IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v11y2023i2p153-168.html
   My bibliography  Save this article

Risk factors' prediction model for the investment evaluation

Author

Listed:
  • Alica Tobisova

    (Technical University of Košice, Slovakia)

  • Andrea Seňová

    (Technical University of Košice, Slovakia)

  • Robert Rozenberg

    (Technical University of Košice, Slovakia)

Abstract

The article deals with the issue of increasing the competitiveness of enterprises and their long-term sustainability based on the efficiency of investment processes. Implementing new approaches to the company's decision-making processes will allow companies to overcome the pitfalls of the market environment created by the post-COVID period and the current energy crisis that has affected the world markets after the conflict between Ukraine and Russia. The article aims to verify the application of the methodology for increasing the competitiveness of enterprises based on the use of a model creating a fusion of traditional and sophisticated tools. The analyses carried out are based on the investment decisions of a real company operating in the Slovak Republic's territory in the production and supply of security products. Mathematical modelling and Monte Carlo simulation are based on the company's accounting and operational financial outputs (profit and loss statement, balance sheet). The methodology is based on mathematical modelling through static traditional financial approaches and their verification through sensitivity analysis, regression analysis and Monte Carlo simulation based on distributional distributions of risk factors. The output is the assessment of risk factors and their significance for the criterion value Net Present Value (NPV).

Suggested Citation

  • Alica Tobisova & Andrea Seňová & Robert Rozenberg, 2023. "Risk factors' prediction model for the investment evaluation," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 11(2), pages 153-168, December.
    • Handle: RePEc:ssi:jouesi:v:11:y:2023:i:2:p:153-168
    DOI: 10.9770/jesi.2023.11.2(11)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/42/Tobisova_Risk_factors_prediction_model_for_the_investment_evaluation.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/1133
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2023.11.2(11)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Abba, Z.Y.I. & Balta-Ozkan, N. & Hart, P., 2022. "A holistic risk management framework for renewable energy investments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Erhong & Gozgor, Giray & Mahalik, Mantu Kumar & Patel, Gupteswar & Hu, Guoheng, 2022. "Effects of institutional quality and political risk on the renewable energy consumption in the OECD countries," Resources Policy, Elsevier, vol. 79(C).

    More about this item

    Keywords

    competitiveness; sustainability; Monte Carlo simulation; sensitivity analysis; regression analysis;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:11:y:2023:i:2:p:153-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.