Financial Journal № 4(50) July-August 2019
Gulnara F. Fatkhlislamova
Competition Among Non-State Pension Funds in the Russian Pension Market, p. 9-23
At the present time, non-state pension funds (NPFs) have the opportunity to form financial resources by attracting funds from both the obligatory pension insurance system (OPI), which is the state component of the pension system, and the non-state pension provision (NPP), which is a voluntary component of the pension system. Functioning in these two areas, NPFs have quite significant financial resources — according to 2017 estimates, almost 5% of GDP. One of the factors affecting the efficiency of managing these funds is the state of the competitive environment of NPFs’ activities. The purpose of this article is the estimation and comparative analysis of the competition level among NPFs in two segments: the OPI and the NPP. The calculated Herfindahl–Hirschman index made it possible to estimate the dynamics of changes in the type of market structure in the OPI and NPP segments. Further in the work, it is shown that the quantitative factor of the market ambiguously influences the level of concentration in both segments. Concentration indicators showed an increase in concentration among the largest NPFs in the OPI segment. This trend is especially clearly seen when the Bank of Russia starts to exercise its functions as a financial market regulator. The use of the Linda index allowed the delineation of the market power boundaries in the segments of OPI and NPP, defining the segment of NPP as a “soft” oligopoly, and the segment of OPI as monopolistic competition. The study revealed that the implementation of pension reforms led to increased market concentration in the OPI segment and weakening of concentration in the NPP segment.
Keywords: market concentration, segment of obligatory, pension insurance, segment of non-state pension provision, concentration indicators, market “core”, market “outskirts”.
JEL: D43, G23, G28
For citation: Fatkhlislamova G.F. Competition Among Non-State Pension Funds in the Russian Pension Market. Financial Journal, 2019, no. 4, pp. 9–23 (In Russ.). DOI: 10.31107/2075-1990-2019-4-9-23.
Lyudmila A. Kormishkina, Lyudmila P. Koroleva
The Maternity Capital as a Tool of State Redistribution Policy, p. 24-35
The relevance of the study is caused by the fact that since 2013, the proportion of low-income families with two or more children has been growing against the background of reductions in fertility in the Russian Federation. The hypothesis of the study is based on the assumption that with growing excessive inequality and poverty of the population, the maternity capital loses the function of stimulating fertility and becomes the only way for low-income families with children to improve their financial situation. The objective of the study is to substantiate the need to improve the state of redistributive policies through providing the maternity capital for each newborn starting with the first child to reduce large family
poverty and the reproduction of poverty in the next generations, and to improve the quality of social resources through maintaining the assigned purpose of the maternity capital (housing, education, and health). The article analyzes the actual expenditure of the State under the Maternity Capital Program for 2007–2017 and the projected expenditure with regard to the introduction of additional measures to support families with children from 2019. An estimate of the necessary expenses for paying the maternity capital for each child from the National Wealth Fund is given. For wealthy families, it has been proposed to use an indirect negative tax. The authors give recommendations for improving the procedure of providing the maternity capital for reducing the reproduction of poverty through guaranteeing minimum start conditions for each child. The implementation of the proposed conceptual approach should be carried out in conjunction with reforming the system of taxation of income and individual property, and changing the provision of the maternity capital and targeted social support for families based on an assessment of their needs.
Keywords: maternity capital, poverty, income inequality, negative income tax, redistributive state policy, human capital.
JEL: Н53, I38, P16
Acknowledgments: The reported study was funded by Russian Foundation for Basic Research (RFBR) according to the research project № 18-010-00756.
For citation: Kormishkina L.A., Koroleva L.P. The Maternity Capital as a Tool of State Redistribution Policy. Financial Journal, 2019, no. 4, pp. 24–35 (In Russ.). DOI: 10.31107/2075-1990-2019-4-24-35.
Makar I. Kudelich
Regulatory Requirements System for Estimation of National Projects Efficiency: Current Problems, p. 36-49
In accordance with the Presidential Decree No. 204 dated May 7, 2018 “On the National Goals and Strategic Objectives of the Development of the Russian Federation for the Period up to 2024”, in order to achieve the national development goals, a number of national projects (programs) are planned. Fundamentally important in the context of real achievement of national development goals is the analysis of the existing regulatory requirements for evaluating the efficiency of national projects (programs) implementation funded by the federal budget. The results of this analysis can be used to improve the organization system of national project activities in the Russian Federation. In this regard, this article discusses the features of and systematizes the types of financial support for national projects through the federal budget, and also analyzes the existing legislative framework for evaluating the efficiency of national projects, primarily in terms of provision and use of budget funds aimed at their implementation. The author justifies the conclusion that the legislation on national project activities in the Russian Federation does not pay enough attention to the requirements for evaluating the efficiency of national projects (programs).
Keywords: national projects (programs), federal budget, efficiency, financial support.
