Book chapter
Digital transformation: statistical evaluation of success factors of an ICO-campaign
High rates of growth of the ICO market and its excess returns stipulate a significant
interest of investors to projects which use initial token allocation (ICO) for attracting
investments. This work takes into account the fact that even a potentially profitable project
may fail to collect the required amount of money and to start placing tokens on the stock
exchange. We are speaking about success of an ICO-campaign for fund raising. In order to
estimate the influence of factors and check the suggested research hypotheses, logistic
regression was used. The selection included 672 projects. As a dependent variable, the
proportion of the amount collected in the ICO process from the required value is selected.
Depending on the tested hypothesis the influencing variables took into account the presence of
a pre-sale stage and the bounty program and also the price of the token, the upper limit of fund
raising, the duration of the ICO-campaign and the number of team members. The work results
allow token emitters to substantiate managing the success of the ICO-campaign of the project
and the investors to see whether it deserves their attention. Besides, the obtained materials can
be useful for specialists in forming the legal framework of token transactions.
In book
State Capitalism could be characterized by a triple role of the state: the state performs as a “programmer” to guide economic activity; it acts as a “protector” to safeguard national economic interests; and it also plays the role as a “producer” to create national wealth through its state-owned enterprises (SOEs). However, the influences of State Capitalism in a country are not only limited to the domestic sphere. They often extend internationally, either through the globalization of SOEs, or through Sovereign Fund investments, or by means of other influences. Many recent acquisition projects by SOEs, often in strategic sectors, highlight the importance of understanding this new geopolitical investment which has created special relations between State Capitalism and the free market. They also raise the question of the need for updating national economic security concerns in the context of globalization. As the value of Sovereign Funds reaches several trillion dollars, the controversy surrounding these Funds is evolving. For many, these Funds do not necessarily always look for maximizing business performance, but are sometimes also accompanied by political and strategic ambitions of the respective states from where they originate. The phenomenon of State Capitalism has gained prominence in recent years especially in several emerging markets. It appeared, firstly, because of multiple government interventions in the economy,and secondly, emphasis given to the globalization of their SOEs / economic organizations in international markets (China, Russia, Brazil, Malaysia, Saudi Arabia, India, Korea, etc.). In January 2012, The Economist published another special article on State Capitalism and wondered if the new balance of power that is being built-up with the emergence of market oriented SOEs will pose a challenge to the liberal capitalist model. The objectives of this conference are manifold: to examine the characteristics of State Capitalism in the world economy, especially in emerging countries, to assess its real impact on economic development, to identify its scope to other developing countries, and also to explore the major challenges that it poses to the liberal capitalist model in the world of free-markets.
In accordance with the international investment legislation, a state is entitled to implement expropriation and nationalization measures with respect to foreign investments within its territory on condition of guaranteed prompt, efficient and adequate compensation provision in favor of investors. The article notes that there is no clear description of the phenomenon of foreign investors' property alienation in the Russian or world practice. Consideration is given to the types of expropriation: direct, aimed at deprivation of property rights for investments by authorities; indirect, or "creeping" expropriation representing gradual divestiture; and measures that are equivalent to expropriation and inhibit receipts of investment benefits. It is underscored that in the process of investment evaluation it is necessary to take into consideration the degree of intervention in property rights, intentions of the government, and the impossibility to discharge adequate investors' expectations.
The article considers the problems of realization of the large projects related to creation of transport-logistics centers (TLC) and other objects of logistics infrastructure with application of the state and private partnership (SPP) mechanism. The foreign experience , possible forms and models of SPP application, requirements for parameters and terms of private capital investment into the project of TLC establishment, primary obligations and rights of SPP participants are analyzed. Profound consideration is given to the risks arisen in the process of TLC creation, to the problems of their limitations and distribution among the partners, to achievement of the highest synergetic effect from creation of TLC.
The article describes the methods of economic evaluation of innovative projects. The special attention is given to the positive and negative sides of the static evaluation methods and techniques with the flexibility that is built into the project. Keywords: discounted cash flow, real options and innovations.
In the article we study the reasons and character of economic growth in Russia in the beginning of the XXI-st century. The analysis of the features of economic development is a key to understanding of depth of modern crisis in Russia. This article exhibits institutional preconditions for an overcoming the crisis and acceleration of economic growth.
