Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438最新文献

{"title":"The Impact of Disclosing Digitalization Information on Corporate Financial Performance","authors":"Elena Fedorova, P. Drogovoz, Alexander Nevredinov","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.56-69","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.56-69","url":null,"abstract":"The purpose of the present study is to assess the relationship between digitalization disclosure indicators and market capitalization in the Russian market, including during the COVID-19 pandemic. The research methodology includes text analysis to evaluate various components of digital transformation (business model transformation, process transformation, domain transformation, organization transformation) and digitalization. The model was assessed using panel regression and machine learning methods. The empirical basis of the study included financial indicators of 70 Russian companies and annual reports for 2017–2021. The main results are: 1) wider disclosure of information about digitalization in the annual reports of Russian companies increased company market capitalization; 2) the transformation of processes and organizationswas highly significant for Russian companies; 3) the COVID-19 pandemic accelerated digitalization and led to a partial catch-up in the level of digitalization among less advanced companies. The results of this study can be used by investors and company management to develop more competent and comprehensive digital policies.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"51 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141813344","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Impact of Board Members’ Social Capital on the Resilience of Public Companies to Exogenous Shocks","authors":"Dmitry Kirpishchikov, M. Zavertiaeva","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.82-103","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.82-103","url":null,"abstract":"The objective of this study is to estimate the impact of board members’ social capital on firms’ market-based metrics of resilience to exogenous shocks. The social capital of directors was measured by their professional, political, and international connections. Firms’ resilience was evaluated based on their ability to resist and recover from the impact of shocks, as determined by stock market data. The data covers the period from 2007 to 2020 for over 200 Russian companies whose shares were included in the calculation of the Moscow Exchange Broad Market Index. During this period, three exogenous shocks occurred: the global financial crisis of 2008–2009, commodity price shock and sanctions in 2014–2015, and the COVID-19 pandemic in 2020. The system generalized method of moments is used to estimate the effect of directors’ connections on theability to mitigate shocks, while OLS with robust standard errors is used to reveal the influence of directors’ connections on firms’ ability to recover from shocks. The results indicate that professional connections moderated the negative impact on firms’ resistance to shocks and improved recovery speed during the global financial crisis. However, this type of connection reduced stock recovery speed after the COVID-19 crisis. Political and international connections have different effects on market-based metrics of firm resilience. It is possible that shocks of different nature require firms to leverage various forms of social capital from their directors in order to mitigate the negative effects of such shocks.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"51 6","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141813340","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Ownership Structure and Corporate Risk Disclosure in Emerging Countries","authors":"M. Adamu","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.70-81","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.70-81","url":null,"abstract":"The study examines the impact of ownership structure on corporate risk disclosure in African emerging countries. The sample includes 42 firms that are listed on the Johannesburg Stock Exchange and the Nigerian Stock Exchange. The data for the independent variables were taken from the Bloomberg data stream, whereas the data for the dependent variable were taken from annual reports retrieved from the website of the sample companies. The study’s time period runs from 2014 to 2018. Regression and content analysis were employed as the analytical tools. We perform text analysis on company annual reports to ascertain the risks that companies disclose, and regression analysis was used to establish the extent to which ownership structure influenced corporate risk disclosure. The result shows that strategic and environmental risk disclosures are dominated by operational risk disclosure. It has become a convention for the firms to divulge considerable positive, past, non-monetary information rather than negative, future and monetary risk information. Moreover, it is discovered that the decision to improve risk disclosure is largely influenced by company size and profitability. In contrast, firms are reluctant to unveil risk information provided the shares of the company are not concentrated in the hands of few individuals. Nonetheless, company risk disclosure practice is unaffected by institutional investors, government, foreigners, insider ownership and leverage. It can be concluded that the enterprises operating in emerging African markets have made improvements totheir risk disclosure practices. However, there is still room for further improvement. Monetary, future, and negative risk information are the most important risk disclosures that various stakeholder groups, such as investors, demand to see. Hence, there is a need for regulation that can compel corporations to publish the most pertinent risk information. Even though risk disclosure is voluntary in these two African emerging countries, ownership structure is one of significant predictors of corporate risk disclosure.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"27 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141813288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Study of the Reaction of Stock Markets to the Cancel Culture Phenomenon in Relation to Russia","authors":"Ksenia Badukina, Nadezhda Korol, Anastasia Yaroshenko","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.104-115","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.104-115","url":null,"abstract":"Suspension of business in Russia by most foreign corporations after the events of 24 February 2022 led to the fact that the social phenomenon of “cancel culture” is now also considered within the framework of global economy and finance. In recent years, the IT industry is appraised as one of the fastest-growing, and the study of its reaction to global events is highlyrelevant. Using the Event Study method, this study proves that there is no significant impact of the declaration of the Russia-Ukraine conflict on US stock market dynamics of IT companies with branches in Russia. The analysis of individual cases from the sample of companies shows that the companies’ decision to suspend or continue business in Russia depended only on the presence of a significant share of revenues in Russia, the degree of reputational and sanctions risks, and the specifics of corporate ESG policies. The model is limited by the sample and period of analysis. In order to verify model reliability, we applied the t-test that determined the significance of the results. The research is of practical relevance because internationally operating companies may use its data to evaluate risks and make strategic decisions.