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.
The task of identifying differences between Russian and International audit standards is relevant today. It is very important to adapt to the new rules internal audit standards which regulate such processes as a planning an audit, gathering audit evidence, preparing of a working papers. In the present article we propose a planning an audit of provisions. This reporting indicator is very risky because there are no strict regulations in the evaluation and recognition criteria this indicator, accounting of provisions is carried out with the use of professional judgment.
In the article we proposed recommendations for planning an audit of provisions: we set audit goals and tasks, we developed a methodology of risk, internal control, materiality and audit sampling assessment.
The article is based on the requirements of International Financial Reporting Standards and International Standards on Auditing. It may be helpful for internal and external auditors, accouters, students and lectures.
In this article the author analyses the characteristics of the economic assets the most suitable for financial bubbles appearance and the preconditions thereof. The best objects for bubble inflation are the investment assets with long life, rare and hard-to-value objects. The development of the bubbles is frequently based on the «new world» paradigm in its different varieties: the technological breakthrough, the development of geographical markets, the financial innovation, etc. The bubbles are promoted by favorable economic environment, new means of communication, social changes leading to the mass entry of new players in the financial markets, soft monetary policy, week investor’s budget constraint, and institutional architecture of financial markets favoring herd behavior.
Specific features of strategic decision making include a bulk of significant factors, availability of semi-structured and unstructured data, as well as incompleteness of source information. In such conditions, for assessment and selection of strategic initiatives an expert approach seems applicable, perhaps, in combination with traditional methods of management accounting and investment appraisal. An important aspect of strategic decision making is modeling of problem situations, which represent possible future conditions of external environment. Due to different approaches to problem situations modeling and diversity of decision making methods, multivariate processing of expert estimates seems reasonable. For appropriate calculations, application of special information systems is recommended. The aim of the research is to develop an approach to strategic decision making, including modeling of problem situations and multivariate processing of expert estimates, using appropriate decision making methods and information systems. During problem situations modeling (relying on factors of external environment that are material for decision making), it is considered that such factors may be either independent, of depended from each other. As one of the techniques of problem situations probabilities assessment, the method of Analytic Hierarchy Process (AHP) is applicable. Regarding multivariate processing of expert estimates, the methods applicable in the conditions of risk (when probabilities of problem situations are known) or uncertainty (when assessment of probabilities is not possible) are considered in the paper. The proposed recommendations are illustrated by the example of the task of selecting the mode of overseas market entry for a manufacturing company. Processing of source information relies on four different decision making methods; one of them is applied in the conditions of risk, and four – in uncertain environment. Appropriate calculations are executed using Expert Decision Support System (EDSS) software.
In this article, the authors investigate the current theoretical and methodological approaches to the identification of systemically important banks, taking into account the specifics of national economies. The purpose of our study is an elaboration of criteria for the identification of systemically important banks at the national level. It creates a platform for the use of a proportional approach to the regulation of their activities. We used a crosssectoral approach. It is based on the use of methods of induction and cluster analysis, which involves ranking banks in terms of their impact separately on the non-financial and financial sectors of the economy, followed by aggregation and ranking of the results. The study is based on the analysis of theoretical and methodological approaches to the identification of systemically important banks and was performed in relation to the Russian economy. It includes an analysis of the financial statements of commercial banks and the definition of indicators characterizing their cross-sectoral impact on the economy. We have elaborated criteria and evaluation scales for quantitative and qualitative characteristics of the systemically important banks with the allocation of significance levels. On the basis of the developed criteria, we analyzed the systemically important Russian banks for the nonfinancial and financial sectors, and for the economy as a whole. Further, we gave the quantitative and qualitative assessment of the systemically important Russian banks and provided a comparative analysis of the results with the officially established list of systemically important banks in the Russian Federation. The criteria and evaluation scales proposed in the study allow increasing the objectivity of the banks’ classification as systemically important ones. At the same time, they create a platform for using a proportional approach to regulating the activities of systemically important banks. Proposed in the study the criteria for identification of the systemically important banks, with regard to their impact on certain sectors of the economy, are universal and can be used in different countries.
Hedging is one of the most popular strategies for market risk management. Hedging is aimed at decreasing the volatility, or variability, of portfolio returns. The portfolio usually consists of the spot assets and hedging instruments. The latter can be represented by futures, options and over-the-counter assets such as forwards and swaps. While futures’ hedging is rather simple it’s quite widespread in practice. This paper is aimed at comparison of four hedging strategies, where the spot asset is stock and hedging instrument is futures. For this purpose five Russian stocks from Moscow Exchange are selected and analyzed for the period from the 1st of December 2015 till the 29th of February 2016.
The key element of the hedging strategy is the calculation of the hedging coefficient. The latter shows what part of the stocks’ value in the portfolio should be covered by futures. In this paper the hedging coefficient is computed through internal rate of return, ordinary least squares (OLS) and maximum likelihood. The latter is able to estimate hedging coefficient taking into account heteroskedasticity, because the regression errors follow GARCH model. Further hedging strategies are compared by such criteria as standard deviation of portfolio returns, portfolio Value-at-Risk and hedging efficiency.
According to the results the most efficient strategy is one based on internal rate of returns. The other criteria show that the same strategy together with OLS demonstrates better results. Correction for heteroskedasticity made through maximum likelihood did not allow improving hedging efficiency.
