The article examines the problem of the ICO (Initial Coin Offering, from English — “initial offer of coins, initial placement of coins”). The information source is the ICO rating data of the return on investment in blockchain startups. The methodological base of the research is a situational comparative analysis of the ICO, DAOICO, IEO and STO and systematization of information. The author analyzes three new ICO models. The first one includes elements of Decentralized Autonomous Organizations (DAO). Its aim is to minimize the difficulties and risks associated with the ICO. The second model (Initial Exchange Offering (IEO), from English — “primary exchange offer”) is designed to minimize risks, liquidity problems and a delay in listing tokens at the end of the token sale. The third model — the Security Token Offering (STO, from English — “offer of security token”) — was designed to support real assets and comply with the SEC requirements. These models are a new direction for small and medium enterprises and investors. The absence of any scientific work emphasizes the relevance and scientific novelty of the study. The article is a follow-up of the empirical work related to the success of the ICO, as well as the basis for its revision using the case study results.
The study is aimed at determining the factors influencing the trade credits dynamics for twenty three firms registered on the Macedonian Stock Exchange, as well as at checking for crisis effects from 2011 to 2015. The study includes a review of the literature on commercial credit factors; elaborately analyzed descriptive statistics of the collected data and dependent variable variance; tests for unobservable effects and their functional form; evaluation of panel regression and interpretation of the results. The authors have proved that net trade credits for these firms depends mainly on the growth potential of lagging firms and their vulnerability, and the crisis effects are significant only for the latter factor. Moreover, the overall efficiency of firms' assets and their ability to convert income into cash does not have a significant impact in the crisis and post-crisis periods. The growth opportunities and profitability demonstrate a negative impact, meaning that growing and more profitable firms on average tend to expand and receive more trade credits than counterparties. Profitability has a significant impact on trade credit and the effect is seen during the first year after the crisis. Thus, the dynamics of trade credits of registered Macedonian firms is largely determined by the internal factors of a firm, and not by the external macroeconomic situation. Therefore, better financial management is suggested to improve the trade credit policy. One of the directions for further research is the evaluation of the autoregressive component of the trade credit dynamics, as well as including spatial effects in the regression equation.
Since 2013, Initial Coin Offerings (ICO) have allowed companies to attract financing with the help of cryptocurrencies. Statistics of ICO shows that the ICO market is increasing and demand for funds continues to grow with claims of over $ 15 billion raised in the first half of 2018. The increasing volumes of investment in ICO projects as an alternative method to venture capital or IPO are caused by, for example, the possibility of reselling the received tokens at a higher price after the launch of the project or obtaining the company’s services at lower prices. While the importance of the topic is growing, there is the absence of fundamental works emphasizing the determinants of an ICO’s success. The scientific novelty of the forthcoming research consists in the formation of the model evaluation of ICO success. Using econometric analysis based on data for 1392 projects, we show that the volatility of the main cryptocurrencies has a significant impact on the success of ICO. The constraints of the platform for Smart Contacts (ERC‑20) and dependence on the Ethereum volatility overcome all other factors. Our data contributes to existing literature and shows the insignificance of the sector of the project, almost all location region and fluctuation of influence of quality of the team. This result may be explained by the uncertainty of the investor about the project (weak signals), absence of the regulation and legal framework. This result is beneficial for owners of companies since it is an argument for decreasing costs for marketing.
The qualitative and efficient functioning of any enterprise that allows using a full-fledged policy, including both financial decisions. These solutions have both short-term and long-term focus, which al-lows you to assess the risks and characteristics of current activities, and design a model of behavior that brings the maximum result.
Currently, much of the work in this area is concentrated in the framework of long-term planning: the structure of capital, the ratio of the company's loan and equity capital, and the cost of capital. At the same time, investments in short-term activities and amounts of funds used in working capital are a significant share in the firm's balance sheet, and, therefore, may affect its financial performance. So, ac-cording to Rosstat data for 2016, the share of short-term financial investments of organizations was 88.7%.
