THE ROLE OF DYNAMIC EFFICIENCY GRADING METHODS IN INVESTMENT DECISION MAKING Cover Image

УЛОГА ДИНАМИЧКИХ МЕТОДА ОЦЈЕНЕ ЕФИКАСНОСТИ У ИНВЕСТИЦИОНОМ ДЛУЧИВАЊУ
THE ROLE OF DYNAMIC EFFICIENCY GRADING METHODS IN INVESTMENT DECISION MAKING

Author(s): Adis Puška
Subject(s): Economy, Business Economy / Management, Micro-Economics, Accounting - Business Administration, Socio-Economic Research
Published by: Економски факултет Универзитета у Бањој Луци
Keywords: weighted coefficients; investment decision making; dynamic methods; multi‐criteria methods;

Summary/Abstract: When determining the justification of an investment project realization, it is necessary to conduct an analysis and measurement of the effects obtained from investment projects. Measuring of the effects is done by calculating specific indicators or criteria which are used for expressing the effects of investment projects. When a company has several projects available, which support it in realizing its development goals, priority will be placed on the projects which show best results within an economic and financial investment project analysis. However, the question that arises is which indicators are used for conducting the analysis and how important are they? When analyzing these indicators, grading of importance is done via weighted rank correlation coefficients. The selection of an indicator?s influence is mainly a subjective preference of the investment decision maker himself. That is why it is necessary to determine which effects this decision can have on the investment project which offers the best support in realizing the development goals of a company. In relation to this, twenty investment projects will be presented here and their dynamic indicators will be calculated. After obtaining the results, the investment projects will be graded using the multi?criteria methods SAW and TOPSIS. The importance of the indicators in investment decision making will be calculated that way.

  • Issue Year: 9/2011
  • Issue No: 15
  • Page Range: 227-254
  • Page Count: 28
  • Language: Bosnian, Croatian, Serbian