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Financial Journal Vol.12 No.2 2020

CONTENTS

Boris I. Alekhin
Tax Smoothing in Russia, p. 9-24
Abstract
Robert J. Barro developed a theory in which the government borrows to smooth the tax rate over time and thus reduce welfare losses due to changes in the tax rate. Any positive model of fiscal policy must use tax smoothing as a benchmark. Is this so in Russia? The author of the present paper has used a sample of official data on tax and non-tax revenues and expenditures of the Russian government for 2000–2019 (79 quarterly observations) to test the tax smoothing hypothesis (TSH) by performing random walk, unit root, cointegration and Granger causality tests. The overall tax rate and permanent expenditures are found to be cointegrated only if structural breaks in the data are accounted for, and permanent expenditures Granger-cause the overall tax rate. An auxiliary finding is that the tax rate based on revenues from oil and gas exports are not found to be cointegrated with permanent expenditures, and permanent expenditures do not Granger-cause this rate. These results are interpreted as evidence in support of TSH, because (rephrasing Barro) the finding that a particular category of taxation is not cointegrated with permanent expenditures would not invalidate the central thesis. Overall, the Russian government seems has pursued tax smoothing. Permanent changes in expenditures were followed by tax rate revisions with transitory fiscal imbalances covered by combination of borrowed funds and oil and gas revenues. Lower level of cointegration seems to show that the Russian economy has incurred losses due to incomplete and inconsistent tax smoothing.
Keywords: excess burden of taxation, tax smoothing, cointegration, structural breaks
JEL: H60, H62, H63
For citation: Alekhin B.I. Tax Smoothing in Russia. Financial Journal, 2020, vol. 12, no. 2, pp. 9–24 (In Russ.). DOI: 10.31107/2075-1990-2020-2-9-24.

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Zhanna A. Mingaleva, Yurii V. Starkov
The System of Emission Taxation Analyzed: An Institutional Approach, p. 25-38
Abstract
Environmental regulation, designed to reduce environmental pollution and improve the climate, is currently actively applied in all economically developed countries of the world. Various tools have been developed to influence economic and social entities in order to reduce emissions of pollutants into the environment. Emission taxation and trade in emission permits are basic tools of environmental regulation. These tools have different effects both on success in implementing international and national environmental policies, and on the degree to which businesses and households are involved in the implementation of the whole range of measures to reduce harmful emissions into the atmosphere and protect the environment. This article analyzes the features and practical applicability of the tax instrument for harmful emissions, and examines its strengths and weaknesses taking into account the influence of political, social, and economic factors. Institutional and comparative analysis are the main research methods used. The result of the study is the conclusion about the varying degrees of effectiveness of applying tax mechanisms for harmful emissions at the national and international levels as well as in relation to various sources of emissions. It is shown that, due to differences in national legislation and basic economic development conditions, the mechanism of taxation of harmful emissions in individual countries cannot succeed in achieving the results of pollution reduction and normal development of environmental mechanisms planned in international documents. Nevertheless, in the current context, the system of emission taxation remains more effective than trade in emissions within individual countries, and is applied more widely throughout the world than the mechanism of trade in permits. In addition, the potential of the taxation mechanism has not yet been fully utilized.
Keywords: “Green” taxes, harmful emissions, greenhouse effect, internalization of externalities, tax rates, pollution sources, emission taxation
JEL: Q54, Q56, Q58, Q52
Acknowledgements: The present research has been carried out as per the target on fulfilment of government contractual work in the field of scientific activities within the fundamental part of a state task of the Ministry of Education and Science of the Russian Federation to Perm National Research Polytechnic University (topic 0751-2020-0026).
For citation: Mingaleva Zh.A., Starkov Yu.V. The System of Emission Taxation Analyzed: An Institutional Approach. Financial Journal, 2020, vol. 12, no. 2, pp. 25–38 (In Russ.), DOI: 10.31107/2075-1990- 2020-2-25-38.

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Mariya A. Shchepeleva
Modeling the Balance Sheet Channel of Monetary Transmission in Russia, p. 39-56
Abstract
Topicality. After the global financial crisis of 2008–2009, research on the impact of financial variables on the real sector has intensified. According to the theory of monetary transmission, a change in the short-term interest rate affects the volume of investment in both direct and indirect ways, through a change in the balance sheet indicators of creditors (bank lending channel) and borrowers (balance sheet channel of monetary transmission). Analysis of various transmission channels provides relevant information for the regulator, allowing for a more accurate estimation of monetary policy’s consequences. This paper aims to assess the extent to which the balance sheet channel was at work in Russia throughout 2010–2017. By applying both micro- (panel dataset) and macroapproaches (time series), we establish that there are certain signs of the balance sheet channel in the Russian economy, though it is not fully compatible with the traditional transmission chain. Our analysis provides evidence that there is a statistically significant link between short-term interest rate and investment. Still, we do not find robust empirical support for the remaining linkages in the transmission chain. Further research is needed to provide more precise quantitative estimates of the linkages within the balance sheet channel and compare its significance with other channels of monetary policy transmission.
Keywords: balance sheet channel, financial stress, monetary transmission, panel VAR, Bayesian VAR
JEL: E52, E58
For citation: Shchepeleva M.A. Modeling the Balance Sheet Channel of Monetary Transmission in Russia. Financial Journal, 2020, vol. 12, no. 2, pp. 39–56 (In Russ.). DOI: 10.31107/2075-1990- 2020-2-39-56.

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Darya V. Gorokhova
Public Procurement in the Russian Federation: Retrospective and Development, p. 57-68
Abstract
The sphere of state and municipal procurement is one of the most dynamically developing areas of state regulation. Since 2013, 46 Federal laws have been adopted, which amended Federal Law No. 44-FZ, and more than 100 by-laws. Significant changes in the sphere of state and municipal procurement related to the requirements for the implementation of national projects were made in 2019. It is obvious that the norms of legal regulation of the 44-FZ require systematization, a critical look and development of further directions for improvement. To this end, the article discusses the innovations of Federal Law 44-FZ and its by-laws in the relations and development and offers directions for further improvement of the Law. Legal, comparative and statistical methods of analysis were used in writing the article. The results of the study show that the current system of state and municipal procurement does not fully meet the requirements of efficiency, is not convenient for supplier organizations, and requires further procedural and personnel optimization. Proposals for further development are given in these areas.
Keywords: public procurement, 44-FZ, procurement efficiency, contract system, procurement legislation
JEL: H80, H57
For citation: Gorokhova D.V. Public Procurement in the Russian Federation: Retrospective and Development. Financial Journal, 2020, vol. 12, no. 2, pp. 57–68 (In Russ.). DOI: 10.31107/2075- 1990-2020-2-57-68.

