The matter of a top manager's motivation is adapted to the consumer behavior theory. It has been demonstrated that the problem of bringing a non-financial motivation to a financial one may be solved with a certain error. This problem may be overcome by introducing a special metric of utility...

An index method of molding a corporate investment program in the context of a limited financing budget has been presented, which method makes it possible to draw up such program on the basis of resulting performance evaluation of the entire pipeline of investment projects. To solve this problem,...

The problem of credit risk management at commercial banks is solved using the stochastic dominance criteria supplementing them with the voting theory elements. The developed stochastic dominance algorithm is based on an investment approach whose basic concept consists in management of both...

A method for handling the problem of financial mission statement has been suggested to evaluate effects of projected upgrading equipment of a manufacturing company. For this end, such project is analyzed as an Asian real option with constant business volatility. The problem is solved using the...

This paper establishes a degree of influence between an inflation rate and a risk-free investment rate on the precision of estimated value of an Asian real option. It has been shown with an example that in the event of advancing by the inflation rate beyond profitability of risk-free...

An investment vehicle for production modernization has been introduced taking into account specifics of company activities in Russia. This vehicle comes with a procedure for analyzing practicability of plant replacement, which may be applied to expediency consideration with regard to replacement...

Cooperative effect of depreciation (D), tax (T) and debt (Debt) leverages on NPV of a high-technology innovative project has been analyzed. It has been shown that for projects having a high DTD leverage, the project NPV first grows and then declines with an increase in the income tax rate, which...

A credit risk assessment model has been developed to take into account the complexity of a time-based financial process in the context of vertical and horizontal relations, which makes it possible to decompose the time-based financial process of debt services as thoroughly as it is required by...

A company's investment program is drawn up with specific reference, using a joint analysis of marginal cost of capital (MCC) and investment opportunity schedule (IOS) curves. It is suggested to apply the modified internal rate of return (MIRR) indicator instead of the internal rate of return...

Using the Black-Scholes Option Pricing Model (OPM) that has already become classical for evaluating the market value of a real option is problematic since it includes standard deviation of contractual revenue performance, which is impossible to predict accurately. In addition, the OPM is...