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

{"title":"CEO`s education and investments in R&D","authors":"Полина Хмелева","doi":"10.17323/j.jcfr.2073-0438.17.1.2023.78-89","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.78-89","url":null,"abstract":"The paper evaluates influence of CEO`s education and her experience on amounts invested in R&D in pharmaceutical industry. The sample consists of 270 pharmaceutical high-tech companies from S&P BMI index in 1999-2018 from 23 countries, both developed and emerging. The pharmaceutical industry is of particular interest since the projects there require specialized education to understand and manage the process. Therefore, the payback period of investments is long. As a result, in pharmaceuticals there is a high rate of intangible assets comparing to other sectors. \u0000At the first glance, according to the results of regression analysis, business education, financial, managerial and economic education has no significant impact on investments. However, education in specific sphere, like physics, chemistry, biology, mathematics, has a significant positive impact on R&D expenses. We can see the similar effect for the CEO`s with two or more degrees in different fields. These results are in line with the findings of previous studies regarding CEO`s education. \u0000At the next stage, educational level of CEO and its field are analyzed simultaneously. A degree obtained in the industry-specific field or a degree supplemented by a financial or managerial education has a positive impact on R&D expenses, while standalone financial degree, by contrast, has a negative effect. \u0000So, we contribute to the academic literature with the idea that to get the unbiased results in similar studies we should account for not only degree but also the field. In practical sphere, the results can be useful for those who choose the educational track on their career path to CEO position as well as for HRs, Boards of directors, and other stakeholders while making decision on CEO turnover. Moreover, the results provide insights that could be useful for market analyst`s and investors` predictive models.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121415695","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":"Default Prediction Model for Emerging Capital Market Service Companies","authors":"В.И. Афанасьев","doi":"10.17323/j.jcfr.2073-0438.17.1.2023.64-77","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.64-77","url":null,"abstract":"The author tested the hypothesis that default prediction based on financial data may be inapplicable to Russian service sector organizations by analyzing the differences in the accuracy of models based solely on financial data for service providers from Russia and developed European countries. \u0000Logistic regression, Random Forest and K-nearest neighbors machine learning methods were used as modeling tools on a sample of 404 Russian firms and 304 firms from developed European countries.The results suggest that the prediction error is significantly higher in the case of Russian firms than in the case of firms from the control group (European service firms). Thus, the use of financial ratios for default prediction for service firms in Russia seems insufficient. \u0000These findings can be used by organizations that provide credit scoring, and by any other market participants interested in the financial stability assessment of their counterparties.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"44 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116924502","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 Intangible Assets on Bank Performance in Emerging Capital Markets: Evidence from Russia","authors":"Андрей Егоров","doi":"10.17323/j.jcfr.2073-0438.17.1.2023.44-53","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.44-53","url":null,"abstract":"The article examines the impact of innovations on the performance of commercial banks. The size of intangible assets is used as a proxy for innovation, since most innovations in the banking sector, unlike those in industry, are intangible and include licenses, software, employees’ knowledge and experience, corporate culture, etc. Most researchers agree that an increase in efficiency and performance of financial companies is mainly underpinned by intangible assets, especially their unobservable part. The purpose of the study is to identify the relationship between innovation and financial performance of banks. Thirteen largest systemically important Russian banks of various forms of ownership in 2011-2020 were consideredin the course of the research. This choice stems from the fact that these banks account for over 2/3 of the entire banking system in terms of assets, and have their own specifics compared to other banks both within Russia and in the world. \u0000This study is limited by the fact that only large Russian banks were considered, while the specifics of medium and small banks, which have significantly fewer opportunities and are ready to take on higher risks, were not assessed. The scientific novelty lies in the fact that intangible assets are reflected in the work by a quantitative change used to assess the innovative activity of banks, for which an suitable approach is proposed. The results of empirical analysis demonstrate that the growth of intangible assets allows banks to increase the volume of both interest and commission income and slow down the rise of expenses, thereby ensuring profit growth. In turn, this stimulates increased liabilities, however, due to regulatory requirements, the share of equity remains almost unchanged at about 10% of the asset value. This trend indicates that even smaller banks can compete with larger ones by implementing innovation and building intangible assets.