The Role of Transaction Costs in Risk Management of Investment Projects

  • Natalya V. USMANOVA South Ural State University (National Research University), Chelyabinsk
  • Nina A. ORLOVA South Ural State University (National Research University), Chelyabinsk
  • Nina A. ORLOVA South Ural State University (National Research University), Chelyabinsk

Abstract

This article is devoted to the role of transaction costs in the risk management of the investment project. Transaction costs are divided into groups that are in the course of investment project implementation. Then we describe the types of transaction costs included in each group. The structure and role of transaction costs considered by the example of investment construction projects. The proposed economic-mathematical model of risk management of investment project in the market with high transaction costs allows selecting an investment building project with the best characteristics in terms of acceptable level of risk. In the article, the influence of transaction costs on the risks of various phases of the investment project is analyzed and the model of transaction cost accounting is proposed when analyzing an investment project.

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Published
2016-12-12
How to Cite
USMANOVA, Natalya V.; ORLOVA, Nina A.; ORLOVA, Nina A.. The Role of Transaction Costs in Risk Management of Investment Projects. Journal of Advanced Research in Law and Economics, [S.l.], v. 7, n. 5, p. 1226–1223, dec. 2016. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/545>. Date accessed: 14 apr. 2024.

Keywords

investment project; phases of project; assessment of efficiency; transaction costs; risks