Regulatory Dualism as anAlternative Trust-EnhancingMechanism for Dividends and Debt:Evidence from Brazil
We test whether a market‐level corporate governance reform in Brazil influences the behavior of firms. To do so, we first verify whether the Novo Mercado (NM)—the segment applying more stringent corporate governance practices—impacts specific firms’ financial characteristics. We also investigate if it impacts firms’ dividends and leverage, two well‐known mechanisms for mitigating agency problems. Results show the NM impacts many firms’ characteristics and reduces firms’ dividends and leverage. We thus claim that market‐level reform may be an effective trust‐enhancing mechanism and may improve minority investor protection, thus providing evidence that a country's institutional setting can evolve over time.
The article deals with legal ways of resolving uncertainties and opportunism in distribution of company profits. The author comes to a conclusion that it is impossible to create a one-size-fits-all formula of dividend payment usable in courts in resolving disputes. Purchasing shares (a share in authorised capital) and acting reasonably an investor intends to get his investments back over a planning horizon provided successful activities of a company. To do that he is given a combination of options: receive dividends, sell shares or get a liquidation quota. The difficulties of objectivisation of profit distribution in successful activities of a company should be offset not by expansion of judicial discretion in disputes over dividend payments, but by legal mechanisms providing share buyouts if there are no dividend payments.
This short paper is aimed at demonstrating that the economic logic inherent in the new model of academic contract collides with the collective structure of academic organizations in Russia. The paper is based on the results of in-depth interviews with top-level administrators and academic leaders gathered in 2013 at eight state universities located in three federal districts (Central, Southern, Siberian). While examining the process of reform implementation, we also focused on various interpretations of “academic money” (money circulating in the higher education environment). As long as material rewards were considered as instruments for performance management inside the academia, the price and value of academic work among university staff was also questioned.
Main aim of this article is to investigate a new mechanism for Russian companies of dividend policy – share repurchases. The author comes to the conclusion that only few hypotheses of share repurchases stated in developed countries could be confirmed with the use of Russian data. Moreover there are some phenomena peculiar for Russia.
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.