The collection contains the research results presented at the international conference "Sustainable growth: society and economy". Articles cover the entire spectrum associated with sustainable growth problems: economic, environmental, and financial.
In recent years the most part of deals on mergers and acquisitions have been unsuccessful. However the number of such transactions has been increasing. The goal of this article is to characterize the investment deals on the example of Russian insurance market. The main focus was on the case study of strategies such deals. Results of the investigation show the presence of common features, strengths and weakness of the Russian deals on mergers and acquisitions. This suggests that the use of results the study contribute to predict the situation this investment deals in the insurance market of Russia. Furthermore, mergers and acquisitions deals impact the growing solvency and the financial stability of Russian insurance companies.
This paper addresses state participation in the financial sector. We take the example of the Russian banking industry to suggest criteria for a more accurate definition of public sector boundaries and an assessment of the actual scale of state presence in the national banking market.
The emerging global economic crisis forms the conditionsfor drastic transformations of the very architecture of the world economy. That creates both opportunities and challenges for Russia.
The performance of mergers and acquisitions (M&A) is one of the key issues in corporate finance. We contribute to existing literature by examining the performance of M&A deals based on the economic profit model and comparing the results with ones obtained by means of traditional methods – accounting studies. Applying economic profit as an indicator of M&A performance allows us, in contrast to existing studies, to assess the impact of mergers and acquisitions on value of European companies in the long-run. Our study is based on the sample of 153 M&A deals initiated by companies from developed capital markets of Western Europe. Analyzing one of the latest periods, 2000-2011 years, we prove that the performance of combined firms improves subsequent to mergers and acquisitions. We find positive industry-adjusted differences between the post-acquisition and the pre-acquisition performance measures. The difference equals to significant 3.3% for EBITDA/Sales ratio and 3.1% for EBITDA/BVAssets ratio. The economic profit approach demonstrates similar results. Economic profit has increased due to M&A deals by $7.5 million. The obtained results indicate that companies in developed capital markets of Western Europe are able to achieve planned synergies and integrate successfully improving the operating performance and creating value of the combined firms.
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.