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Financial Analytics: Science and Experience
 

The company's investment decisions in the combined market

Vol. 8, Iss. 9, MARCH 2015

PDF  Article PDF Version

Available online: 8 March 2015

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: 

Pages: 14-22

Vershinina A.V. Institute for Systems Analysis of Russian Academy of Sciences, Moscow, Russian Federation
anna-ver@mail.ru

Importance In the current context, an investment activity to a large extent is associated with forming of mixed portfolios, which include investment facilities of real and financial investment. Moreover, due to the crisis phenomena, the issue of redistributing of funds between the two spheres is especially relevant. Therefore, in such conditions, investor's behavior in a combined market represents a special interest as the research subject.
     Objectives The paper's aim is to study the companies activities in the context of the Russian economy, which features an investment strategy based on a mixed portfolio. In order to achieve an objective, as a case study of the real group of companies, the paper solves the objectives as follows: comprehensive analysis of financial management system and the issues of investment decision-taking and study of specific features of management and cash management.
     Methods As a fundamental research method, I used a systems approach, from a perspective of which I have conducted a systems analysis of the research's subject generally as collection of objects, which interact with each other, as well as with an external environment. To solve the separate problems of supporting and investment decision-making, I applied methods of event-driven simulation modeling.
     Results The paper describes the research of a really existing multi-functional company. As a result, the article reveals the main approaches to finance management and some strategies of decision-making on the combined market of financial and real investments. The paper also formalizes a model and creates a set of instruments for cash flow management at a short-term planning horizon.
     Conclusions and Relevance The paper assumes an important practical significance in the field of finance management and investment decision-making for multi-functional companies. It emphasizes the essential necessity of financial management work structuring, and organizing of managerial accounting and budgeting. In the conclusion, I emphasize an exceptional importance of applying the systems approach to solve complex tasks, which are aimed at ensuring the successful behavior of an investor.

Keywords: Keywords: finance management, financial modeling, cash flow, investment assessment

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