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Natalia S. Matveeva
State Financial Control: International Experience (Russian, English), p. 69-95
Abstract
Financial control is a major part of the financial management system. Its increasing importance in the contemporary world is reflected in the Lima Declaration of Guidelines on Auditing Precepts, according to which financial control is an integral component of public finance management. The relevance of the topic is also associated with the strengthening of the role of financial control in developed countries and the search for ways to increase the effectiveness of its implementation. The article aims to identify the main development trends of state financial control in advanced countries and to analyze the standardization process. Despite the fact that the system of state financial control is based on different principles in different countries, depending on the prevailing historical, economic and regulatory traditions of a particular country, further directions for the development of this sphere are determined by general trends toward decentralization of control and the standardization of control activities. In addition, the current level of development of state financial control in the Russian Federation and the possibility of adapting international experience in our country in order to increase the effectiveness of financial control are described. In this article, the analysis of foreign experience has been carried out at three levels: general control over public finance; government and parliamentary control; and internal control and internal audit as special areas of financial control. In regards to standardization, the standards of external state control have been found to be formed and approved by the national control and accounting bodies of the country, taking into account the requirements of INTOSAI standards. At the same time, national standards include legally established features of the state financial control organization in a given country as well as the national practice of conducting state audit. Requirements for the organization and implementation of internal financial control can be set by supreme audit bodies or ministries of finance, whereas requirements to organize and carry out internal financial audit are often provided by law.
Keywords: state financial control, financial management system, Supreme Audit Institution, internal control, internal audit, regulatory authorities, international experience
JEL: E62, H11, H83
For citation: Matveeva N.S. State Financial Control: International Experience. Financial Journal, 2020, vol. 12, no. 2, pp. 69–95 (In Russ.). DOI: 10.31107/2075-1990-2020-2-69-95.

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Tatyana G. Arbatskaya
Importance of Inventory in Ensuring Accurate Presentation of Financial Reporting by Public Sector Entities, p. 96-110
Abstract
The development of accounting for public sector entities and its convergence with public sector IFRS pose new methodical and methodological problems. Inventory is essential to ensure faithful representation of financial reports provided to users. This confirms the relevance of the study. The article contains a theoretical study of inventory in the context of implementation of federal standards for accounting in public finance. The paper studies the relationship of inventory with other elements of the accounting method as well as accounting procedures: recognition, classification, evaluation, adjustment of estimates, presentation and disclosure of information in financial reports, and confirmation of reporting reliability made by an independent entity. In addition, the study has established the effect of inventory on the achievement of qualitative characteristics of financial reports to increase its usefulness to users. Since information requests by users change under the influence of external and internal environmental conditions, an inventory should confirm not only the recognition and classification of the object, but also its estimate. It is concluded that it is advisable to disclose information on the valuation of objects in financial statements at both actual and fair values. This would ensure the control function of accounting and strengthen its information function. The results obtained by the author can be used for further development of regulation of accounting in public finance.
Keywords: public sector entities, financial reports, inventory, faithful representation, qualitative characteristics of financial reports, estimate, impairment, fair value
JEL: M41
For citation: Arbatskaya T.G. Importance of Inventory in Ensuring Accurate Presentation of Financial Reporting by Public Sector Entities. Financial Journal, 2020, vol. 12, no. 2, pp. 96–110 (In Russ.). DOI: 10.31107/2075-1990-2020-2-96-110.

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Makar I. Kudelich
Legal Issues of Redress in Subrogation, p. 111-119
Abstract
Due to the growing needs of compensation and protection of insured persons’ rights, improving the mechanisms of legal regulation of subrogation are becoming particularly urgent. The purpose of this article is to identify and systematize currently existing basic theoretical and scientific legal problems of subrogation. The results of the study include proposals for legal framework improvement regarding problems associated with the insurance of civil liability and the risk of losses from business activities, with the assignment and offset of claims in subrogation, with the ratio of the size of the insurance payment and subrogation claims as well as subrogation and reinsurance. In addition, the findings can be used to improve the norms of Russian civil law in order to eliminate the conflict of rules related to persons responsible for losses and persons responsible for the occurrence of an insured event, as well as to establish a ban on the use of subrogation in relation to the insured and his relatives.
Keywords: subrogation, insurance, compensation, legal framework
JEL: G22
For citation: Kudelich M.I. Legal Issues of Redress in Subrogation. Financial Journal, 2020, vol. 12, no. 2, pp. 111–119 (In Russ.). DOI: 10.31107/2075-1990-2020-2-111-119.

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Vyacheslav N. Ovchinnikov
Nobel Prize in Economic Sciences 2019: Poverty Alleviation and Experiments in Development Economics, p. 120-131
Abstract
In this paper, the results of empirical studies by Nobel Prize laureates in Economic Sciences 2019 Michael Kremer, Abhijit Banerjee and Esther Duflo are discussed. Field experiments in education and healthcare systems as well as in the financial and technological areas made it possible to evaluate differently the effectiveness of traditional instruments of economic and social policy in poor countries, offering new, better practices and reforms aimed at poverty alleviation. In addition to the relevance of the findings in politics, the experiments by the laureates provided development economics with powerful analytical and methodological tools, forming the foundation for future academic investigations in this branch of economics.
Keywords: Nobel Prize, laureates, development economics, experiment, poverty, poor countries
JEL: O10, O12, O15
For citation: Ovchinnikov V.N. Nobel Prize in Economic Sciences 2019: Poverty Alleviation and Experi- ments in Development Economics. Financial Journal, 2020, vol. 12, no. 2, pp. 120–131 (In Russ.). DOI: 10.31107/2075-1990-2020-2-120-131.

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Financial Journal Vol.12 No.1 2020

CONTENTS

Vladimir V. Vagin, Natalia A. Shapovalova
Challenges and Issues of Initiative Budgeting Development, p. 9-26
Abstract
The article examines current issues in initiative budgeting (IB) development in the Russian Federation on the basis of empirical data accumulated during the monitoring of IB development since 2015. The methodology for organizing monitoring and analysis of the received data, developed at the Initiative Budgeting Center of the Financial Research Institute of the Ministry of Finance of the Russian Federation, makes it possible to assess the development dynamics by key indicators, to identify trends, and to formulate current problems in IB development in the Russian Federation. The accumulated information on initiative budgeting provides ample opportunities for constructing analytical variables calculated through aggregation of the data from the primary mass of information. The article outlines approaches to examining various forms of initiative budgeting, and provides some results of a comparative analysis of various types of practices used in the Russian Federation’s regions to involve citizens in budgetary decisions. One of the challenges in the monitoring organization is the need for regular adjustments of the measurement procedure considering current changes in legislative regulations and the practices of initiative budgeting implementation. As part of the monitoring, a separate study area of municipal IB practices is beginning to take shape. The authors review documents that legitimize IB issues in the Russian Federation and in the Russian regions, in particular, presenting the results of an analysis of state programs in the Russian regions. The article summarizes the current agenda and outlines the development of institutional support for initiative budgeting. The conclusions formulated by the authors include a wide range of proposals for improving the initiative budgeting programs and practices in the Russian regions and the Russian Federation as a whole.
Keywords: initiative budgeting, participatory budgeting, citizens’ involvement, co-financing, local selfgovernment, municipal budget, monitoring, program approach
JEL: H72, H76, H79
For citation: Vagin V.V., Shapovalova N.A. Challenges and Issues of Initiative Budgeting Development. Financial Journal, 2020, vol. 12, no. 1, pp. 9–26 (In Russ.). DOI: 10.31107/2075-1990-2020-1-9-26.

