Proceedings of International Conference on Applied Innovation in IT  ·  2024/03/07  ·  Vol. 12  ·  Issue 1  ·  pp. 149–157
Measuring the Economic Value of Investment Activities: A Case Study of Ukrainian Telecommunications Companies
Galyna Otlyvanska, Iryna Stankevych, Inna Yatskevych, Hanna Sakun, Oksana Vasylenko and Eduard Siemens
📄 Download PDF DOI: 10.25673/115668
Abstract
The research in the companies’ Economic Value of Investment Activities (EVIA) show the most important problems in creating value for Ukrainian mobile providers are customers’ value and differentiation of financing. These problems have appeared not only because of the companies’ management mistakes but also there are general conditions on how to provide investment activities in the Ukrainian telecommunications market. A new approach to measure of a company EVIA, considering stakeholders’ value metrics, and based on the Distance from a Benchmark Method (DBM) is proposed by authors. The DBM provides an opportunity to quantify such a category as EVIA and compare the key characteristics of several companies' activities simultaneously with the identification of factors that affect the efficiency of investment activities, since this process is based on a significant set of criteria and a multidimensional space. The application of the DBM approach to EVIA assessment, in the presented conditions, on the considered example of Ukrainian mobile operators, allows to identify the main problematic aspects of the level of efficiency of invested capital, customer value and differentiation of financing.
Keywords
Value Metrics Measurement Stakeholder Distance from Benchmark Method Integrated Score Economic Value of Investment Activities Telecommunications Companies
References
  1. W. Hamilton, "The Place of Value Theory in Economics," Journal of Political Economy, vol. 26, no. 3, pp. 217-245, 1918, [Online]. Available: https://www.jstor.org/stable/pdf/1821866.pdf.
  2. H. Maoz, H. Tsipi, D. Gefen, and N. Pliskin, "From IT Assets to Business and Economic Value," MCIS 2010 Proceedings, p. 58, [Online]. Available: http://aisel.aisnet.org/mcis2010/58.
  3. A. Orlean, "What is Economic Value Made of?", [Online]. Available: https://doi.org/10.13140/RG.2.1.1990.0648.
  4. J. Malmaeus, "Economic Values and Resource Use," Sustainability, vol. 8, no. 5, p. 490, 2016, [Online]. Available: https://doi.org/10.3390/su8050490.
  5. J. Bluhm and W. Dirk, "Increasing the Economic Value from Digitalisation through Eye-tracking," Proceedings from CHIRA 2019, Vienna, Austria, [Online]. Available: https://doi.org/10.5220/0008364001990205.
  6. R. Shivakumar, "The economics of strategies," California Management Review, Oct. 6, 2020, [Online]. Available: https://cmr.berkeley.edu/2020/10/economics-of-strategies.
  7. "The economic potential of generative AI: The next productivity frontier," McKinsey Insights, June 14, 2023, [Online]. Available: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-economic-potential-of-generative-AI-the-next-productivity-frontier#introduction.
  8. F.S. Dieffenbacher, "Value Creation Definition, Model, and Examples in Business," Digital Leadership, Jan. 15, 2024, [Online]. Available: https://digitalleadership.com/blog/value-creation.
  9. K. Tsagkarakis and I. Katsikis, "The Measurement of Economic Value of Cultural & Environmental Resources: A Critical Review of Evaluation Methods," Proceedings from First International Conference on Environmental Management, Engineering, Planning and Economics (CEMEPE), Skiathos, Greece, 2008, [Online]. Available: https://www.researchgate.net/publication/305755427_The_Measurement_of_Economic_Value_of_Cultural_Environmental_Resources_A_Critical_Review_of_Evaluation_Methods.
  10. R. Hejazi, et al., "Measuring the economic values of natural resources along a freeway: a contingent valuation method," Journal of Environmental Planning and Management, vol. 57, no. 4, pp. 629-641, 2014, [Online]. Available: https://doi.org/10.1080/09640568.2012.75862.
