Financial Journal № 4(10) October 2011
One for All and All for One: Euro Crisis
The work analyzes the euro zone problems that escalated in the world financial crisis environment and traces the history of the European currency establishment. It also discusses sovereign debt of the Euro zone countries, primarily, those of Greece, and the ways to resolve such problems. It stresses the absence of alternatives for the collective financial responsibility of the European Union.
Key words: euro zone, European Union, euro crisis, the Treaty of Maastricht, public expenditure cuts, default on sovereign debt
Т. Soboleva, А. Chechkin
Radicals Environment-Based Modeling of the Economic System Problems
The article deals with IT security of complex critical systems (CCS) that are widely employed in economics currently. It offers a unified CCS IT system model implemented in the form of the radicals environment that forms the basis of the intellectual CCS superstructure.
Key words: network model, radicals environment, systems intellectualization, IT systems security, economics system problems area
Second Wave of the Crisis: Myth or Reality
The article discusses possibility of the second wave of the global crisis and analyses the reasons and possible implications of the crisis for the leading economies of the world. Analysis of the current condition of the US and the European Union countries financial systems is presented. The emphasis is on the need for a solution preventing capital flight from Russia within the nearest term.
Key words: global crisis, international economy, sovereign debt, consumption model, tax policy
Modern Currency Interventions of Japan
The article reviews theory and practice of currency intervention in Japan and identifies the efficiency assessment criteria of such interventions and on this basis analyses efficiency of contemporary currency interventions in Japan (2010–2011) in the immediate, short, medium and long term. Reasons for the failures of financial agencies of Japan are identified.
Key words: exchange rate, currency interventions, efficiency of interventions, efficiency assessment criteria
Price Variance: Random Walk or Chaotic Process?
The article reviews the hypothesis of chaotic nature of the financial assets price dynamics. The said hypothesis was tested using the basic A. Lempel and J. Ziv algorithm of determination of the stochastic behavior of the process, calculation of the correlation dimensionality of the dynamic series, etc. Calculations were based on the data on the major Russian companies’ stock yield during the 2008 crisis.
Key words: chaos theory, efficient market hypothesis, price dynamics forecasts, random price movements
А. Borodin, N. Kiselyova, N. Shash
Assessment of the Regional Environmental Programs Efficiency
Development and implementation of regional budget-financed programs could be perceived as an attempt at unification of all instruments for achievement of the regional policy objectives for the purposes of resolution of the most complex problems. The article presents analysis of the regional programs’ features; discusses principal approaches to assessment of their efficiency, reviews the principles and algorithm of the regional environmental programs efficiency assessment. Assessment of the environmental protection program implemented within the territory of Belgorod Oblast is presented.
Key words: target program management, program budgeting, regional budget-financed program, regional budget-financed programs efficiency assessment, environmental programs assessment principles, environmental programs efficiency, efficiency assessment algorithm
Incrementalism Concept and Evolution Thereof
The article presents historical milestones of the incrementalism theory development and reviews the concept thereof developed by A. Vildavsky on the basis of the US budget development data. A new method of verification of budget incrementalism as an iterative event is presented. The article concludes on its possible use for investigation of the modern budget process.
Key words: A. Vildavsky incrementalism theory, budget incrementalism, budget process, allocations and requisitions, budget cycles
Polycentrism Trend in the Global Currency System
The article discusses problems and prospects of the USD and euro functioning within the context of global finance evolution. It defines the global financial and economic crisis and the Euro Zone crisis, as well as the anti-crisis measures developed by the European Union. The polycentrism trend within the global currency system is reviewed. The author also discusses global interests and position of Russia and presents a forecast of the country’s development within the context of the global financial trends.
Key words: euro zone, global currency system, US dollar, euro, multipolarity, polycentrism, global financial and economic crisis
End Income Recipient Concept in the International Tax Environment
The article generalizes and systemizes international experience of counteraction of the international tax treaties abuse and presents a substantial analysis of the «end income recipient» concept. It presents the analysis of the impact of various principles within the concept on behavior of the businesses, defines the role thereof as an instrument of counteraction of the international tax treaties abuse. The methods of enhancement of such counteraction in Russia are defined.
