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Regular version of the site
Of all publications in the section: 237
by name
by year
Anilov A., Pirogov N. Journal of Corporate Finance Research. 2016. No. 2 (38). P. 38-50.

Financing and payout decisions generally affect company’s economic performance: they have impact (both directly and indirectly) on the free cash flow and, thus, on company’s and shareholders’ value. Search for optimal capital structure and optimal payout policy strategy that are likely to maximize shareholders’ utility resulted in the papers, dedicated to determinants of capital structure and payout policy. In such papers, one of the policies is usually treated as a determinant for another one. This bound does not let researchers to make some conclusions about existence or absence of interrelation between payout and financing choices. To capture this interrelation, simultaneous regression analysis should be performed. Researchers, though, cannot come up with unified conclusion about the existence and direction of such interrelation. The absence of certain results as well as low level of research done on emerging markets make this topic rather relevant. The results of recent research on the interrelation between payout and financing decisions are discussed in this paper. We also develop an econometric model that allows us to check the existence of interrelation in emerging markets and to compare the results to those obtained from developed markets. The article contributes to the existed literature in the following directions: first, two debt variables are taken into account (total and long-term debt) as well as two payout policy variables (total payout and dividend payout). Second, macroeconomic variables are controlled. Third, the results obtained from the companies from emerging countries are compared to those obtained from developed markets.

Added: Jul 31, 2016
Galanova A., Lutsenko M. V., Zamorano J. Journal of Corporate Finance Research. 2020.

In the last decades of the 20th century, various classes of alternative investments have become increasingly popular among investors. During this time, art as a form of alternative investment attracted attention not only from potential buyers but also from academic scholars. Unfortunately, only a few of the newly published papers contained any quantitative analysis with regard to art’s investment performance. Besides, even a smaller amount of research was devoted to the analysis of Russian art markets. Therefore, the purpose of this work is to evaluate the efficiency of investments in the artworks of contemporary Russian painters and to compare the effectiveness of these investments with the effectiveness of investments in stock, bond and real estate markets in Russia and the USA. For this research, we first conduct a hedonic regression analysis on the data available for 1950-2019 time period. After that, we build a hedonic price index for the canvases of contemporary Russian artists. According to our results, the trend of this index reiterates largely the price behavior for world contemporary art market. However, the results of our study indicate that investments in contemporary Russian art do not outperform investments in instruments of Russian and American capital and real estate markets. We arrived at these results by applying the CAPM model which demonstrated that Russian art as a form of alternative investment is not advisable for the purposes of diversification of investment portfolios. Based on our findings, contemporary Russian art in general can be considered an unattractive instrument for Russian and foreign investors.

Added: Nov 28, 2019
Ochirova E. Journal of Corporate Finance Research. 2019. Vol. 13. No. 4. P. 87-94.
Added: Feb 17, 2020
Guseva O., Stepanova A. N. Journal of Corporate Finance Research. 2019. Vol. 13. No. 1. P. 107-119.

In this paper, the authors focus on two primary governance mechanisms which can be considered as sources of support for startup companies: the company’s ownership contingent and the company’s management personnel. Based on descriptive statistics from a sample of 416 Skolkovo start-ups from the ‘Nuclear’ and ‘Space’ clusters, and a Start-up-Barometer survey of 300 IT-entrepreneurs, this work provides new insights into ownership and management characteristics of Russian startups and the interplay between these dynamics.

The Russian venture market presents an interesting case of an emerging market with a number of successful startups in a challenging economic environment. The supply of venture capital for Russian startups is restricted by the presence of sanctions and legal restrictions on the investments of financial institutions such as pension funds and banks. Therefore, similar to other developed and developing markets, the most significant source of investments for Russian startups is bootstrapping.

In this paper we show that startups with different characteristics attract different kinds of investors, which is reflected in the companies ownership structures. In particular, government development institutes are more interested in investing in nuclear-focused startups, while corporate investors tend to keep a higher level of control over startups compared to other investors. We also confirmed the presence of correlations between different types of owners: government development institutions, corporate investors, venture funds, and family members. Additionally, the size of equity share for all types of owners (except family members) was found to be negatively correlated with the CEO’s share in the ownership structure.