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"28 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141813150","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Characteristics and Development Trends of the Digital Assets Segment in Modern Practice in Russia and Abroad","authors":"Egor Pastukhov","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.42-55","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.42-55","url":null,"abstract":"The paper aims to identify the key trends and risks associated with the introduction and spread of digital assets, including the digital ruble, in the Russian financial market. This study is timely due to the rapid growth of market capitalization for digital financial assets based on blockchain technology in both international and Russian financial markets, as more and more countries prepare to launch their own national digital currencies. However, there is a dearth of information in scientific and practical literature regarding the prospects, challenges, and risks associated with introducing digital financial assets, including the digital ruble, into Russia. The data for the analysis included official statistics and analytics from the Bank ofRussia and central banks of countries considering introducing digital national currencies. It also included the content of key Russian legislative acts related to digital currencies, as well as examples of the implementation of digital financial assets from Russian and international practices. The main research methods employed were a systematic approach, analysis of fundamental theoretical propositions in the literature, and case analysis. The paper discusses the existing types of digital financial assets, both internationally and in Russia, and assesses the demand for these assets in the Russian capital market, as well as their potential for lending to small and medium-sized businesses. It also considers the most common problems associated with the development of this segment and possible solutions, including regulatory measures. The second part ofthe paper explores the prospects and challenges of introducing a digital ruble into the Russian financial system. It assesses the potential impact of this new currency on the stability of domestic banks and monetary conditions in Russia, including inflation. Future research could focus on quantifying a wide range of risks associated with the introduction of digital financial assets, as well as modelling supply and demand for these assets.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"8 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141816498","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Is the Russian Green Bond Market Strong Enough to Hedge in the Crisis Times?","authors":"Ion Frecautan","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.26-41","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.26-41","url":null,"abstract":"The scope of this research has two facets. First, we study the spillover effects between the Russian green bonds and the leading capital market’s ‘indexes before and after the February 2022 events. Second, the identified level of asset connectedness permits to identify portfolio management implications for the analyzed assets. To reveal the spillover effects, we applied the vector autoregressive model and created a synthetic index to capture the dynamics of the green bonds market which included 14 green bond issues between 2021 and 2023 in Russia. We analyze oil & gas, electrical utilities, metals & extraction, chemical sectors collectively referred to as “pollution intensive indexes”. The paper contributes by discoveringthat the total connectedness index (TCI) between Russian green bond market and pollution intensive indexes changed over time and increased after the outbreak of the conflict. Additionally, the paper is novel on revealing the relationship between low hedging effectiveness and hedging ratio of green bond and energy, metals and extraction, sustainability and oil and gas indexes which indicate no need for hedging after February events. The optimal bivariate portfolio weights analysis shows that Russian green bonds market is an outstanding instrument for assets portfolio management during geopolitical conflict. These findings have implications for the government and other stakeholders to manage both the contagion and climate risks during the military conflict.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"6 12","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141817422","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Determinants of Corporate Cash Holdings: Novel Evidence from Emerging Countries","authors":"I. Yilmaz","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.5-16","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.5-16","url":null,"abstract":"The aim of this study is to investigate the determinants of corporate cash holdings in emerging countries. The sample comprises non-financial firms from six emerging countries, five of them commonly referred to as BRICS, plus Turkey. The dataset includes the data of 4,769 firms and covers a ten-year period from 2012 to 2021, resulting in a total of 47,690 firm-year observations. We run panel regressions, specifically fixed and random effects models, and conduct the J.A. Hausman [1] test to choose between the latter. We use several firm-specific variables as independent variables and the GDP growth rate and the inflation rate as country-specific control variables. The results reveal that firm size, leverage, capital expenditures, net working capital, operating cash flow, dividend payments, firm age, and research and development (R&D) expenditures are significant determinants of corporate cash holdings, with some differences among countries and/or industries in terms of the sign and the significance levels. The macroeconomic variables showed significant results in some countries and industries, yet they were not consistent enough to make general conclusions. This study provides new empirical evidence on the determinants of corporate cash holdings by using a large dataset from major emerging countries. Our findings have important implications for corporate managers and policymakers in designing cash holding and liquidity policies. A comprehensive understanding of the main determinants of corporate cash holdings enables managers to adopt appropriate financing and investing strategies in the long term, as well as better short-term financial policies.