Investment attractiveness of the port industry in crisis conditions
Journal: Investment Management and Financial Innovations (Vol.14, No. 3)Publication Date: 2017-12-05
Authors : Svitlana Ilchenko; Ganna Glushko;
Page : 251-260
Keywords : dividend policy of ports; financial and economic crisis; investment attractiveness; port activity; Ukraine;
Abstract
Historically, the maritime industry in Ukraine, which previously was subordinated to the Ministry of Transport of Ukraine and whose successor is the Ministry of Infrastructure of Ukraine, was complex of different organizations (shipping companies, ports, ship-repairing and shipbuilding factories and other related and auxiliary enterprises). They had their own organizational structures, goals and tasks and in some way interacted with each other. Such organization was aimed, first of all, at achieving target production indicators formed by the state authorities. In fact, such structure of maritime industry can be regarded as vertically integrated. When the issue of increasing the economic efficiency of the main component of the maritime industry (of the ports) was raised, the main efforts were aimed at minimizing the costs of their functioning. This led to the creation of horizontally integrated (in whole or in part) companies in the maritime industry. The driving factor for their implementation should be the transformation of organizational and economic mechanisms of regulation of the port's activity from the point of view of a clearly defined anti-crisis character. Therefore, the goal of the study was to develop and justify the feasibility of using a model that will determine the effectiveness of the strategy of investment into the development of the organizational and economic mechanism of regulation of the port activity. The calculations of determining the best variant of an investment project under different external conditions are presented. In calculations based on certain criteria (appropriate levels of capitalization and effective dividend policies), we took into account the factors related to the expectations of the crisis in Ukraine, Ukraine's unpreparedness to enter the new technological phase, the loss of scientific and technical personnel, inflationary phenomena and instability of the national and world currencies. In addition, within the framework of the developed model, the authors propose an algorithm that makes it possible to select the characteristics and determine the parameters of optimization of the organizational and economic mechanism of regulation of the port activity under the conditions of long-term continuation of the crisis situation.
Other Latest Articles
- The effects of the International Financial Reporting Standards (IFRS) adoption on earnings quality: evidence from Korea
- The impact of the deferred tax adjustment on the Economic Value Added (EVA) measure
- Tests of quantitative investing strategies of famous investors: case of Thailand
- Market reaction and fundamental signal in Indonesia
- The prestige of stock exchanges and corporate cash holding in transition economies: a study on Vietnamese listed firms
Last modified: 2018-03-14 17:38:06