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

{"title":"Dividend Policy of Russian Companies: Cancel Culture Effect","authors":"Maxim Belous","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.114-131","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.114-131","url":null,"abstract":"The paper is dedicated to the dividend policy of Russian companies under the sanctions pressure applied by the USA and the EU, which especially intensified in 2022 as a result of the changed global geopolitical environment. Cancel culture was used against Russia, complicating the financial, investment and operating activity of domestic companies. In the paper weanalyze a sample of 73 Russian listed companies from non-banking sectors and 317 observations for 2017–2022. We consider the impact of sanctions against companies, boards of directors and CEOs on the company dividend policy. We used a logistic regression as a model to determine the probability of influence of changes in the studied variables on the decision concerning dividend payment. The sample is divided into two parts: 2017–2020 and 2021, and it illustrates companies’ behavior when the political environment in the world was stable and when the situation was aggravated. The research showed that sanctions against boards of directors and direct limitations of company’s operations had a negative influence on the probability of dividend payments while sanctions against CEO in the period of aggravation of political risks produced a positive effect. The cancel culture effect, i.e., the refusal of the USA and EU to cooperate with Russia and sanctions imposed on it, produced a significant negative effect on dividend payout by Russian companies.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"59 21","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139130849","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":"Performance of M&A Deals in The Russian Market: Evidence from Oil & Gas and Power Industries","authors":"Tatsiana Lashuk, Mark Vasilevskiy, Evgeniia Filatova","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.38-58","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.38-58","url":null,"abstract":"The paper provides a comprehensive investigation of M&A deals on the Russian market, particularly in the Oil and Gas and Power sectors. This research fills the gap in literature by scrutinizing key M&A trends, reviewing M&A activities, and evaluating M&A performance through a combined application of Data Envelopment Analysis (DEA) and case studyanalysis. A critical part of this study involves exploring the influence of geopolitical factors on these transactions. The article presents a novel academic contribution by offering focused insights on M&A activities in two under-researched yet critical sectors of the Russian economy. Furthermore, the innovative use of DEA and case study analysis enhances ourunderstanding of industry trends over a span of 22 years, including the M&A transactions of 2022. Our sample includes 23 deals made by 17 Russian companies in the Energy and Power industries. We selected deals as a result of which the acquirer companies obtained more than 50% of the target company, so the acquirer company gained control over the operationsand performance of the acquired company. The study traces the effects of geopolitical influences on M&A outcomes, a critical consideration given Russia’s unique geopolitical context. This research is of practical significance for domestic and international businesses contemplating M&A decisions within Russia’s Oil & Gas and Power industries, offering valuableinsights to guide future strategies. While this study uncovers promising positive trends, further exploration and long-term data are necessary for a complete assessment of the impact of these M&A activities on company performance.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"122 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139135103","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":"Do Mergers and Acquisitions Promote R&D? The Case of European Innovation and Technology sector","authors":"Elena Rogova, Marina Kirichenko, Daria Lebedeva","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.5-18","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.5-18","url":null,"abstract":"Innovation efforts and R&D play a foundational role for companies seeking to further develop their products and services and secure a sufficient market share. This is especially relevant for knowledge-intensive fields, particularly for the Innovation and Technology Sector, where players are constantly challenged with adapting to its multi-faceted nature, processing large amounts of data, and rapid innovation transfer. Thus, it is important to study the factors that contribute to R&D intensity and encourage innovations in detail. The study explores the impact of M&A activity on R&D intensity and R&D spending increase of both the acquiring companies and their targets in European Union. The final sample consists of 85 companies that had implemented M&A deals in the Innovation and Technology sector of the EU between 2007 and 2021, acting as acquirers or targets in these deals. The data is collected from Refinitiv Eikon database. Subgroups are determined based on categorization established by the European Commission. These include Business support service activities, Computer programming, Data processing, Manufacturing, and Telecommunications. In addition, financial data was collected on non-merging companies for forming a control group for the analysis. Difference-in-difference and probit model estimation methods are used to analyze the effect of M&A activity on the companies involved. The results show that the R&D intensityof both acquirers and targets decreases in the post-merger period. As for R&D expenditures, they increase for acquiring companies, while the effect is the opposite for their targets. The study contributes to the literature as it, unlike other similar studies that focus mostly on one group of actors, differentiates between the effect on the innovation activity of targets and the effect on the acquirers. The results could be used to increase the knowledge of the M&A effect on innovation efforts in the Innovation and Technology sector in European countries and understanding the possible problems it could lead to.