Taking into account the transformation in economic reality towards knowledge economy, it seems logical for company’s intellectual capital to be treated not as a cost but as an investment. Intellectual capital is a resource of creation value equal to physical assets and financial capital. In order for the new system to be consistent it is necessary to define new index of intellectual capital efficiency in the value creation.
Using the theory of efficiency value added by the major company’s resources that are physical capital, human capital and structural capital this paper examines the association with company’s profitability, productivity and market value. Data is drawn from a sample of 56 Russian publicity traded firms from sectors heavily reliant on intellectual capital that are communication systems, instrumentation, pharmacology and financial services. Empirical research is conducted using correlation and linear multiple regression analysis.
This study is focused on the use market expectations in firm’s management. According to the results of previous researches performed on developed markets, expectations management is an efficient corporate tool which allows managers to influence company’s value. The literature on expectations management in the emerging capital markets almost does not exist. We contributed to the literature by examining emerging capital market and the paper is claimed to be the first empirical investigation on Russian market concerning the topic considered. We prove the existence of expectations management on Russian capital market. In order to find an answer Russian companies in the period from 2005 to 2012 have been analyzed. We performed three types of analysis: graphical analysis, contingency analysis and tests of the rationality of market expectations. As a result of this investigation we found that the executives of Russian firms use market expectations management. Moreover, we show that this instrument is mostly applied after the financial crisis of 2008.
This paper analyses from a financial perspective one of the most controversial of company assets, namely goodwill. The controversial nature of goodwill lies not only in its definition but also in its evaluation and accounting disclosure, giving rise in recent years to an important line of research centred on impact of goodwill on company performance.
The paper has a two-fold objective: First, to compare international and national standards of accounting of goodwill, to work out a number of suggestions for unification and optimising of accounting methods; and secondly to evaluate the impact of goodwill from the perspective of company value. The comparison focuses on the advantages and potential complexities of international standards highlighting the many problems and ambiguities that will arise in the application of those rules for Russia. On the other hand, we underline that both the acquired and the generated goodwill influence the value of a company and unifiacation of accounting methods is inevitable.
This paper presents the original model for integrated value based management derived from the principle of value creation for both - strategic financial and nonfinancial stakeholders.We show that stakeholder value creation assumes positive economic profit stream for non-financial stakeholders.The model requires the integration of management and corporate governance levels. The former is consistent with the proposed stakeholder value based management model (STVM), the latter is described by proposed new governance model, namely stakeholder’s value based corporate governance (STVG). The third component of integrated model is related to the strategic value reporting.
KPMG is the international chain of advisory, tax and audit service companies. In June, 2010 it conducted an open conference devoted to the economic value added, its principles and methodology. The conference became a significant event for Russian business and discovered common acceptance for necessity of new and up to date concepts of management. Two leaders of Stern Stewart & Co, the first rate consulting company, were invited especially for the event. Appearance of Joel Stern, founder of the Company, became unprecedented occurrence for such meetings in Russia. Stern Stewart & Co (www.sternstewart.com ) is a leading strategic consultancy and value management company. It was founded in 1982, New York, and became a pioneer in the business economics and applied corporate finance. In the late eighties the company invented and took out a patent the concept of management based on economic value added (EVA®), which today presents one of the most developed and popular concepts in real business. Stern Stewart & Co is based in many countries in the North America, Europe, Latin America, Australia, China, India, SAR and in the others. Russia is virtually a single country where analysis based on the value and consultancy services applying value based management are almost not presented. Joel Stern, the founder of EVA® concept, presented the main report devoted to the company's system of management. Due to the KPMG request Corporate finance center of SU-HSE (www.cfcenter.ru ) and Performance and Technology KPMG in the May-June 2010 conducted joint investigation devoted to the Russian companies' practices of management and analysis of factors of their value. The results of the investigation were also presented on the conference.