Country Risk as a Characteristic of Investment Attractiveness

DOI: 10.33917/es-3.195.2024.80-85

Among premiums for various types of risks, determining the value of the capitalization/reduction rate in the formulas of the income approach to evaluation and efficiency of investment projects, the premium for country risk occupies a significant place.

At the same time, taken independently, it can be considered as an indicator characterizing the investment attractiveness of the country. The article describes many years of experience in calculating the country risk premium for the Republic of Belarus, the Russian Federation, Ukraine and other countries. The influence of the Russian Special Military Operation in Ukraine on the value of this indicator is demonstrated. The article is intended for financial advisors, appraisers, teachers, students and scientists in the field of finance and valuation, as well as for specialists in related fields of economics.

References:

1. Trifonov N.Yu. Kompleksnaya otsenka nedvizhimosti [Comprehensive Real Estate Valuation]. Ucheb. posobie. Minsk, Vysheyshaya shkola, 2022, 238 p.

2. Trifonov N.Yu. Evolyutsiya ponyatiya “stoimost’” v sovremennoy otsenochnoy deyatel’nosti [Evolution of “Value” Concept in Modern Evaluation Activities].

Ekonomicheskie strategii, 2020, no 4, pp. 96–103, DOI: https://doi.org/10.33917/es-4.170.2020.96-103

3. Trifonov N.Yu. Dokhodnyy podkhod k otsenke stoimosti: poslednie dostizheniya [Income Valuation Approach: Recent Advances]. Ekonomicheskie strategii, 2021, no 3(177), pp. 100–109, DOI: https://doi.org/10.33917/es-3.177.2021.100–109

4. Trifonov N.Yu. Razvitie metoda nakopleniya riskov dlya rascheta stavki kapitalizatsii [Development of the Risk Accumulation Method for Calculating the Capitalization Rate]. Ekonomicheskaya nauka sovremennoy Rossii, 2021, no 1, pp. 7–14, DOI: https://doi.org/10.33293/1609-1442-2021-1(92)-7-14

5. Metodicheskie rekomendatsii po otsenke effektivnosti investitsionnykh proektov (vtoraya redaktsiya) [Methodological Recommendations for Assessing the Effectiveness of Investment Projects (Second Edition)]. Ofitsial’noe izdanie. Ministerstvo econ. RF, Ministerstvo fin. RF i dr.; ruk. avt. kol. Kossov V.V. i

dr. Moskva, Izdatel’stvo economika, 2000, 421 p.

6. Sharp W.F., Alexander G.J., and Bailey J.W. Investments, 6th Ed., Prentice Hall, Englewood Cliffs, NJ, 1998.

7. Damodaran, A. Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition, John Wiley and Sons, Inc., 2012.

8. Ibbotson R.G. Stocks Bonds Bills and Inflation 1996 Yearbook: Market Results for 1926–1995 (Stocks, Bonds, Bills and Inflation (Sbbi) Yearbook. Chicago, The Associates, 1996.

9. Federal Reserve Board – Home, available at: http://federalreserve.gov/

10. Trifonov N.Yu. Premiya za stranovoy risk kak pokazatel’ investitsionnoy privlekatel’nosti (na primere Respubliki Belarus’) [Country Risk Premium as an Indicator of Investment Attractiveness (Case of Republic of Belarus)]. Obshchestvo i ekonomika, 2023, no 8, pp. 112–116, DOI:

https://doi.org/10.31857/S020736760025391-9

11. Trifonov N.Yu. Ekspert ob investitsionnoy privlekatel’nosti razlichnykh gosudarstv i ikh stranovom riske [Expert on Investment Attractiveness and Country Risk]. R, 2024, 4 iyunya, available at: https://realting.com/ru/news/expert-on-investment-attractiveness-and-country-risk

Следить за новостями ИНЭС: