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ASSESSMENT OF COMPANYВ’S INVESTMENT APPEAL BASED ON MULTIPLE REGRESSION

N. Yakupova, E. Kadochnikova, M. Salahieva, A. Lelyukh

Abstract

The article seeks to emphasize the key role of the internal factors of the companyВ’s investment appeal. This includes an overview of the traditional methods of assessing companyВ’s investment appeal and the calculation of the integral index of investment appeal based on the financial performance for a leading chemical enterprise. The study results in a methodical approach to assessing companyВ’s investment appeal on the basis of multiple regression of net return on assets. The authors propose to carry out a ridge-regression in regressors collinearity of net return on assets in order to get the best prognostic characteristics, to maintain reliability and information value of modeling. The presented empirical assessment of multiple regression parameters that was made using Gretl package will help potential investors, shareholders and owners to manage the effective use of capital. The article deals mainly with regression analysis of indicators in the financial statements. Therefore, in future, researchers will be able to develop conceptual tools for assessing companyВ’s investment appeal, taking into account non-financial aspects such as economic characteristics of the industry, potential of the region, the competitiveness of products, customer-oriented approach of a company, innovations.

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