Working capital means the amount invested in the current activity of the company, minus the cur-rent requirements for it. Consequently, working capital is the difference between current assets and cur-rent liabilities of the company. A competent working capital management policy allows the company to efficiently distribute the company's resources to improve the quality of its activities, observing a balance between the projected risks and performance. The urgency of the work is conditioned by the need for quality management of short-term aspects of the company's activities in order to achieve its maxi-mum effectiveness.
The purpose of the article is to determine the relationship between the components of working capital and the performance of companies in the Russian market.
Digitalization is one of the most urgent problems for Russia in the task of developing domestic business and is a priority area, as it affects the daily activities of Russian companies. Digitalization is necessary for companies to gain competitive advantages, increase their efficiency and improve their business performance. The purpose of this article is to identify whether there is a significant relationship between the financial performance of Russian companies and the degree of digitalization of their business processes. As the main financial indicator, operating profit is selected, which reflects the results of the current core activities of the companies.
To calculate the digitalization index, information data from McKinsey & Company is used based on six dimensions: digital marketing, digital product experience, e-commerce, electronic customer relationship management (E-CRM), and social networks. A regression analysis of data from 482 companies from 20 industries for the period 2017-2019 was used as a research method to test the hypotheses put forward.
As a result of the study, it was revealed that the digitalization index has a positive effect on the operational efficiency of companies, but the degree of influence varies depending on the industry, age and size of the enterprise. It is concluded that the greatest effect of digitalization is observed among enterprises with traditionally the greatest digital maturity. These are companies from the finance, technology, or communications industries where business digitalization is vital, and where a slowdown in digital transformation can move such businesses far back in the rankings.
The assessment of the impact of digitalization of Russian companies on their operational activities will allow the company's management to choose the right strategy in matters of digital transformation, which will ensure the company's competitiveness, increase its efficiency and contribute to its development. From a country-wide perspective, the results of this study can help make decisions about which industries to subsidize for digital innovation and whether to do so.
This article reviews the problem of choosing an optimal strategy of behavior in the system of WTO trade dispute for Russia. The analysis is based on evaluating prospects of new WTO members. To conduct this analysis we examined the Chinese experience that has demonstrated that they prefer to use the system of “changeable measures” and an alternative tool ─ the prolongation of the trade dispute. Furthermore, it can be said that China preferred to accumulate experience on the first stage of membership. The analysis using game theory has demonstrated that Russia should actively participate in the WTO, not to disturb the WTO rules. This policy leads to the healthy competition and effective development in long-term.
The econometric model has demonstrated that language and trade experience affect on the result of a trade dispute. Mainly the increase of the third parties leads to a Respondent losing the trade dispute.
There are a lot of models of bankruptcies prediction, which differ in methods of modeling and in set of factors. These methods are mainly belong to 5 groups: the classic statistical methods, regression analysis, the method of discriminant analysis, logit-analysis methods, methods of fuzzy sets and neural network methods. Combinations of these methods also can take place. The last three groups of methods are currently being developed especially quickly. As for the choice of factors bankruptcy, prevails heuristics. There is no formal methodology for selection and comparison groups of economic indicators to build the model of bankruptcies, as well as effective methods for data preprocessing. In this paper we propose an original method for the choice of indicators, followed by the construction of neural network model diagnostic of bankruptcies based on Bayesian approach.
The relevance of the article is determined by the critical situation in the population’s mortality rate and health standards as well as by the state of things in the birth rate, marriage and family sphere in the context of threats that the demographic processes instability can bring to the Russian economy as a whole. The article discusses approaches to the concept of «demographic security», analyzes crisis phenomena in the demographic and migration processes and in the human reproduction sphere that threaten the economic growth of Russian regions. The centerpiece of the article is devoted to problems of the contemporary Russia related to alcoholism, drug addiction and smoking. The authors focus on current issues of the family policy and preservation of the family institution in Russia highlighting the problems associated with the spread of informal marriage, the growing number of abandoned children and challenges of adoption and child custody. The authors investigated in detail the issues of the birth rate increase, particularly in the aftermath of the social stratification of Russian society, and pay special attention to the issues of the male working population health maintenance in modern Russia, as well as to gender disproportions in the demographic structure of the population and education. The measures of the demographic and family policy proposed in the article to remedy the situation established in modern Russia can be used by federal and regional government authorities.