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Andrei I. Kostin
Organization of Program- and Target-Oriented Funding for Research in Russia, p. 27-40
Abstract
The relevance of the topic is justified by the fact that program- and target-oriented management methods have become an essential part of modern public finance. They contribute to the implementation of one of the key principles in this area, namely the principle of socio-economic efficiency of expenditures. At the same time, the practice of program- and target-oriented financing is currently evolving, and its final, stable forms have not yet developed. There are a number of serious difficulties in the implementation of program–target methods, in particular those related to the problems of applying formalized procedures for constructing a hierarchy of goals, tasks, and activities as well as linking resource needs to them. With program- and target-oriented funding of science, these problems become even more acute due to qualitative heterogeneity of both direct results and social outcomes. The article analyzes the existing organization of targeted funding in the field of scientific research. In particular, the problems of linking priority areas in the development of science and technology in the Russian Federation to program documents are considered. Presented are the findings of the analysis of target indicators and changes in their values as well as budget allocations for civil science under state programs and national projects in the Russian Federation. It is concluded that, in the framework of civil science spending, the program–target method of managing public spending remains largely formal, and that strategic and program documents and statistical monitoring of activities in the field of education, science, innovation and information technologies are not coordinated by goal setting and priority areas. The author suggests applying a tool for reviewing budget expenditures in the field of R&D as one of the efficient ways to assess the effectiveness of state programs.
Keywords: R&D, efficiency of budget expenditures, funding science, program- and target-oriented methods, state program, national project, review of budget expenditures
JEL: H50, H59
For citation: Kostin A.I. Organization of Program- and Target-Oriented Funding for Research in Russia. Financial Journal, 2020, vol. 12, no. 1, pp. 27–40 (In Russ.). DOI: 10.31107/2075-1990-2020-1-27-40.

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Vladimir V. Gromov
Regional Tax Competition at Different Phases of Tax System Evolution in Russia, p. 41-57
Abstract
The article is devoted to the analysis of tax competition as a phenomenon that began to rise with the transition of Russia to a market economy and manifested itself in different ways in the evolution of the national tax system. The analysis shows the features, reasons, scale and forms of tax competition prior, during and after the well-known Russian tax reform. Being an integral part of Russian economic reality, regional tax competition comes from fiscal federalism and changes depending on the tax autonomy of subnational governments. In addition, it is explained that unregulated tax competition can become harmful and lead to adverse economic consequences. The solution to the problem lies in the field of balance between regional tax autonomy and reasonable federal restrictions, promoting fair tax competition among subnational governments. Systematization of the path traveled plays a key role in many aspects, including understanding of the current tax legislation, harmonization of tax policy at the federal level, and improvement of regional taxation in Russia.
Keywords: factors of production, federalism, regional competition, tax base, tax competition, tax incentives, tax policy, tax reform, tax revenues
JEL: H71, K34
For citation: Gromov V.V. Regional Tax Competition at Different Phases of Tax System Evolution in Russia. Financial Journal, 2020, vol. 12, no. 1, pp. 41–57 (In Russ.). DOI: 10.31107/2075-1990-2020-1-41-57.

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Igor Yu. Arlashkin
Comparative Assessment of Regional Fiscal Capacity Calculation Approaches, p. 58-67
Abstract
Three basic methods are employed to assess the fiscal capacity of territories for fiscal equalization: the representative tax system method, the historical data method, and the macroeconomic indicator method. Each of these methods has its own advantages and disadvantages, while the historical data method is considered the most accurate in terms of approximation of the values of fiscal capacity to actual budget revenues. The aim of the article is to compare the accuracy of assessing Russian regions’ fiscal capacities through various methods, as well as by combining them, and to propose measures to change the current methodology for fiscal capacity assessment. The calculations presented in this article for the Russian regions for 2018 show that, in fact, the representative tax system and historical data methods have a comparable degree of accuracy, and the macroeconomic indicator method is only slightly inferior to them. At the same time, while assessing the fiscal capacity in regard to individual taxes, both the method of historical data and the method of representative tax system may have an advantage in the accuracy of the assessment, the method of macroeconomic indicators being inferior to them (except for the case of corporate income tax). As the author’s calculations show, it is possible to improve the accuracy of assessing regional fiscal capacity through the following measures: (1) not taking into account data for the current financial year, that is, taking into account data for only two reporting years; (2) not adjusting income tax and personal income tax fiscal capacity to the rate of tax revenue growth; (3) using the method of macroeconomic indicators for mineral extraction tax and other tax fiscal capacity.
Keywords: fiscal capacity, tax capacity, representative revenue system, representative tax system, historical data method, macroeconomic indicators method, fiscal equalization
JEL: H73, H77
For citation: Arlashkin I.Yu. Comparative Assessment of Regional Fiscal Capacity Calculation Approaches. Financial Journal, 2020, vol. 12, no. 1, pp. 58–67 (In Russ.). DOI: 10.31107/2075-1990-2020-1-58-67.

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Andrey V. Korytin
Tax Burden Influence on the Foreign Direct Investment Distribution by Economic Industries, p. 68-86
Abstract
Promotion of foreign investment attractiveness, including tax incentive measures, for the purpose of economic development of a country and its particular industries is an important economic and tax policy problem. This article presents the results of construction and estimation of an empirical model that describes the influence of the capital tax burden indicator (average tax rates calculated for Russian economic industries using the OECD methodology) and the rate of return along with other industry characteristics on the distribution of FDI flows among Russian economic industries. Practical limitations derived from capital and investment market imperfections as well as data availability are discussed during the model development process. The results of estimation of various specifications of the constructed model on industry data for 29 Russian industries for the period 2006–2015 through the pool regression method show a generally significant negative effect of the tax burden indicator on foreign investment inflow into industries. For the full model specification, elasticity of FDI flow with respect to the tax burden indicator is equal to 0.88.
Keywords: foreign direct investment, tax burden, average tax rate, rate of return, international tax competition, empirical model, industry data
JEL: C23, F21, H32
For citation: Korytin A.V. Tax Burden Influence on the Foreign Direct Investment Distribution by Economic Industries. Financial Journal, 2020, vol. 12, no. 1, pp. 68–86 (In Russ.). DOI: 10.31107/2075-1990- 2020-1-68-86.