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":" 665","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141823790","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Impact of Artificial Intelligence on Corporate Governance","authors":"Göktürk Kalkan","doi":"10.17323/j.jcfr.2073-0438.18.2.2024.17-25","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.2.2024.17-25","url":null,"abstract":"The advent of artificial intelligence (AI) marks a pivotal shift in the landscape of corporate governance, catalyzing a reevaluation of traditional frameworks and necessitating a forward-looking approach to decision-making, risk management, and ethical considerations. This study explores the multifaceted impact of AI on corporate governance, offering a nuanced analysis of how AI technologies are transforming the operational, strategic, and ethical dimensions of organizations. The research underscores the potential of AI to enhance decision-making processes, optimize operational efficiencies, and foster innovation by providing advanced analytical capabilities and predictive insights. However, it concurrently highlights the emergence of unprecedented challenges, including data privacy concerns, algorithmic bias, and the need for robust regulatory frameworks to mitigate risks associated with AI deployment. The article advocates for a proactive stance in redefining corporate governance models to accommodate the disruptive nature of AI, emphasizing the integration of ethical considerations and transparency in AI applications. It calls for a collaborative effort among corporate leaders, policymakers, and stakeholders to develop governance structures that not only leverage AI’s potential but also safeguard against its inherent risks. The study’s recommendations include the establishment of ethical AI guidelines, the adoption of transparent AI practices, and the continuous monitoring of AI systems to ensure their alignment with corporate governance objectives and societal values. However, it is important to note that the approach and methods used in this study are based on a qualitativeliterature review and, therefore, the generalization of the findings across different sectors and corporate governance frameworks may be limited. Additionally, the rapidly evolving nature of AI technologies poses inherent challenges to keeping up with emerging trends and potential risks.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"106 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141821660","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Market Reaction to Environmental Disasters","authors":"Виктория Артуровна Черкасова, Дарья Захарова","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.37-48","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.37-48","url":null,"abstract":"Despite the fact that environmental issues are coming to the fore today, the market reaction to environmental disasters is not strong enough. This article examines the impact of a number of major industrial disasters on the companies’ stock performance, depending on financial health of the companies involved in an accident. We assessed the impact of financial indicators such as: financial leverage, profitability, balance value per share, capital expenditures, market capitalization and revenue on the amplitude of cumulative average abnormal returns (CAAR). The sample consists of 32 companies fromthe oil, chemical, mining and energy industries of developed countries involved in 80 major accidents between 2000 and 2020. The majority of disasters occurred in North America (47.5%) and in Europe (26.3%). Using the event study method to assess shareholders’ reaction and regression analysis, we proved that the financial leverage, profitability and book value per share has a positive impact on the amplitude of CAAR, while the ratio of capital expenditures to revenue has a negative impact on cumulative returns. The results showed that market capitalization and revenue growth do not affect the dynamics of stock prices after industrial disasters. In general, our study shows that the impact of all financial indicators on CAARis small (<1%). That is, despite the mandatory publication of climate risk reports, investors did not actively sell shares of companies guilty of industrial disasters. The results of the study are useful in several areas. On the one hand, by forming a diversified investment portfolio, investors taking into account the type of companies that are more sensitive to disasters. On the other hand, knowing such a market reaction, the state should provide financial players with strict rules and penalties for companies responsible for accidents.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"84 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140707836","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Risk Premium for Emerging Market Equities Versus Developed Market Equities","authors":"Светлана Менщикова","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.75-92","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.75-92","url":null,"abstract":"The paper provides the most recent view on the difference in ERP (Equity Risk Premiums) across various economic regions, analyzing data sets from the early 2000s to May 2023. The study demonstrates a significant shift in the relationship between ERPs in emerging and developed markets over the past two decades, which runs contrary to the existing research on the matter. The author estimated the average ERPs per country and economic region, analyzed ERPs on the industry level, and conducted the regression analysis using macroeconomic factors and analysis of upside and downside betas. The research established that, following the 2008 economic crisis, developed markets displayed greater resilience to negative economic shocks. Moreover, investing in emerging markets entails higher risks, characterized by elevated negative beta and higher volatility, but also increased upside beta. The regression analysis revealed negative associations between ERP and higher GDP growth and local interest rates, while a positive correlation emerged with a higher unemployment rate. Additionally, the paper incorporates the Democracy Index, indicating that less democratic countries tend to exhibit higher ERPs.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"32 125","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140708296","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}