EVALUATION OF THE SOCIAL RETURN ON INVESTMENT BASED ON FINANCIAL REPORTING FOR THE FORMATION OF AN INVESTMENT PORTFOLIO OF THE DEVELOPMENT BANK
The subject of investment activity always takes one of the central problems for development banks. The primary goal is to attain a favorable investment climate and its further development. To achieve this goal, much attention is paid to the issues of completing valuation methods and selecting investment projects. State development banks need to pay attention to the social and economic aspect of investment projects. In this article, we offer methods for estimating the social return on investment. These methods are an innovative approach to planning, monitoring and evaluation. They describe the process of understanding and measuring the social, environmental and economic value created by companies. Their use will assist to choose the most promising projects from the economic and social point of views. One of the methods for solving the problem of choosing a portfolio described in this paper is based on the availability of detailed financial statements of companies that the development bank considers for its investment portfolio. As an example, financial statements of two large Kazakhstani companies from different industries are used to show how the development bank can assess in practice the expected social returns from future loans to these two companies.