  11. E. Estevez, "Economic Value: Definition, Examples, Ways To Estimate," Investopedia, Sept. 1, 2023, [Online]. Available: https://www.investopedia.com/terms/e/economic-value.asp.
  12. G. Otlyvanska, "Investytsiina Diialnist Telekomunikatsiinoho Pidpryiemstva: Teoriia Ta Praktyka," Odesa: Bondarenko M.O., 2019.
  13. F. Fabozzi and J. Grant, "Value-based Metrics: Foundations and Practice," Hoboken, New Jersey: John Wiley & Sons, Inc., 2000.
  14. R. Freeman, "Strategic Management: A stakeholder approach," Boston: Pitman, 1984.
  15. R. Mitchell, B. Agle, and D. Wood, "Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts," The Academy of Management Review, vol. 22, no. 4, pp. 853-886, 1997, [Online]. Available: http://www.jstor.org/stable/259247?seq=6#page_scan_tab_contents.
  16. R. Freeman and J. Mcvea, "A Stakeholder Approach to Strategic Management," SSRN Electronic Journal, 2014, [Online]. Available: https://doi.org/10.2139/ssrn.263511.
  17. D. Volkov, "Teoriya cennostno-orientirovannogo menedzhmenta: finansovyj i buhgalterskij aspekty," 2nd ed., Saint Petersburg, 2008.
  18. T. Donaldson and L. E. Preston, "The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications," The Academy of Management Review, vol. 20, no. 1, pp. 65-91, 1995, [Online]. Available: https://www.jstor.org/stable/258887?seq=24#metadata_info_tab_contents.
  19. J. Moriarty, "A Theory of benchmarking," Lincoln University, 2008, [Online]. Available: https://pdfs.semanticscholar.org/ec4f/6da18711171c4dbea74435ad25fa380d5b4e.pdf.
  20. S. Sekhar, "Benchmarking," African Journal of Business Management, vol. 4, no. 6, pp. 882-885, 2010, [Online]. Available: http://www.academicjournals.org/AJBM.
  21. R. Chuhumbaiev, "Metody Kompleksnogo Sravnitelnogo Analiza Effektivnosti Agroformirovanij s Uchetom Specifichnosti Aktivov" (Doctoral dissertation), 2003, [Online]. Available: http://www.dslib.net/?fbclid=IwAR1wBchAxXaGeZpTigNfz6HZbzKPfS4Ux5OnyysXrFnnKfWd_ujjT9NvYMU.
  22. E. Vyborova, "Osobennosti primeneniya metodov sravnitelnogo ekonomicheskogo analiza pri ocenke finansovogo sostoyaniya organizacii," Ekonomicheskij analiz: teoriya i praktika, vol. 38, no. 389, pp. 22-28, 2014.
  23. C. Scott and O. Vasylenko, "Mathematical and Statistical Methods of Analyzing the Successful Implementation of German-Ukrainian Projects," Proceedings of the 11th International Conference on Applied Innovations in IT, 2023, pp. 151-160.
  24. Complex Statistical Publications, [Online]. Available: https://ukrstat.gov.ua/druk/publicat/kat_u/publ1_u.htm, [Accessed: 25 Dec 2023].
  25. PrJSC "Kyivstar" disclosure of information in the stock market, [Online]. Available: https://kyivstar.ua/uk/about/about/partners/issuers, [Accessed: 12 Jan 2024].
  26. PrJSC "VF Ukraine" information disclosure at the Stock Exchange, [Online]. Available: https://www.vodafone.ua/en/company/investors, [Accessed: 12 Jan 2024].

Proceedings of the International Conference on Applied Innovations in IT by Anhalt University of Applied Sciences is licensed under CC BY-SA 4.0  ·  This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

ICAIIT 2026
International Conference on Applied Innovation in IT
Navigation
Publisher
ISSN2199-8876
Publisher Edition Hochschule Anhalt
Location Anhalt University of Applied Sciences
Email leiterin.hsb@hs-anhalt.de
Phone +49 (0) 3496 67 5611
Address Building 01, Room 425
Bernburger Str. 55
D-06366 Köthen, Germany
Open Access License
CC BY-SA 4.0

All works are licensed under the Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0), unless otherwise noted.

Published by ICAIIT in cooperation with Anhalt University of Applied Sciences.

© 2026 ICAIIT — International Conference on Applied Innovations in IT. Anhalt University of Applied Sciences, Köthen, Germany.
Visitors: site traffic counter