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Yuri A. Danilov 
Economic Model of Compensation Fund in Russia
, p. 87-104
Abstract
The macroeconomic stabilization that took place in Russia has led to a partial transfer of household savings from bank deposits to the securities market. This process determines the relevance of creating institutions to minimize the non-market risks of small investors. As global experience shows, among such institutions, the most important one is the compensation fund. The article discusses projects for the creation of a compensation fund in Russia, previously proposed by the Bank of Russia and the National Association of Stock Market Participants (NAUFOR). The results of recalculating the forecast balance of the compensation fund are presented, based on the previously formulated prerequisites of NAUFOR, but also underpinned by the latest quantitative data, which have changed significantly over the past two years as a result of explosive growth of household investments in the securities market. It is shown that in the new conditions it is impossible to ensure the adequacy of financing of compensation funds on the basis of previously proposed sources. The author presents a new approach to the formation of a compensation fund in Russia, which takes into account not only the new Russian realities, but also the existing global experience in the field of creating compensation funds. In the framework of this approach, the author proposes expanding the list of financing sources for the compensation fund. The article provides forecast estimates of the fund balance and ratios of compensation fund adequacy, calculated on the basis of these proposals, which indicate that this model of the compensation fund is economically viable and could be implemented as soon as possible. Further prospects for the development of a national compensation system, which could include compensation funds operating in various segments of the financial market, are considered.
Keywords: compensation fund, household savings, stimulation of long-term investments, protecting the interests of investors, individual investment accounts, securities, compensation system, non-market risks.
JEL: G18, G20, G23, G28
Acknowledgements: The article is written on the basis of research work carried out at RANEPA within the framework of a state task. The author is sincerely grateful to colleagues who provided critical comments and suggested a number of valuable ideas for a deeper study of the material that formed the basis of this article. The author would like to express his gratitude to Chairman of the Board of NAUFOR Alexey Timofeev, and Manager of the Federal Public-State Foundation for the Protection of Investors and Shareholders Rights Marat Safiulin, as well as the experts of the fund, who performed a detailed critical analysis of several conceptual issues of the proposed model. Special thanks also go to the authors of two anonymous reviews, who conducted a conscientious critical analysis, the conclusions of which allowed the author of the present article to improve a number of provisions in its final version.
For citation: Danilov Yu.A. Economic Model of Compensation Fund in Russia. Financial Journal, 2020, vol. 12, no. 1, pp. 87–104 (In Russ.). DOI: 10.31107/2075-1990-2020-1-87-104.

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Yury A. Spletukhov
Information Technology in the Russian Insurance Market: Development Opportunities, p. 105-116
Abstract
The article deals with the issues related to the use of modern information technologies in the insurance market of the country. In particular, the directions of their application are identified, and the characteristics of modern practice of introduction of such technologies are given. Much attention is paid to the prospects for the use of digital technologies, as well as to the analysis of problems that need to be solved in order to remove obstacles to their wider dissemination. Among the areas of use of information technologies in the insurance market, the following ones are highlighted: delivering information about insurers and their services to customers; preparation of proposals of insurance products and their
sale; collection of information about policyholders; assessment of insurance risks; settlement of the consequences of insurance cases; implementation of document management; accounting and reporting; and interaction with the insurance supervision authority. It is concluded that the use of digital technologies makes it possible to increase the volume of insurance transactions, improve the quality of insurance services, reduce the costs associated with the implementation of insurance activities, and ultimately enhance the effectiveness of insurance as a method of risk management. At the same time, the opportunities offered by digital technologies have not yet been fully realized in the insurance sector, hampered by both objective and subjective circumstances. Among the latter are the material and financial capabilities of insurers as well as a number of existing legislative and infrastructure restrictions in the country.
Keywords: information technology, insurance, insurance market, insurance services, prospect of development
JEL: G22
For citation: Spletukhov Y.A. Information Technology in the Russian Insurance Market: Development Opportunities. Financial Journal, 2020, vol. 12, no. 1, pp. 105–116 (In Russ.). DOI: 10.31107/2075-1990-2020-1-105-116.

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Maria G. Girich, Antonina D. Levashenko, Alexandra A. Koval
From Monetary Towards Non-Monetary Transactions: Consumer Personal Data Protection in E-commerce, p. 117-130
Abstract
The field of electronic commerce nowadays is actively developing and stimulating the use of cashless payments. At the same time, payments for goods and services purchased via the Internet may not always be expressed in financial terms. For example, in the case of non-monetary transactions consumers receive products (goods or services) in exchange for their personal data. At the current stage countries of the Organisation for Economic Co-operation and Development (OECD), in particular the United States and European Union member states, have been raising the issue of the possibility of applying consumer protection legislation to non-monetary transactions (when consumers acquire goods or services in exchange for their personal data), including the possibility to return goods or get a refund for a service by demanding personal data deletion. In Russia, the problem of personal data protection is not examined through the prism of consumer protection legislation. The present research methodology is based on methods of logical, systematic and comparative analysis. The purpose of this study is to analyze the application of consumer protection legislation with regard to regulation
of consumer personal data in non-monetary transactions. Comparison of global trends with existing Russian legislation and development of regulation proposals for Russia are the main results of this study.
Keywords: means of payment, electronic commerce, consumer rights, personal data, non-monetary transactions
JEL: K24, K32, K33
For citation: Girich M.G., Levashenko A.D., Koval A.A. From Monetary Towards Non-Monetary Transactions: Consumer Personal Data Protection in E-commerce. Financial Journal, 2020, vol. 12, no. 1, pp. 117–130. DOI: 10.31107/2075-1990-2020-1-117-130.

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Financial Journal № 6(52) November-December 2019

CONTENTS

Evsey T. Gurvich
Long-Term Global Trends in Pension Policy
, p. 9-26
Abstract
The paper considers the evolution of pension policy in both developed and developing countries over the last 50 years. It demonstrates that drastic changes occurred in this area at the turn of the century, most likely explained with expectations of a marked acceleration in population aging. Reforms in the 1980s and 1990s were aimed mainly at increasing pension coverage and pension size adequacy, while in the last two decades priority generally shifted to ensuring long-term financial sustainability of pension systems. Pension reforms are becoming more and more common, and preventing further growth of public spending on pension is now their most prevalent objective, raising the retirement age being a major tool for addressing this task. Worth noting is also gradual expansion of a relatively new mechanism, namely defined contribution pension systems (including both funded and unfunded schemes). We assume that these trends taken together evidence a clear turn from extensive to intensive pension policy in the world.
Keywords: pension reforms, population aging, retirement age, pension systems, long-term fiscal sustainability.
JEL: H55, J11, J18, J26
For citation: Gurvich E.T. Long-term Global Trends in Pension Policy. Financial Journal, 2019, no. 6, pp. 9–26 (In Russ.). DOI: 10.31107/2075-1990-2019-6-9-26.

