Bìznes Inform (Nov 2023)

The Theoretical and Methodological Aspects of the Investment Mechanism of Enterprise

  • Polishchuk Nataliia V.,
  • Popadiuk Yaroslav A.

DOI
https://doi.org/10.32983/2222-4459-2023-11-161-167
Journal volume & issue
Vol. 11, no. 550
pp. 161 – 167

Abstract

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The article examines the theoretical aspects of the investment mechanism of enterprise. The importance of formation and functioning of an effective investment mechanism of enterprise is substantiated. The concepts of investment and investment mechanism are analyzed and own definitions are proposed. Investments are defined as costs placement in various objects of economic activity of an enterprise in order to make a profit and/or achieve an extra-economic effect. However, it is worth noting that nowadays many foreign countries and international organizations pay more attention to the non-profit effect of investment, in particular: environmental, cultural, social, political, etc. The investment mechanism is studied as an aggregate that includes various elements: processes, methods, sources of financing, and tools that contribute to the development of investment activity. It is found that the investment mechanism consists of elements that act in the form of legal, managerial, and resource provision of investment activity. The key macroeconomic and microeconomic factors influencing the investment mechanism of enterprise and, accordingly, dictating the conditions and strategies of investment and determining the potential success or risks of investment activity are studied. Together with the influence of factors on the investment mechanism of enterprise, the economic and institutional motives that stimulate enterprises to engage in investment activities have been examined. Management of the investment activity of an enterprise is a complex process that requires legal regulation through investment law and legislation. The subjects of investment activity of the enterprise develop their own methodological support of the investment mechanism, in accordance with their needs and goals. Prospects for further research in this direction are the development of strategies for investment activity of enterprise, which will include the selection of investment objects, risk management, and ensuring the financial stability of enterprise in the implementation of investment activities.

Keywords