The article analyzes the influence of the WTO regulation function on energy markets in general. The WTO system does not include any specific agreement on energy trading for historical reasons. However, with new WTO members, who export hydrocarbons, including Russia, the regulation of energy sales is becoming more important. The analysis of theoretical papers and the WTO legislation identifies WTO rules that indirectly influence the global energy market. Hence, the analysis in the article is focused on consequences of Russia’s WTO accession in different aspects of the energy dialogue with the EU. As a result, the author demonstrates problematic issues in the Russia-EU energy cooperation and the way the WTO solves or complicates them for Russia. Moreover, there is a comprehensive analysis of current and potential disputes between Russia and the EU, and prospects of their settlement by means of a special WTO Dispute Settlement Body.
Being at the interface of the accounting and the valuation methodology fields, the issues of accounting and valuation of corporate investment assets are regulated by financial reporting standards and valuation standards. The practical application of the real estate valuation methodology for drawing up financial reports has certain specifics. Among primary issues that are currently not covered by accounting and reporting standards and the valuation theory the following are addressed in this article: valuation of the incurred costs component as separated from the land price, valuation of leased objects, valuation in case of planned transfer to another assets category. The above issues are analyzed in the paper.The article is a summaryof the practical experience and the analysis of standards application problems carried out by the author in 2008-2012. The article analyzes different approaches to valuation of investment assets and reporting in specific cases, highlights pros and cons of each approach and the effect of a particular approach on performance indicators and conclusions made by users of financial reports. Perhaps the above issues will be partially addressed and solved in new requirements for leasing relations accounting in the IFRS and comments of the International Valuation Standards Committee; however, at present these issues remain open and require the attention of practical experts and the scientific community. The research materials and the presented analysis can be used in the practice of appraisers and specialists of financial departments.
The paper analyses applicability of the market multipliers for the diagnostics of overheating of the stock market and the formation of a financial bubble. Advantages and shortcomings of employed multipliers are discussed Historical averages of multipliers are provided. Examples are given of diagnosing the overvaluation by using the multipliers. The author concludes concludes that the optimal multiplier for estimating the overvaluation of the stock market is the P/E coefficient, however other coefficients can also be used if their limitations are taken into account.
Estimate and search for factors that influence the capitalization of public oil companies are of great interest to researchers. The impact of various external and internal factors on the value of oil companies’ stocks was considered. This includes changes in oil prices, stock market index movements, inflation fluctuations, financial and production indicators. The study includes building models with calculated standard errors by the Driscoll- Kraay method based on quarterly data for the eight biggest public oil companies operating in the upstream and downstream segments, from the first quarter of 2006 to the third quarter of 2017. Such indicators as total oil production by OPEC countries, greenhouse gas emissions by companies, and the sum of shareholder’s funds owned by large institutional investors were used for the first time when building the model to identify factors affecting the market capitalization of oil companies. One of the key results is the conclusion that quarterly production volumes turned out to be the most significant factor having a positive impact on the cost of oil firms. That is, investors are laying the idea of compensating for losses from lowering the cost of oil by increasing its production and selling a larger volume in the value of shares in companies. At the same time, such indicators of production efficiency as profitability in the upstream and downstream segments lose their significance depending on the period under consideration.
Introduction. In the age of economic globalization mergers and acquisitions acquire relevance in business as strategic development of companies. M&A deals are generally evaluated with respect to their efficiency for buying companies and/or target companies. There are quite many researches and empirical studies related to the above line of inquiry. However, most of them are realized for public companies holding shares listed on stock exchanges. At that, in recent decades M&A deals are more topical for private companies operating at growing capital markets. Due to imperfection of a growing capital market, lack of reliable information on the private target company the investors require the method considering the market characteristics for the purpose of reasonable calculating the deal price and the premium in its structure.
In this regard, the present study focuses at developing of methodologies of the premium evaluation in M&A deals for private companies on the growing capital markets.
M&A deals in BRICS countries (Brazil, Russia, India, China, South Africa) in the period of 2005-2015 years are used as subject of research.
