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

{"title":"The Determinants of Sustainable Innovation Expansion Strategy: the Case Study of Companies from a Declining Industry","authors":"Никита Толстов","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.93-106","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.93-106","url":null,"abstract":"Stimulation and improvement of innovative development is an extremely important component of economic growth in an economy, along with the companies’ competitiveness in stagnating industries, which is especially relevant for companies at the maturity stage of the life cycle, where the risk of transition to the decline stage is highest. Without new developments and a sustainable innovation strategy, a company loses its leading position in the industry and misses new opportunities, leading it to the stage of stability and decline. Thus, it is important to study the factors that contribute to R&D intensity and encourage innovations in detail. This study investigates the impact of high level and quality of companies’ patent activityon their financial potential in order to maintain stable innovation performance in the medium term. The sample comprises companies from the printer and camera sector between 2007 and 2020. The determinants of innovation expansion that characterize the technological readiness and market potential of firms to maintain their leading position in a highly competitive market are identified, using a case study method using the example of Canon and its competitor Xerox. The data are collected from Bloomberg and Orbis Patent Database. The results show that while high innovation activity is an important driver of growth, it does not always lead to better financial performance in the earlier stages of the life cycle. The study contributes to the literature by examining different characteristics of innovation activity and life cycle stages through the lens of external economic changes, which brings transparency and clarity in understanding the possible problems that may result from using already disclosed innovations of competitors as well as disclosing one’s own intellectual property rights. The study proves that the greatest effect of innovation activity is observed in companies whose R&D expenditures are close to the industry average values along with diversification of revenue. The results of the study can help policy makers, managers and shareholders to build effective corporate governance to achieve strategic goals and minimize the risks of making wrong management decisions in R&D investments.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"49 216","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140708498","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":"Dividend Payments by Russian Companies: A Signal to the Market or a Consequence of Agency Conflicts?","authors":"Антон Пузаков, Ашот Гамлетович Мирзоян, Анастасия Галич","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.62-74","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.62-74","url":null,"abstract":"The article analyzes the dividend policies of Russian companies using two dividend payment theories: signaling theory and agency cost theory. A sample of 30 Russian companies over the period 2010–2021 is used. To test the applicability of signaling theory, pooled regression and fixed effects models are developed. It is shown that an increase/reduction in dividend payments exceeding 20% in the current year allows one to predict an increase/decrease in the return on assets in one or two subsequent years (in comparison to the year preceding dividend payments). However, the growth rate of dividend payments shows no stable relationship with the future return on assets. To test the applicability of agency cost theory, a Tobit model is used with the participation of a principal majority shareholder represented by the government as the dependent variable. This binary variable is equal to 1 if the government owns directly or indirectly over 30% of corporate stocks and 0 otherwise. The results do not confirm the applicability of agency theory to the Russian market. Government participation in stock capital exerts no significant impact on the dividend payout ratio. These findings contribute to understanding the relationship between a company’s dividend policy and its future financial performance, providing a useful tool for Russian investors.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"12 45","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140708206","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":"Using Derivatives to Hedge Foreign Exchange Exposure in Russia: Academic Research Review","authors":"Валерий Дудко, Светлана Авруцкая","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.107-117","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.107-117","url":null,"abstract":"The review analyzes Russian academic publications from the early 2000s to the present on financial derivatives and their use by Russian non-financial companies to hedge foreign exchange exposure. During this period, studies have made significant progress, from discussing general issues, like the concept of FX exposure, the types of derivatives and the basics of hedging, to original research of hedging effects on company value or cost of equity using generally accepted quantitative methods, such as VaR evaluation. The research demonstrates that hedging practices vary by industry and by the firm size; the 2008 and 2014 financial crises followed by increased FX volatility had a twofold effect on these practices, with somecompanies starting to apply hedging on a larger scale, and others abandoning it at all. The general opinion is that the use of derivatives to hedge foreign exchange exposure, specifically the transaction one, in Russia is much lower than in developed markets due to the market immaturity, regulatory and accounting difficulties, low demand for hedging instruments because of underdeveloped corporate treasury function, high hedging costs, etc. Instead, companies adhere to natural hedging, use non-financial techniques, or accept foreign exchange exposure. Still, most authors agree that to manage FX exposure, companies need to develop a comprehensive strategy; however, commercial flows reorientation due to the current political and economic situation requires developing new FX derivatives and a market for them. Overall, it can be concluded that the studies of Russian practices of using financial derivatives to hedge foreign exchange exposure are relatively small in number compared to foreign ones; data availability limits their factual base to information disclosed by public companies and model examples and does not allow to consider mid-sized and private firms’ practices.