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Evgeny N. Timushev
Federal Intergovernmental Transfers and the Level of Intraregional Fiscal Decentralization in Russia, p. 27-42
Abstract
The article discusses the federal tools to expand the relative (to the regional level) financial capacity of local budgets in Russia’s budgetary system. Local fiscal decentralization is generally viewed as favorable to local and regional economic development. Reversing the trend of diminishing local powers at the regional level enables unique growth-friendly actions inside broader fiscal policy measures. It has been established that the Ministry of Finance has the ability to shape the fiscal incentives of regional peers toward increasing local decentralization The likelihood of regional authorities taking appropriate actions can be increased if the federal intergovernmental policy measures already planned are implemented, specifically, equalization transfers, balancing grants and earmarked transfers (“subsidies”) are expanded, and the mechanisms of their allocation are upgraded. From the methodological perspective, the “share of local budgets in region-wide total collected tax revenues” has been found to be an unreliable indicator of local fiscal decentralization.
Keywords: federal intergovernmental relations, distribution, equalization, fiscal decentralization indicators, federal districts, probit regression.
JEL: H77
For citation: Timushev E.N. Federal Intergovernmental Transfers and the Level of Intraregional Fiscal Decentralization in Russia. Financial Journal, 2019, no. 6, pp. 27–42 (In Russ.). DOI: 10.31107/2075-1990-2019-6-27-42.

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Natalya S. Kostrykina, Elena V. Zakharenkova
Transfer of Tax Losses in OECD and BRICS Countries, p. 43-56
Abstract
For a number of reasons, businesses are not always profitable and can often be loss making. Thus, the carryforward of tax losses is a common practice across the world. According to the tax statistics (form No. 5-P), during the economic crisis of 2014–2015, the cumulative balance of unutilized corporate tax losses in the Russian Federation as a whole increased dramatically. Moreover, there was no significant decrease in its volume in the following years of 2016–2018. In 2014–2018, the cumulative balance of unutilized corporate tax losses became comparable with the annual corporate tax base. Under these circumstances, the Russian Ministry of Finance put restrictions on the carryforward of tax losses. For the period from January 1, 2017 to December 31, 2021, only up to 50 % of the corporate tax base for the year could be offset against the tax losses carried forward. It is obvious that the restrictions on the utilization of tax losses affect the position of businesses in terms of taxes. In the meantime, it has been repeatedly articulated by the Russian President and the Government that the tax burden should not be raised and the tax conditions should be stable. In these circumstances, it is of current interest to analyze whether the Russian conditions of tax loss carryforward are unique or similar to international practice. In this regard, the analysis of international trends on tax loss carryforward and their comparison with Russian practice are of academic interest.
Keywords: profit taxation, tax loss carry forward, tax loss carry back, foreign experience, OECD member countries, BRICS.
JEL: H20, H25, N40
For citation: Kostrykina N.S. Zakharenkova E.V. Transfer of Tax Losses in OECD and BRICS Countries. Financial Journal, 2019, no. 6, pp. 43–56 (In Russ.). DOI: 10.31107/2075-1990-2019-6-43-56.

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Makar I. Kudelich
Direct Agreements in Projects With State Participation: Comparative Legal Analysis, p. 57-69
Abstract
Over the past years, the Russian Federation has taken a number of measures aimed at developing existing legislation in order to create attractive, stable and transparent conditions for private investment in projects with state participation, on the one hand, and to reduce the financial burden on the budget system, on the other. Currently, the tools to provide investors with special legal regimes for carrying out economic activities (such as special economic zones, territories of priority social and economic development, industrial technology parks, clusters and industrial parks, special tax regimes, territorial development zones etc.) are sufficiently implemented in the system of Russian legislation and economic practice. However, it should be recognized that there are significant gaps in the use of internationally recognized instruments to assist investors in the framework of contractual relations. In other words, today, regarding supporting the implementation of investment projects with state participation, only the necessary institutional, but not contractual environment has been formed, the latter being an indispensable requirement for attracting private (including foreign) investors. In this regard, the article considers one of the key elements of the international practice in supporting the implementation of investment projects with state participation — a direct agreement with senior creditors, and also contains a comparative legal analysis of such practice with the Russian system of legal regulation. The article concludes that it is necessary to expand the possibilities of using direct agreements in investment projects with state participation in Russia, and formulates proposals to bring their provisions in line with the best international standards.
Keywords: direct agreement, investment project, private investment, senior creditor (investor), state.
JEL: К12, L32
For citation: Kudelich M.I. Direct Agreements in Projects With State Participation: Comparative Legal Analysis. Financial Journal, 2019, no. 6, pp. 57–69 (In Russ.). DOI: 10.31107/2075-1990-2019-6-57-69.

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Valentina N. Parakhina, Olga A. Boris, Rustam M. Ustaev, Galina V. Vorontsova, Oksana N. Momotova
Possibility of Applying the PPP Mechanism in the Implementation of Smart City Projects, p. 70-82
Abstract
The relevance of the research topic is due to the search for funding sources and tools for implementing projects to create an urban management infrastructure using digital technologies. At the federal level, the Smart City project is included in the system of the national project Housing and Urban Environment and the national program Digital Economy, as well as in the state program Providing Citizens of the Russian Federation with Affordable and Comfortable Housing and ReevUtilities. The aim of the work is to study approaches to assessing the benefits and applicability of public-private partnerships as a mechanism for attracting private investors’ funds to create urban infrastructure using digital technologies. The research methodology includes a set of comparative analysis methods, point-rating and expert evaluations in terms of financing infrastructure projects for the development of urban economy. As a search for the best foreign practices in Russian practice, an analysis of theoretical approaches to assessing the ability of countries to implement financially sustainable and effective public-private partnership projects taking into account the international tool - the Infrascope index is carried out. It is shown that the possibility of implementing PPP projects has binary indicators, but at the same time, the acceptability of a particular legal form must be assessed taking into account the comparative advantage of PPP over budget procurement. According to the results of the analysis, the most popular and real forms of PPP implementation, if the object is information and communication technologies, are agreements (concession agreements) on PPP.
Keywords: public-private partnership, implementation form, model, state, business, financial resources, digitalization.
JEL: H54, F15, O19, R58
Acknowledgments
The reported study was funded by RFBR under the research project No. 19-510-40001 / Аbh-a
For citation: Parakhina V.N., Boris O.A., Ustaev R.M., Vorontsova G.V., Momotova O.N. Possibility of Applying the PPP Mechanism in the Implementation of Smart City Projects. Financial Journal, 2019, no. 6, pp. 70–82 (In Russ.). DOI: 10.31107/2075-1990-2019-6-70-82.

