WAYS TO IMPROVE THE INTEGRAL ASSESSMENT OF THE SECURITY CHARACTERISTICS OF INVESTMENT ATTRACTIVENESS OF BUSINESS ENTITIES

Abstract

The relevance of the article is predetermined by the need of theorists and practitioners in the application of a comprehensive methodology for assessing the level of financial security of a business entity with the purpose of deciding regarding investments. The purpose of the article is defining ways to improve the integral assessment of the security characteristics of investment attractiveness of business entities for the purpose of further developing a new methodology for assessing the level of financial security of a business entity based on researches and analysis of leading domestic and foreign scientists, economists, lawyers and financiers. The methods of analysis were applied in the article to characterize existing approaches to determining the level of financial security of a business entity. The methods of synthesis were used to create a background for a new methodology that would be characterized by complexity and consistency. As a result of the conducted research, the background for a new methodology for assessing the level of financial security of business entities in the system of attracting foreign investments to Ukraine at the micro level was created. The innovativeness of the proposed evaluation methodology lies in the fact that, unlike the classical approaches to assessing the level of financial security, when attention is focused on the quantitative indicators calculated from the financial statements (coefficients and integral indicators of liquidity, solvency, financial stability, property status, profitability, business activity), the new methodology shall also emphasize the importance of assessing the correctness, quality and timeliness of documenting such aspects of economic activity: tangible assets, corporate structure, financial reporting status, taxation, regulatory and antitrust issues, intellectual property, disputes, individual and collective labor relations. The conducted research has high theoretical and practical value because it is expected that in postwar period, foreign investors will need simple and at the same time rational, comprehensive road map in order to estimate financial security of a business entity for the purpose of making a decision regarding investments in such business entity.