The paper consists of three main sections. The first is devoted to a discussion of the "state capitalism" concept and the reasons for the growing interest to this phenomenon. It is proposed here to consider the state capitalism not only in terms of the state ownership in major national industrial enterprises and banks, but also taking into account the efficiency of SOEs. In the second section, the new data on the state involvement in the Russian economy are represented, including the shares of the state in the authorized capital of the largest industrial enterprises and banks. Their economic indicators are compared. Contrary to some assumptions P / E values for national champions are lagging behind the average for emerging markets. The third section examines the hypothesis that one of the major challenges faced by the state capitalism is the development of investment incentives for SOEs and their performance. It is shown that the interests of the state as an owner of business enterprises are often in conflict with the interests of the state as a social institution. A number of examples are demonstrated. In order to solve this problem the state should reduce its stakes in SOEs except for those that are of strategic importance. The output of the analysis is that the state capitalism as a social phenomenon has no a long-term perspective. Most of so called “state capitalist” countries will take in future the path of traditional mixed market economy.
The dg.o conference is the flagship conference of the Digital Government Society (DGS), and has positioned itself to be a top-ranking conference in this interdisciplinary academic field. It brings high quality research contributions and plays a major role in the advancement of knowledge in the field of digital government. The continue growing number of scholars and the growing number of members will continue to reinforce the position of DGS as a research and practice platform where researchers and practitioners can meet, exchange ideas, and build new relationships.
The role of sports mega events for economic and political life of the nations are strongly increased. It presents a great interest to the theme of public choice analysis of sport in general and the Olympics in particular. "Olympic Games Economics" - the first Russian monograph on this subject. It gives a periodization of the stages of the international Olympic movement, analyzes the main sources of funding for the Olympic Games and the mechanism of their redistribution. Special attention is paid to the Olympic business cycle, its unity and difference with the classical business cycle and political business cycle.
The monograph discusses the features of the decision making process at different stages to host the Olympics. International Olympic Committee has developed a special system of Applicants and Candidate cities estimation. Candidature Acceptance Procedure includes 11 indicators. All these indicators are summarized in Final Matrix, which is used as a bases for candidate cities defining. The authors describe this indictors, detect the advantages and disadvantages of them and analyze the importance of each of them for final score. International sport analytical agencies ("GamesBids" and "Around the Rings") also have their own ratings. The authors investigate the indicators which influence on the final indexes and see how they show the public opinion.
A special attention is paid to the voting procedure in the final part of the decision. The authors analyze the preferences of the IOC members in selecting the capitals of the Olympic Games, and also examines predictors of informal relations in the decision making process. 2002 Olympic winter Games case is analyzed as an example. The authors investigate the factors contributing to the development of principal-agent problem and logrolling.
Features of voting and logrolling are based on the choice of 2014 Olympic Winter Games capital (Sochi, Russia). The authors consider three models of management and financing of the Olympics and make a conclusion about which of them gives the greatest scope for abuse and corruption, and which one is used currently in Sochi.
Cost-benefit analysis allows to define when expenditures are the biggest and when the revenues are the highest. Let’s see on the costs and benefits of Olympic Games organizing committees on different stages of the Olympic business cycle (see Tables 1-4).
Table 1
Public and private cost-benefit analysis on pre-Olympic stage (Participation in election procedure)
Costs
Benefits
Public
n Olympic bid documentary support,
n Participation fee,
n preparing and organization of activities to popularize the idea of Olympic Games hosting inside the country and abroad
n Olympic Games Questionary preparing
n Applicant City advertising,
n infrastructure development and preparing for IOC Commission visit
n country image increase,
n knowledge increase about applicant city abroad
Business
- Participation analysis
n Investment attraction increase
Table 2
Public and private cost-benefit analysis on pre-Olympic stage (Olympic Games Organizing)
Costs
Benefits
Public
n Organization costs,
- Administrative costs
- Opening and closing ceremonies
- Olympic touch relay
n Technical costs (stadiums, swimming pools, Olympic village, press-center etc.)
n Infrastructure development (roads, underground, electronic communications etc.)
n Environmental protection
DIRECT
n TV rights selling,
n Sponsors (national and worldwide)
n licensing
n ticketing (partially)
n Sells through the Internet
n Coins, lottery etc.