Key words: double taxation, end income recipient concept, counteraction of front and intermediary companies, tax evasion, abuse of international treaties
Yu. Allenov, P. Kradinov, G. Shakhova
Long-Term Financial Plan: Regional-Level Development
The article proves the need for long-term financial planning in the current environment. It reviews the place and role of long-term planning in the regional-level budget process. Procedure of interaction among the budget process participants in development of the plan and the measures for acceleration of implementation of the long-term financial planning is presented. Special focus is on the target indicators calculation methods.
Key words: long-term financial planning, long-term financial regional plan, budget process, budget legislation
Tax Administration Efficiency Assessment Methodology
Currently, Russia has no unified methodology of assessment of the tax agencies control efficiency. The article presents an original methodology based on application of independent indices and coefficients. It enables significant enhancement of the objectivity of assessment, comparison of the regional tax agencies’ results with those of the federal agencies and could have a general beneficial effect on the tax administration efficiency.
Key words: tax administration, tax control, efficiency assessment, efficiency criteria, efficiency indicators
Capital Outsourcing as an Innovative Form of Financing
Discussion of the economic, financial and organizational essence of leasing, factoring and forfeiting reveals the outsourcing component thereof. The article presents a comparison of such services and their evolution in the crisis and post-crisis periods (2008–2009).
Key words: financial services, leasing, factoring, forfeiting, outsourcing, bank loan, commercial credit, mixed credit, crisis
Generation of the State Innovation-Based Development Programs
The article reviews the methodology of integration of the federal and industry-specific target programs in the state program packages. As a solution for the said objective the author identifies composition principles of the synthesis of various programs’ elements. Possible approaches and procedure of such integration are demonstrated using development of the state programs of regulation of the innovation-based development and modernization of the Russian economy as an example.
Key words: state program, federal target program, national innovation-based system, management system
World Financial Markets Dynamics
The article discusses the prospects of the international financial markets development and presents their 2011 dynamics forecasts. The emphasis is on the Russian market in the post-crisis period. Implementation of the positive potential impact of the financial market on economic development appears to be one of the major objectives of the Russian economic policy.
Key words: financial crisis, world financial market, Russian financial market, stock market, forex market, Russian financial market institutes
Debt Policy of Russia: New Trends
The article discusses current debt policy of Russia. It is stressed that the sovereign debt management strategy was selected under the classical A. Wagner theory — domestic debt is the priority. Analysis of the Russian debt market status and prospects is presented. The conclusion is that sustainable economic growth depends on the domestic capital market growth.
Key words: financial policy, debt policy, liquidity, domestic debt, debt management, sovereign securities
Synergy Effect in Mergers and Acquisitions
The article reviews principal approaches to efficiency assessment of the M&A transactions, analyses the synergy effect concept in application to such transactions and the methods of determination thereof. An approach whereby the synergy effect of the actual transaction is defined as the result of transformation of the system expressed as the additional income amount is proposed.
Key words: mergers and acquisitions, synergy effect, economic efficiency, criteria of efficiency, subadditivity and superadditivity effects
Attracting Direct Investment: Regional Practice
The article rationalizes the need for theoretical and application studies of investment management of the federal and municipal levels and analyzes investment volumes against the level of social and economic development of the regions within the Central Federal District. Kaluga Oblast is used as an example for identification of the promising regional investment policy directions.
Key words: investment, state investment policy of the regions, budget expenditure, attracting investment
Post-M&A Business Valuation
The article discusses the theoretical basis of post-M&A business valuation and the applicable analytical methods. It presents practical expert assessment of the transaction efficiency using the transaction between two major retail operators that resulted in a new company - в результате которого образовалась новая компания X5 Retail Group, as an example.
Key words: market value of the company, revenue-based approach, net profit, profit capitalization method
Establishment of Communication Competency
The article views the competency approach as the fundamental basis for the professional education content which promotes efficient development of communication competency of the finance and economics university students. It presents original concepts that target further implementation of the communication technologies in the education and professional studies.
Key words: competence approach, communication competence, communication technologies