Valuation of banking business in Russia for empirical purposes

P. 321–328.

Bokov V. A., Vernikov A. V.

This paper compares various techniques of valuating banks in Russia for empirical research purposes. From comparing the existing valuation methodologies we proceed to devise an alternative methodology of valuation that would be more rele-vant and applicable to the Russian banking industry. Our technique is based on the linkage of sales prices of banks in M&A transactions to the prices of fixed-income securities issued by these banks. The novelty of our approach lies in the utilization of a broader range of sources of price data that might prove useful in measuring investor perception of different performance characteristics of banking firms. We illustrate the application of our method with a calculation of the impact produced by the quality of corporate governance on the price of the bank measured through the price of its equity and other securities. The downside of our valuation method is being geared towards banking firms while its applicability to industrial companies remains to be researched.

Keywords: эмпирические исследования, Empirical studies, банковский бизнес, evaluation of banking business, оценка банковского бизнеса

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X Международная научная конференция по проблемам развития экономики и общества: в 3 кн.

Кн. 2. , М.: Издательский дом ГУ-ВШЭ, 2010.