This paper addresses the question of existence of relationships between usage of contemporary marketing practices and profitability for companies operating on the Russian market. To address this issue, we utilize an artificial intelligence method that so far was barely present in marketing and management science. The paper is not only promoting a novel research method, it also establishes the relationships between profitability and specific sets of marketing practices. We show that the companies having negative profitability make use of a wide spectrum of marketing practices (with an exception of interactive marketing) and they do not prioritize any specific types of practices. In contrary, profitable companies intensively use interactive marketing and also combine it with IT-marketing and network marketing. This shows that successful companies focus on relationship marketing in a variety of its forms.
The article presents analysis of the impact of human resource management systems (HRM) on the financial performance of banks operating in the Russian market. The sample includes 67 banks with different organizational characteristics (nationality of capital, ownership, lo-cation of the head office, number of years of operation in the Russian market). The research is based both on qualitative (a survey of heads of HR services of banks) and quantitative (analysis of financial statements of banks). Data were collected in the period from 2011 to 2015. Initially, the main indicators characterizing the effectiveness of the HRM system (labor productivity and return on investment in human capital), as well as indicators of the financial performance of banks (return on assets and return on capital), were calculated. Further, with the help of the system of econometric equations, the impact of performance indicators of HRM systems on financial results of banks was determined. The study revealed that, on one hand, implementation of the functions of the HRM system does not have a positive impact on financial performance of the bank. At the same time, the impact of effects of some particular variables characterizing the HRM system itself (orientation on the strategic goals of the bank, the composition of the functions performed, the automation of functions, the flexibility and innovation of the HRM system, the amount of personnel costs) on performance of banks was revealed. So, the positive effect of the HRM system arises from its orientation towards the strategic goals of the bank, as well as with the use of electronic systems that automate the functions of HRM and thus improving the timing and quality of their implementation. Together, these variables, characterizing the HRM system, increase the return on investment in human capital. If the bank also achieves the flexibility and innovation of the HRM system, then labor productivity also increases. This, in turn, has a positive impact on the financial performance of banks.
The paper is devoted to the analysis of CEO letters as an instrument for influencing the expectations of shareholders and potential investors. The aim of the research is to analyze empirically the influence of semantic characteristics of CEO letters on financial indicators of the company. The authors suggested that CEO letter’s tonality, its length and readability have a great impact on the company’s financial indicators, their prediction and mid-year stock value. To check the hypotheses stated, a sample group of 102 Russian companies was analyzed with the use of “bag of words” method (specialized dictionaries were applied). For this purpose, neural network models were also developed. The results obtained confirmed the influence of CEO letter’s semantic characteristics on the stock value of company.
The authors examine manifestations, individual and organizational antecedents and consequences of abusive supervisor behavior which is defined as regular humiliating, suppressive, rude and insulting day-to-day practices towards subordinates. Empirical analysis is based on the online survey of 198 employees from private and public organizations. We found, first, that abusive supervision in Russian organizations is most often manifested in coercion to do routine and unqualified work tasks; ignoring of subordinates’ ideas and initiatives; public critique in an insulting manner; cheating subordinates. Second, our investigation shows that respondents attribute such behavior to demonstration of power or to supervisors’ poor communicative skills. Third, we revealed that the strongest predictor of abusive supervision was employee’s economic dependence, namely, the reward system depending rather on personal leader-employee relationships than on objective performance indicators. Forth, abusive supervision considerably decreases employees’ job satisfaction and work engagement, contributes to burnout and intentions to quit.
Currently the stakeholders of companies, in Russia and worldwide, need the instruments which enable them to detect financial statements fraud. The models developed by M. Beneish and M. Roxas are the examples of such instruments. However these models can not take into account specific features of accounting reporting regulations, accounting standards and business practices in Russia. Based on the sample of 60 Russian companies the authors discovered that the models by Beneish and Roxas identify whether financial statement fraud takes place or not only in 62% and 58% of cases respectively. The article suggests and assesses the revision of models’ benchmarks on the base of data on Russian companies. This revision increases the performance of models proposed by Beneish and Roxas to detect financial statement fraud.
Статья посвящена рассмотрению двух новейших методов стимулирования — геймификации и автоматизации по KPI. В ней представлены результаты эмпирического исследования геймификации, которое стало одной из первых попыток систематизации всех теоретических аспектов, связанных с формами игрового стимулирования. Кроме того, авторы проводят теоретический анализ другого современного управленческого инструмента — автоматизации по KPI. Результаты исследования двух подходов позволяют прояснить их место в исторически сложившейся системе методов стимулирования, а также сделать некоторые прогнозы относительно перспектив их развития.
Economic crisis started in 2008 forced companies in Russia to move from growth and expansion to reduction and restructuring. The article presents the main changes at top managers’ labor market from the beginning of crisis in Russia. The original data on top managers’ mobility in Russia from late 1999 till 2009 was used. The main result of the research is that there were no big changes in Russian top managers’ labor market during the crisis years (2008–2009). The most significant change was the increase of firm’s demand for specific human capital of top managers and the decrease of demand for general human capital.
In this paper we study the influence of insider ownership on firm performance in emerging capital markets of BRIC countries in 2003–2013. We adjusted the classic model of firm performance proposed by Morck, Shleifer, and Vishny (1988) for the inefficient emerging capital markets. To modify the classic model we, first, apply the concept of investor protection rights developed by La Porta (2002) and, second, introduce additional factors controlling the growth rates and risk level. We test two specifications, linear and cubic, of the modified model for the sample of 97 nonfinancial companies in Brazil, Russia, India and China. The results demonstrate that the insider ownership increases the firm performance at low and high levels of insider ownership illustrating the “convergence of interests” hypothesis. When insiders own medium-size blocks of company’s shares (23,2–61,3%), the insider ownership decreases the corporate performance, thus illustrating the “entrenchment effect”. Finally, we demonstrate that the entrenchment effect became stronger in times of global financial crisis of 2008–2009.