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"49 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140708575","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 Influence of Corporate Governance Mechanisms on Fraud Probability: Evidence from Russian Companies","authors":"Оксана Александровна Соболева, Елена Юрьевна Макеева, Гаяне Асланян","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.49-61","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.49-61","url":null,"abstract":"This study examines the impact of corporate governance mechanisms on the probability of corporate fraud occurrence. We evaluate the board size, the degree of independence, and the frequency of meetings of the board and its committees. We also attempt to analyse the board’s gender diversity, but since boards are not gender-diverse in Russia, the significance of this variable cannot be tested. Our empirical study is based on 160 observations of MOEX-listed Russian companies, among which fraudulent behaviour has been revealed in 32 companies over a 5-year period from 2014 to 2018. The relationship between the probability of fraud occurrence and corporate governance was investigated employing a logit model. The data was collected from firms’ annual reports and Thomson Reuters Eikon. Data on fraud cases is based on the evidence from the press (including the leading news sources and specialised websites). We detected a significant negative relationship between nomination and remuneration committee chairmen’s independence, the share of independent directors, the independence of board and audit committee chairmen and the likelihood of fraud. We also discovered the insignificant influence of board and its committees’ size and their meetings’ frequency on fraud probability. This paper contributes to the academic research on the relationship between corporate governance mechanisms and probability of fraud occurrence, emphasizing the special role of the establishment of nomination and remuneration committee chairman independence in Russian companies.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"104 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140707240","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":"State Ownership Heterogeneity and Corporate Innovation: New Evidence from a Hierarchical Perspective","authors":"Tingqian Pu, A. Zulkafli","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.20-36","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.20-36","url":null,"abstract":"Unlike prior research, this study re-examines the relationship between state ownership and corporate innovation from a hierarchical perspective. Drawing upon institutional theory, our findings reveal the heterogeneous impact of state ownership, elucidating the positive role of central state ownership in fostering corporate innovation, while highlighting the inhibitory effect of local state ownership. This conclusion withstands rigorous scrutiny through a battery of robustness checks. Mechanism analysis indicates that central state-owned enterprises stimulate innovation by increasing innovation investment and enhancing efficiency, whereas local state-owned enterprises create obstacles for both innovation investment and efficiency. Our paper offers a hierarchical interpretation of the mixed evidence regarding the relationship between state ownership and corporate innovation. Whether state ownership serves as a facilitator or a hindrance to innovation depends on whether central or local state-owned enterprises dominate the national innovation process. Overall, this study offers new insights into the complex effects of state ownership heterogeneity on corporate innovation activities in emerging economies like China, advancing our understanding of the subtle relationship between corporate governance and innovation.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"101 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140707528","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 ESG Ratings on Exchange-Traded Fund Flows","authors":"Юрий Яковлевич Дранев, Михаил Миряков, Елена Очирова, Геннадий Барановский","doi":"10.17323/j.jcfr.2073-0438.18.1.2024.5-19","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.18.1.2024.5-19","url":null,"abstract":"The aim of our paper is to examine the impact of environmental, social, and governance (ESG) ratings on investment decisions in the pre-pandemic US bond and equity exchange-traded fund (ETF) markets. We measure the attractiveness of investments in the ETF as net fund flows and estimate whether the attractiveness varies with the ESG score. For empirical estimations, we employ the regression analysis methodology; specifically, we use linear mixed-effect model to analyze time-series dataset and ordinary least squares to analyze the cross-section data. On the one hand, we found that, on average, ETFs which comply with ESG criteria attracted additional net assets per month as compared to conventional ETFs. Thus,the results of our study indicate that investors demonstrate collective preference towards ESG investments and pay attention to the information on whether the ETF complies with the ESG criteria. On the other hand, we found mixed evidence that higher ESG score always leads to larger investments: differences in scores could not explain the variation in net fund flows. Overall, our study shows that ETF market investments are not directed by the risk-return profile only, and investors also have non-pecuniary motives for their decisions. The results have several practical implications. First, our findings offer business entities useful insight into the fact that incorporation of ESG policy can increase the attractiveness of their business for potential investors. Second, it shows that the market participants would benefit from increasing transparency and unification of rating methodology.