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Regular version of the site
Of all publications in the section: 230
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Article
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
Article
Anilov Artem, Alexandrov M., Grafov Denis et al. Journal of Corporate Finance Research. 2014. No. 2. P. 77-90.
Added: Nov 28, 2015
Article
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
Article
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
Article
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
Article
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
Article
Stepanova A. N., Яковлев С. А. Journal of Corporate Finance Research. 2010. No. 4. P. 17-30.
Added: Feb 28, 2011
Article
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
Article
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
Article
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
Article
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
Article
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
Article
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
Article
Федорова Е. А., Зеленков Ю. А., Чекризов Д. и др. Корпоративные финансы. 2016. Т. 10. № 2. С. 108-123.
Added: Oct 29, 2017
Article
Пирогов Н. К., Саломыкова О. А. Корпоративные финансы. 2007. Т. 2. № 2. С. 32-42.
Added: Nov 2, 2012
Article
Котляров И. Д. Корпоративные финансы. 2010. № 3(15). С. 104-112.

An analysis of economical, financial and organizational nature of leasing, factoring and forfaiting demonstrates that all these forms of financial entrepreneurship have an outsourcing component. Notion of intermediary financing is proposed. A comparative analysis of these business tools has been made. A list of risks typical for providers of these services is given.

 

Added: Oct 27, 2012
Article
Кучин И. И. Корпоративные финансы. 2016. Т. 10. № 2. С. 27-38.
Added: Sep 17, 2017
Article
Дранев Ю. Я. Корпоративные финансы. 2013. Т. 28. № 4. С. 114-124.

A large number of research papers on relation between currency risk and firms’ value have  been published during last several decades. Researches acknowledged that currency risk could be a  pricing factor. We follow models’ developments under the framework of asset pricing theory and  come to a conclusion that dynamic and asymmetric international asset pricing models were  considered among the best for capturing exposure to exchange rate risk in developed and emerging  markets.  Exchange rate exposure became a separate topic of research. Different determinants  of exposure were discovered in the literature. Economists estimated their influence on sensitivity of  stock returns to currency volatility.  There is certain specific in currency exposure research. In this paper we considered  different methodological aspects of exchange rate exposure modelling and mentioned details  of empirical analysis in emerging markets.   

Added: Feb 19, 2014
Article
Мочалов Д. С. Корпоративные финансы. 2014. № 31 (3). С. 55-67.

The paper contains highlighting and theoretical level analysis of the factors positively and negatively influencing profitability of vertically integrated and non-integrated companies. Advantages and disadvantages of choosing the strategy of vertical integration are proved along with systematization of main approaches to these item researching. The difference of the efficiency between the integrated and non-integrated companies’ performance is considered, which is the key issue of the best way of large companies development. The central issue of the research, that is based on the theory highlighted in this paper, is the utility of existence of large vertically integrated companies in emerging capital markets. Are such companies improving the whole economy of an emerging country or are they slowdown transition to market relations in all industries? This article was motivated by the trend in developed capital markets towards dividing big holding companies to small segmental units.

The efficiency of vertically integrated companies’ performance should be studied through comparison the whole corporation and a set of detached businesses, that could be parts of integrated company. The simplest way of such analysis, which was used by the first researchers in this field, is to compare total costs and to depict different types of economies. On the more sophisticated level of analysis must be taken into account such issues as principal-agent problem, technological economies and risk level minimization under the conditions of legal restrictions, which limits costs saving between two branches of one company. The third approach to consider all influencing companies’ performance factors is the analysis of financial figures, especially the analysis of different ratios, that can show relative efficiency of companies. By doing such analysis not only traditional components of synergetic effect are taken into consideration, but also financial features of M&A deals that can lead to a bankruptcy are covered.

Added: Dec 23, 2014