INVESTMENT ATTRACTIVENESS OF INDUSTRIES: METHODICAL AND PRACTICAL ASPECTS

Abstract

Purpose. The purpose of this article is to improve the method of the investment attractiveness assessment of industries in terms of portfolio investment. Methodology of research. To achieve the specified goal, a complex of general scientific and special methods was applied such as a statistical method of data processing, a method of grouping and comparing to represent changes in the development trends of the engineering and the social factors of influence. The methods of analysis, synthesis, induction, deduction and abstraction were used to summarize the existing and to form new theoretical and methodological statements about the specifics of accounting and assessing factors influencing the investment attractiveness of the engineering industry. Methods of economic and mathematical modeling were used also to develop and improve methodological approaches to assess the investment attractiveness of industries. Findings. The problem of the investment attractiveness assessment of the industry for the purpose of portfolio investments was explored. The methodical approach was improved for its determination and assessment based on the available financial results of the industry’s enterprises and the social potential of the region. To assess the financial results of the company it was proposed to use scoring indices. The investment attractiveness of the aircraft and metallurgical industries was assessed. Originality. The originality consists in the improvement of the industries investment attractiveness assessment method, which, unlike the existing ones, is based on the scoring indexes of financial stability and market capacity of a company and takes into account influential factors of the social potential of the region, which forms the scientific and practical basis for making management decisions for portfolio investing. Practical value. The proposed method allows to unify the assessment of the investment attractiveness of industries, reducing the cost of data collecting and processing. It allows to avoid specifying of complicated models for each industry by evaluating the financial performance of enterprises in the industry and the social potential of the region. While performing the assessment using the proposed method, the resulting set of indicators can be used in time series or other forecasting models. The method can also be expanded with indicators of the political situation in a region or country, and with taking into account the influence of existing barriers on the market as well. Since there is no requirement to build additional specific models it allows to scale the method for assessing other sectors of the economy.