Impact of Investment Activity on the Value of Agricultural Business
- DOI
- 10.2991/aebmr.k.200729.061How to use a DOI?
- Keywords
- agrarian business, investment attractiveness, invested capital, economic added value, profitability spread
- Abstract
The problem of increasing investment activity of agricultural business is raised, which is difficult to solve only at the expense of mechanisms of budget and credit support. It was revealed that against the background of the growth of borrowed capital, private investments in agriculture are declining. In an uncertain environment, investment decision support tools are needed to describe the return on investment and its potential effectiveness. The methodology of investment attractiveness diagnostics is systematized by the indicators of the method of estimation of economic value added and supplemented by models of dependence of yield spread on invested capital. The study was carried out taking into account two scenarios of product price growth under conditions: openness of the domestic market (scenario 1) and antisequences (scenario 2). Analytical and model calculations show the existence of economic incentives from investment of financial resources in agricultural business under both scenarios. Owners of invested funds in the first scenario will receive a large value, in the second scenario – a large yield of agricultural business. The results of the study will be useful to the agribusiness management bodies to coordinate strategic decisions to create a favorable investment climate in agriculture.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - D.Yu. Samygin AU - N.G. Baryshnikov AU - A.V. Ilyasova AU - Yu.V. Karmyshova PY - 2020 DA - 2020/07/30 TI - Impact of Investment Activity on the Value of Agricultural Business BT - Proceedings of the International Conference on Policies and Economics Measures for Agricultural Development (AgroDevEco 2020) PB - Atlantis Press SP - 323 EP - 327 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200729.061 DO - 10.2991/aebmr.k.200729.061 ID - Samygin2020 ER -