This paper describes how and to what extent managerial short-termism caused by information asymmetry influences company’s survival. We provide evidence from Russian market, enhancing previous research by defining short-termism phenomenon with the combination of econometric, behavioural and financial analyses. The model showed that an excess of profitability and cash balance increase the risk of default. Moreover, our findings confirm the importance of R&D investments for company's endogenous growth and their role as a signal of agent’s interest in sustainability and long-termism.
The objective of the current paper is to justify how the natural monopoly regulation principles are worth applying in banking. Tirole required that the natural monopolies gradually reduce their tariffs throughout the years. In relationship tobanking his principle means that the systemically important banks should be required to gradually reduce the risk taken, i.e., to decrease the risk-weights used for the capital adequacy ratio. Such a regulation delivers reductions in banking systemic risk. As the risk-weights are model-derived, they are as unobservable as the systemic risk itself is.
The Eurasian Economic Union (EAEU) is relatively new regional integration block formed in the beginning of 2015 and now consists of five members (Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia). The main document that establishes the basic principles of the functioning of the EAEU is the Agreement on EAEU that also covers the specifics of application of non-tariff measures (NTMs) on a very aggregate level. Overall NTMs adopted within EAEU are equally applied by the members of the Union. But still these measures may find their reflection in the national legislation of the member-states.
In order to analyze EAEU NTMs two sources of information were used: website of the Eurasian Economic Commission and TRAINS/WITS database. They were used as complements and allowed to find the most up to date versions of the legal acts that cover trade- and NTM-related aspects of EAEU functioning.
The article highlights the reports of X International Symposium on Evolutionary Economics (Russia, Pushchino, Moscow Region, September 12-14, 2013).
M&A transactions are realized in various economy sectors of the most developed countries. The major motive for M&A is to obtain synergy effects. That is why it is especially importantfor a company that realizes M&A to estimate future deal outcome correctly. In this study, the analysis of synergy effects in M&A transactions is considered from the point of deal efficiency in the example of food industry because of its strategic importance for any state.
The work consists of three main parts. The first chapter examines the theoretical aspects of M&A transactions. In the second chapter the main concepts and methodologies are presented for valuing synergy effects from the point of deal efficiency. The last chapter is devoted to solving practical problems of the study.
During the study of valuation concepts presented in the second chapter, two methods were chosen for further consideration: the method described in the article written by Kemenov A. V. and Chemerkin M. A. and the DCF method. In this paper, two hypotheses are put forward: 1). the efficiency of the transaction, calculated by the method proposed in the work of Kemenov A. V. and Chemerkin M. A., is an indicator of future synergy effects; 2). there are interrelations between the obtained deal efficiency of the transaction and various pre-deal financial and non-financial indicators of companies.
Thus, the result of this study is the revealed interrelations between the deal efficiency and companies’ pre-deal performance indicators by the cluster analysis method, as well as the valuation ofthe synergy effect by comparing the enterprise value of the merged company after the transaction with companies’enterprise values prior the transaction using theDCF approach on the example of a specific case, chosen on the obtained clustering results and then comparing the results of the two methods.
The study examines the impact of changes in the key rate on the share prices of companies from different industries. The study conditionally divides the change in the key rate into two types of events: the increase and the decrease. Based on theoretical models, one can hypothesize that the shares of companies react only to unpredictable changes, the impact of the key rate does not differ between the financial and real sectors, and the short-term impact of changes in the key rate does not differ from the long-term. To test the hypotheses, the event study analysis is implied. The study reveals that the impact of the key rate differs significantly between industries and companies within the same industry; the response also depends on the length of the event window. The joint effect of the increase and decrease of the key rate is insignificant both for industries and standalone companies. The increase of the key rate significantly affects the share prices of companies, while the decrease of the key rate is insignificant. Unexpected rate changes also do not affect share prices. At the industry level, the shares are more sensitive to the long-term key rate, but at the company level this effect is not maintained. The study reveals the ability of financial institutions to hedge the risk of changes in the key rate.
Currently, in the theory of financial analysis there is no unified approach to the definition of the term "financial sustainability". The category "financial sustainability" is usually defined by the authors from different points of view:
- as the ability of the enterprise to fulfill obligations to counterparties (Grachev A.V., 2004);
- as the compliance of financial indicators with standard values (Anushchenkova K.A., 2008)
- as the ability to ensure short-term and long-term solvency and creditworthiness (Efimova O.V., 2013; Bocharov, 2014; Henning, Jordaan, 2016; Myšková, R .; Hájek, P., 2017)
- the company's ability to generate value for shareholders (Zabolotny ,, Wasilewsky, 2019)
- characteristic of the state of the enterprise, in which the organization can achieve maximum performance and results, taking into account the available resources, which ensures the transition to the next stage of development (Kochetkov S.A., Tikhomirov S.V., 2016; Henning, JIF; Jordaan, H., 2016)
Based on the above definitions of the category “financial sustainability”, we can conclude that models that assess the likelihood of insolvency (bankruptcy), as well as the creditworthiness of the enterprise, can act as possible metrics of the financial stability of an enterprise.
It is relevant to study the sectoral features of the financial stability of enterprises due to the insufficient number of methods that reflect the specifics of the industry. This study will analyze the financial stability of metallurgical companies in Russia through the construction of models for assessing creditworthiness, as well as assessing the likelihood of bankruptcy.
The paper explores the dynamics of the Russian non-profit organizations contribution to the national economy and their development tendencies. Statistical data on national accounts and FIRA PRO database of 1995-2012 has been analyzed in terms of the share of GDP and industry output accounted for by non-profits and the activity of non-profit organizations in the regions of Russia. The findings indicate that a considerable decline in these indicators. Significant discrepancies between changes in the activity of non-profits and other producers show a possibility of additional nonprofit development factors. It is concluded that there are factors of nonprofit sustainability during the time of financial crises.
At the present time the problem of managing the cost of capital in conditions of external economic shocks is particularly relevant. This occurs because of implementation in 2014 by Bank of Russia new requirements for the structure and capital adequacy of Russian banks in accordance with the Basel 3 capital standards. In this paper we investigate the dependence between the total capital value of the Russian Federation banking sector and the main macroeconomic indicators. Also we assessed the extent and speed of their impact on capital, based on the vector autoregression model.
Self-care and self-medication in particular are practiced by many Russians. But such practices are often ill informed and, in those cases, tend to be more harmful than beneficial to patients. The article explores the possibilities of developing a new information ecosystem which enables responsible self-care skills among Russians taking into account the best international practices and WHO recommendations. Preliminary estimates suggest that responsible self-care could help to save about 100 billion rubles a year or 4% of Russia's health budget.