Although the purpose of the article is descriptive, it motivates further research on the sources of support of startup growth, including relative importance of such sources and their effects on startup performance.

Added: Aug 28, 2019
Kudryashova A., Solntsev Sergey. Journal of Corporate Finance Research. 2019. Vol. 13. No. 2. P. 50-65.

This paper examines profitability as a factor in the turnover of poorly-performing executives in Russian banks, and how this acts as a mechanism of good corporate governance. It is intended to identify and measure the relative effects of different determinants on executive turnover, and thus highlight the practical sets of circumstances where turnover is most likely. A relatively unique perspective on the study of corporate governance, we intend to demonstrate an aspect of corporate accountability for commercial performance and shed light on high-level manifestations of reactive management practices.

In order to construct the most realistic and robust analysis, we will take into account the idiosyncracies of the companies and individuals involved in this process, and also consider the influence of external economic and social developments where appropriate. The empirical data in this research consists of 3251 observations concerning members of the executive boards of the 50 largest Russian banks from 2005 till 2014. Contemporary accounting data and other financial and economic indicators for these companies is weighed alongside personal information about the banks executives. Descriptive statistics and econometric approaches are utilised in order to parse the provided data and construct a comprehensive explanatory model. Our interpretative process includes the application of probit regressions and OLS panel regressions with fixed effects.

The results of this evaluation may be summarised as follows. We found out that a decrease in return on equity (ROE) and a decrease in return on assets (ROA) leads to a higher probability of executive turnover. Changes in the EBITDA to total assets ratio did not correlate with executive turnover probability. State-controlled banks showed a higher executive turnover rate. A greater turnover rate during pre-crisis 2006-2007 may have been caused by banks’ demand for new executives, in their ambition to attain extensive growth. A higher turnover rate in 2014 could have been inspired by the economic sanctions again Russia, or influenced by a recent policy of the Central Bank of the Russian Federation aiming at a “clearance” of the banking system. Finally, it was demonstrated that personal characteristics of the members of the executive boards did not have a significant influence on executive turnover probability.

This study contributes to the limited literature in the area by analysing the determinants of turnover of members of the executive boards of banks depending on the profitability of banks and other characteristics. This is the first study of this kind, based on extensive Russian data which allows for the appraisal of the mechanisms of corporate governance. While a primary limitation of this study is that only large banks were included in the sample, the very presentation of these conclusions carries significant weight in terms of defining methodological parameters for future research. This area is ripe for further investigation. For example, it is immediately apparent that the results may be very different for small or medium-sized banks, let alone other kinds of financial and commercial institutions.

Added: Oct 22, 2018
Markovskaya E.I., Radushinsky D., Holodkova V. Корпоративные финансы. 2019. Т. 13. № 2. С. 104-113.

State-private partnership as one of the common formats of interaction between government and business.

The article is devoted to the analysis of current changes in the legislative base, the identification of relevant approaches to assessing the economic effects for stakeholders, as well as the construction of financial models in the framework of the implementation of agreements on public-private partnership. The article presents the result of testing the financial model that we propose, which can be used in concession agreements.

The article analyzes the legal framework and development trends of this form of interaction. We propose to consider and evaluate PPP projects from the point of view of 3 aspects: organizational, methodological and managerial (stakeholder). By stakeholders, we understand individuals and / or legal entities that are directly or indirectly interested in the results of the project.

Modern methods for assessing risks, benefits and effects for various stakeholders of projects implemented in the form of PPP are considered. For each of the stakeholders, we can identify the effects that they can evaluate in the process of analyzing projects implemented in the form of a public-private partnership. By effects, we understand the quantitative and qualitative results of a project that can be identified and, as a rule, measured.

It is suggested authors’ approach to building a financial model and evaluating the effects of PPP projects. The article describes the algorithm for building a financial model, and also presents the author’s approach to the assessment of the integral effect, taking into account the complex structure of the partnership participants.

Added: Dec 11, 2018
Vernikov A. V., Vassily Bokov. Journal of Corporate Finance Research. 2008. No. 7. P. 5-16.

