The Russian corporation: patterns of behaviour during the crisis
This article considers the behaviour patterns of Russian “rms before and during the “nancial crisis of 2008…09. To facilitate comparison, we de“ne three main groups of actors at the “rm level in the Russian economy … large, politically connected companies; medium-size “rms that expanded in the 2000s with the help of administrative support, and successful medium-size “rms driven by market factors. Many of the large companies practised highly risky “nancial policies and experienced a decrease in ef“ciency before the crisis, and the managers and owners of some Russian “rms have been engaging in opportunistic behaviour during the crisis; the forms and causes of this behaviour are analysed here. We conclude by proposing some policy implications with emphasis on supporting successful medium-size “rms driven by market factors.
The paper analyses how the individuals' deposits influences the resources of Russian banks. We show that the depositors panic in the crisis has a serious effect on stability of both bank and national bank system. We show the tendencies how the volume and structure of individuals' deposits change; how to avoid the rash of withdrawals by individual depositors; and how the resources of Russian banks shrank because of such withdrawals happened in the period of the crisis. We also present our assessment of how the resources of Russian banks reduced because of the rash of withdrawals in the crisis.
We proposed the nonlinear dynamic model of the formation of the market prices of precious metals based on the econophysic considerations. This model is a system of three ordinary differential equations relating the time dependence of elasticity, variations of bid and ask prices; it is similar to the Lorenz system. The areas of the dynamic stochasticity in experimental data were found with the comparing of the experimental and the theoretical ask and bid prices. These areas are the precursors of the crisis mode in the form of dynamic chaos.
The book is devoted to problems of legislative, theoretical and judicial defining of subject of economic crimes in Russian and German criminal law in connection with legal persons. The authors analyze the current theoretical conceptions and case law and formulate proposals for improvement of present approaches. The special attention is given to liability of competitive manager for crimes committed in course of bankruptcy.
The process of the IPO of banks in Russia is its infancy but the rapid growth is forecasted. This context raises the issue of the factors determining the floated banks stock value. The results of the research on 2007-2009 Russian data showed that the bank stock price is dependent on the macroeconomic indicators (such as the oil prices and the Dow Jones index volatility) and the some banking system indicators(the interbank interest rate, the bank’s ROA, and ROE). However, the results adjusted to the global financial crisis effect proved to exclude the ROE factor and showed the dependence of the stocks prices of the floated banks from the historic trend of the American economy. The models developed are of the practical application and can be used by the institutional as well as the private investors.
The right to do business in Russia is granted by the Constitution of the Russian Federation, which states that everyone shall have the right to freely use his or her abilities and property for entrepreneurial or any other economic activity not prohibited by the law. In the Russian Civil Code, business activity is understood as an independent activity, performed at one’s own risk, aimed at systematically deriving profit from the use of the property, the sale of commodities, the performance of work, or the rendering of services by the persons registered in this capacity in conformity with the law-established procedure.
Doing Corporate Business in Russia attempts to examine not only the theoretical aspects of Russian business procedures, but also the specific nature of their implementation. This book offers an examination of the process of establishing, functioning, and terminating various types of business corporations in the Russian Federation and gives readers a thorough understanding of business in Russia. It clarifies the legal features of management and interaction with contractors and public authorities. It also touches upon the issues of legal linguistics and its role in legal practice. Knowledge in this field enables the reader to get a sense of the correct interpretation of the content of legal documents, proper definitions of terms, and of the potential violations of the rights of business entities based on improper understanding of normative language.
The book will be useful to scientists and practicing lawyers, students, and anyone interested in the specifics of corporate business entities and the Russian business climate.
The Group of Eight (G8) has had extensive and even existential experience with financial crises (Kirton 2007). The groups creation was driven by financial crises created by and in the US, in the form of the Nixon Administration’s unilateral destruction of the Bretton Woods system of fixed exchange rates on August 15, 1971 and the imminent bankruptcy of New York City at the time of the first summit at Rambouillet in November 1975. Then came a succession of real and potential crises, notably Britain’s need for support from the International Monetary Fund (IMF) in the mid 1970s and Italy’s need in 1976, the developing countries debt crisis of the early 1980s, the American stock market plunge of October 1987, the attack on the European Monetary System (EMS), the Mexican peso crisis starting on December 20, 1994, the Asian-turned-global financial crisis of 1997–1999, the 9/11 terrorist attacks on America, the Enron–dot.com bust and the America-turned-global financial crisis from 2008 to now. Since the G8’s 1975 start, such crises have been created by others to afflict a vulnerable America, and been created by America to attack the rest of the world. In both cases such crisis have been conscious, calculated controlled and targeted, as on August 15, 1971 and September 11, 2001, and unco.nscious, uncalculated, uncontrolled and untargeted events characterized by contagion, complexity and uncertainty that no one can fully comprehend, as in the global crisis from 2008 until now.
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.