ESSENCE, VALUE AND STRUCTURE OF THE MANAGEMENT OF ENTERPRISE INVESTMENT PORTFOLIO

Introduction

Background research.In a market economy, the process of formation, Management of an investment portfolio, optimizing its structure, establishing a rational ratios of the various sources of funding and, therefore, the quality of management of resources of particular importance.Relying on the study of foreign and Russian scientists should emphasize the importance of an optimal Management of an investment portfolio structure for the effective operation of the organization, as well as lack of scientific study questions, search for financial sources in terms of their limitations, definitions, impact of environmental factors on the process of mobilization.

A sufficient level of Management of an investment portfolio helps to maintain the viability of the economic entity for all - time-operation, maintaining its liquidity, stability and solvency of the equity-dependent opportunity to increase investments in the economy, the expansion of product marketservices.

Achieving the optimal structure of financial resources is realized through adequate control them in the general management.Each organization should develop their own policies, taking into account Management of an investment portfolio formation, a strategy development.However, the maximum efficiency and effectiveness of financial management can be achieved subject to a systematic approach, a rational combination of strategic and tactical measures.

Therefore, clarification of the theoretical foundation and justification of specific practical recommendations, to improve the methodological approaches to the solution of this problem in modern conditions is an important task of scientific research.

Management of an investment portfolio structure means the mixture of share Management of an investment portfolio and other long term liabilities. In the company, we know that liability of each shareholder is limited but how much be the total liability of shareholder is the important question? It can be decided by choosing best Management of an investment portfolio structure. In Management of an investment portfolio structure, we include, equity share Management of an investment portfolio, preference share Management of an investment portfolio, debenture and long term debt. Suppose, our company's Management of an investment portfolio structure may show 50% equity share Management of an investment portfolio, 30% pref. share Management of an investment portfolio and 20% debentures. But all companies' Management of an investment portfolio structure may not be equal because different business need different type of Management of an investment portfolio structure which will be suitable according to the need of business.

Some of companies want to become smart. They slowly decrease equity share Management of an investment portfolio and increases loan excessively which may be very risky because these company has to pay fixed cost of interest and has to manage repayment of loan after some time. Some mistake in it, may be risky for its solvency. So, decision relating toManagement of an investment portfolio structure is very important for company.

In corporate finance, the academic contribution of Modigliani and Miller about Management of an investment portfolio structure irrelevance and tax shield advantage paved way for the development of alternative theories and a series of empirical research on Management of an investment portfolio structure. The alternative theories include the trade-off theory, the pecking order/asymmetric information theory and the agency theory. All these theories have been subjected to extensive empirical testing in the context of developed countries, particularly USA (see Harris and Reviv, 1991 for a review). A few studies report international comparison of Management of an investment portfolio structure determinants (Wald, 1999; Rajan and Zingales, 1995). There are some studies that provide evidence on the Management of an investment portfolio structure determinants from the emerging markets of South-east Asia (Pandey, 2001; Pandey et. al., 2000; Annuar and Shamsher, 1993; Ariff, 1998). The recent focus of corporate finance empirical literature has been to identify some “stylized” factors that determine Management of an investment portfolio structure.

There is relatively little evidence on the interaction between Management of an investment portfolio structure and product market structure. Some researchers have recently started looking at this interaction. Brander and Lewis (1986), Bolton and Scharfstein (1990), Maksimovic (1988) and Ravid (1988) offer theoretical framework for the linkage between Management of an investment portfolio structure and market structure. Harris and Raviv (1991) and Phillips (1995) provide surveys of the theoretical and empirical research on the relationship between Management of an investment portfolio structure and market structure. The studies in USA by Krishnaswamy, Mangla and Rathinasamy (1992), Chevalier (1993), and Phillips (1995) investigate the empirical relationship between Management of an investment portfolio structure and market structure. In a recent study, Rathinasamy, Krishnaswamy and Mantripragada (2000) examine this issue in international context using data from 47 countries. All these studies establish a linear relationship, either positive or negative, between Management of an investment portfolio structure and market structure. We argue in this paper that the relation between Management of an investment portfolio structure and market structure is cubic. We also show that the relation of profitability with Management of an investment portfolio structure is U-shaped or saucer-shaped. Results of our empirical work vindicate our predictions. To our knowledge, we are the first to uncover the cubic relation between Management of an investment portfolio structure and market structure and saucer-shaped relation between Management of an investment portfolio structure and profitability. Perhaps we are also the first to carry out the empirical work on the relationship between Management of an investment portfolio structure and market structure using data from the emerging Malaysian market.

Degree of a problem.Theoretical aspects of the essence of Management of an investment portfolio considered in the works of such prominent economists as: F. Quesnay, Marx, N. W. Senior, ARJ Turgot.Of particular importance are the provisions VV Bocharov, AEDeeva in the investigation of classification funding organization; VV Kovalev - in the area of financial management.

Among the studies of foreign authors on the subject should be made ​​of S. Bikhchandani, M. Bradley, P. Gorman, J. Graham, J. Donaldson, J. Jarrell, R. Zekhauzera, R. Yisrael, VE Cantor, E. H. Kim, A. Kraus, X.Leland, C. Myers, M. Miller, F. Modigliani, J. Patel, D. Preece, SA Ross, J. X.Scott J. Filbeka, D. Hirshlyayfera etc.

Methodological aspects of the optimization of the Management of an investment portfolio structure, with varying degrees of completeness is reflected in the writings of L. Basov, IA Blanca, AV Gukova, L. Dontsovoj, GG Gospodarchuka, AY Egorov, H . I.

All of the above led to the urgency and determined the choice of the theme, setting goals and objectives of the dissertation research.

The aim of the thesisis to study theoretical basis of the system of financial management of the organization and to develop practical recommendations for optimizing its Management of an investment portfolio structure.

Achieving this goal required the solution of the following tasks:

- To examine the theoretical aspect of the economic substance and content of the category "Management of an investment portfolio" to identify the sources of funding organizations to disclose their advantages and disadvantages;

- Describe approaches to optimization of size and structure of Management of an investment portfolio in the Russian and international practice;

- To disclose the contents of the management of the financial resources of the organization as part of its financial management;

- To analyze the sources of funding organizations in the region and matching the structure of their Management of an investment portfolio optimality criteria;

- The method for evaluation of the system of financial management of the organization and identify ways to optimize the Management of an investment portfolio;

- Justify measures aimed at improving the efficiency of decision-making in the formation of Management of an investment portfolio in terms of resource and information constraints.

The subject ofthestudyis the formation of a system of financial resources of the organizations of the region, evaluate the structure of their Management of an investment portfolio from the point of view of efficient and effective management.

The object of the study is«JSC Kazkommertsbank»

Theoretical and methodological basisof graduate study is based on the works of domestic and foreign scholars and experts in the field of financial management, optimization of the Management of an investment portfolio structure, organization, laws and regulations of the Government of the Republic of Kazakhstan on the issues of equity businesses.

The solution of the problems identified in the need for complex methods of economic research: analytical, monographic, Economics and Statistics, graphic, abstract, logical, comparison.

The practical significanceof the study is to develop recommendations to optimize the Management of an investment portfolio structure of organizations in the management of financial resources, as well as a package of measures aimed at the development of the regional financial market.

Structure of operation.This work consists of an introduction, three chapters, conclusion and bibliography.

ESSENCE, VALUE AND STRUCTURE OF THE MANAGEMENT OF ENTERPRISE INVESTMENT PORTFOLIO

Date: 2015-12-11; view: 833