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Igor A. Yakovlev, Svetlana I. Nikulina
Indonesia’s Strategy for Sustainable Finance, p. 83-95
Abstract
According to the 2030 Agenda for Sustainable Development, inclusive green growth is considered to be the pathway to sustainable development. The transition to a resource-efficient green economy is especially challenging for developing countries due to a huge funding gap to implement the Agenda. Governments can play a proactive role in this process by incorporating sustainability factors into national financial systems to channel capital flows into green projects. Indonesia has greatly advanced toward a more sustainable financial system. Its experience in this sphere is especially valuable for the Russian Federation, which is currently shaping its policy of financing sustainable development. The study aims to identify the key facets of Indonesia’s strategy for sustainable finance. The authors outline the major aspects of Indonesia’s action plan and examine its regulatory framework for sustainable finance, including the domestic green bond market. They also analyze Russia’s current initiatives to promote sustainable finance at the national level. The authors come to the conclusion that the Indonesian strategy for sustainable finance is distinguished by specific objectives and principles of sustainable finance closely tied to national development priorities; a clear-cut action plan with time-bound measures to create a conducive environment for sustainable finance; a comprehensive regulatory framework embracing the entire financial sector; a phased approach to the transition to sustainable financing; and strong regulatory support for financial institutions during the transition period.
Keywords: sustainable development, sustainable financing, green economy, low-carbon economic growth, environmentally friendly projects, green investments, green bonds.
JEL: G28, Q56, Q01
For citation: Yakovlev I.A., Nikulina S.I. Indonesia’s Strategy for Sustainable Finance. Financial Journal, 2019, no. 6, pp. 83–95 (In Russ.). DOI: 10.31107/2075-1990-2019-6-83-95.

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Nataliya Yu. Tanyushcheva
Background of Anti-Money Laundering Regulation in Modern Economic Theory, p. 96-107
Abstract
The FATF (Financial Action Task Force) obtained the status of an intergovernmental organization, and published the first edition of anti-money laundering standards (40 Recommendations) in 1999. Economists have investigated money laundering typologies, as well as the principles, objectives, and financial instruments of anti-money laundering control, which are formed and implemented by governments and financial organizations in pursuance of anti-money laundering standards. At the same time, all authors mention FATF standards as something unshakable, not subject to discussion. The theory and methodology of anti-money laundering regulation's impact on financial institutions, national financial systems, international finance, and macroeconomics have been developing fragmentarily. We study the known forms of supranational regulation of financial sectors and the vector of their evolution, and present the prerequisites of anti-money laundering associated with the negative impact of money laundering on the economy and society.
Keywords: anti-money laundering regulation, FATF, money laundering, anti-money laundering regime
JEL: E26, F38, F65
For citation: Tanyushcheva N.Yu. Background of Anti-Money Laundering Regulation in Modern Economic Theory. Financial Journal, 2019, no. 6, pp. 96–107 (In Russ.). DOI: 10.31107/2075-1990-2019-6-96-107.

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Nurilya K. Kuchukova, Lyazzat A. Talimova
Financial and Economic Development of Kazakhstan: Implementation of Investment Opportunities, p. 108-125
Abstract
The article is devoted to the study of investment opportunities of Kazakhstan for accelerated technological modernization of the economy, since in the new global reality, active innovative industrialization of the country is the most important priority of the new model of economic growth in the framework of the fourth industrial revolution. The article discusses ways to solve the problem of the lack of sufficient financial resources for a quality update of fixed assets of the industry. For the Republic of Kazakhstan, the most attractive sources of financing for industrial and innovative activities are foreign investments, the development of a guarantee system that will expand the possibilities of bank lending, as well as the use of syndicated lending and venture investment mechanisms. In addition, an important way to attract portfolio foreign investment in the country along with direct foreign investment is to develop the stock market, in particular, the Astana International Financial Center, which will facilitate the entry of large institutional and private investors into the Kazakhstani market. It is concluded that in order to attract potential investors to the Kazakhstan market, it is necessary first of all to reduce taxes, because currently the total tax rate in Kazakhstan is high. Along with this, it is necessary to introduce incentive incentives specifically for investment in the manufacturing sector, since at present the bulk of investments are in the extractive industry.
Keywords: financial and economic development, investment opportunities, Kazakhstan, the fourth industrial revolution, sources of financing investments, Astana International Financial Center, digital technologies.
JEL: H54
For citation: Kuchukova N.K., Talimova L.A. Financial and Economic Development of Kazakhstan: Implementation of Investment Opportunities. Financial Journal, 2019, no. 6, pp. 108–125 (In Russ.). DOI: 10.31107/ 2075-1990-2019-6-108-125.

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Financial Journal № 5(51) September-October 2019

CONTENTS

Olga V. Bogacheva, Oleg V. Smorodinov
Management of “Transit” Revenues of the Federal Budget in Russia, p. 9-20
Abstract
The article is dedicated to issues related to management of the so-called transit revenues in modern budgeting in Russia. By “transit” revenues the authors mean the category of non-tax budget revenues which are managed outside of established budgetary procedures, are not reflected in federal laws on budget, and are only included in the annual budget execution reports prepared by the Russian Treasury. The authors focus on the two most widespread types of “transit” revenues, i.e. on revenues of foreign establishments from legally permitted activities, and on remaining balances of subsidies and other targeted inter-budget transfers, returned to the federal budget. The major problem of “transit” revenues is that their volume increase and scope extension could cause additional risks associated with stability and robustness of the Russian budgetary system. As a result of the analysis, it was concluded that there is no universal solution to this problem, since each type of “transit” revenues is caused by its own reason or group of reasons. The authors analyze modern international experience in similar areas of revenue management and assess the viability of its application in budget revenue management in Russia. “Transit” revenues of foreign establishments originate from their unique legal status, allowing them to keep part of the revenues in the current year and/or in the future periods. Thus, they function in accordance with the net budgeting principle. As for “transit” revenues originated from the return of remaining balances of inter-budget transfers to the federal budget, their growth could be limited by the introduction of a new budgetary instrument, namely a revenue plan.
Keywords: federal budget, non-tax revenues, consolidated budget allocation, revenues of foreign establishments, inter-budget transfers, reserve fund of the Russian Government
JEL: H27, H61
For citation: Bogacheva O.V., Smorodinov O.V. Management of “Transit” Revenues of the Federal Budget in Russia. Financial Journal, 2019, no. 5, pp. 9–20 (In Russ.). DOI: 10.31107/2075-1990-2019-5-9-20.