The research can be extended in the several directions, namely considering options’ hedging; adding to the portfolio other spot assets, for example, commodities and currencies; taking into account investors’ risk aversion in the calculations of hedging coefficients; introducing transaction costs in the model.
Article represents the results of the research of practical approaches to corporate social responsibility programs (CSR) management in Russian sustainable development oriented companies. Some features of CSR as a management tool were described according to modern Russian business conditions. Author suggests the model of mechanisms of corporate social responsibility programs management for sustainable development oriented companies.
Introduction. The issue of growth is becoming a priority for many companies today. The growth of an enterprise is connected with many difficulties to solve which it is necessary to evaluate a great number of factors influencing it. However until now there has not been formed any approaches to neither the meaning of this term, nor factors determining it. Thus it is possible to single out two unsolved questions on this sphere. The first is connected with the choice of the indicator itself that characterizes the growth of the companies. The second is in grounding the factors that can have a permanent impact on the growth. The authors will try to answer these two questions in the current research.
Actual and sustainable growth of companies is a separate subject of the research on the example of 122 biggest Russian companies from the Forbes list.
Methods. Methods used in the research are general scientific methods of analysis (analysis, synthesis, comparison, graphical) as well as special (statistical methods of analysis, coefficient method).
Results. In this research it is proved that the combination and extent of impact of financial and non-financial factors on actual and sustainable company growth varies. The structure of financing for large companies is an insignificant factor. Therefore, it is not important at the expense of what resources the growth of business takes occurs. The existence of the board of directors is an essential criterion for ensuring the effectiveness of current activities, which affects the actual growth in sales. From the strategic perspective, sustainable growth is influenced by the presence of independent members on the board of directors. Investments in long-term assets have proved to be significant for both actual and sustained growth of the company with a certain time lag.
The sphere of result application. The proposed methodology can be used by both external and internal analysts to develop investment and financial management decisions.
In modern conditions crisis phenomena are inevitable as a company develops and goes through different stages of the economic cycle. At present time in the modern theory there is no common approach to the interpretation of financial sustainability and methods to manage company’s stability and company’s value using general factors. The crisis of 2008-2009 and a potential slowdown in economic growth make these issues particularly relevant. The paper reviews research carried out by the authors in 2008-2012 and analyzes data on stability and value management for the mentioned period. The paper presents the analysis of trends over the period spanning 2008-2012 in terms of financial stability, value of assets and capitalization of companies. It suggests measures to control stability and value at different development stages of the company. The authors have analyzed the relationship between main coefficients of financial stability, economic added value and capitalization of Russian energy companies. The projected slowdown in economic growth may require carrying out further stability analysis, introducing changes in the value of assets and the intense use of management measures to maintain company’s financial sustainability and increase its value. Materials and analysis data may be of interest to valuators and professionals of financial departments.
The paper presents the results of a study related to the assessment of the impact of economic and non-economic factors on the international export of capital. The purpose of the study was an econometric assessment of the influence of some economic and non-economic indices on the export of capital in 2015 throughconstruction of a consistent econometric model. To select a method for the capital outflow evaluation for the research purposes, three potential methods for measuring the scale of the capital escape from the country are analyzed: the CBR method, the World Bank method and assessment of direct foreign investments. The authors exposed methodological differences in approaches to evaluating the amount of capital outflow to be taken into account in such studies. In the course of the study a number of regression models were developed and some of them confirmed the existence of the relationship between capital outflow and non-economic factors. It is concluded that the non-economic factors influence the magnitude of capital outflow from the national economy and political events may significantly affect the decisions of investors. In our models, non-economic factors such as presidential and parliamentary elections, time to start a business have an impact on the amount of capital outflow. The study is a part of the research work related to the development of the matrix of the Russian economy investment climate.  Subsequent research activities may include the construction of a model to analyze the influence of economic and non-economic factors on the capital outflow amount in different types of national economies (for example, in developed and developing countries). This will make it possible to use simulation results to predict amounts of the capital outflow from the Russian economy. The research findings can be used in the practice of the development of the economic and investment policies at the macro and the micro levels, the national economylevel as well as at the regional level.
The article examines the issue of differences in the dividend policy of public and private companies in Russia. State corporations form more than 40% of revenues of the largest Russian companies, at the same time the role of ownership structure in determining dividend policy is not uniquely determined in the literature. Comparative analysis of Russian companies shows that nonlinear dependence is possible. We use panel data from nonfinancial companies listed in Moscow stock exchange from 2008 to 2016, who paid dividends during this period, 150 companies in total. Three specifications are considered: the one with dividend payout ratio as a dependent variable, the one with a share of dividends in free cash flow, and the one with nonlinear dependence of dividend payout ratio and share of state participation. Control variables are based on the life-cycle theory. Linear form does not show statistically significant relationship between the dividend payments and the shares of state participation. We find that the relationship is nonlinear and has the upside down U shape. For a low level of state participation, the relationship is positive, for a high level it is negative. This result is in line with the agency theory: a positive link indicates the use of dividends to resolve an agency conflict; a negative link implies concentration of money in the hands of managers in the absence of the power of minority shareholders. The future research is associated with adding institutional constraints to the analysis and using the framework of sustainable development of the firm.