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"8 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139148035","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":"Corporate Resilience in Cancel Culture Times","authors":"Rufina Evgrafova, Irina Ivashkovskaya, Ekaterina Shorokhova","doi":"10.17323/j.jcfr.2073-0438.17.4.2023.19-37","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.4.2023.19-37","url":null,"abstract":"Corporate resilience has emerged as a prominent focus in international studies, particularly in the context of the COVID-19 pandemic that unfolded in 2019. This attention has been amplified by the structural shifts in the business models of Russian companies, prompted by imposed sanctions, thereby accentuating the need for comprehensive academic exploration of resilience, its driving forces, and adaptive turnaround strategies, especially in the era of cancel culture. Despite the heightened significance of resilience, the drivers underlying it during structural crises remain insufficiently studied. This paper addresses this gap by employing a combination of quantitative methods applied to a sample of publicly traded Russian companies spanning the years 2012 to 2022 (first half), alongside case studies. Our contribution to the literature is manifold. Firstly, our application of Altman’s Z-score model to publicly traded companies unveils the industries with the highest and lowest resilience across the Russian market from a historical perspective. Secondly, we assert that fluctuations in the degree of resilience during turbulent times, as captured by the Z-score, offer a more adequate evaluation compared to popular market-based metrics like total shareholder returns (TSR). Thirdly, our findings reveal that higher credit ratings and state ownership have no evident impact on the degree of resilience. Conversely, the professional background of CEOs is correlated with firm performance and plays a significant role in determining company resilience amid cancel culture challenges.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"72 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139146591","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 ESG Activities on the Innovation Development and Financial Performance of Firms","authors":"Юрий Дранев","doi":"10.17323/j.jcfr.2073-0438.17.3.2023.152-159","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.3.2023.152-159","url":null,"abstract":"In the technology-driven economy, a firm’s sustainable financial performance is significantly influenced by its efficiency in research and development (R&D) and broader innovation initiatives. Conversely, while embracing ESG-related activities can potentially open up a broader spectrum of funding, it may also impose challenges on companies as they strive to meet the escalating demands for sus tainability practices and contend with increasing ESG-related risks. Hence, businesses are confronted with the imperative of making prudent ESG-related investments while simultaneously maintaining a strong track record in innovation performance. The findings of numerous studies suggest that investments in ESG projects can yield both positive and negative outcomes for innovation performance. However, recent trends within the ESG industry have amplified concerns regarding the trade-offs between ESG considerations, innovation endeavors, and overall financial performance.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"14 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-11-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139269286","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":"Determinants of Mergers and Acquisitions in Emerging Asian Countries: Effects of Confucianism and Technological Development","authors":"Никита Ларченко, Людмила Ружанская","doi":"10.17323/j.jcfr.2073-0438.17.3.2023.28-42","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.3.2023.28-42","url":null,"abstract":"Asian emerging markets exemplify the contemporary trend of glocalization (globalization-localization). Countries in this region have strong cultural bonds shaped by the influence of Confucianism, which has given rise to a distinctive approach to conducting business, including the realm of mergers and acquisitions. The homogeneity of cultural values fosters trust among parties even in cross-border transactions, impacting the assessment of transaction premiums. Simultaneously, within this region, a cluster of Asian Tiger countries distinguishes itself by leading in technological advancements, particularly in the realm of digitalization. The escalating competitiveness of technologically advanced companies further influences estimates of transaction premiums. This paper endeavors to delve into the theoretical aspects of these issues and substantiate, through empirical evidence, the cultural impact of Confucianism and technological progress on mergers and acquisitions (M&A). Our research is grounded in a database encompassing 2677 cross-border deals compiled from January 1, 2002, to January 1, 2021, for 10 burgeoning Asian markets. This study marks the first exploration of M&A deal value and firm valuation during transactions utilizing a glocal region as a case study. Our primary findings substantiate the notion that cultural affinities exert a substantialinfluence on M&A deal values, with a propensity for lower values among culturally similar countries. Congruent cultural values build trust among stakeholders and safeguard from additional risks. These results give policymakers and business entities an opportunity to adjust their decisions and refine their comprehension of factors that shape the economy.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139331931","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":"Do Inclusive Growth Strategies Affect Corporate Financing Policy? Evidence from The Metal and Mining Sector","authors":"Александр Ахмедов, Мария Хамидуллина","doi":"10.17323/j.jcfr.2073-0438.17.3.2023.129-151","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.3.2023.129-151","url":null,"abstract":"The influence of inclusive growth strategy on corporate financing policies is examined within the metals and mining industry. A dataset comprises 212 of the largest publicly traded companies observed from 2016 to 2021. An econometric analysis revealed no significant effect of inclusion indicators on the financing policies of these companies. However, a positiveassociation between the corporate resource efficiency and leverage levels was observed. Though no single inclusion indicator influences the volume of sustainable financing, the indicator of human rights compliance positively impacts the number of such financing arrangements. Furthermore, only the levels of emission reduction and the extent of improvementin living standards of local communities significantly influence the cost of capital (with a positive dependence for the former, and a negative dependence for the latter). Inclusion indicators have little impact on the capital structure, with leverage levels largely determined by metals pricing dynamics. Higher levels of inclusion correlate with increased utilizationof sustainable financing. The findings can be used when implementing inclusive growth strategies in the metals and mining industry as well as when deciding on the financing of projects within this sector. We believe that analysis of other industries and a longer period of time, different results may be obtained. This is, on the one hand, a limitation of this work,and on the other hand, an area for further research.