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"76 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126292271","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 Dividend Payments of Russian Companies","authors":"Светлана Шаповалова","doi":"10.17323/j.jcfr.2073-0438.17.1.2023.54-63","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.54-63","url":null,"abstract":"The Russian stock market is one of the leaders in terms of dividend yield among developed and developing countries. Against this background, it is appropriate to study the determinants that affect the decisions on the implementation of payments and their amount. The literature on this topic in emerging markets in general and specifically in Russia has anumber of gaps and contradictions that determine the scientific novelty of the work – the analysis in regard to the impact on the probability of payments and on dividend yield is carried out simultaneously; contradictory determinants are examined. \u0000In emerging markets, the relationship between dividends and the age of members of the Board of Directors and the personal income tax rate on dividends is taken into account, and specifically in Russia – their relationship to the number of members of the Board of Directors, the ownership stake of the CEO and institutional shareholders, the company’s life cycle stage (LC), the dual role of the chairman of the Board of Directors and executive director. The study is conducted on the 2012–2019 data for a sample of 40 companies listed on the Moscow Exchange. The method incorporates two regression models – a linear one with random effects and a probit model. As a result of the analysis, the manifestation of the agencyeffect in the Russian market was confirmed by a significant positive dependence of the probability of payments on the dual role of the chairman of the Board of Directors and the executive director, the portion of shares held by the CEO, a significant negative relationship with the number of members of the Board of Directors and liquidity. The agency and behavioral effects are confirmed by a significant positive relationship between the probability of payments and the age of the members of the Board of Directors and a significant negative relationship with profitability. The influence of client effects is confirmed by a significant positive relationship between profitability and the personal income tax rate on dividends, as well as between the probability of payments and the share of institutions in ownership. It is also confirmed that companies that are mature in terms of the life cycle stage are more likely to pay dividends and do it more often. In general, there is a more significant influence of non-financial variables on the probability of payments and of financial variables on profitability. \u0000The results of the study can be used by private investors, banks, investment funds and brokerage companies to form expectations for companies’ dividend yield and the probability of payments with regard to the specifics of the Russian market.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128947815","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":"Developing a Scoring Credit Model Based on the Methodology of International Credit Rating Agencies","authors":"Алёна Астахова, Сергей Гришунин, Геннадий Поморцев","doi":"10.17323/j.jcfr.2073-0438.17.1.2023.5-16","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.5-16","url":null,"abstract":"The purpose of this work is to examine the relationship of various financial and non-financial (qualitative) factors of performance of non-financial companies and their credit ratings. \u0000We developed the scoring model which was based on the methodologies of international and Russian rating agencies. The modelled ratings of non-financial companies for 2018–2020 were compared with actual ratings assigned by the rating agencies and discrepancies were explained. The sample includes companies from retail, protein and agriculture, steel, oil and gas sectors from Russia, USA, Luxembourg, England, Canada, India, Ukraine and Brazil. \u0000The paper proved that addition of business and environmental, social and governance factors improved the quality ofscoring models in comparison to those including only financial metrics. There are strong patterns in the resulting ratings of companies for some industries. Retail industry companies are associated with high sales indicators, while steel industry companies have high interest expenses coverage ratios. Oil and gas industry companies mostly show high results in reserves coefficients. \u0000The study developed a credit rating forecasting tool that emulates the work of analysts of rating agencies and therefore has a high predictive power. The developed model can be used by financial market practitioners to predict the credit ratings of Russian companies in the face of the refusal of international rating agencies to rate Russian issuers.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"82 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126103908","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 Emerging Markets Succeed in Implementing Sustainability Principles in Infrastructure Finance? Evidence from Public-private Partnerships in Russia","authors":"Алексей Анатольевич Харламов","doi":"10.17323/j.jcfr.2073-0438.17.1.2023.17-26","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.17-26","url":null,"abstract":"This paper is the author’s contribution to existing literature on the evaluation of ways to co-create ESG benefits in the process of implementing a public-private partnership (PPP). The author developed his own ESG rating based on a sound set of indicators and an independent evaluation of publicly available information on sustainable development issues. For the purposes of compiling a rating, the specific issues relevant to the evaluation of a PPP project’s sustainability considerations in view of national agenda were analyzed. Based on an analysis of academic literature and publicly available information about similar ratings, the author proposes an approach to measuring these issues and incorporating the results in the integrated ESG impact rating. The developed ESG benefit evaluation instrument may be used by institutional, private and state PPP market participants for a comprehensive analysis of their investment activity. The case analysis of two PPP projects from Russian practice revealed failures in Russian corporate governance practices in the process of investing in infrastructure; in addition, we propose potential ways of overcoming some of the difficulties based on case comparison. This paper provides a new outlook on the methodology of a PPP-adjusted ESG rating that is relevant for evaluating and monitoring of corresponding investments in infrastructure.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123782917","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 Corporate Governance Factors Influence Banks’ Value? Evidence from Russia","authors":"Наталия Ускова","doi":"10.17323/j.jcfr.2073-0438.17.1.2023.27-43","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.27-43","url":null,"abstract":"In this research study we built 3 models that evaluate the panel data of 30 Russian banks with the largest assets and highest reliability. Comparison of all three models by means of specification tests led us to the conclusion that the OLS model with the explanatory power of 67% is optimal. \u0000The presence of women on the board of directors negatively affects the banks’ valuation, while the number of the board of directors’ meetings, number of directors and presence of an audit committee have a positive impact on the net asset value of banks. If the share of women increases by 1%, the bank’s net asset value will decrease by 86%. If the board of directorshas a functioning risk management committee, the bank’s net asset value will grow by 225%. In case of an increase in the number of the board of directors’ members by 1%, the bank’s net asset value will grow by 4.4%. If the number of meetings of the board of directors per year grows twofold, the bank’s net asset value will increase by 118%.