Risks and Costs to Attract Investment Capital by Enterprises during Financial Crisis

Journal Title: Бізнес Інформ - Year 2016, Vol 2, Issue

Abstract

The proposed article is aimed at disclosing the complex of factors, which influence the price of attracting capital by enterprises in crisis, and substantiating the recommendations concerning the possibilities to mobilize investment capital by economic entities operating in emerging markets during the global financial-economic crisis. Role of rate of expenditure on attracting capital in determining the treatment capacity as well as adopting financial-investment decisions at enterprises in financial crisis has been examined. It has been substantiated that rate of expenditure on capital is a criterion for strategic financial decisions at both financially stable enterprises and those that are in crisis. The main factors influencing the costs of attracting capital by enterprises during financial crisis have been highlighted. It has been proven that most of the indicators, which determine the rate of expenditure on capital of enterprises when using traditional methods of calculating them in times of financial crisis, are somewhat distorted. The need to take into consideration bankruptcy risk premium in the process of determining expenditure on capital has been proven. Ways of solving problems, related to assessment of costs for attracting financial resources by enterprises in crisis or functioning in the conditions of crisis environment, have been determined.

Authors and Affiliations

Sergii Pavlovsky

Keywords

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  • EP ID EP123074
  • DOI -
  • Views 109
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How To Cite

Sergii Pavlovsky (2016). Risks and Costs to Attract Investment Capital by Enterprises during Financial Crisis. Бізнес Інформ, 2(), 340-346. https://europub.co.uk/articles/-A-123074