Methods. Both general scientific methods (analysis, synthesis, comparison, graphical approach) and special ones (statistical approach, coefficient method) were used as research methods.
Results. The present article offers the author approach to the evaluation of fair market value and premium in M&A deals for private companies at developing capital markets; assessment of the method is carried out.
Range of use. The proposed method can be used by both external and internal analysts for calculation and reasoning of the premium in the deals with private companies at developing capital markets.
The study presents the author’s approach to monitoring the volatility of cash flows. The relevance of the study is due to the fact that a high increase in volatility can have a negative impact on the stability of individual economic entities; therefore, central banks are faced with the task of organizing a system for monitoring cash flow volatility, as well as developing approaches to their regulation. The purpose of the study is to develop a methodological approach to organizing the monitoring of cash flow volatility. Statistical methods, including fractal analysis, are used in the study. The study determines the approach to classifying different levels of cash flow volatility. Three main types of cash flow — moderate, transient, and turbulent, — are defined. The study confirmed two hypotheses. First, it is proven that the volatility of cash flows is more the result of behavioural factors than institutional ones. Second, it is established that the turbulent type of cash flow occurs in more rare cases than the moderate or transient types. It is shown that the volatility of the cash flow is the result of behavioral reactions of economic entities to fluctuations in economic activity. Institutional factors determine the limits of cash flow volatility, but fluctuations within these limits are the result of the reaction of economic actors to changes in the external environment. The turbulent type of cash flows occurs during the period of simultaneous actions of all economic entities. Based on the three-sigma rule, a methodological approach to determine confidence intervals classifying cash flows by the type of movement was suggested. It is concluded that since the turbulent type of cash flows has the greatest negative impact on the stability of the economy, it should be of significant interest for monitoring and subsequent regulation by the Bank of Russia. A promising direction for furtherresearch may be the development by the Bank of Russia of a specialized refinancing instrument to compensate for the shortage of funds due to the increased level of cash flow volatility.
The article presents major theoretical approaches to the “Global Value Chains” (GVC) concept and attempts to analyse their role in the modern world economy. It is stressed therefore, that increasing political and economic role of GVCs attracts progressively more attention of national governments and international institutions alike (including the Group of Twenty, the OECD, the WTO, the UNCTAD and the World Bank). In order to embrace major international trends in the field of GVCs and to outline the specific characteristics of Russia’s participation therein the authors have used the data from the jointly prepared by the OECD and the WTO “Trade in Value Added” (TiVA) database. Conducted analysis leads us to the point, that current Russia’s participation in GVCs does not allow the country to fulfil its economic potential to the maximum, as it participates predominantly in forward GVC linkages, that hinder realisation of Russia’s long-term socio-economic and scientific-technological and innovation development goals. Therefore, factors facilitating and restraining Russia’s participation in GVCs were assessed and corresponding recommendations as to the horizontal government policy measures and measures aimed at increasing the efficiency of Russia’s long-term strategy of participation in GVCs were formulated.
The research is devoted to studying the influence of internal factors on the level of export of agricultural products of the Russian Federation.
The relevance of the topic of the work is emphasized by the growth in the export of agricultural products; it is becoming one of the most important sources of foreign exchange earnings in the country. The novelty of the work lies in both theoretical research and practical recommendations of the formed model with export support. The purpose of the work is to form a rating model for Russian companies focused on the export of agricultural products; and to solve the following tasks: to determine the parameters of indicative growth, which they can focus on in the implementation of their strategy, to give recommendations on improving the mechanism of budgetary support for agricultural exports to increase its economic efficiency. The subject of the research is the competitiveness of export-oriented companies in the agro-industrial complex of the Russian Federation.
In the course of the work, such tools as linear regression, logistic regression (logit, probit), ordered probit model were considered. As a criterion for the quality of the model, the Gini coefficient was used, (area under the Roc curve). As a result of the study, the key factors influencing the competitiveness of companies exporting agricultural products were identified, and a model for their rating assessment was developed. Proposals are formulated for using the developed system as a simulation model when deciding on the development and support of food exports in Russia.