Finance: Theory and Practice

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ISSN / EISSN : 2587-5671 / 2587-7089
Total articles ≅ 272
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Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2020-25-4-6-23

Abstract:
The aim of this article is to show in which way international financial institutions (IFIs) can contribute to climate protection projects. The principles of IFIs’ project cycles are explained in the context of the new blending tool. The cooperation with other donors stands in the centre of EU project funding and the notion of leveraging allows to quantify the cooperative effect among different donors. The bulk of this article describes the most relevant IFIs and national development banks with an international focus: Green Climate Fund (GCF), European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), French Development Agency (AFD), German Development Bank (KfW), World Bank (WB), Asian Development Bank (ADB), and the Asian Infrastructure Investment Bank (AIIB). For all these IFIs, descriptions are provided and their main fields of actions identified. The procedure of application (the “project cycle”) is illustrated and an overview of their strategies is given. Thus, this article seeks to provide practical guidance on how to cooperate with IFIs and to direct funds into substantially valid and responsible climate projects.
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-64-81

Abstract:
The article assesses the influence of factors that form the reputation of an enterprise in the real sector of the economy, on the ability to attract investments and form investment capital. The study aims to identify the most important components of reputation capital that stimulate the inflow of investments for the implementation of projects that are significant for the development of the region. The author applies methods of multidimensional weighted scoring assessment of business reputation, construction of factor models, and identification of regression relationships between investment capital and factors that form business reputation, methods of pair correlations, and modelling. This study assesses the impact of factors on the level of investment capital and business reputation of 38 regionally significant organizations included in the list of residents of the Territory of Advanced Social and Economic Development (TASED) of the Far East and receiving tax incentives and administrative benefits. The scientific hypothesis that the investment capital of an enterprise as a key element of the territorial economic system is formed under the influence of a complex of factors of business reputation is subject to verification. The types of business reputation are identified for enterprises of regional significance. The author makes a conclusion that the inflow of investments and the accumulation of capital is facilitated by information transparency, participation of the enterprise in socio-cultural, educational events in the region, support of ethical and corporate principles. The research results can be used by the management companies of the territories of advanced development and the management of enterprises implementing national projects for the development of the regional economy.
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-98-109

Abstract:
This article examines the main mechanisms and tools for implementing innovation policy in countries with fastgrowing economies such as China and India. The study aims to explore the causal relationship between innovation, key macroeconomicvariables and economic growth.The author applies the entropy method and adapts the Graymodel to build a system of indices for assessing the coordination of the interaction of technological innovation, financial development and economic growth. The results show that the degree of integration of the financial system into innovation processes has a significant positive impact on the success of innovation, which is measured by patent activity. Our research proves that innovation indirectly affects economic growth through quality of life, infrastructure efficiency, employment, and rade openness. The findings of the research reveal that both economic growth and innovation tend to depend on a number of conjugate variables in the long run: capital, labor, etc. The author concludes that a comprehensive analysis of technological innovation, financial development and economic growth shows that the three-factor relationship has great potential for coordinated development, as a result of which, according to the calculated forecasts, economic growth in fast-growing economies will significantly accelerate its pace in the next five years. The subject of further research may be an analysis of whether the degree of conjugation of connectivity and coordination between the three systems will maintain stable growth at high values and whether they will be able to reach the stage of transformation.
, V. A. Matveev
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-136-151

Abstract:
The relevance of the research topic is due to the increasing role of non-traditional financial instruments that contribute to financial instability. Therefore, various indicators are required to reflect the situation in the digital financial assets market, the volatility quotes, and the level of investor confidence. The aim of the study is to develop and test on empirical data a generalized indicator of financial instability (financial fear index) in the digital financial assets market. The novelty of the research lies in the adaptation of the classic model of building the volatility index to the cryptocurrency market.The authors use statistical methods for collecting and processing data, analyzing time series, weighing, designing economic indicators. The paper summarizes the results of modern research on the correlation between digitalization and financial instability. The authors conclude that at certain short periods of 2020 the ruble-dollar volatility was comparable or even higher than the ruble-bitcoin one. In addition, there is much less fear and uncertainty in the cryptocurrency market today than there was at the end of 2018. The main result of the study is the financial fear index model based on the method of calculating the weighted average option price of the underlying asset and hedging of price risks. The model has been tested using data on the bid and ask prices of cryptocurrencies at a specific point in time. Estimates have been obtained indicating the growing instability in the digital financial asset market. The authors offer recommendations regarding the index threshold values, which indicate the level of investors’ fear.
, I. A. Ivanova, A. A. Vasil’Kina
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-121-135

