Measuring the Economic Value of Investment Activities : A Case Study of Ukrainian Telecommunications Companies

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.