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Boris I. Alekhin
Russia’s Fiscal Sustainability. What Bohn’s Test Has Revealed, p. 21-36
Abstract
Sustainability of Russia’s fiscal policy in 1999–2018 was explored by applying Bohn’s test to 20 annual observations and 79 quarterly observations. Budget policy is sustainable as long as primary surpluses positively and significantly respond to changes in the debt-GDP ratio. The test revealed that in both samples the fiscal reaction is positive and significant for total and external debt ratios, and negative and significant for domestic debt ratio. So, overall Russia’s fiscal policy was sustainable in 1999–2018. Large revenues from oil and gas exports secured a modest budget surplus, on average, over the period, thus reducing the demand for borrowed funds and producing a very low domestic debt ratio. As Bohn notes, “an inefficiently low level of public debt” may explain why the test fails in certain economies. 
Keywords: government debt, fiscal policy, fiscal sustainability, Bohn’s test
JEL: E62, F34, F41, H6, H68
Acknowledgments: The author is grateful to reviewers for constructive criticism of the manuscript.
For citation: Alekhin B.I. Russia’s Fiscal Sustainability. What Bohn’s Test Has Revealed. Financial Journal, 2019, no. 5, pp. 21–36 (In Russ.). DOI: 10.31107/2075-1990-2019-5-21-36.

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Mariia A. Elkina
The Impact of Indirect Tax Rates Cut on Inflation: Evidence From Russia, p. 37-49
Abstract
The article analyzes the inflationary effect of the value added tax rate cut and abolishment of the sales tax in Russia in 2004. For this purpose, a panel regression with inflation rates of 39 CPI items is estimated for the period from 2000 to 2007. The results indicate that during the period of the indirect tax reform there was a significant divergence between items which experienced a tax rate change and those which did not. This effect starts before the implementation of tax rate changes, lasting for three months and amounting to −0.3 p.p. each month. The overall impact on inflation is estimated at − 0.6–0.7 p.p. in annual terms. Hence, the indirect tax pass-through was far from being full in 2004. Consequently, producers and retailers were the ones who gained the most from the tax rate cut in 2004. Empirical evidence indicates that a cut in indirect tax rates is rather a way to support producers and retailers than a policy which can stimulate consumption.
Keywords: pass-though effect, value added tax, sales tax, indirect taxes, inflation, consumer prices, fiscal policy
JEL: H20, E62
For citation: Elkina M.A. The Impact of Indirect Tax Rates Cut on Inflation: Evidence From Russia. Financial Journal, 2019, no. 5, pp. 37–49 (In Russ.). DOI: 10.31107/2075-1990-2019-5-37-49.

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Victoria V. Priobrazhenskaya
The Impact of Digital Economy on Accounting Competencies, p. 50-63
Abstract
Professional competency transformation in the digital economy development process is inextricably linked with the future profession configuration. The situation is complicated by uncertain profession prospects due to conflicting forecasts and the lack of comprehensive system solutions in this area. The research objective is to analyze the accounting development prospects based on the general neoclassical structural concept and to outline the directions for competencies development in each area of accounting: theory, practice, and methodology. To study the accounting profession prospects in terms of relevant digital economy options, we used the epistemology and science philosophy methodology, the concepts of economic theory, and political economy provisions. The main result is the provision on the rising value of accounting competencies influenced by the widespread use of digital technologies. This conclusion is based on the following factors. Descriptive methodology is consolidated at the national and international levels, as a result of which the value of professional judgment increases. Digital technologies reduce routine work and stimulate the development of creative accounting activities. This entails growth in professional judgment competence, which extends to the entire neoclassical scientific organization triad. In the theoretical scope, digital technologies stimulate competencies in the form of developed knowledge, providing a holistic view of economic relation patterns, and explaining the methods, techniques and rules for accounting process implementation. In the practical field, digitization produces digital skills development. Exemption from the routine accounting practice leads to labor process restructuring and an increase in the intellectual component and value of mental abilities. In the methodology field, knowledge at the junction of fundamental theoretical accounting issues with a simultaneous confident understanding of the digital economy functioning (as a whole and across its individual elements) is supposed to be in demand. The proposed systematic approach removes uncertainty and opens up accounting prospects, makes it possible to outline the directions of relevant specialist training in the field of mental digital economy reflection, and contributes to enhancing the accounting profession’s prestige. 
Keywords: digital economy, accounting, accounting profession, neoclassical accounting concept
JEL: M40, M41
For citation: Priobrazhenskaya V.V. The Impact of Digital Economy on Accounting Competencies Development. Financial Journal, 2019, no. 5, pp. 50–63 (In Russ.). DOI: 10.31107/2075-1990-2019-5-50-63.

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Kristina V. Shvandar, Anastasia A. Anisimova
World Experience of Pension Guarantees in Voluntary Pension Plans, p. 64-73
Abstract
The article deals with the provision of pension guarantees in voluntary pension systems. The importance of guarantees is due to the increasing role of non-state pension systems in international practice. World experience shows that problems within the framework of voluntary pension schemes are largely related to the issue of trust in the pension system. Solving the latter is interrelated with the necessity of consideration of guarantees. The article analyzes the pension guarantees in the legislation of different countries in order to identify opportunities to use international experience in legal regulation for the development of the pension system in the Russian Federation. The paper describes the fiduciary standards in voluntary pension schemes in different countries, as well as the principles of the OECD in financial protection of pension plan participants, implemented in the national legislation of the countries. The issue of investment return guarantees is particularly important in the context of voluntary pension schemes with defined contributions. The analysis helps to identify that Russia needs an introduction of legal frameworks of guarantees regulation to increase the number of participants in the voluntary pension system. The guarantee in voluntary pension schemes will be critical if the automatic enrollment mechanism is introduced in the Russian Federation as part of the system of individual pension capital. In particular, an important point is the introduction of a system of guarantees for participants’ rights as a concept in the Russian private pension system, as well as the implementation of basic legal principles and characteristics of this system.
Keywords: investment return guarantees, automatic enrollment mechanism, fiduciary standards, voluntary pension plans, licensing of pension funds
JEL: H20, E62
For citation: Shvandar K.V., Anisimova A.A. World Experience of Pension Guarantees in Voluntary Pension Plans. Financial Journal, 2019, no. 5, pp. 64–73 (In Russ.). DOI: 10.31107/2075-1990-2019-5-64-73.

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Anton I. Votinov, Samvel S. Lazaryan, Vyacheslav N. Ovchinnikov
Regression-Based Decomposition of Income Inequality Factors in Russia, p. 74-89
Abstract
The purpose of this study was to identify the factors of income inequality in Russia using RLMSdata (2009–2016). In this paper inequality refers to differentiation in equivalent household income, adjusted for the cost of the consumer basket in the regions of Russia. To solve the problem, we used regression decomposition of the inequality index. According to the results, such factors as “the share of children in households”, “the size of households” and “the share of non-working adults” had the largest positive contribution to the inequality index. The “region of residence” factor, which is usually considered as the key factor of inequality in Russia, had an equalizing effect. This is due to the fact that we analyzed differentiation in the standard of living. Indeed, we calculated the dependent variable of income, adjusted for the cost of the consumer basket in the relevant region. Thus, the level of inequality was not affected by the regional attribute, but rather by the differentiation of other significant factors of the regions. The obtained results can be used for a deeper study of the causes of changes in inequality.
Keywords: income inequality, household, regression decomposition, quartile
JEL: D31, C51
For citation: Votinov A.I., Lazaryan S.S., Ovchinnikov V.N. Regression-Based Decomposition of Income Inequality Factors in Russia. Financial Journal, 2019, no. 5, pp. 74–89 (In Russ.). DOI: 10.31107/2075-1990-2019-5-74-89.