Abstract:
In the present context, the issues of sustainable development of commercial banks are becoming particularly relevant, since they largely determine the state of the country’s economy as a whole. At the same time, commercial banks operate under the influence of various factors of the internal and external environment, digital transformation and the transition to the fourth industrial revolution, which significantly changes the conditions of their functioning. The time lag in which a credit institution can be in a relatively static, stable state is reduced. In this regard, there is a need to develop a methodology for assessing the sustainable development of commercial banks. This paper aims to develop theoretical provisions and methods for assessing the sustainable development of commercial banks using the analytic hierarchy proc ess. As a result of the research, theoretical approaches to the disclosure of the economic content of the sustainable development of commercial banks, as well as existing A methodological approach to assessing the sustainability of the bank’s development is justified, considering five components: economic, social, environmental, institutional and technological. Within the framework of this approach, criteria for their assessment are proposed for each of the components of the sustainability of the development of commercial banks, a scale of their relative importance is constructed and vectors are determined based on expert assessments. The authors make a conclusion that it is necessary to distinguish four types of stability of the bank’s development: absolute stability, normal stability, unstable state, crisis state. This approach can be used by commercial banks when developing a strategy for the sustainable development of financial and credit organizations. Prospects for further research may be associated with the development of alternative methods for assessing the sustainable development of commercial banks.
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-37-47

Abstract:
The paper examines an approach to developing a strategy for the Russian gas industry’s sustainable growth based on the system economic theory’s methodology. The aim of the study is to evaluate the current state of the industry by calculating sustainable growth indices. Grey Relational Analysis (GRA) reveals a deep relationship between sustainable growth indices and Return on equity ( ROE ), Lambert Energy Index ( LEI ), Return on environmental investments (ROE env ), and Return on social investments (ROE sr ). The system balance index ( SBI ) is calculated, which expresses the intensity of links between the financial, energy, environmental and social subsystems of the gas industry. The results show that the Russian gas industry companies are characterized by a low level of ROE env or ROE sr , negatively affecting the SBI value. The authors conclude the importance of environmental protection and social responsibility for achieving sustainable industry growth should not be underestimated. This circumstance should be taken into account when setting strategic goals for companies in the gas industry. According to the authors, applying system economic theory to achieve sustainable growth goals has huge potential to overcome economic phenomena and improve company management practices.
, V. Ya. Pishchik, P. V. Alekseevc
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-110-120

Abstract:
The article examines and assesses the problem of the investment deficit in the Russian economy, which has acquired particular relevance due to the coronavirus crisis caused by the pandemic. The study aims to develop practical recommendations for Russian state bodies to stimulate the investment process in the Russian economy and improve the efficiency of measures taken by the state to ensure the country’s socio-economic development. The objectiv es of this paper are to analyze the directions of optimization and prioritization of investment of resources during the economic recession caused by the coronavirus crisis using investment lending and project financing instruments, as well as to analyze and assess the ongoing reform of development institutions based on the state corporation “VEB.RF”. The research methodology includes an analysis of the regulatory legal framework, statistical information, official reports of state bodies, development institutions, scientific monographs and publications of Russian scientists, periodicals. The authors analyzed the trends and problems of the investment process in the Russian economy, including in the field of attracting foreign direct investment. Attention is paid to the ongoing reform of development institutions aimed at enhancing the role of the state development corporation “VEB.RF” in stimulating investment. The authors c onclude that it is necessary to take a set of functional, instrumental, and institutional measures aimed at stimulating investment and ensuring sustainable socio-economic development of Russia. In particular, in the context of a shortage of domestic sources of financing for long-term investments, it is important to provide regulatory macroeconomic support for the inflow of foreign direct investment into the Russian economy. In this regard, the authors propose to change the monetary policy strategy to increase the stimulating role of refinancing of credit institutions and the projected exchange rate in attracting domestic and foreign long-term investments and ensuring sustainable development of the Russian economy. The authors also propose to increase the role of foreign exchange regulation and foreign exchange control in stimulating investment and ensuring sustainable socio-economic development of Russia.
, M. A. Volkov, D. A. Koroleva
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-82-97