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"69 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139332329","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":"Financial Contagion of Russian Companies during the COVID-19 Pandemic","authors":"Марина Малкина, Дмитрий Рогачев","doi":"10.17323/j.jcfr.2073-0438.17.3.2023.55-71","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.3.2023.55-71","url":null,"abstract":"The article examines the financial contagion of Russian companies during the pandemic COVID-19. Financial contagion refers to the strengthening of interconnections between segments of the financial market during a crisis, when turbulence from one market is transferred to others, and the relationship between parameters goes beyond normal market interactions. The study involved shares of 27 companies in the energy, financial, telecommunications, consumer and raw materials sectors of the Russian economy. As exogenous variables supposedly influencing the market values of these companies, we tested the rouble exchange rate against the US dollar, the spot price of Urals oil and the yield on annual government bonds (proxies for the cost of borrowings). Identification of the potential contagion period was based of the sliding coefficientof variation of these variables. The construction of VARX models convincingly proved the increasing influenceof the exchange rate and the bond yield rate on the fundamental (market) return of Russian companies in the short term (during the acute phase of the pandemic) and the delayed impact of oil prices on it, which manifested itself during the chronic crisis. Contagion testing was also carried out on the basis of a change (growth) in the coefficient of determination in the acute phase of the pandemic as compared to the pre-crisis and post-crisis periods. For a more accurate assessment of the contribution of each variable to contagion, we used the method of source decomposition of the coefficient of determination with a correction for heteroscedasticity. This made it possible to identify the companies most vulnerable tofinancial contagion during the pandemic, and the sources of their contagion, as well as the market segments that showed the greatest resilience. The study can be useful for managers in maintaining their companies’ market value, for investors in effective portfolio diversification, and for public authorities when pursuing a policy of financial stabilization in a crisis. The limitations of the study are related to the imperfections of the VARX models method, as well as to the specifics of the pandemic crisis, the conclusions from which can only be partially applied to other types of crises.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"5 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139333530","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":"Influence of Top Management’s Human Capital on Efficiency of Adaptation of Russian IT Companies to Cancel Culture and Structural Crisis","authors":"Сергей Гришунин, Анна Гурина, Анастасия Сюткина","doi":"10.17323/j.jcfr.2073-0438.17.3.2023.43-54","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.3.2023.43-54","url":null,"abstract":"Since March 2022 Russian companies have faced a structural crisis, with the IT industry being the most affected. The paper investigates the impact of quality of top management’s human capital (HC) in the domestic IT companies on the effectiveness of their adaptation to this crisis. The novelty of the paper is underpinned by (1) an insufficient number of relevantstudies at times of permanent structural crises; and (2) analysis of the entire top management team. The results showed that the HC of top managers moderately and positively impacted the effectiveness of companies’ adaptation to crisis. No difference in the strength of impact of CEO HC and HC of the rest of the team was discovered. Such HC qualities as (1)young age; (2) taking office before the crisis; (3) experience in international companies; (4) experience in IT industry; and (5) openness to stakeholders were the most instrumental in promoting the adaptation to crisis.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"39 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139331733","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":"Stock Market Reaction to Dividend Announcements: Evidence from the Russian Market","authors":"Варвара Назарова, Александра Исаева, Юлия Чуприна","doi":"10.17323/j.jcfr.2073-0438.17.3.2023.72-92","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.3.2023.72-92","url":null,"abstract":"The inquiry into the influence of dividend declarations on the stock values of corporations has been extensively investigated across various countries. The results of these studies have been varied, and there is limited information available on this topic specifically for the Russian market. This paper aims to demonstrate the impact of dividend announcements on the yield of Russian companies' shares. The study utilizes comprehensive data from MOEX for the period of 2008–2021, which encompasses both economic growth and recessionary periods. The results of the study indicate that the effect of decreasing, maintaining and increasing the amount of dividends corresponds to the signal theory. There are differences betweenindustries: there are fairly stable and mature companies on the market that are not subject to significant changes (Electric Power, Oil and Gas industries); shares of companies in the Transport industry and a number of other industries behave more distinctively. In comparison with other studies, this paper analyzes the effect of increasing and decreasing dividends on stock returns using not only event analysis, but also regression analysis. This work adds results to the few available on the Russian market.The main limitations include the small number of variables in the construction of regression models and the limited period of the study. The work is carried out only for the Russian market. The obtained findings can be taken into account by company managers in order to make optimal decisions regarding the dividend policy and enhancing their dividend policies.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"16 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139332089","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}