JEL: H11, H61, H72
For citation: Kudelich M.I. Regulatory Requirements System for Estimation of National Projects Efficiency: Current Problems. Financial Journal, 2019, no. 4, pp. 36–49 (In Russ.). DOI: 10.31107/2075-1990-2019-4-36-49.
Galina E. Besstremyannaya
Strategies for Growth Through Mergers and Acquisitions: Evidence From Russian Companies, p. 50-59
The paper contrasts the drivers of mergers and acquisitions in Russia and other countries. Using the results of CEO surveys and surveys of the participants of the M&A markets in Russia and globally, the author compares the most prevalent strategies for company growth and restructuring. The paper points to economic evidence that insufficient development of competition and various issues in corporate finance may be linked to a relatively low predominance of M&A deals in Russia. In particular, this relates to the lack of deals, aimed at acquiring assets of the target. At the same time, the data for the Russian M&A market in 2014–2018 indicates relatively high competition in the information technology, and a growth in the number and the total value of M&A deals in this sector. Additionally, the overall Russian M&A market demonstrates a decrease in the average deal value, and there is a steady fall in the share of the oil and gas sector.
Keywords: economic growth, competition, innovation, mergers and acquisitions, corporate finance.
JEL: C34, D22, D24
For citation: Besstremyannaya G.E. Strategies for Growth Through Mergers and Acquisitions: Evidence From Russian Companies. Financial Journal, 2019, no. 4, pp. 50–59 (In Russ.). DOI: 10.31107/2075-1990-2019-4-50-59.
Vladimir V. Klimanov, Sofia M. Kazakova, Anna A. Mikhaylova
Functions of Supreme Audit Institutions in Russia and Foreign Countries, p. 60-74
In the member countries of the International Organization of Supreme Audit Institutions (INTOSAI), the functioning of public audit bodies is based on the principles of good governance, supporting governments in improving efficiency, enhancing transparency and public trust, ensuring accountability and objectivity, fighting corruption, and promoting effective and efficient access to and use of public resources. In order to identify the best practices of the functioning organization of supreme audit institutions and using the results in organization of the activities of the Accounts Chamber of the Russian Federation, the authors analyze the experience of developed and developing countries of the world. The basis for the analysis were regulatory legal acts of states as well as official websites of national organizations of the state audit system. The functions of supreme audit institutions vary in different countries, but the authors compile a comprehensive set of nine groups of functions in the context of 20 selected countries: financial audit; performance audit; strategic audit; external quality control of audit organizations and auditors; audit of state contract system; legislative expertise; external control over the activities of political parties and election campaigns; personnel audit; and judicial functions. The research results are structured and presented in the form of tables.
Keywords: financial control, state audit, supreme audit institutions, Accounts Chamber of the Russian Federation, foreign experience.
Acknowledgments: The article has been prepared based on the results of research on the topic “Analysis of the tasks, functions and powers of supreme audit institutions in foreign countries, and development of proposals for improving the activities of control and accounting bodies in Russia” performed by RANEPA under a state task in 2019.
For citation: Klimanov V.V., Kazakova S.M., Mikhaylova A.A. Functions of Supreme Audit Institutions in Russia and Foreign Countries. Financial Journal, 2019, no. 4, pp. 60–74 (In Russ.). DOI: 10.31107/2075-1990-2019-4-60-74.
Elizaveta V. Anufrieva
Influence of Macroeconomic Factors on the Return of Russian Stock Exchange Indices, p. 75-87
A trend toward growing influence of macroeconomics on financial markets has been observed in the last few years. Publications of statistical information relative to macroeconomy can easily affect the prices of commodities and their derivatives on financial markets. As there is little research dedicated to developing countries’ markets, the subject of this study is the Russian financial market. The goal of this analysis is to estimate whether there is an impact of macroeconomic factors on the return of indices traded at Moscow Exchange. The length of the study period is 129 months, and a total of 12 macroeconomic variables (6 of them are related to the Russian economy and 6 to the world economy) are selected to explain the return of 4 indices. The chosen method of this study is principal component analysis. It is implemented for three groups of macroeconomic factors: domestic, foreign, and both factor groups at once. The results suggest that, indeed, there is some influence of macroeconomics on the return of indices traded at Moscow Exchange. More than 10% of all changes in return can be attributed to factors connected to the Russian economy. The explanatory power of all constructed models is also quite high.
Keywords: Russia, MOEX index, return, PCA, Russian financial market, macroeconomic factors, dimensionality reduction.
JEL: C22, E44, G10
For citation: Anufrieva E.V. Influence of Macroeconomic Factors on the Return of Russian Stock Exchange Indices. Financial Journal, 2019, no. 4, pp. 75–87 (In Russ.). DOI: 10.31107/2075-1990-2019-4-75-87.