Abstract:
The subject of the research is the assessment of Investment decision-making efficiency considering the sustainable development requirements. The article aims to identify the relationship between environmental, social and governance (ESG) performance and market returns for investors and the reasons for it. The relevance of the paper is determined by the need to develop research in the field of ESG integration and evaluation of the portfolio investment effectiveness in the context of responsible investment practices popularity. Scientific novelty: the study develops the theory of ESG integration and allows the authors to conclude that ESG commitment is a driver of market profitability for investors. The authors apply methods such as theoretical analysis of scientific publications (analysis, synthesis, generalisation) and quantitative methods, including statistical data analysis, regression analysis, financial modelling. The research base is scientific works of domestic and foreign authors, analytical reports of rating agencies, ESG funds, historical stock market data on companies analysed in the course of this study. All the information used in this study is publicly available or provided by the Bloomberg database. In the course of the study, authors form model portfolios of ESG-oriented and ESG-neutral companies shares and perform a comparative analysis of their fundamental indicators and financial returns. The authors conclude that the portfolio of ESG-oriented companies demonstrates profitability no lower than the portfolio of ESG-neutral companies, considering the risks. At the same time, the values of the fundamental indicators of ESG-oriented companies are inferior to the values of ESG-neutral companies. The relationship between the degree of a company’s ESG compliance and its investment attractiveness is due, among other things, to non-financial value drivers. The authors recommend integrating ESG into the analysis of investment portfolios, significant for the development of investment strategies.
, M. A. Fedotova, V. V. Bogatyreva
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-48-63

Abstract:
The objective of the research in the article is the food retail companies that occupy leading positions in the Russian and foreign markets. The subject of the study is financial and economic relations in the field of the use of intangible assets (IA) as a significant factor in increasing the capitalization of food retailers and their sustainable development. The relevance of the problem is due, on the one hand, to the significant contribution of trade to the country’s GDP, on the other hand, to the need to find new drivers for the sustainable development of food retailers in the context of overcoming the negative consequences of the pandemic and the digital economy. The purpose of the study is to assess the impact of the value of intangible assets on the capitalization of food retailers. The authors applied the methods of comparative analysis, calculation of financial and economic indicators, correlation, and regression analysis of statistical data processing. The authors used Student’s t-test and Fisher’s f-test to confirm the quality of the constructed model. The study shows that Russian food retailers, as compared to foreign ones, occupy a smaller market share in the domestic economy and have a smaller share of intangible assets in the non-current assets of companies (except for X5 Retail Group). On the Russian food market, a trend has been revealed towards an increase in the production of goods under private labels and a decrease in the presence of foreign retailers, as well as an increase in the share of online trading that requires the use of intellectual property, including digital intangible assets, and leads to an increase in cash flows. Based on multivariate correlation analysis, it was found that the capitalization of trading companies in the food sector is most affected by the value of intangible assets and return on them. The constructed model of linear two-factor regression allows the authors to conclude that with an increase in the value of intangible assets by 1%, the market capitalization of a company increases by 10% with a constant return on assets. The article provides recommendations for Russian food retailers on the formation and use of a portfolio of intangible assets for value-based business management, which will contribute to their sustainable development.
K. N. Samkov
Finance: Theory and Practice, Volume 25; https://doi.org/10.26794/2587-5671-2021-25-4-24-36

Abstract:
Regional projects and programs are intended to become the main mechanism for achieving national development goals in territorial entities. The aim of the article is to analyze the problems of project implementation and program approaches at the level of the constituent entities of the Russian Federation, as well as to develop proposals for their development. The methodological basis of the study is the regulatory legal acts of the federal and regional levels, scientific (foreign and domestic) literature in the field of economics and public finance, official statistical information, empirical data regarding the results and progress of the implementation of regional projects and state programs of the constituent entities of the Russian Federation. The author uses the method of system analysis. The article analyzes the conceptual foundations of project management in the public sector, foreign and domestic research on this issue, examples of program implementation abroad, establishes the role of regional projects and state programs in the budget system of the Russian Federation, their relationship, identifies the main problems of their financing, considers examples of direct implementation of projects and programs, and suggests directions for their development. In the course of the study, the distortion of the initially inherent meanings of the implementation of the project approach is proved, first of all, in determining the goal setting, providing sufficient mechanisms for its achievement and financing. It is established that the state programs at present actually represent documents of planning of budget appropriations in implicit interrelation with the main directions of activity of authorities. It is concluded that it is necessary to clarify the current project and program methodology, which will allow the regions not only to engage in the implementation of federal projects but also to initiate them according to the priorities of socio-economic policy and the characteristics of the region. The author also proposes to develop regional projects as financial institutions. For this, it is necessary to clarify the budget legislation to ensure the possibility of actual planning of expenditure obligations within the framework of the design of projects. The prospects for further research are to develop a model for evaluating the effectiveness of the design and implementation of regional projects and state programs, and its further testing on specific programs of the constituent entities of the Russian Federation.
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