Assessing the Investment Attractiveness of Metallurgical Enterprises to Improve the Efficiency of Their Sustainable Investment Activities

The objective of this study is to develop a methodological approach to the integral assessment of the investment attractiveness of metallurgical enterprises to improve the efficiency of investment activities and the implementation of projects and ensure sustainable development. The metallurgy industry faces the challenge of balancing efficiency goals and sustainable objectives (ESG) and risks. Our approach takes into account the relationship between investment potential, realized opportunities, and the level of risk. Based on a systematic analysis of theoretical approaches, an integral investment attractiveness index is proposed that aggregates investment potential (consisting of seven sub-potentials), an assessment of the results of project implementation, and an aggregated risk index. Assessing investment attractiveness is important for ensuring the sustainable implementation of effective projects and determining their priority. A panel dataset was constructed using data from two metallurgy companies. The relationship between investment attractiveness and classical indicators (ROIC, EVA, MVA, Tobin’s Q, and P/BV) is examined through panel regression with fixed effects, cross-correlation analysis of the temporal structure of relationships, a CUSUM test for model stability, and decomposition of investment attractiveness changes. Decomposition of investment attractiveness changes makes it possible to quantify the contribution of potential, opportunities, and risk to the dynamics of investment attractiveness across various periods, including crisis and post-crisis ones describing the specifics of the metallurgic industry. The presented methodology is relevant for increasing the efficiency of project implementation within the framework of an integral company policy and contributes to the acceleration of industrial implementation of sustainable projects in the metallurgy sector.