Economics / Investing and Stock Markets

Ph. d., as. prof. Epifanova I. Y., Soroka L. Y.

Vinnitsia National Technical University

INVESTMENT ATTRACTIVENESS AS AN INTEGRAL DESCRIPTION OF FIRMS IN THE CONTEXT OF COMPETITIVENESS

Competitiveness and investment are things that are closely and directly related to modern enterprises : the more competitive the company is the more successful it is in attracting investments. Nowadays investment are involved in companies with long-term opportunities, an attractive prospect and a clear strategy for competitiveness, which may be based on attractiveness.

The factors of competitiveness and investment attractiveness refer to the phenomena or processes of production and economic activity and socio- economic life , which cause changes in the absolute and relative magnitude of the cost of production and sales , and as a result are changes in the level of competitiveness of the enterprise.

O K Filatov divided factors affecting competitiveness into integrated and specific ones. To the integral factors that affect both the external and the internal environment of the company, he reffered innovation , investment , financial, social and economic ones. However, the group of specific factors specific to the environment of the enterprise, in his opinion includes the legislative , legal , transport and to the internal environment legal , scientific, technical and production factors are referred[ 1].

To ensure the competitiveness of the company should improve its investing activities . Therefore, the enterprises face a serious problem : the construction of a rational investment policy as a system of methods , measures and actions aimed at creating a favorable investment climate, search and consolidation of investment resources, their efficient use [ 1]. This problem , in our opinion, is relevant both to separate companies and for the national economy as a whole .

Investment attractiveness enterprise is an integral characteristic of individual firms, investment institutions from the standpoint of the prospects of their development, the scope and marketing, efficient use of assets, solvency , financial stability and other important parameters of competitiveness [2 ]. This category can be determined as a system of factors and performance indicators , allowing potentional investors to make rational decisions regarding the advisability implementation of an investment project, advancing funds in a special company (in the selective choice of recipient ) for maximum effect at an acceptable level of risk.

For a prospect the researchers have identified a number of risks that may substantially reduce the investment attractiveness of enterprises , namely:

- The deterioration of the financial situation of the enterprises;

- Deterioration of credit availability to the real economy ( high interest rates and access to their receiving) through the aggravation of the situation in the financial and banking sector of the state;

- Risk reduction of foreign investment in Ukraine ;

- The problem of unresolved issues of corporate governance, the rights of the shareholders in management participating and from obtaining the accurate information about the activities of the company, the distribution of dividends by the results of the activity and the impossibility of the information validity [2] , and consequently - to influence the formation investment strategies of enterprises formation;

- Conservation problems of adverse investment climate as integral characteristics, including imperfect institutional and legal framework , poor stock market volatility of financial and credit system, the tax burden, the ineffective use of depreciation, ineffectiveness of regulatory activity , low protection of the rights of private investors, high level of corruption in investment activity, etc. [3 ].

Thus , the category of investment attractiveness is crucial in formation of the appropriate business policy . There is a specific relationship between the efficiency of business enterprise management, its market competitiveness and investment attractiveness. The nature of this relationship can be empirically determined. Skillful manipulation of relevant economic information enables enterprises to maximize economic benefits through its participation in the investment process.

Literature:

1. Filatov DC The problem povыshenyya urovnja competitiveness production enterprise / DC Filatov / / Pyschevaya industry. - 2001. - № 3. - P. 30.

2. Hrebeniuk NA Investment attractiveness : the nature and means of improving / NA Hrebeniuk / / Investment : Practice and Experience . - 2012. - № 12. - P. 12-17.

3. Dolzhansky IV Enterprise Competitiveness [ Teach. user ] / I. Dolzhansky, T.O.Zahorna . - K.: Center for Educational Literature , 2006. -384 s