Structured Financial Products as the Instrument of Financial Credit Assurance for the Companies Involved into Foreign Economic Activities
Indefiniteness in financial markets motivates many market participants to use with increasing frequency the structured financial products. In the research paper at the level of concept we propose the structured financial products aimed at solution of pressing tasks faced by the companies involved into foreign economic activities. DOI: 10.5901/mjss.2015.v6n1s3p117
Assessment of Effect of Large Investment Projects on Development of Investment Potential of Regions of Russia as Exemplified by Universiade 2013 in Kazan1
Objective: development and testing in Russia of methods of assessment of the effect of individual managerial decisions on modification of investment attractiveness of the region Methods: institutional, cost and systemic approaches were employed, as well as econometric modeling Results: new methods of assessment of the effect of individual managerial decisions and measures on the level of investment attractiveness of the region are suggested and evaluated as exemplified by assessment of the effect of preparation and hosting Universiade 2013 in Kazan on investment attractiveness of the Republic of Tatarstan. Employment of the mentioned methods is illustrated by assessment of the consumer potential growth in the Republic of Tatarstan. Scientific novelty: methods of assessment of the effect of managerial decisions and measures of regional level on investment attractiveness of the region are offered, a number of regression models is built allowing to assess the effect of large regional projects on the consumer potential of the region of Russia as exemplified by the Republic of Tatarstan. Practical value: The suggested methods are universal and can be applied when assessing any large regional project in Russia, in any of its subjects. DOI: 10.5901/mjss.2014.v5n18p255
Valuation of intellectual property: A real option approach
Purpose – This paper aims to provide a new approach to evaluate intellectual property (IP) and uses a cautious view of how volatility impacts the economic value of IPs.Design/methodology/approach – Real option is a useful tool for valuing investments under uncertainty and if it is applied to the valuation of IP with some modifications, it is also widely accepted. However, it is still debatable whether there is a constant rate‐of‐return. This paper incorporates a sensitivity variable to account for the volatility of the expected rate of return. Thus, rate‐of‐return can be a constant or increase with volatility.Findings – First, it was found in the simple model that Vega may be negative when the option is deep in the money. Second, in the general model, the option can be seen as a sequence of options and under the constant rate‐of‐return shortfall setting, it resembles traditional financial options with positive Vega.Originality/value – The scenario set‐up allows the authors to explain why uncertainties of ...