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.
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.
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 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.
Introduction. At the current moment the convergence between Russian and international standards of credit risk assessment, accounting and reporting principles is highly emphasized (Basel, IFRS). The critical approach is required for IRB model application taking into account Russian real economy specifics, default statistics, existing pr gaps in international recommendations. In the article authors presented the most significant problems incorporated into the IRB approach and Basel II formula for minimum capital requirements. Methods. Authors graphically presented functional behavior of different variables from Basel formula of minimum capital requirements based on international rating agency’s (Moody’s, S&P) statistic data analysis for periods from 1970 till 2011 years. Also in the article critical literature (legislative, Russian/English most recent publications) overview was undertaken. Results. The article presents the summary overview of the most critical issues, topical problems, their introduced solutions in IRB application to Russian credit organizations. Discussion. Each problem described in the article is a separate basis for further scientific research and requires practical solutions to be found in the nearest future.
In the article the analysis of the influence of economic sanctions on the processes of Russia’s political and economic self-identification is carried out. Also the evaluation of reciprocal measures of Russia is carried out. The conducted research has shown that for stabilization of Russian economy it is necessary not only to re-direct the foreign trade relations, but also to develop national industries carrying out effective policy of import substitution.
Among a variety of innovative processes occurring in Russia in recent years, one of the most important is education reform. It is expected that upon the completion of the reform, Russian education system would meet the international standards of education and training. The fact that the role of mathematics in modern economics is increasing should be reflected in the educational process and the standards which are currently being developed by the Financial University. The paper suggests approaches to eliminate the existing discrepancy: with similar educational content in Russian and foreign universities, there is a deep gap in the study and application of quantitative methods. This gap leads to a decrease in the competitiveness of Russian graduates.
Abstract. In the post-crisis period, foreign direct investment (FDI) transformed into one of the main factors of economic growth and the tool for assessment of macro level dynamics. Research of the specifics, driving forces and risks of the contemporary investment processes in the Asia-Pacific region is a critical element in the development of an optimal investment climate.
Introduction. Challenges of the post-crisis recovery and instability of the macro level environment exacerbate volatility of global investment processes, while administration of the FDI undermines predictability of the investment policy and aggravates investing pessimism. At the same time, a pivot in FDI regulation towards the investors’ interests creates promising perspectives for attracting investments thus enhancing the investment opportunities of the national economy. We focus on the issues of FDI transparency in the Asia Pacific countries; consider the ways as to how the effectiveness of investment instruments can be increased in the framework of macrofinance management, together with measures on competitiveness as well as on investment protection; and analyze specifics of the FDI policy based on evidence from China and Japan.
Objective. Research of the contemporary FDI dynamics based on evidence from the Asia Pacific countries, which are active recipients of investment capital and which directly participate in the processes of investment regime liberalization. Analysis as to whether the experience of the Asia Pacific countries on attracting FDI may be applied in Russia, given the lasting environment of negative economic externalities.
Methods. The research is based on a system analysis of factors, which determine FDI dynamics in the Asia Pacific region, and statistical methods for analysis of national specifics of FDI in the post-crisis period.
Results. The driving force of FDI in the post-crisis period is liberalization of FDI regimes, which, to a certain extent, is undermined by limitations imposed in a number of the Asia Pacific countries due to fear of acquisition of strategically important national companies, as well as by excessive regulation, supervision, and direct administration of FDI by national authorities. In order investments to again become one of the fundamental factors of economic growth, the FDI policy should be guided by clear standards, be predictable, inclusive, and non-discriminatory. At the same time, the innovative nature of investments contributes to optimization of the FDI costs, as well as to the development of attractive environment for FDI and investment climate at large.
Discussion. Further research of this topic could be focused on the effect of FDI regime liberalization on minimization of the risks of macro level disproportions. This approach has high relevance in terms of the decision making on adjustment of the FDI policy in Russia and wider in the Eurasian Economic Union, given the challenges of the external environment, as well as inevitability of the new FDI priorities in the context of financial stability and sustainable economic growth.
Subject. Key tasks for nonprofit organizations are abilities to provide social services and to compete with governmental organizations for budgetary grants. Such abilities might improve effectiveness of governmental socio-cultural programs, and barriers lifting for budgetary grants for nonprofit organizations look very actual. Purpose. The article reflects the research results of the grants value, provided from consolidated public budget over 2015-16. Methodology. One of the article hypothesis is the stability of the grants, which is conformed by the analysis of the grants total value and structure by regions. Also the article analysis includes the comparison of the grants for nonprofit organizations and governmental units in socio-cultural programs over 2015-16. Result. The research results confirm the hypothesis of the stability of the grants value for nonprofit organizations, but not those increase according to governmental policy declarations, probably as the result of the grants cuts by half of the regional authorities. Conclusions. The article also pointed key reasons of the searched results, such as legislation of the nonprofit organizations granting, general mistrust towards nonprofit organizations by authorities and citizens. Elimination of the reasons relies mainly on the legislative improvements.
The article examines the assessment of financial architecture influence on the European retail companies’ efficiency. The approach is based on a comprehensive analysis of the influence of the financial architecture components. Hypothesis tested on the basis of data on public companies of European retail listed on the London Stock Exchange from 2004 to 2015.
To substantiate the relationship between the financial architecture and the company's performance indicators in the study, the following metrics are analyzed: ROA, reflecting the return on total assets; Tobin Q, reflecting the investment attractiveness of the company; EVA strategic efficiency indicator, reflecting the company's economic profit (taking into account the definition of the weighted average cost of capital).
In order to model the impact of financial architecture influence on the companies’ efficiency in the work, the panel regression method is implemented, which allows increasing the number of observations, minimizing the collinearity between explanatory variables, and increasing the effectiveness of the estimates obtained. In order to obtain application conclusions, two models were built: a model with fixed effects, allowing to take into account additional characteristics of the company; Model with random effects, which allows to minimize the shortcomings of the first model.
The analysis showed that the financial architecture of retail companies affects their strategic and operational efficiency (EVA and Tobin Q), but does not affect their balance performance indicator (ROA).
As a result of this study, the determinants of the efficiency of large European retailers were identified, and a model of strategic efficiency based on the concept of financial architecture was implemented.