Assessment of Direct Investment Influence onto Economic Results of Copper Industry Enterprises

DOI

10.2991/ttiess-17.2017.10How to use a DOI?

Keywords

direct investment, capital, copper industry, least square method, regression analysis, statistical economic modeling

Abstract

The paper defines and characterizes the direction and power of influence that different factors exert on the results of activities of companies in the copper industry, defined in terms of company's revenue. A special emphasis was put on the evaluation of the influencing power of direct investment. To that end, the authors consistently solved the following tasks: 1) analysis and characteristic of the market structure of the Russian copper industry; 2) building a regression econometric model of dependence of company's earnings on direct investment. It is built for the principal companies of the Russian copper industry using the analysis of panel data for 87 companies. Further, this model is evaluated using the least square method; 3) interpretation of the results, obtained with the economic statistical model. The methodology of the work includes comparative analysis and generalization of information obtained from different sources. A content analysis of recent Russian and foreign analytical publications was undertaken. Statistical (panel) data were analyzed and a regression model was built, which uses the revenues of a copper industry company as a dependent variable, while direct investment, capital and material inventory at the company's premises served as independent variables. The model was further assessed with the least square method. The research allows concluding that the direct investment plays an important role in the company's business, but at the level of the industry, they are accompanied by negative internal effects due to existing volatile movements, including presence of major players in the market.

Copyright

© 2017, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Stanislav Victorovich Pridvizhkin
AU  - Oleg Victorovich Bazhenov
AU  - Margarita Karpovna Kozhevnikova
AU  - Denis Vitalyevich Bayev
PY  - 2017/06
DA  - 2017/06
TI  - Assessment of Direct Investment Influence onto Economic Results of Copper Industry Enterprises
BT  - Proceedings of the International Conference on Trends of Technologies and Innovations in Economic and Social Studies 2017
PB  - Atlantis Press
SP  - 58
EP  - 62
SN  - 2352-5428
UR  - https://doi.org/10.2991/ttiess-17.2017.10
DO  - 10.2991/ttiess-17.2017.10
ID  - Pridvizhkin2017/06
ER  -