Advantages and Disadvantages of Contemporary Methods for Evaluation of Efficiency of Investment in Intellectual Property Items

10.12737/6729 ◽  
2014 ◽  
Vol 2 (6) ◽  
pp. 15-22
Author(s):  
Левкина ◽  
Nataliya Levkina
Keyword(s):  
Intellectual Property ◽  
Portfolio Management ◽  
Optimal Investment ◽  
Efficiency Evaluation ◽  
Financial Assets ◽  
Investment Portfolio ◽  
Investment Projects ◽  
Advantages And Disadvantages ◽  
Traditional Classification ◽  
Rational Combination

Contemporary methods of investment projects’ efficiency evaluation are based on such fundamental finance theories as J. Williams’ theory of discounted cash flows, investment portfolio management, pricing model for financial assets and the theory of options. All these theories were originally intended for analysis of investment in securities. This paper provides an overview of contemporary methods for evaluation of efficiency of investment projects connected with acquisition, development and use of intellectual property items in the frames of traditional classification, according to which they are commonly divided into three groups: financial, probabilistic and qualitative. As all financial, probabilistic and qualitative methods for evaluation of efficiency of investment in intellectual property items have their advantages and disadvantages it is recommended to use these methods’ rational combination in order to choose the optimal investment variant.

scholarly journals Methods of multi-criteria evaluation of economic efficiency of investment projects

2021 ◽  
pp. 93-98
Author(s):  
Oksana Isai ◽  
Olha Romashko ◽  
Andriy Semenov ◽  
Tetiana Sazonova ◽  
Ivanna Podik ◽  
...  
Keyword(s):  
Economic Efficiency ◽  
Investment Project ◽  
Optimal Investment ◽  
Stable Operation ◽  
Investment Activity ◽  
Investment Projects ◽  
Advantages And Disadvantages ◽  
Investment Option ◽  
Fierce Competition ◽  
High Level

In the context of globalization and fierce competition in world markets, the high level of investment activity in the country is a key to economic and innovative development. The high level of wear and tear of fixed assets in developing countries gives special relevance to solving the problem of attracting investments for production development. Hence, for the investment management system choosing an optimal variant among several available investment projects is one of the most responsible stages of ensuring the stable operation and sustainable development of an enterprise. In this regard, the aim of the article is to develop a comprehensive multi-criteria approach to choose the best investment option. The article analyzes the existing methodological approaches to assess the economic efficiency of the investment projects, identifies their advantages and disadvantages. A multi-criteria method of investment project evaluation is proposed, which is characterized by the absence of restrictions on the number of individual evaluation indicators and the possibility for the investor to determine the significance of every indicator using weights independently. The use of the proposed methodology by enterprises will improve the quality of management decisions at the stage of choosing the optimal investment option.

scholarly journals Constructing an optimal investment portfolio for the Bank of Lithuania

Ekonomika ◽  
2016 ◽  
Vol 95 (1) ◽  
pp. 112-133
Author(s):  
Birutė Galinienė ◽  
Justina Stravinskytė
Keyword(s):  
Management Strategies ◽  
Optimal Investment ◽  
Investment Strategy ◽  
Financial Assets ◽  
Currency Risk ◽  
Investment Portfolio ◽  
Risky Assets ◽  
Course Of Action ◽  
Total State ◽  
Assets Management

The main goal of this article is to illustrate the strategy, devised to improve the effectiveness of utilizing the financial assets, or in this case, the official international reserves, belonging to the Bank of Lithuania. In Lithuania, the value of financial assets as a percentage of total state assets has doubled in the span of 10 years. Moreover, a strong correlation between the real GDP growth and the Bank of Lithuania’s financial assets/profitability implies that the effectiveness of financial assets management has a nationally wide impact. Unfortunately, the Bank’s profit/invested value indicator has reached a record low in 2012–2013, which resulted in the whole bank’s profit being absorbed into the state’s budget (as opposed to 70 % of it). Such signs meant that the previous investment strategy has become ineffective and needed changes.To highlight the necessary changes, the authors conduct a practical research and construct the optimal investment portfolio, according to the goals and variables given by the guidelines, proposed by Bank of Lithuania. The size of the portfolio is 4,14 bn euros, and the maximum loss per year (VaR) allowed is -100 M euro/year, as stated by the Bank of Lithuania’s risk budget limit. The authors also focus on the issue of increased currency risk after investing in volatile share indices and whether hedging against it with Forex spot transactions is beneficial.The result of the research is an optimal portfolio, consisting of 9,85 percent of risk-free assets and 90,15 percent of risky assets. Hedging against currency risk in this case is an ultimately beneficial course of action, yielding an increase of annual returns by 0,3 percent, which translates to +12,3 mln euros. Finally, the portfolio is flexible and simple to reshape into a less risky variant, if the institution predicts the dangers of possible future economic downfalls.This research was further used in a broader paper whose goal was to analyse and assess the effectiveness of currently employed assets’ management strategies in Lithuania.

scholarly journals MANAGEMENT OF BANK INVESTMENT PORTFOLIO

2018 ◽  
pp. 14-18
Author(s):  
E. A. Yashchenko
Keyword(s):  
Portfolio Management ◽  
Management Strategy ◽  
Portfolio Theory ◽  
Investment Portfolio ◽  
Investment Activity ◽  
Advantages And Disadvantages ◽  
Modern Apparatus

For effective investment activity of banks it is necessary to manage and optimize the Bank’s securities portfolio. The modern apparatus of portfolio management has a sufficient Arsenal of effective tools, including a number of principles and approaches. The abstract presents an analysis of active and passive portfolio management strategy, the conditions of their use, advantages and disadvantages. The analysis of formation and development of the portfolio theory of the leading Western scientists is carried out. Processed the achievements of our scientists.