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Marina B. Trachenko, Anastasia V. Kozhanova
Specifics of Startup Financing at Different Stages of the Life Cycle, p. 90-103
Abstract
Given the limited bank lending instruments, there is an active expansion of the financial intermediary market and financial instruments for startups, which are the main subjects of development for any country’s innovative economy. This creates an increased interest in the study of the specifics of these companies’ financing structure. The purpose of this study is to systematize the sources, forms and instruments of startup financing depending on the life cycle stage, as well as to examine their application in Russian practice. The methods used include bibliographic and logical analysis, comparison, synthesis and systematic approach, classification, and mathematical methods of statistical data processing. The result is a developed classification system for startup financing sources where the most salient subjects and providers of the investment process, the tools they use, and forms of financing have been identified for each stage of the startups’ life cycle. The presented classification can be applied in developing programs, strategies, and regulatory documents both by the government and private companies. A comparative analysis of the startup financing structure at the seed and early stages in Russia and Europe has revealed a number of significant differences: the largest share in Europe belongs to business angels, as opposed to crowdfinancing and venture funds in the Russian Federation, the share of the latter growing while the share of business angels is decreasing; in addition, in Russia, state investments in startups through both venture funds and corporations with state share have considerable weight.
Keywords: startup, startup life cycle, startup financing, risk, innovation company, crowdfinancing, venture investments
JEL: G21, G23, G24, O30
For citation: Trachenko M.B., Kozhanova A.V. Specifics of Startup Financing at Different Stages of the Life Cycle. Financial Journal, 2019, no. 5, pp. 90–103 (In Russ.). DOI: 10.31107/2075-1990-2019-5-90-103.

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Ivan A. Belarev, Elena B. Starodubtseva
ICO as a New Form of Financing of Innovative Business, p. 104-118
Abstract
Nowadays, innovative business is looking for new ways of raising capital for its financing. More traditional sources of financing are not always available, or are quite expensive due to the high risk involved. However, they are being replaced by new financing instruments. One of these is the issuing of tokens, which are then placed on the stock exchange, thereby attracting the necessary capital in exchange for cryptocurrency. Despite the fact that ICO has appeared relatively recently, it has made it possible to attract a significant amount of money exceeding the volume of venture financing, which is a more traditional instrument of financing for innovative business. The purpose of this article is to analyze this financing instrument, and to identify problems and prospects for its development in the short term. The essence of the instrument in question has some similarities with IPO, although, in contradistinction to IPO, investors of ICO do not receive the right to participate in capital and the right to receive dividends. Entrepreneurs are also free from debt obligations. Herewith, the process of issuing tokens is accompanied by a kind of prospectus, and the offering takes place both on the stock exchange and on the over-the-counter market. The short period of existence of this instrument leads to a number of problems, among which the most significant one is the absence of unified regulation in terms of recognition and classification of tokens, licensing, evaluation, auditing etc. However, in the coming years, the demand for this form of financing will be increasing, as shown by econometric analysis.
Keywords: innovative business, ICO, tokens, cryptocurrency, capital, financing
JEL: F21, F37
For citation: Belarev I. A. Starodubtseva E. B. ICO as a New Form of Financing of Innovative Business. Financial Journal, 2019, no. 5, pp. 104–118 (In Russ.). DOI: 10.31107/2075-1990-2019-5-104-118.

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Alexander M. Karminsky, Ekaterina V. Seryakova
Assessment of Cross-Border Transmission of Systemic Financial Risk in EU Countries, p. 119-129
Abstract
Amid global financial instability timely identification and propagation of systemic risks within both national and international banking systems becomes essential. It implies that it is highly important to assess not only inner factors of systemic banking risk and channels of its propagation, but also external sources which are due to cross-boarder spread of systemic banking risks. This article focuses on researching cross-boarder mechanism of systemic risks spread using method of decomposition of the variance of errors of VAR-models basing on monthly aggregated country-level indices of financial stress for EU-countries (CLIFS: Country-Level Index of Financial Stress). This investigation seems to be acute for coordinating macroprudential policies of national regulators of EU- countries and mastering macroprudential policy of Bank of Russia due to high globalization of financial markets of EU-countries and growth of financial innovations. The matrix of connectedness of 27 countries belonging to EU allows to obtain index of systemic connectedness (84 %), which reflects high dependence of each country on external shocks transferred from other countries-members of EU. Indices of net connectedness allow to divide countries into two groups: net-acceptors and net-donors of systemic risks. Empirical analysis has confirmed the hypothesis that countries subject more to inner shocks — Greece, Cyprus, Bulgaria and Croatia- have really survived starting from 2008 banking crises, explained with internal imbalances of banking systems.
Keywords: systemic risks, banking system, transmission of banking risks, financial stability
JEL: Е69, F30, G17, G21, G32
For citation: Karminsky A.M., Seryakova E.V. Assessment of Cross-Border Transmission of Systemic Financial Risk in EU Countries. Financial Journal, 2019, no. 5, pp. 119–129 (In Russ.). DOI: 10.31107/2075-1990-2019-5-119-129.

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Financial Journal № 4(50) July-August 2019

CONTENTS

Gulnara F. Fatkhlislamova
Competition Among Non-State Pension Funds in the Russian Pension Market, p. 9-23
Abstract
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.

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Lyudmila A. Kormishkina, Lyudmila P. Koroleva
The Maternity Capital as a Tool of State Redistribution Policy, p. 24-35
Abstract
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.

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Makar I. Kudelich
Regulatory Requirements System for Estimation of National Projects Efficiency: Current Problems, p. 36-49
Abstract
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.

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Galina E. Besstremyannaya
Strategies for Growth Through Mergers and Acquisitions: Evidence From Russian Companies, p. 50-59
Abstract
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.

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Vladimir V. Klimanov, Sofia M. Kazakova, Anna A. Mikhaylova
Functions of Supreme Audit Institutions in Russia and Foreign Countries, p. 60-74
Abstract
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.
JEL: H83
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.

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Elizaveta V. Anufrieva
Influence of Macroeconomic Factors on the Return of Russian Stock Exchange Indices, p. 75-87 
Abstract
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.

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Olga N. Kuznetsova
Accounting and Control of Doubtful Debts Reserves, p. 88-101
Abstract
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.
JEL: M42
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.

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Nataliya G. Filatova
Improving the Credit Rating of Loan Recipients Implementing Long-Term Investment Projects, p. 102-115
Abstract
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.

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Alexander A. Tischenko
Perception of the Term “Collateral Portfolio”: Modern Aspect, p. 116-129
Abstract
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.
JEL: G21
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.

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