Economic Analysis: Theory and Practice
 

Principles of selecting investments for mono- or portfolio financing

Vol. 17, Iss. 11, NOVEMBER 2018

Received: 29 August 2018

Received in revised form: 14 September 2018

Accepted: 28 September 2018

Available online: 29 November 2018

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: C61, G31, H43

Pages: 2107–2117

https://doi.org/10.24891/ea.17.11.2107

Kogan A.B. Novosibirsk State University of Economics and Management (NSUEM), Novosibirsk, Russian Federation
kogant@mail.ru

ORCID id: not available

Subject The article investigates the approaches to identifying the most advantageous investment among several alternatives for financing by a private company, a public-private partnership, and for a portfolio of real investments financed by a private company.
Objectives The purpose is to describe an algorithm of choosing the most advantageous investment under equal return on investment of compared alternatives and define the economic and mathematical problem of building an optimal portfolio of real investments and principles of its solution.
Methods The study rests on a well-known methodology for estimating the effectiveness of real investments (cash flow analysis, cash flow discounting, calculation of net present value and discounted payback period, etc.) and on my own developments. It also employs a common methodology for constructing the optimization tasks.
Results It is possible to choose the most advantageous real investments from several alternatives for the following situations: mono-financing of investments by a private company, by a public-private partnership, and building a portfolio of real investments of a private company from many alternatives under soft constraints on the capital value.
Conclusions The offered solution to the problem of forming the optimal portfolio of real investments can be improved in the future. The most advantageous is the investment that maximizes the wealth of its owners (company shareholders, the State, a private partner).

Keywords: finance, optimal portfolio, real investment

References:

  1. Viktorova N.G., Evstigneev E.N. [Issues of science and technology development in the tax area]. Innovatsionnoe razvitie ekonomiki = Innovative Development of Economy, 2016, no. 3-1, pp. 36–41. URL: Link (In Russ.)
  2. Miller A.E., Miller M.A. [Conceptual Framework of Technologization of Industrial Production]. Izvestiya Ural'skogo gosudarstvennogo ekonomicheskogo universiteta = Journal of Ural State University of Economics, 2016, no. 6, pp. 89–98. URL: Link (In Russ.)
  3. Tyurina Yu.G., Lavrenko E.A., Seliverstova N.I., Samorukov A.A. [The concept and the science and technology advancement essence]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2018, no. 2, pp. 788–792. URL: Link (In Russ.)
  4. Afanas'ev R.S., Golovanova N.V. [Public Expenditure Efficiency: Theoretical and Legislation Approach]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Financial Research Institute. Financial Journal, 2016, no. 1, pp. 61–69. URL: Link (In Russ.)
  5. Vladimirova T.A., Duplinskaya E.B., Selivanov K.S. [Methodological aspects of the evaluation of the target programs' effectiveness]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2017, no. 2-2, pp. 885–888. URL: Link (In Russ.)
  6. Kozhina N.A., Ostanin V.A., Krivelevich M.E., Dovzhenko P.V. [Methodical approaches to assessing the effectiveness of innovations in customs]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2017, no. 10-2, pp. 890–893. URL: Link (In Russ.)
  7. Mishin Yu.D., Demina O.A., Nekhoroshkov E.V. [Economic Efficiency of Higher Education: A Methodological Analysis of the World and Domestic Experience]. Voprosy novoi ekonomiki = Issues of New Economy, 2017, no. 2, pp. 102–110. (In Russ.)
  8. Polozkov M.G., Gurzhiev V.A., Rozhkov M.M. [Investments into life safety of the population of the Russian Federation]. Ekonomika i upravlenie: problemy, resheniya, 2016, vol. 2, no. 10, pp. 30–35. (In Russ.)
  9. Karpovich A.I., Litvintseva G.P. [Сharacteristics of sustainability of an economic system and their interrelation]. Vestnik NGUEU = Vestnik NSUEM, 2018, no. 1, pp. 49–56. (In Russ.)
  10. Kogdenko V.G. Korporativnaya finansovaya politika: monografiya [Corporate finance policy: a monograph]. Moscow, YUNITI-DANA Publ., 2015, 614 p.
  11. Lyubushin N.P., Nazarov V.G., Kalinin G.Yu. [Methods to assess the efficiency of investments in industrial design of structural materials]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2015, no. 26, pp. 2-12. URL: Link (In Russ.)
  12. Novgorodov P.A., Novikov A.V. Intellektual'nyi kapital kak faktor konkurentosposobnosti predprinimatel'skogo universiteta: stoimostnoi podkhod. V kn.: Mogushchestvo Sibiri budet prirastat'!? [Intellectual capital as a factor of entrepreneurial university competitiveness: Value-based approach. In: The power of Siberia will grow!?]. Novosibirsk, NSUEM Publ., 2018, pp. 174–179.
  13. Chernenko V.A., Rumyantseva T.V. [Some issues of business appraisal]. Intellekt. Innovatsii. Investitsii = Intelligence. Innovations. Investments, 2016, no. 6, pp. 64–69. (In Russ.)
  14. Chernenko V.A. Finansovoe regulirovanie natsional'noi ekonomiki [Financial regulation of the national economy]. St. Petersburg, SPbSEU Publ., 2018, 95 p.
  15. Grosheva N.B., Nuikina M.S. [Infrastructure risks decrease with the help of private investors' consortium attraction]. V mire nauchnykh otkrytii = In the World of Scientific Discoveries, 2015, no. 7-6, pp. 2410–2430. (In Russ.)
  16. Lyubushin N.P., Nazarov V.G., Kishev S.A. [Estimating the efficiency of investments with consideration of effects in related fields]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2016, no. 6, pp. 4–13. URL: Link (In Russ.)
  17. Tatarkin D.A., Sidorova E.N., Trynov A.V. [Development of the investment passport of the region on the basis of multiplicators of the matrix of financial flows]. Vestnik UrFU. Ser.: Ekonomika i upravlenie = Bulletin of Ural Federal University. Series Economics and Management, 2017, vol. 16, no. 6. pp. 909–927. (In Russ.) URL: Link
  18. Kogan A.B. [Analysis of ways to compare non-uniformly scaled projects]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2009, no. 35, pp. 52–55. URL: Link (In Russ.)
  19. Kogan A.B. [The main question of fixed assets]. Vestnik Novosibirskogo gosudarstvennogo universiteta. Ser.: Sotsial'no-ekonomicheskie nauki = Vestnik NSU. Series: Social and Economics Sciences, 2015, vol. 15, iss. 1, pp. 102–109. (In Russ.)
  20. Kogan A.B. [Algorithm of comparison of efficiency of alternate major investment projects]. Vestnik NGUEU = Vestnik NSUEM, 2013, no. 3, pp. 75–82. (In Russ.)

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 17, Iss. 11
November 2018

Archive