This paper aims at explaining the differences in valuation of banking firms in Russia from a quality of governance point of view. A sample of acquisition deals and public offerings over the last 5 years is collected with the view of discovering factors that investors deem significant in making a decision whether to invest in a given banking firm and, if so, at what price. We use price-to-book-value of equity (P/BV) multiple as standard measurement of valuation and the dependent variable. As for explanatory variables, we put together a set of proxies for quality of bank governance and management, such as degree of concentration of control, managerial experience, degree of compliance with corporate governance best practices (e.g. degree of Board independence, qualification of external auditors), stability of bank’s governing bodies (Management Board and Board of Directors), and availability of external credit ratings. We find out which factors are statistically significant and relevant. A least squares multiple linear regression model is devised to check how individual variables explain the differences in valuation. We discover that external investors attach value to high concentration of ownership, sheer size of the bank, stability of the governing bodies, involvement of well-established external auditors and also that strategic investors tend to pay higher acquisition premiums. The features of the Board of Directors such as its independence, maturity and stability appear to create less value if any.

Added: Feb 5, 2013
Anilov Artem, Alexandrov M., Grafov Denis et al. Journal of Corporate Finance Research. 2014. No. 2. P. 77-90.
Added: Nov 28, 2015
Stepanova A. N., Olga Ivantsova. Journal of Corporate Finance Research. 2012. Vol. 4. No. 24. P. 80-86.


This paper is focused on the recent research in the area of performance effect of corporate governance in banking sector. We review the results of studies devoted to two key nonfinancial characteristics of a commercial bank influencing its performance. In the first part of the paper we analyze the evidence on board of directors structure impact on bank performance. We focus on the performance effect of board size, independent directors and gender diversity of the board. In the second part we discuss the issue of bank ownership structure. In this paper we pay special attention to the difference between performance drivers in developed and emerging markets as well as to the performance drivers changes in times of financial crisis.

Added: Mar 24, 2013
Grigorieva S., Egorova Angelina. Journal of Corporate Finance Research. 2019. Vol. 13. No. 3. P. 7-18.

A substantial body of academic literature continues to investigate whether M&A deals create or destroy shareholder value and what are the main determinants of M&A performance, but the results are still inconclusive. In this paper, we investigate the impact of corporate life cycle on M&A performance from the perspective of acquiring firms. We shed additional light on the performance of M&A deals from the perspective of bidders’ life cycle stages and the deal size . We single out mega deals, where activity remains upbeat, and compare their effects on M&A performance with the effect of non-mega transactions. In contrast to previous studies in the area, we identify four life cycle stages (introduction, growth, maturity and decline), whereas the existing literature mostly focuses on three life cycle stages.

Our sample includes 2413 US domestic M&A deals from 2003 to 2017, and consists of 386 mega deals and 2027 non-mega transactions. The data for analysis were obtained from Capital IQ, Bloomberg and Thomson Reuters Eikon databases. Based on the event study method and regression analysis, we find that stock market reaction is positive for M&A deals in the US and this reaction is more favourable for non-mega acquisitions than for mega M&A deals. We show that non-mega deals outperform mega transactions for acquirers at the introduction and growth stages of the business life cycle.

Our results also indicate that benefits for shareholders from acquiring firms decrease on average with the lifecycle of an organisation, but the returns for shareholders are positive in both cases. By contrast, in mega deals, shareholders receive negative returns when the acquiring firm is at introductory life cycle stage. The scientific novelty of this paper is reflected in our contribution and expansion of the scope of research in this field. There is a relative scarcity of analysis examining M&A deals from the perspective of life cycle stage, and our addition of a fourth category of analysis in this area, along with a focus on the value of the deal, expands the range of methodology for future research. This research is open to further expansion in different markets and our methodology is readily adaptable for the addition of further analytical variables. Importantly, with the validation of our research hypotheses and the confirmation of significant results, we provide a useful new tool for managers and professionals engaged in M&A deals to actively gauge and forecast practical implications of their deals.

