This study focuses on the analysis of CEOs’ personal characteristics influence on abnormal stock returns of Russian companies. The object of the research is the companies, which have been listed on Moscow stock exchange. The subject of the research is CEOs’ personal characteristics and stock returns as well. The paper examined a hundred of CEOs’ profiles with personal characteristics. We used single cross-sectional analysis using two models. There were considered to analyze the following CEOs dependent variables: gender, age, number of children, education, tenure, previous employer (internal or external candidate), nationality, and the availability of shares in the company. The study found the following significant indicators: previous employer, children, CEO age and tenure. These results may be interesting to investors who make a decision to buy or sell stocks and researchers from the following disciplines - economics, management and sociology.
This paper is devoted to determining the impact of economic policy uncertainty on corporate investment of Russian manufacturing companies. By applying fixed effects models on panel data, it was found that under increasing level of economic policy uncertainty, the companies reduce their investment activity. The effect is most pronounced for large companies. It is important to note that public companies are not affected by the uncertainty of Russian economic policy, however, the European and global economic policy uncertainty has a negative impact on their investments. Testing the robustness by applying the methods of instrumental variables confirms the results. The study suggests that maintaining transparency and stability of economic policy can increase the level of corporate investment.
The new Basel III rules of macroprudential regulation were introduced for the Russian banking sector in year 2014. This article analyzes a previously unexamined for Russia impact of capital adequacy ratio on the effectiveness of bank lending channel. It is shown that when banks satisfy capital regulation rules this has a direct influence on this channel of monetary transmission mechanism: a high capital adequacy ratio weakens a contractionary effect of an increase in the Bank of Russia key rate and further stimulates credit growth when the Bank of Russia decreases its key rate. The peculiar properties of the Bank of Russia key rate dynamics in the previous years allowed to reveal the asymmetry of monetary transmission. Such an analysis also reflects the value-added of the present study.
Alcohol is traditionally considered by economists as an addictive good. Its consumption is often connected to irrational behaviours as well as negative external effects: growth of crime rates, traffic, occupational, and home accidents, fires. That is why most countries with high levels of alcohol intake introduce special policy measures to reduce alcohol consumption and, as a result, its negative impact on society. In recent decade these policies were also adopted in Russia. This paper analyzes an impact of alcohol policy measures on crime rates. Empirical study is based on econometric analysis of panel data on Russian regions in 2003-2015. The results confirm effectiveness of temporal restrictions on alcohol sales in regard to juvenile and adult crime. Increasing price of vodka due to higher rates of excise tax reduces a number of crimes by teen-agers. Meanwhile, price measures do not influence crime rates among adults.
We survey the literature that emphasizes the importance of comparative and absolute advantages for intra- and inter-industry trade. Two conclusions follow form the survey. First, unlike the traditional view, intra-industry trade is determined rather by technology than by increasing returns. Second, absolute advantages that were ignored in international trade models for a long time play a vital role through their linkages with product quality and export diversification. We also discuss a new strand of literature that models international trade with the assumption of non-homothetic preferences.
In the aftermath of 2007—2009 global financial crisis, many economies had stuck in a liquidity trap. This stance forced central banks to implement various unconventional monetary policies, including massive purchases of financial assets, cutting policy rates down into the negative zone and reliance on forward guidance. In this paper we critically discuss these policy measures. Unconventional policy success in overcoming a liquidity trap heavily depends on the ability to manage private agents’ expectations. If the central bank is capable to form expectations of low interest rates for a prolonged period after the escape from a liquidity trap, unconventional monetary policies lead to a recovery. Another crucial issue is dynamic inconsistency of prolonged low interest rate policy. We discuss several ways of how the central bank can commit not to lift policy rate up to keep inflation unnecessary low.
We study necessary conditions for acceleration of labor productivity growth in Russia. Government programs aimed on economic growth acceleration attribute special attention to small and medium enterprises. Using micro data, as well as aggregate data, we calculate the contribution of small and medium firms into labor productivity growth. We show that mere increase of the number of small and medium enterprises is not as important for positive effects of these programs, as qualitative improvements: development of favorable environment for growth, which is largely determined by business climate.
Accelerating productivity growth involves redistribution of labor and capital from inefficient to efficient enterprises. In particular, it is necessary to create conditions, which allow a firm to grow after it enters the market instead of stagnating as a small firm with low efficiency. At the same time, it is necessary for ineffective firms, which exhausted their growth potential to have an opportunity to exit the market easily leaving resources including labor to fast-growing companies.
Though foreign language is widely accepted as an important form of human capital and a factor of economic growth, the labour market outcomes for foreign language skills in developing economies remain understudied. This research explores the returns to different levels of foreign language skills in the Russian labour market and tries do disentangle the differences in return associated with job characteristics.
Based on a representative Russian survey data (RLMS-HSE) for 2008-2017, this study adopts several Mincer type models, adding controls for job characteristics, which are estimated using Ordinary Least Squares technique. By providing separate estimates for various professional groups, this research addresses the heterogeneity of returns which are associated with job characteristics.
The results indicate positive wage premium for foreign language skills in Russia which approximately equals to 9% when controlling for job-related characteristics. Moreover, wage premium for advanced level of knowledge reaches 24%. However, there is considerable heterogeneity in the economic returns across age groups, levels of education, and occupations. The highest return to foreign language skills is obtained by managers and results to be 13%. For elementary occupations the estimate appears to be insignificant which proves that return to foreign language exists only for a limited number of specific jobs
Retirement age reform in the Russian Federation is widely discussed in recent Russian economic literature. This literature mainly focuses on economic justification of increasing retirement age, less often considers demographic issues. The latter that according to economists point of view provide additional arguments for this reform are critically considered in the article. As indicated in it, none of these issues (population ageing, life expectancy growth, health of the elderly) nowadays provide empirical grounds for making decisions on changes in retirement age. On the contrary, modern demographic processes in Russia give arguments against this reform.
Today there are several common approaches to the study of addictive consumer choice. However, one of the existing approaches is often overlooked due to its complexity. This article aims to fill this gap. We start with a brief retrospective overview of the history of the issue and proceed by a detailed analysis of current research in the filed of choice theory which takes into account the evolution of preferences over time in the presence of addiction. These preferences lead to «deviation» of a rational consumer from rationality under the influence of temptation, addiction, desire to have a greater choice, and so on.