Finance and Credit
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
LCCN Permalink
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (12 month OA embargo)

Studying risk-reducing factors in investment project financing

Vol. 25, Iss. 9, SEPTEMBER 2019

PDF  Article PDF Version

Received: 13 August 2019

Received in revised form: 27 August 2019

Accepted: 10 September 2019

Available online: 30 September 2019

Subject Heading: INVESTING

JEL Classification: G31, G32

Pages: 2167–2178

https://doi.org/10.24891/fc.25.9.2167

Khakhanaev U.S.-E. Chechen State University (CHSU), Grozny, Chechen Republic, Russian Federation
desperade@mail.ru

https://orcid.org/0000-0003-1616-2920

Subject The article discusses risk-reducing factors in investment project financing due to a new classification of risks developed specifically for investment projects, and presents the results of integrated analysis of risk reduction.
Objectives The aim is to undertake an empirical study of solutions to the new problem in investment project financing, i.e. to identify better financing options and maximize generated cash flows.
Methods The study employs the net present value method, the index method, comparative analysis, and time series analysis.
Results I developed my own version of risk classification. Risks are identified by group of affecting factors and described. The paper presents methodological recommendations for innovative approach to managing the investment project financing based on specified tools, namely, a catalog of risk-reducing factors in investment project financing. The recommendations enable informed investment decisions based on such criteria as the net present value, rate of return on investment, reasonable expenses for maintaining the investor’s economic potential.
Conclusions It is necessary to introduce a step-by-step process of forming a catalog of risk reduction factors, to use the recommendations on choosing alternative forms of investment project financing, applying the net present value criterion.

Keywords: investment project, financing, risk, cash flow, risk reduction

References:

  1. Prokhorova M.V. [Measures to reduce project risks]. Molodoi uchenyi = Young Scientist, 2019, no. 26, pp. 371–373. URL: Link (In Russ.)
  2. Akinfiev V.K., Korgin N.A. [Organizational methods to reduce the risk of investment decisions]. Problemy upravleniya = Problems of Management, 2011, no. 1, pp. 40–46. URL: Link (In Russ.)
  3. Kazanskii A.V. [Risks of project financing and methods of their overcoming in Russian projects]. Problemy sovremennoi ekonomiki = Problems of Modern Economy, 2015, no. 1, pp. 139–143. URL: Link (In Russ.)
  4. Vyakina I.V., Aleksandrov G.A. [On the need to develop a methodology for evaluation of investment performance]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2018, vol. 19, no. 1, pp. 195–206. URL: Link (In Russ.)
  5. Fomin P.B. [Risks of financing of the innovative project and business plan as factor of decrease in innovative risk]. Transportnoe delo Rossii = Transport Business of Russia, 2011, no. 11, pp. 151–153. URL: Link (In Russ.)
  6. Bakeeva I.R., Kozlova A.A. [Risk management in the implementation of investment projects]. Vestnik akademii znanii = Bulletin of Academy of Knowledge, 2018, no. 3, pp. 39–43. (In Russ.)
  7. Kovalev P.P. [Insurance of risks when implementing an investment project]. Ekonomika: vchera, segodnya, zavtra = Economics: Yesterday, Today, Tomorrow, 2018, vol. 8, no. 2A, pp. 47–55. URL: Link (In Russ.)
  8. Tkhakushinov E.K. [Features of management of investment risk: Subject and object approach]. Mezhdunarodnyi zhurnal prikladnykh i fundamental'nykh issledovanii = International Journal of Applied and Fundamental Research, 2015, no. 8-2, pp. 343–346. URL: Link (In Russ.)
  9. Yalmaev R.A., Eskiev M.A., Chazhaev M.I. [Risk management as a necessary condition for investment project financing]. Molodoi uchenyi = Young Scientist, 2015, no. 14, pp. 328. URL: Link (In Russ.)
  10. Kleimenova A.V. [Classification of risks in project finance]. Ekonomika i sovremennyi menedzhment: teoriya i praktika = Economics and Modern Management: Theory and Practice, 2014, no. 37, pp. 144–156. (In Russ.)
  11. Kovalev V.V. Finansovyi analiz: metody i protsedury [Financial analysis: Methods and procedures]. Moscow, Finansy i statistika Publ., 2001, 559 p.

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 25, Iss. 10
October 2019

Archive