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-03-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131223721","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":"Why Do We Need to Examine Leadership Concepts and Styles in Finance? Literature Overview","authors":"Nikita Kurdyukov","doi":"10.17323/j.jcfr.2073-0438.16.4.2022.135-143","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.16.4.2022.135-143","url":null,"abstract":"In the contemporary world, leadership concepts are associated with managerial literature. As a rule, scholars define a leader as a person with a certain set of positive characteristics that enable them to lead people and contribute to the successful development of a company. However, the concept of financial efficiency has to be factored into the effective developmentof a company. At the same time, personal characteristics of top managers, such as overconfidence, narcissism, excessive risk-taking, usually have a negative connotation in financial literature. \u0000This review includes a study of the development of various leadership concepts in management-related literature. The leader’s main personal characteristics are highlighted according to the literature. It also explores the relationship between the concepts of a leader and a manager. The literature devoted to the relationship between the concept of a transformationalleader and company performance has also been studied. The key conclusion of this literature review is that certain personal characteristics of top managers can have a positiveeffect on a company’s performance if they are considered from the point of view of transformational leadership. This confirms the need for a deeper study of the relationship between managers’ personal characteristics and a company’s financial efficiency, especially in the context of sustainable development and the concept of transformational leadership.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"159 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-01-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131466336","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 CEO Overconfidence on M&A Performance in the US: A Content Analysis","authors":"S. Grigorieva, M. Kirakosyan","doi":"10.17323/j.jcfr.2073-0438.16.4.2022.34-45","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.16.4.2022.34-45","url":null,"abstract":"Despite the high activity on the market for corporate control, more than 60% of M&As are unsuccessful and contribute to damage to the value of the acquiring company. We still have little evidence on the impact of M&A deals in different countries and industries on shareholer value, as well as the factors that influence this impact. Academic researchers and practitioners continue to seek out the factors that influence M&A performance, but results are still inconclusive, indicating the need for further research into acquisition performance and factors that influence the overall success of M&A deals. This paper examines the impact of CEO overconfidence on the performance of M&A deals in the United States. In contrast to previous studies, we, first of all, use earnings call transcripts in content analysis as the base to measure CEO overconfi-dence; secondly, we apply cluster analysis to identify the factors that force CEOs to structure their speech during earnings calls in a similar manner; and, thirdly, we assess the impact of CEO overconfidence on the performance of high-tech deals. The study is based on a sample of 492 M&A transactions implemented during the post-crisis period, 2009–2019. Using the event study method to assess the performance of M&A deals and regression analysis, we prove that CEO overconfidence has a negative impact on the success of M&As. However, when considering a subsample of deals in which the target com-pany operates in a high-tech industry, we failed to identify a significant impact of overconfidence on M&A performance. As a result of cluster analysis, we identified a cluster of 165 companies with a common structure and similarity of CEO speeches, which are not explained by the companies’ affiliation with similar industries. This suggests that overconfident CEOs tend to use and structure their speeches similarly.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129975807","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 CEO Behavior Biases and Personal Traits Influence ESG Performance? The Evidence from Emerging Capital Market of Russia","authors":"E. Lazareva","doi":"10.17323/j.jcfr.2073-0438.16.4.2022.72-92","DOIUrl":"https://doi.org/10.17323/j.jcfr.2073-0438.16.4.2022.72-92","url":null,"abstract":"The impact of behavioral biases and personal traits of the CEO on corporate decisions and performance has become the important agenda for management, governance and finance research. But still the empirical evidence on the influence of behavioral biases on the implementation of sustainability principles into company’s strategies is missing not only inemerging markets, but for developed markets as well. We aim to fulfill this gap by findings on the role of behavioral characteristics of a CEO and how they affect the effectiveness of the ESG (Environmental, Social and Corporate Governance) approach to company management in one of the largest emerging capital market of Russia. We first focus on CEO’s optimism,narcissism, self-confidence, and the lack of confidence of the CEO and their impact over ESG performance. To identify behavioral biases, we use textual analysis and the “bag of words” method applied to the written letters to the shareholders by CEOs of Russian companies in 2017–2019 on a sample of 38 companies with official external ESG ratings. \u0000Our results confirm a significant influence of optimism and narcissism on the effectiveness of the ESG approach, but self-confidence does not appear to be statistically significant. Moreover, our findings prove significance of some personal traits such as industry experience and technical educational background. Our findings validate and complement prior research on personal characteristics of CEOs and provide novel data on the impact on ESG in emerging capital markets.","PeriodicalId":102477,"journal":{"name":"Journal of Corporate Finance Research / Корпоративные Финансы | ISSN: 2073-0438","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115198584","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}