Vol 14, No 3 (2020)
- Year: 2020
- Articles: 6
- URL: https://journal-vniispk.ru/2073-0438/issue/view/20050
- DOI: https://doi.org/10.17323/j.jcfr.2073-0438.14.3.2020
Full Issue
New Research
Investments in Contemporary Russian Artwork as an Alternative Form of Investment
Abstract
In the last decades of the 20th century, various classes of alternative investments have become increasingly popular among investors. During this time, art as a form of alternative investment attracted attention not only from potential buyers but also from academic scholars. Unfortunately, only a few of the newly published papers contained any quantitative analysis with regard to art’s investment performance. Besides, even a smaller amount of research was devoted to the analysis of Russian art markets. Therefore, the purpose of this work is to evaluate the efficiency of investments in the artworks of contemporary Russian painters and to compare the effectiveness of these investments with the effectiveness of investments in stock, bond and real estate markets in Russia and the USA. For this research, we first conduct a hedonic regression analysis on the data available for 1950-2019 time period. After that, we build a hedonic price index for the canvases of contemporary Russian artists. According to the results, the trend of this index reiterates largely the price behavior for world contemporary art market. However, the results of this study indicate that investments in contemporary Russian art do not outperform investments in instruments of Russian and American capital and real estate markets. These results were derived by applying the CAPM model which demonstrated that Russian art as a form of alternative investment is not advisable for the purposes of diversification of investment portfolios. Based on these findings, contemporary Russian art in general can be considered an unattractive instrument for Russian and foreign investors.
7-18
The Receipt of Grants as a Key Determinant of Venture Investment Size in Russia-based IT Startups
Abstract
Since 2006, Russian policymakers have been actively taking various measures to stimulate the venture capital market. Government venture capital funds are being created, for example, the Russian Venture Company with a capital of 15 billion rubles. Since 2011, thanks to the new legal mechanism, state-owned companies begin to invest in private venture funds. These measures have led to increased fundraising for startups. The main mechanism of such financing is grant support for young companies. According to 2018, the amount of grants to the total amount of funds raised in Russia is one of the highest among developed and developing countries, for comparison in the USA, it is more than 2.5 times lower. The venture market specifics is such that when deciding whether to invest in a company, investors inevitably turn their attention to the previous rounds of financing the company. The purpose of the work is to analyze the effect of the money grant received on the volumes of attracting subsequent financing.
To analyze the impact of the receiving money grant, the determinant approach was used, as the most common in research on this topic. Based on a sample of 184 Russian IT startups, two OLS models have built to show the effect of money grant size to follow-on investment rounds.
As a result, various sets of determinants were considered that explain the volume of investments attracted by startups for both international markets and the Russian market. In addition, an excursus was conducted to study the effectiveness of government venture funds, which are the main grantors in the Russian venture market. Based on the results of previous studies on this topic, it was shown that the size of the money grant has a positive effect on the amount of funding attracted in both follow-on rounds. For comparison, a number of previous studies of the Russian venture capital market show that the investment size of the current round has influenced only by the previous fundraising. Such a result testifies to the attractiveness for investors Russian IT startups that received grant support.
The scientific novelty of the article is that the amount of funding attracted by startups is explained by such a specific indicator as grant support. In addition, the results obtained have certain practical value for those who invest in Russian startups. Investing in startups that received grants increases the likelihood of an exit for the investor in the next investment round.
19-27
Factors Influencing the Professional Conduct of Auditors in the Dialogue on Going Concerns: A Study of the Banking Sector
Abstract
This article is dedicated to exploring the dialogue between shareholders, management, partners, government and auditors regarding the status of banking sector entities as ‘going concerns’. The purpose of this article is to develop and validate an approach to the study of factors influencing auditors’ opinion on going concerns.
The authors identify factors which affect auditors’ professional conduct in establishment of an opinion on an entity as a going concern. Articles were retrieved from the Scopus and Web of Science databases and analysed for relevant factors, and a number of research hypotheses are formulated, among which the modification of legislative regulations on banking
and auditing activity is identified as a key factor. The state of auditing activity and the banking sector during 2009-2019 is evaluated. Additionally, in order to identify periods during which a significant influence of a selected factor is expected, a novel analytical method was devised based on the nature of modifications of legislative regulation of banking and auditing activity and the period of such modification.
The following factors are significant influences on auditors’ decisions on the going concern status of credit organisations: evolution of auditing standards, implementation of external audit quality control, development of banking regulation and supervision, and interaction of auditors with financial institutions and regulators. Evidence was also discovered of conclusions recorded against entities inconsistent with the real conditions of individual banks.