Added: Oct 31, 2019
Grigorieva S., Morkovin R. Journal of Corporate Finance Research. 2014. No. 4 (32). P. 34-45.
The topic devoted to cross-border M&A performance has received wide attention in academic literature. Most existing studies examine wealth effects of international M&As in developed countries. We contribute to existing research by examining the market reaction to the announcements of M&As initiated by companies from BRICS countries over 2000–2012. We assess the long-term performance of M&A deals along with the short-term one and provide a copmarative analysis of company wealth gains in cross-border and domestic M&As. Based on the sample of 117 cross-border deals and 247 domestic M&As we find that foreign acquisitions outperform the domestic ones in the long run. We also find that main determinants of M&A performance are the acquirer’s FCFF, percentage change in the acquiring country’s exchange rate against the target country currency during the acquisition year, and the level of international diversification of acquirers.
Added: Apr 2, 2015
Kuchin I., Elkina M., Dranev Y. Journal of Corporate Finance Research. 2019. Vol. 13. No. 1. P. 7-27.

This study is dedicated to estimating the impact of currency risk on the cost of equity in Brazil, Russia, India and South Africa. Our contribution to the literature is that we have obtained evidence on the pricing of exchange rate risk in developing countries, which at the time of writing is quite scarce. This scarcity is one motivation for our research, which is dedicated to BRICS capital markets, though with the Chinese stock market excluded since it is heavily regulated. The aim of this research is to determine whether in emerging countries stock markets currency risk is a significant factor that influences the cost of equity capital in a company. Changes in the value of exchange rates can impact the cash flows of a firm and its exposure to risk, and hence, the value of the company. In our research we will discuss the influence of exchange rate movements on the value of firms through their impact on the cost of equity. Specifically, we investigate whether companies that report substantial currency gains or losses have to pay a higher required rate of return on equity. Furthermore, in this study we make an attempt to estimate currency risk premia for exposure to appreciation and depreciation of currency separately, and try to identify possible differences. For each country, three analytical models that extend the Fama-French Three Factor Model (by incorporating currency risk) are estimated. We use an equal-weighted portfolio approach to identify currency risk factors. These factors are estimated either by using information about the ratio of currency gains to sales, or the magnitude of covariation between equity returns and exchange rate changes. In the second case appreciation and depreciation of domestic currency against the US dollar is considered separately. The results indicate that in Russia, firms which report substantial currency losses pay a positive risk premium, while in Brazil, India and South Africa companies with significantly positive or negative currency gains pay a lower required return on equity than firms with almost zero currency gains. Finally, we attempt to explain the estimation results using a sectoral breakdown of product exports for each country of the data sample. 

Added: May 8, 2019
Stepanova A. N., Яковлев С. А. Journal of Corporate Finance Research. 2010. No. 4. P. 17-30.
Added: Feb 28, 2011
Stepanova A., Yakovlev S. Journal of Corporate Finance Research. 2010. No. 4(16). P. 17-30.

In this paper the authors model the impact of state ownership as a component of the corporate financial architecture on corporate performance and conduct a cross-country analysis of this effect in order to identify the geopolitical differences. The cross-country analysis is focused on the level of development of the institutional mechanisms, designed to protect minority shareholders. The major findings of the paper are in line with a number of research papers’ results obtained in the developed and emerging markets. The contribution of this paper is the joint analysis of two different factors: state ownership and investor protection level and the development of the corporate performance model taking into account the joint influence of these factors as well as their interrelation.

Added: Oct 27, 2012
Stepanova A. N., Anna Tereshchenko. Journal of Corporate Finance Research. 2016. No. 3. P. 5-23.

R&D projects in pharmaceutical industry are extremely risky and bring benefits in long-run period. Self-interested managers try to avoid risk and underinvest in R&D. In this paper we study the effect of independent directors, insider ownership and scientific connections on R&D investments. Independent directors and insider ownership can mitigate agency problem by additional monitoring and convergence of interests. Scientific collaborations promote technological development and increase R&D. The research reveals the difference of the effects in emerging and developed market.

Added: Dec 7, 2016
Poroshina Agata Maximovna, Ozhegov E. M. Journal of Corporate Finance Research. 2013. No. 3 (27). P. 37-49.

This paper presents the demand-supply model for the Russian residential mortgage market based on the 2008-2012 aggregated data. The econometric estimation is addressed to the autocorrelation and the endogeneity problems, which leads to inconsistent estimates of parameters. Vector autoregression was chosen in order to simultaneously model the dynamic demand and supply system. Robust estimates of demand function evidenced that decision on application for mortgage loan is lagged and depends not only on the current macroeconomic situation, but also on the shocks of previous periods.

