The detection of corporate fraud in Russian firms
In this paper we analyze the impact of financial and non-financial performance of Russian companies on the likelihood of corporate fraud. By constructing a regression model it was proven that the main factor indicating the presence of fraud in the company is an increase of the relationship between Sales General and Administration costs and amount of sales. The results of the study can be used as a basis for development of a methodology to identify and prevent fraud.
The chapter focuses on the alternative measures of the relative competitiveness of Russian manufacturing enterprises and on assessing the changes in the distribution of manufacturing firms by those measures between 2005 and 2009.
Current Russian criminal legislation does not provide specifications of liability for illegal corporate hostile takeovers (corporate raid). It provides only for sanctions for the infringements, such as arbitrariness, fraud, organization of criminal groups, giving bribes, abuse of authority, blackmail, forgery, etc. The article analyzes illicit potential of raider attacks; the most typical methods of their commitment are discussed, namely corporate blackmail, corporate hostile takeover in the course of bankruptcy, and strongarm takeover. The author underscores the negative impact of corporate raid on a countrys investment climate. Attention is paid to such a peculiarity of the national mentality, as the perception by managers of the organizations property complex as their own belonging, which stimulates hostile takeovers.
In this article we provide the results of a study on measures to prevent fraud in different countries. The article shows that the level of fraud in Russia is quite high. This is due to the low culture of doing business and the high bureaucratization of government authorities. Creating transparent schemes of interaction will help reduce the number of fraudulent schemes and build society. The article presents an algorithm for creating a non-fraudulent society using the theory of change.
The task of improving the quality of forecasting returns of financial instruments using multivariate mathematical models: regression models and neural networks was analyzed. To construct a multifactor model of returns used the assumption on the influence of market factors that have a different nature. A linear multivariable regression model was constructed using stepwise inclusion algorithm. The multilayer neural network trained using back-propagation algorithm. The quality of the neural prediction models forecast much higher quality, built with the help of a regression model.
This article presents the history of (the development of) the definition of fraud since times of «Russian Pravda» to the Criminal Code in 1903. The term «fraud» before appearing in the form in which it exists now in the Criminal Code took the difficult path of the composition formation and characteristic features. It is necessary that at that level of historical development criminal law has been adequately established criminological and economic situations and has good preconditions for further development and improvement, including through a more precise definition of legal concepts.
The paper examines the structure, governance, and balance sheets of state-controlled banks in Russia, which accounted for over 55 percent of the total assets in the country's banking system in early 2012. The author offers a credible estimate of the size of the country's state banking sector by including banks that are indirectly owned by public organizations. Contrary to some predictions based on the theoretical literature on economic transition, he explains the relatively high profitability and efficiency of Russian state-controlled banks by pointing to their competitive position in such functions as acquisition and disposal of assets on behalf of the government. Also suggested in the paper is a different way of looking at market concentration in Russia (by consolidating the market shares of core state-controlled banks), which produces a picture of a more concentrated market than officially reported. Lastly, one of the author's interesting conclusions is that China provides a better benchmark than the formerly centrally planned economies of Central and Eastern Europe by which to assess the viability of state ownership of banks in Russia and to evaluate the country's banking sector.
The paper examines the principles for the supervision of financial conglomerates proposed by BCBS in the consultative document published in December 2011. Moreover, the article proposes a number of suggestions worked out by the authors within the HSE research team.