INDIRECT
n unemployment decrease
n aggregate demand growth
n taxes growth
n business activity growth
n country and city availability growth
Business
n Hotels construction
n Tourism infrastructure development in hope for the future benefits
n Investment attraction growth
n Advertising of goods and services
Table 3
Public and private cost-benefit analysis on Olympic stage
Costs
Benefits
Public
n Security
n Sportsmen accommodation and food
n Advertising activities, festivals etc.
n Utilities
n Subsidies to the Factories and companies which are closed for the Games period to traffic jams avoiding and so on.
n number of tourists increase,
n country image increase,
n ticketing (partially)
n Sells through the Internet
n GDP and GRP growth
n taxes
Business
n General organizational costs
n restrictions for factories and industry companies work
n country image increase,
n Investment attraction increase
n Advertising of goods and services
n souvenirs and sport equipment selling
n plastic cards transactions
n hotels full filling
n sportsmen and guests expenditures
Table 4
Public and private cost-benefit analysis on post-Olympic stage
Costs
Benefits
Public
n Infrastructure and equipment operation costs
n bank interest revenue
n assets selling,
n hosting other mega events
Business
n Infrastructure and equipment operation costs
n hosting other mega events
n souvenirs and sport equipment selling
n tourism
Gross Spending Related to the 2010 Games and Distribution of the investments for the Olympic Games are presented on the Fig. 1 and Fig. 2.
Fig. 1. Summary of Gross Spending Related to the 2010 Games
Source: 2010 Winter Olympic and Paralympic Games Report
We can see that the biggest part of the costs is required 4-6 years before the Olympics. This fact proves our theory about the costs distribution during the Olympic business cycle. From the other side, as statistics shows (see Fig. 6) the largest number of investments is really made 3-1 years before the Games.
Fig. 2. Distribution of the investments for the Olympic Games (%)
Created by: authors on the base of Preuss H. The Olympics. Handbook on the Economics of Sport. Edited by Wladimir Andreff abd Stefan Szymanski. Edward Elgar Publishing, UK, 2009
Thus we should correct our model and increase economic activity during the period of 3-1 years before the Games and decrease the political activity during the period of Olympics hosting (see Fig. 3).
Fig. 3. Political and economic business activity inside the Olympic business cycle (a typical issue)
Created by: authors
The mechanisms of administration plays an important role during the Olympic business cycle. High-quality effective management and planning allows to make profitable and success Olympic Games.
Olympic Games hosting gives an impulse to the economy of their countries and also aims to achieve two main objectives: profits maximizing and positive externalities maximizing.
Private business is more interested in achieving the first objective, state – the second one.
All sources of events and infrastructure funding, which come from the state, regional and local (municipal) levels, constitute public financing. All private domestic and foreign expenses are private funding. Value of public and private funding can be divided into 3 basic models of administration and financing, which can be applied to any Olympic Games:
1) model of public administration and financing (the share of public participation more than 67%);
2) the mixed model of administration and financing (the share of public participation from 33% to 67%);
3) model of private administration and financing (the share of public participation less than 33%)
Figure 4 shows what model of administration and finance was typical for the Olympics Games in 1972-2008.
The monograph also systematized world experience in organizing and hosting the Olympic Winter Games and special attention is given to the first socio-economic results of the XXII Olympic Winter Games in Sochi of 2014.
Figure 4. Administration and financing models of summer Olympic Games in 1972-2008.
Created by: Preuss, Holger. Economics of the Olympic Games. Hosting the Games 1972-2000. Sydney: Walla Walla Press in conjunction with the Centre for Olympic Studies, The University of New South Wales, 2000, 291 p.; Коваль В.И. Олимпиада 80 (экономический аспект), «ЗНАНИЕ», Москва, 1978 (Koval V.I. Olympics 1980 (economic aspects). Moscow, 1978, in Russian); Прицельный олимпийский огонь // Эксперт, Москва, август 2004 (Direct Olympic fire // Expert, August 2004, in Russian); Игры кончились // Smart Money, 28.07.2008, № 27 (117) (The Games ended // Smart Money, 28.07.2008, № 27 (117) , in Russian).
Monograph is intended for teachers of economic institutions and faculties, graduate students, all interested in the actual problems of the theory and practice the Olympic Games economy.
The author analyzes the decision of the President of the country on necessity of removal of state officials from committees of directors of the largest state companies, its pluses and minuses, and appreciates an investment climate in the country which unsatisfactory condition seriously anxious the country leaders.