Added: Oct 24, 2013
Kokoreva M. S., Ivanova M. Journal of Corporate Finance Research. 2016. Vol. 10. No. 4. P. 9-28.

This study investigates the puzzle of zero-debt in emerging markets using a sample of firms from Eastern Europe during 2000-2013. The results of this paper are in line with the previous research of firms from developed markets. Firms that are financially constrained do not use debt as a result of credit rationing while financially unconstrained firms intentionally eschew debt to maintain financial flexibility and avoid underinvestment incentives. Furthermore, this study provides new insights into unconstrained firms’ performance during different economic situations. Firms that strategically avoid debt show better financial results than levered firms.

Added: Mar 15, 2017
Naidenova I. N., Новикова А. К. Journal of Corporate Finance Research. 2018. Vol. 12. No. 3. P. 27-38.

The imposition of sanctions by foreign countries against Russia since 2014 and their prolongation for the following several years resulted in significant changes in Russian economics. In the first instance, economic sanctions were aimed towards the weakening of companies by banning exports and imports of certain goods, closeout or suspension of joint venture projects, as well as limiting the provision of financing. However, one can postulate that these sanctions influenced the companies to different extents. This research offers an analysis of the changes in share prices of Russian public companies of the MICEX index in response to sanctions against Russia in 2014–2016. The research methodology is based on the event study approach, which allows estimation of a short-term response of the shares’ prices to information release. The results of this paper confirm that imposition and prolongation of sanctions resulted in a significant fall in share prices. With an average daily return on shares of the Russian stock market companies of 0.1%, a fall in return of 0.17% points per day as a result of the imposition of sanctions by the USA is economically significant. Apart from that, the sanctions influenced financially dependent companies to a greater extent. Contrary to theoretical assumptions of a greater influence of sanctions imposed by the countries with which a more close economic cooperation had been established, it transpired that the imposition of sanctions by the USA resulted in the greatest fall in prices for shares. Also, an important result indicated in this paper is the fact that imposition of targeted sanctions against certain companies has not entailed a greater impact of the sanctions on such companies. This is indicative of the ineffectiveness of targeted sanctions imposed on Russia. The influence of the government share in ownership of companies and the differences of response of the shares’ prices depending on the company industry sector have not been confirmed.

Added: Dec 10, 2018
Polyakova M. V., Polyakov K. L. Journal of Corporate Finance Research. 2016. No. 1(37). P. 102-118.

This article is devoted to the exploration of the mechanism of making decision about the company’s financing structure. It is shown that the interaction between various financial characteristics of company plays statistically significant role in the capital structure determination. Namely their possible values space may be split into several areas in which different, but might intersected, sets of financial indicators impact statistically significant on the capital structure. Moreover, the same indicator in different areas may have a differential impact on the capital structure. Also there were formulated several hypothesis about the potential direction of influence of various financial indicators on the capital structure assuming the truth of pecking order or trade off hypotheses. And one of the accompanying results of research was the getting facts in favor of the packing order theory for the companies in the chosen branch. Regression trees in combination with linear regression models were used to build the corresponding model of statistical relationship between the measure of capital structure and the set of company’s financial indicators. Model training and testing of the set of hypothesis were done using data about annual Russian companies reporting in the branch of automobile retail.

Added: Apr 8, 2016
Анисинкова Д. С., Балясникова М. А., Волотовская О. А. Корпоративные финансы. 2010. № 2(14). С. 84-93.

The aim of this review is to classify research papers on major vs. minor shareholders conflicts and ownership concentration. These issues are closely related both to each other and to manager vs. owner conflicts. Ownership concentration is property distribution among shareholders. Ownership concentration studies consider the following questions: how many major and minor shareholders are there in the company; how many inside shareholders are there and if they are minor or major; in what way concentration influences performance of the company; what costs are associated with major vs. minor shareholders conflicts etc. The bond between ownership concentration and manager vs. owner conflict is due to the fact that often managers are major shareholders along with other owners. In such cases incentive hypothesis, entranchement hypothesis, monitoring and control costs, as well as their effect on performance, should be considered together.


Added: Oct 28, 2012
Федорова Е. А., Зеленков Ю. А., Чекризов Д. и др. Корпоративные финансы. 2016. Т. 10. № 2. С. 108-123.
Added: Oct 29, 2017