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"8 17","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140710373","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":"Stakeholder Value Creation through Business Restructuring: Post Sanctions Evidence from Russian Airlines","authors":"Aleksandr Stepanov, Aleksandr Kayatkin","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.59-77","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.59-77","url":null,"abstract":"The study is devoted to evaluating of turnaround strategies used by Russian airlines to overcome negative influence of 2022 crisis caused by sanctions pressure of West regulators in terms of ability to create value both for financial and non-financial stakeholders. To conduct a quantitative analysis of the effectiveness of turnaround strategies, evaluation methods based on traditional accounting indicators were used, as well as VBM indicators that take into account an opportunity cost. A qualitative analysis includes the estimation of management actions and decisions in terms of whether they violate interest of companies’ major stakeholders. The study was carried out on the basis of such indicators as: PBITD/CE, PBITD/TD, ROA,Gross margin, EBITDA margin, Net Debt to EBITDA, EVA, Sustainable growth index and Interests harmonized index. As a result of the study, the features of turnaround strategies used by Russian airlines, namely PJSC Utair and LLC Pobeda were studied. The accounting ratios as well as the dynamic of economic profit were evaluated. The Growth sustainability matrix was constructed. The effectiveness of turnaround strategies in terms of value creation both for financial and non-financial stakeholders was assessed and the conclusions about prospects of companies’ further development were made. The above results can be taken into account in the development of more sustainable turnaround strategies by other companies faced with challenges.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"124 41","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139134812","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 ESG Ratings on Financial Performance of the Companies: Evidence from BRICS Countries","authors":"Anastasia Strekalina, Renata Zakirova, Alena Shinkarenko, Evgenii Vatsaniuk","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.93-113","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.93-113","url":null,"abstract":"Non-financial factors become the relevant topic in the context of understanding the successful development of companies over the world. The purpose of this paper is to study the relationship between ESG scores and financial performance of firms operating in emerging markets, in particular BRICS countries. This study includes three financial performance indicators to cover three different perspectives: accounting measure (ROA), market performance (TSR) and economic metric (EVA spread). The ESG scores, its pillars and other financial metrics are taken from Refinitiv Eikon. The sample consists of 257 listed companies operating in BRICS countries throughout 2017–2021. The main method of the research is the Fixed Effect method for panel data. The results showed that there is no statistical significance between ESG and ROA. Besides, government pillars negatively affect ROA through CSR that is explained by legitimacy theory. As for TSR, ESG, social and environment pillars have positive effects on market performance measure, following stakeholder theory. Regarding economic performance, ESG and social pillar have negative influence on EVA spread.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":" 1039","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139136643","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":"How Do Inclusive Growth Practices Affect Financial Performance and the Value of Metallurgy Companies?","authors":"Evgeniia Naumova, Gleb Silkin","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.78-92","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.78-92","url":null,"abstract":"The article examines inclusive growth practices used in metallurgical companies and assesses their impact on financial results and value. An analysis of data from 102 of the largest companies in the metals industry between 2016 and 2021 showed that reducing greenhouse gas emissions, improving air quality, proper waste disposal, building an inclusive supplychain, respecting human rights and building community relations in the places where the company operates have a positive impact on its financial results and value. The results of the study can be used by top managers of metallurgical companies to formulate an inclusive growth strategy that meets the interests of all stakeholders, which will improve financial results and contribute to the growth of company value.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":" 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139135932","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":"ESG Transformation in the Largest Emerging Capital Market of China. A Literature Review","authors":"Yanfei Wu","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.132-150","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.132-150","url":null,"abstract":"The paper provides a scholarly examination of academic studies of the ESG landscape in China through a systematic literature review with a major focus on the nature and intensity of regulatory guidelines and policies. While many studies indicate positive effects of Chinese ESG policies on corporate ESG performance and investment, they primarily focus on environmental aspects. This analysis of China’s ESG rating system exposes relationships between ESG ratings, corporate performance, financing costs, including both debt and equity financing. The research on equity financing costs is inconsistent and limited in scope, indicating the need for additional investigation. Of the factors influencing ESG, the past year has seen a surge in research on the topic of digital transformation and ESG performance. Most studies demonstrate thatdigital transformation contributes to ESG performance, and a few suggest that digital transformation positively moderates the effect of ESG performance on firm value enhancement. This review discusses the growth of ESG investment in China, focusing on pension funds, commercial banks, and ESG funds, as well as investor preferences. Despite the growing role of ESG in investment decisions, extant research is largely theoretical, underscoring the need for more empirical and quantitative studies. The research identifies gaps in studies devoted to ESG investment, including the need for comprehensive studies on the impact of ESG across various insurance types and industries, and the development of effective ESG quality assessment methods. This review is among the first academic resources summarizing and integrating various studies, and highlighting areas for future ESG research in China.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"12 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139131808","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}