Język Polski
English
Published
:
2010-06-30
"Value Map" as Investment Decisions Supporting Instrument
Jacek Kubrak
Abstract
Usually the cash surplus of the company is invested in bank deposits or government bonds. This kind of investments is characterized by low risk and low profit. Profits achieved from this operation affect directly overall company's capital productivity. To increase this value, the new way of the company practice is proposed. The main goal is to invest surplus in shares quoted on stock exchange using the sufficient knowledge of a financial department. It is based on the hypothesis of the positive correlation between capital productivity and a company's market value. Basing on it, companies can be described by two dimensions, present and future. Following this idea they are split into four groups - value builders, expectations builders, traditionalists, value destroyers. It is supposed that an investment into the category of value builders is the one characterized by a lower risk and delivers the opportunity of the additional diversification of the investment quota between different companies. In order to further risk reduction and profit increase from an investment portfolio an optimization method is also proposed. The theoretical model and the algorithm of the method are suggested to be verified based on real data. It is also advised to continue further research on reducing a risk and increasing return from investment in order to find a solution understandable to non-specialists in capital investment.(original abstract)Keywords:
Investment decisions, Investment decisions making, Theory of decision supportDetails
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Kubrak, J. (2010). "Value Map" as Investment Decisions Supporting Instrument. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 28(28). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1617