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Economic Analysis: Theory and Practice
 

Methods to evaluate the investment potential of commercial organizations: an integrated approach

Vol. 14, Iss. 42, NOVEMBER 2015

PDF  Article PDF Version

Received: 20 April 2015

Received in revised form: 16 July 2015

Accepted: 30 September 2015

Available online: 10 November 2015

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: 

Pages: 52-66

Murav'eva N.N. Volzhsky Humanitarian Institute, Branch of Volgograd State University, Volzhsky, Volgograd Oblast, Russian Federation
nataljamur75@yandex.ru

Importance Building the investment potential, developing a clear-cut investment strategy, setting its priorities, and mobilizing all sources of investment are essential for sustainable development of enterprises in the present challenging environment. Therefore, an integrated objective assessment of investment potential of the organization is a necessary condition to identify weaknesses in its development to be able to overcome them efficiently.
     Objectives The aim is to develop a comprehensive methodology to assess the investment potential of commercial organizations, taking into account the prospects for development and innovation activities implementation.
     Methods I applied the analysis and synthesis, functional analysis, and certain elements of the systems approach to study and systematize the existing approaches to assessing the individual components of investment potential of the enterprise.
     Results I developed an integrated assessment technique for the organization's investment potential. It enables to determine a number of factors that are different in terms of content and units of measure, in one indicator. I calculate the integrated index of investment potential by summing the scores obtained from its components, i.e. the potential of the current activities expansion and innovative potential of the organization.
     Conclusions and Relevance The proposed technique enables to objectively assess all parameters of the company that influence the formation of the investment potential in the current economic environment to identify possible prospects for its enhancement. This has a direct impact on the competitive position of the economic entity in the market.

Keywords: investment potential, industrial, financial, market components, integral estimate

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