Proposition of a measure of company’s investment attractiveness Cover Image

Propozycja wskaźnika atrakcyjności inwestycyjnej przedsiębiorstwa
Proposition of a measure of company’s investment attractiveness

Author(s): Sławomir Lisek, Lidia Luty
Subject(s): Economy, Business Economy / Management, Socio-Economic Research
Published by: Główny Urząd Statystyczny
Keywords: investment attractiveness indicator; synthetic measure; fundamental analysis

Summary/Abstract: The main purpose of the article is to present a measure of the company’s attractiveness, useful for investors. The study applies a synthetic measure using the indicators of classical financial analysis and the tools of Multidimensional Comparative Analysis. Its construction was based on elements of fundamental analysis. It was modeled on the Taxonomic Measure of Investment Attractiveness (TMIA) by Tarczyński. The utility of the measure was verified for building the ranking of companies from the IT industry, taking into account their income potential for investors. The analysis shows that the presented index properly reflects the ranking of companies in terms of their attractiveness for investors. As a simplified measure, it requires less data and it is less labor-intensive than the classic TMIA. In addition, it is not sensitive enough to the extreme and unusual elements to lead the user to erroneous conclusions. IT joint-stock companies are in good condition and can be considered attractive for investors.

  • Issue Year: 64/2019
  • Issue No: 04
  • Page Range: 49-67
  • Page Count: 19
  • Language: Polish