The authors have established a basis for an integrated study of the influence of factors on the professional conduct of auditors in providing opinions on the going concern status of audited entities, and have proposed further research prospects as related to establishing and measuring the relationship between audit report types based on bank statements and factors describing the results of their activities.
28-50
Assessment of Influence of External Factors on Financial Stability of Construction Companies
Abstract
When Russian construction companies switch to project financing they face a number of problems which have a negative impact on their operations. While a company is able to influence internal factors (such as resources, capital, their utilization efficiency etc.) it is virtually impossible to control external factors (inflation, unemployment, government policy etc.). These factors make a company less stable financially. One of manifestations of financial stability is resistance to external environmental disturbances. External factors influence corporate financial stability, they are mortgage rate, price increase index etc. Defining the extent of influence of external factors will help to mitigate the impact of external environment, alleviate the consequences. This makes the topic of the research relevant and increases the significance of analysis of external factors which influence corporate operations.
In this paper we conducted content analysis of the financial stability definition; evaluated financial stability of 50 construction companies of the Siberian Federal District; selected statistical information by constituent entities of the Siberian Federal District which influences construction companies’ operations; assessed influence of the selected factors on financial stability of construction companies applying the binary choice model (logit model). The research showed that mortgage rate, consumer price index and nominal average salary influence construction companies of the Siberian Federal District. If influence of these factors is taken into consideration when planning and managing construction companies’ resources they will be able to resist the impact of external environment and improve their financial stability.
51-62
Methods
Review of Methods and Tools for Intellectual Property Analysis of Public Sector Entities
Abstract
The low efficiency of intellectual property (IP) in the public sector in our current economic environment is largely due to the insufficient development of the prevailing accounting and analytical system. Analytical methods, and the information basis of their application, are the core of this system. The formation of an accounting and analytical system consistent with the development priorities of public sector entities requires special research.
This article provides a review of the methods and tools of analysis used by Russian and foreign scientists in the field of IP. Our research sample comprises 52 foreign and 39 Russian sources. Through a detailed textual analysis process, we systematise the existing methods used in the analyses of certain aspects of intellectual activity, and assess the information disclosure therein. Our evaluation is targeted towards identifying prospects for harmonising Russian and international approaches, and provide the groundwork for the improvement of accounting and analytical support for IP management in the public sector.
Our results reveal possibilities for expanding the system of IP analysis methods for solving problems in the field of the IP economics and management on the basis of patent analytics. We also collate and classify patent analytics methods, and identify existing methodological problems at the macro- and microeconomic levels. Analytical methods are grouped in accordance with three stages of the reciprocal model of IP accounting and analysis in the public sector, developed within the framework of a novel theoretical and methodological approach.
In conclusion, we illustrate the potential for applying the methods of nonlinear dynamics and the dynamic theory of innovation (re: patent information) to determine the trajectories of public sector entity development concerning levels of information disclosure. We also identify areas for follow up research revealed through our analysis.
63-89
Corporate Cash Flow Transformation and Payment Space Digitalisation in the Eurasian Economic Union
Abstract
Modern digital systems in the EEU do not meet the requirements for official methods of transferring funds, and are not appropriate for use in the field of corporate finance. As such, we propose the development of a modified digital system combining the principles and capabilities of traditional and innovative systems based on distributed registry technology.
This should promote integration of national payment systems into the financial sphere under conditions of sanction burden, and low trust in the virtual world.
First, we outline the features of corporate cash flows through digital financial assets transfer in a national digital system, and cross-border settlements within a common digital payment space. Next, we describe the possible roles of corporate structures and individuals in payment systems within an EEU common digital payment space. We combine methods of formal logic, historical and comparative analysis, modeling, and graphical interpretation. The study of the digital financial space was carried out on a selection of materials from the Russian Federation, Armenia, Belarus, Kazakhstan, and the Kyrgyz Republic.
Our results illustrate the practical value of a new digital system in reducing the influence of intermediaries, and of integrating systems with different types of information into a common database. In addition, we indicate how the prevailing international digital transfer system will accelerate, simplify and reduce the cost of cash flow procedures for organisations.
By leveling the need for an international digital unit, such a system will play an intermediary role. We identify the necessary conversion operations to achieve this.
The scientific novelty of this study resides in the fact that there is no current analogue for the project proposed herein. As such, we present a large scale and straightforward roadmap for an ambitious and adaptive response to digital development opportunities, social evolution, and financial obstacles.
90-102