Defining the strategic vision of the company, managers and owners almost always have a shortage of information about different investments potential effectiveness. At the first step the company should find a compromise between investments in traditional assets and intellectual capital accumulation. RAVE concept is mainly based on the premise that the intellectual capital outcomes, including its knowledge, the company marketing policy, purchasing and staff development, exceed the traditional assets outcomes. This article represents the critical analysis of the approach designed by BCG consultants and is devoted to the integrated economic value added - method development.
Today, intellectual capital is one of the important directions in financial management. The article displays the degree of importance of this resource, both at the state level and at company level. Theoretical and methodological aspects of intellectual capital concerning the wording of its definition and critical analysis of the strengths and weaknesses of models for assessing intellectual capital are presented in this paper. The basic characteristics of the intellectual capital and its distinctive features in comparison with monetary-material resources are allocated. It is concluded that implementation of these propositions in the aggregate, may contribute to the goal of creating new levers of company value.
The analysis of financial reporting for banks is of great interest for risk assessment and for understanding the potential for an increase in market value. Following the quantitative decomposition of the size of bank reserves on bad debts, the article concludes that there is the existence of a “subjective component” that acts as a qualitative signal for market investors. The paper analyses information on the significance for market investors of a number of indicators of financial reporting of 989 commercial public banks associated with credit risk. The paper focuses on the consideration of three financial statement items: non-performing loans, loan charge-offs, and loan loss provisions. The study provides an analysis of statistical data on the Russian market and the results of the empirical research on the global bank market with sub-samples on the developed and emerging markets, and the Eastern European and CIS banks. The analysis scale is from 2011 to 2015, in quarterly observations. It is shown that the share of non-performing loans, loan loss provisions and loan charge-offs can be informative for market investors not only in the risk assessment of a bank, but also in the diagnosis of management behavior, but also of expectations on the valuation of a public bank (market capitalization). The emphasis in this paper is placed on loan loss provisions, as this item is highly exposed to manipulations from bank managers, according to previously conducted research. In this study, it was attempted to empirically distinguish the “objective” and ‘subjective” components of loan loss provisions in financial reporting based on a large sample of banks in the global market. The influence of a “subjective” element on the reservation of the market value of a public bank was quantitatively evaluated. In fact, the reasons for the detection of a positive influence in the overstatement of established reserves on the market capitalization of a bank are revealed, despite a decrease of its current profit measure. Positive correlation can be explained by the impact of the signal effects from the bank management towards the market investors regarding the future sustainability of a bank.
In the article are considered various approaches to the problem of the choice of investments' level of the company: a number of the factors which influence the investment activity of the company is revealed; influence of return on investments (ROI) on the investment policy is analysed. The review of economic researches on determinants of investment policy of the companies is studied, various approaches to calculation of ROI are considered. The basic steps and results of the empirical research based on the russian companies' data are presented.
The paper tells about the role of the board of directors in Russian public and non-public companies. The base of the paper - 15th in-depth interviews with the board of directors memebers and the experts in th field of corporate governance. The interviews were conducted in spring-summer 2012.
The article familiarizes the reader with key ratings of corporate governance. It is concerned with the goals, specific features and methodology of such ratings as well as the availability of such ratings for Russian companies. The paper gives consideration to both commercial and research ratings. On basis of the analysis of existing ratings and research papers it is concluded that a scientifically substantiated algorithm for a corporate governance rating has not yet been created.
In this paper we investigate the influence of corporate governance over operational efficiency of Russian companies. We measure efficiency with frontier efficiency methods (DEA and SFA). Corporate governance quality is introduced into the model using the original corporate governance index that is calculated based on methodology proposed in the paper. Using the sample of 54 largest Russian companies we test the model of frontier efficiency and demonstrate the high level of significance of corporate governance index.