian University of Cooperation, Saransk, Republic of Mordovia, Russian Federation firstname.lastname@example.org ORCID id: not available
Importance This paper raises the strategic problem of significant increasing the investment attractiveness of agricultural business. It is largely due to the lack of quality tools to support the making of investment decisions on agriculture. Objectives The article aims to systematize investment tools, substantiate and develop strategic models for supporting investment decisions in agricultural business. Methods This research involves the method of financial management and econometric models for assessing the effectiveness of investments. Results The work constructs the functional dependence of the yield spread on invested capital in agrarian business. Considering the Penza oblast as a case study, we have carried out the necessary model and analytical calculations. The model shows the existing stimulus to invest capital in rural business and the potential for increasing the efficiency of investment in agricultural business. Conclusions and Relevance It is expedient to use financial tools to justify the effectiveness of potential investments and visualize the return of invested capital to agricultural business. It will help adjust the current agricultural policy to attract additional financial resources to agriculture.
Keywords: agrarian business, investment attractiveness, invested capital, economic value added, weighed average capital cost, yield spread
Bespakhotnyi G.V. [Planning in Agriculture – Scientific Support]. Ekonomika sel'skokhozyaistvennykh i pererabatyvayushchikh predpriyatii = Economy of Agricultural and Processing Enterprises, 2017, no. 10, pp. 8–12. (In Russ.)
Anastassiadis F., Liebe U., Mußhoff O. Financial Flexibility in Agricultural Investment Decisions: A Discrete Choice Experiment. Agricultural Economics Review, 2015, vol. 16, iss. 1, pp. 47–58.
Dahl W.A., Dobson W.D. An Analysis of Alternative Financing Strategies and Equity Retirement Plans for Farm Supply Cooperatives. American Journal of Agricultural Economics, 1976, vol. 58, iss. 2, pp. 198–208. URL: https://doi.org/10.2307/1238970
Gamba A., Triantis A.The Value of Financial Flexibility. The Journal of Finance, 2008, vol. 63, iss. 5, pp. 2263–2296.
Jahangir A., Darron W., Gizelle W. The Value of Financial Advice: An Analysis of the Investment Performance of Advised and Non-advised Individual Investors. Investment Analysts Journal, 2016, vol. 45, iss. Sup1, pp. 63–74. URL: https://doi.org/10.1080/10293523.2016.1201292
Marchica M.T., Mura R. Financial Flexibility, Investment Ability and Firm Value: Evidence from Firms with Spare Debt Capacity. Financial Management, 2010, vol. 39, iss. 4, pp. 1339–1365. URL: https://doi.org/10.2139/ssrn.891562
Samygin D.Yu., Baryshnikov N.G. Strategy of Support of Agrarian Business. Raleigh, North Carolina, USA, Lulu Press, 2017, 156 p.
Sillano M., Ortúzar J. Willingness-to-Pay Estimation with Mixed Logit Models: Some New Evidence. Environment and Planning A, 2005, no. 37, pp. 525–550. URL: https://doi.org/10.1068/a36137
Perova V.I., Korchemnyi P.V. [Neural simulation of behavior pattern of Russian agriculture development]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2018, vol. 17, iss. 2, pp. 379–396. (In Russ.) URL: https://doi.org/10.24891/ea.17.2.379
Ji S., Lim S.S. An Empirical Analysis of the Determinants of Agricultural Official Development Assistance. Agricultural Economics (Czech), 2018, vol. 64, iss. 5, pp. 206–215. URL: https://doi.org/10.17221/275/2016-AGRICECON
Ankarhem M., Daunfeldt S., Quoreshi S. et al. Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden. Technology and Investment, 2010, vol. 1, iss. 3, pp. 221–227. URL: https://doi.org/10.4236/ti.2010.13027
Harris R., Trainor M. Capital Subsidies and Their Impact on Total Factor Productivity: Firm-Level Evidence from Northern Ireland. Journal of Regional Science, 2005, vol. 45, iss. 1, pp. 49–74. URL: https://doi.org/10.1111/j.0022-4146.2005.00364.x