Does green bonds placement create value for firms?
The paper is focused on the analysis of Russian stock market reaction on the announcements related to innovative activity of Russian traded companies. We use event study methodology to estimate abnormal stock returns in the announcement day. It is assumed that information about company’s progress in innovative activity is incorporated in stock prices. Therefore, if stock market investors positively perceive company's developments and its disclosure, it should be positive abnormal stock returns. The results show that Russian investors positively assess the announcements about completion of innovative project or its stage. Moreover, the reaction is independent of innovation type: development of a new product, production technology or organization practices. In addition, the reaction is stronger for larger companies that corresponds to increasing returns to scale assumption.
This study focuses on the analysis of the financial impact of positive and negative PR-communication on the Russian aviation market. The influence of all types of PR activity on increase in shares sales was found and attributed on the example of three largest Russian airlines. It is also shown that an increase in the number of negative information about the company in mass media leads to decrease its share prices, which will not happen in the reverse case, an increase in the quantity of positive information does not leads to increase share prices and prices volatility.
The problem of stationarity of sign coincidence of returns is considered. Statinarity of sign coincidence of a pair of stocks is tested by two sample Kolmogorov-Smirnov and Chi-Square tests. Multiple comparison pocedures, such as Bonferroni and Holm procedures, are employed to test stationarity of sign coincidence in market network and to control the family-wise error rate (FWER). The method is validated for testing stationarity of stock's prices and returns. It is shown that the hypotheesis of stationarity is rejected for prices and it is not rejected for returns and their sign coincidence on some significance level.
In the past decade, the debt capital markets have seen the emergence of a new type of financial instruments, so called “green bonds”. Efforts of governments around the world to transition to a more sustainable economy as well as the availability of socially responsible investors contributed to a successful establishment and dynamic development of this segment. Certain investors might prefer these kinds of instruments over regular bonds thanks to their added environmental component, creating an incentive for issuers and other market participants to enter the green bond market. The below article examines the unique features of the green bonds and the possibility of introduction of such financial instruments in Russia.
The problem of stability of connections of stock returns over time is considered. This problem is formulated as a multiple testing problem of homogeneity of covariance matrices. A statistical procedure based on Box’s M-test and Bonferroni correction is proposed. This procedure is applied to French and German stock markets.
In contrast to competition authorities in developed countries, Russian competition authority often applies price cap on domestic wholesale price for large exporting companies. Competition authority issues remedies under merger approval or as a part of infringement decisions. Until recently, remedies are considered almost exclusively as a sign of intention of Federal Antitrust Service, Russian Federation, to expand the influence on markets and to restore price regulation. In this context price remedies never have any positive effects.
We suggest an alternative explanation. Large exporters of raw materials that obtain monopoly power due to mergers or protectionist policies exercise third-degree price discrimination. Prices for domestic customers, that are higher than export prices, decrease social welfare within the country. Price remedy is one of the ways to prevent price discrimination, together with import liberalization and sanctions for excessive prices.
We analyze the impact of incremental market power due to mergers or protectionist trade policies as well as compensatory measures applied by Federal Antitrust Service, Russian Federation, on the markets of metals. As methods for empirical estimations financial event study and difference-in-differences method are applied. None of the instruments - including price remedies, antitrust investigations, the reduction of import tariffs - shows a clear advantage over others. With a reasonable degree of confidence we can only say that the lack of compensatory measures would be accompanied by higher prices in the domestic markets, up to several dozen percent.
Smoking is a problem, bringing signifi cant social and economic costs to Russiansociety. However, ratifi cation of the World health organization Framework conventionon tobacco control makes it possible to improve Russian legislation accordingto the international standards. So, I describe some measures that should be taken bythe Russian authorities in the nearest future, and I examine their effi ciency. By studyingthe international evidence I analyze the impact of the smoke-free areas, advertisementand sponsorship bans, tax increases, etc. on the prevalence of smoking, cigaretteconsumption and some other indicators. I also investigate the obstacles confrontingthe Russian authorities when they introduce new policy measures and the public attitudetowards these measures. I conclude that there is a number of easy-to-implementanti-smoking activities that need no fi nancial resources but only a political will.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.