PORTFOLIO MANAGEMENT OF ENERGY SAVING PROJECTS BASED ON THE MARKOVITS THEORY

2021 ◽  
pp. 79-91
Author(s):  
S. Kiyko ◽  
L. Deineha ◽  
M. Basanets ◽  
D. Kamienskyi ◽  
A. Didenko
Keyword(s):  
Energy Saving ◽  
Portfolio Optimization ◽  
Portfolio Management ◽  
Quadratic Function ◽  
Subject Area ◽  
Linear Constraints ◽  
Point Of View ◽  
Investment Portfolio ◽  
Financial Investment ◽  
Software Application

The goal of the work was to identify research and compare methods of portfolio management of energy saving projects and to develop software for optimizing portfolio investments using several methods. The key elements and strategies of creating an effective investment portfolio are considered: diversification, rebalancing, active portfolio management, passive portfolio management. Given the basic principles of investment theory, the task of portfolio investment is to form an investment portfolio with known shares of certain assets to maximize returns and minimize risk. To solve this problem, the method of Harry Markowitz, known as modern portfolio theory, was chosen. This is the theory of financial investment, in which statistical methods are used to make the most profitable risk distribution of the securities portfolio and income valuation, its components are asset valuation, investment decisions, portfolio optimization, evaluation of results. From a mathematical point of view, the problem of forming an optimal portfolio is the problem of optimizing a quadratic function (finding the minimum) with linear constraints on the arguments of the function. Methods of optimization of portfolios of energy saving projects taking into account the specifics of the subject area are analyzed. According to the results of the analysis, the methods of finding the maximum Sharpe’s ratio and the minimum volatility from randomly generated portfolios were chosen. A software application has been developed that allows you to download data, generate random portfolios and optimize them with selected methods. A graphical display of portfolio optimization results has also been implemented. The program was tested on data on shares of energy saving companies. The graphs built by the program allow the operator to better assess the created portfolio of the energy saving project.

Significant choice-of-law interests and its impact on the formation of choice-of-law regulation in the field of intellectual property

2021 ◽  
pp. 186
Author(s):  
Svetlana I. Krupko
Keyword(s):  
Intellectual Property ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
The State ◽  
Close Connection ◽  
Choice Of Law ◽  
Applicable Law ◽  
Advantages And Disadvantages ◽  
Special Rules

This article analyzes the choice-of-law interests of specific and potential participants in the relations of intellectual property rights and the state in order to establish the closest connection of the above type of relation with the state, whose law should be applied. Taking into account the directionality of significant choice-of-law interests, advantages and disadvantages of territorial and universal approaches, a theoretically based solution is proposed for the formation of a general choice-of-law rule on the law to be applied to the relation of intellectual property rights. It was revealed in the study that the diversity of the relations of intellectual property rights (their obligatory and non-obligatory, property and personal non-property nature, other differences in legal features) does not automatically generate a multidirectionality of significant choice-of-law interests that should be taken into account when establishing a close connection of the above type of the relation with the state for determination of applicable law, does not prevent the formation of a general choice-of-law rule for the relations of intellectual property rights in general and does not unequivocally testify in favor of the specialization of its binding. However, the diversity of the relations of intellectual property rights should be examined and evaluated for the feasibility and limits of exceptions from the general choice-of-law rule and the development of special rules for resolving certain private of the relations of intellectual property rights.

scholarly journals Risk-return analysis of the investment portfolio of two stocks, under the Markowitz model. Case study: Two multinational companies listed on the Mexican Stock Exchange

2020 ◽  
pp. 21-27
Author(s):  
María Trinidad ALVAREZ-MEDINA
Keyword(s):  
Stock Exchange ◽  
Industrial Sector ◽  
Financial Assets ◽  
Investment Portfolio ◽  
Model Case ◽  
Risk Return ◽  
Economic Entity ◽  
Food And Beverage ◽  
And Performance

Investment in productive and financial assets are a decision made as an alternative to direct resources to bring greater value and higher performance to an economic entity. The objective of this article is to analyze the return risk of the stocks of two companies listed on the Mexican Stock Exchange (BMV), presenting the case of the companies Grupo Bimbo, SAB de CV, and GRUMA, SAB de CV, both companies listed on the Mexican Stock Exchange, belonging to the industrial sector specifically the food and beverage sub-sector, being the most representative companies of this sector. The return on the portfolio is 0.27256% and the risk is 0.0121862, with an investment of 50% in each of them. The period analyzed was from 2015 to 2018. It is important to base decision-making by considering the risk analysis and performance of financial assets in where you wish to invest, in addition to relying on other analyzes such as fundamental and technical analysis, among others.

North–South trade in intellectual property: can it be fair?

2004 ◽  
Vol 3 (2) ◽  
pp. 317-328
Author(s):  
CYNTHIA CANNADY
Keyword(s):  
Developing Countries ◽  
Intellectual Property ◽  
Research And Development ◽  
Support Services ◽  
Financial Assets ◽  
High Stakes ◽  
Active Play ◽  
Spectator Sport

For many developing countries trading in intellectual property has been a spectator sport. Active play in the high stakes game of ‘trading in knowledge’ has been for a few wealthy countries whose institutions and citizens own intellectual property (IP). These IP-owner countries have the equipment needed to play – the funding systems, patent lawyers, marketing support services, and thriving government subsidized research labs and universities – enabling them to turn their research and development into IP, intangible but highly valuable financial assets. In the game of ‘trading in knowledge’, capturing strategic IP portfolios is the goal, and lucrative licensing contracts are the touchdown.

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