Olga N. Kuznetsova
Accounting and Control of Doubtful Debts Reserves, p. 88-101
Doubtful receivables have a negative effect on the financial conditions of any entity. The goal of this research is to assess the results of implementation of the accounting technique in doubtful debt allowances in Russia and to suggest ways of development of control actions for this accounting segment. In the course of the research, the author applied of the following methods: observation and analysis; and accounting method elements (documentation, inventory, accounts and double record, and balance generalization). The author studied the practice of financial and tax accounting of doubtful debt and its allowances as well as the results of external audit in 45 Russian organizations in various regions. Among them, there were accounting entities of various activity fields and sizes. The research shows that all small enterprises use the right not to create doubtful debt allowances in financial accounting. They apply special tax regimes, and therefore they do not create allowances in tax accounting. The author reveals 7 organizations in which allowances on doubtful debts were not charged, which led to misstatements in their financial reporting (they received audit opinions with clauses). The author
proposes preventing similar violations through using self-audit of accounts receivable. Based on these recommendations, the author has developed a checklist which includes an approximate questionnaire and a list of control and analytical procedures, the main ones being the inventory of accounts receivable and the assessment of possible credit losses for calculation of doubtful debt reserves. The author’s recommendations can help to control reliable reflection of data on receivables in accounting records of entities, and to monitor competence of accountants.
Keywords: receivables, inventory of calculations, control, tax accounting, doubtful debt reserve, self-audit, doubtful debt, financial accounting.
For citation: Kuznetsova O.N. Accounting and Control of Doubtful Debts Reserves. Financial Journal, 2019, no. 4, pp. 88–101 (In Russ.). DOI: 10.31107/2075-1990-2019-4-88-101.
Nataliya G. Filatova
Improving the Credit Rating of Loan Recipients Implementing Long-Term Investment Projects, p. 102-115
Development of the long-term investment market is a condition for the formation of the main factors of economic growth and successful implementation of long-term infrastructure projects in modern Russia. The role of bank lending for long-term investment projects is to increase against the background of the consequences of the economic crisis and budget deficit. The article presents bank performance indicators for financing of long-term investment (infrastructure) projects. The author draws a conclusion on the dominant position of banks with state participation in long-term lending. The article considers the factors affecting the tendency of banks to long-term lending. The author also analyzes the practical experience of large domestic banks’ participation in financing of long-term investment projects. Problems and credit risks of long-term investment projects are identified. In conclusion, the author formulates recommendations on the directions and tools to improve the system for assessing the credit risks of investment projects in commercial banks. It is recommended to supplement this system with indicators of the structure of long-term investments, profitability of permanent capital and
stability of the loaner’s efficient operation, as well as to ensure additional consideration of risk factors. The author defines the measures to expand the practice of syndicated lending, improving the mechanism providing state guarantees, and developing tools for cooperation between the bank and the loaner as promising areas for the development of long-term loans.
Keywords: long-term loans, investment projects, infrastructure development, assessment of credit-worthiness.
JEL: C22, C53, H20
For citation: Filatova N.G. Improving the Credit Rating of Loan Recipients Implementing Long-Term Investment Projects. Financial Journal, 2019, no. 4, pp. 102–115 (In Russ.). DOI: 10.31107/2075-1990-2019-4-102-115.
Alexander A. Tischenko
Perception of the Term “Collateral Portfolio”: Modern Aspect, p. 116-129
The credit relations developed under changes in the technological structure have led to re-consideration and re-definition of the terminology employed in banking. The article describes the domestic and international experience of using the term “collateral portfolio” and defines the essence of its main constituent elements. The author analyzes the historical aspect of development of collateral relations and reveals the role of collateral in the systems of civil and socio-economic relations. The forms of perception of the term in the banking sector at present, which arose under the influence of digital technologies, are determined. As a result, the author has defined the term “collateral portfolio”, expanding the potential of its application from the perspective of the modern vision of credit and security relations. The resulting definition provides an opportunity to consider the full range of options for the use of the collateral portfolio within the framework of cyber-physical systems and would allow one to fully use the portfolio theory, fundamental and technical analysis, as well as other modern tools in its management. In addition, the article reveals the distinctive features of the term “collateral portfolio”, which is different from the terms “collateral pool”, “collateral assets” or “collateral mass”. This approach made it possible not only to distinguish the studied term among similar ones and eliminate the discrepancies in definitions, but also to form a clearer concept of the term, which will provide researchers with the opportunity to accurately understand the boundaries of the phenomenon under study, and not define them each time it is used.
Keywords: economic terminology, term collateral portfolio, collateral mass, collateral pool, essence of collateral, collateral relations, loan security.
For citation: Tischenko А.А. Perception of the Term “Collateral Portfolio”: Modern Aspect. Financial Journal, 2019, no. 4, pp. 116–129 (In Russ.). DOI: 10.31107/2075-1990-2019-4-116-129.