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Research on the Corporate Financial Decisions of Russian Companies and Companies of other Emerging Capital Markets under Pressure of the Global Transformation of Capital Markets and the Formation of an Innovation Economy

Priority areas of development: economics

The aim of the study, conducted in 2012 by Corporate Finance Center, was to identify key and specific characteristics of Russian companies' financial decisions in building their financial architecture and the impact of that architecture on company performance in comparison with the largest emerging capital markets (including the BRICS countries), and European companies experiencing a transition to an innovation economy and a transformation of financial markets.

The object of the study includes a sample of large companies from emerging capital markets of the BRICS countries (Brazil, Russia, India, China, and South Africa) and Eastern Europe. The subject of the study is the complex of corporate financial decisions.

For the research, samples of large companies from BRIC and Eastern Europe were collected from the Bloomberg database, Bureau Van Dyke (Ruslana, Amadeus, Zephyr), official company websites, stock exchange websites, and the Arbitration Court of Russia.

The study revealed the below results.

Capital structure choice in emerging markets can be explained by the dynamic trade-off theory, but the predictions of pecking order theory could better explain the choices of medium-size Russian companies. Dividend policy in the BRIC countries can also be described by the dynamic Lintner model. An analysis of the impact of financial architecture on the efficiency and strategic effectiveness of Russian companies found that modeling of Russian companies’ performance could be conducted within the integrated model that includes all the elements of the financial model. An analysis of the corporate control market has shown that the operating performance of companies involved in M&A deals in emerging markets is rising, however, the value of the companies in the long-term is not necessarily increasing. It was revealed that the effectiveness of deals depends on the level of international diversification, showing a U-shape influence. An analysis of IPO returns in emerging markets has revealed cross-country differences explained by the levels of business cycles, financial market development, and institutional characteristics. Developed sustainability indices are based on the economic profit criterion and could be used to forecast the return on equity in emerging markets.  It was revealed that the entropic models of required return on equity could explain the required return on equity in emerging markets better than the classic CAPM model.  

The research results were presented and discussed in 16 reports at Russian and international conferences (five more presentations were accepted for 2013 conferences) and published or accepted for publication in 28 articles in national and international scientific journals.

The results obtained in the framework of the project cannot only improve the learning process of HSE but could also be used in the preparation of two collective monographs, devoted to corporate financial architecture and mergers and acquisitions in emerging markets, that are to be published in 2013.  

The results obtained could be applied in the management of Russian companies through the comprehensive use of the revealed relationships in the financial decisions and key characteristics of firms to improve company performance for both the short- and long-term.


Yury D., Sofya F. An asymmetric approach to the cost of equity estimation: empirical evidence from Russia / Высшая школа экономики. Series FE "Financial Economics". 2012. No. 12/FE/2012. 
Ивашковская И. В., Кокорева М. С. Мотивы выбора структуры капитала на развивающихся рынках, in: Корпоративные финансовые решения. Эмпирический анализ российских компаний (корпоративные финансовые решения на развивающихся рынках капитала). Москва : ИНФРА-М, 2011. С. 34-47. 
Дранев Ю. Я. CAPM-Like Model and the Special Form of the Utility Function // Корпоративные финансы. 2012. № 1. C. 33-36. 
Dranev Y. CAPM-Like Model and the Special Form of the Utility Function // Корпоративные финансы. 2012. Vol. 21. No. 1. P. 33-36. 
Stepanova A., Ivantsova O. Does Corporate Governance Have an Effect on Performance in the European Banking Sector? Evidence from a Crisis Environment / Высшая школа экономики. Series FE "Financial Economics". 2012. No. 10. 
Дранев Ю. Я., Нурдинова Я. С., Редькин В. А., Фомкина С. А. Модели оценки затрат на собственный капитал компаний на развивающихся рынках капитала // Корпоративные финансы. 2012. № 2. C. 107-117. 
Кокорев Д. А., Чистяков А. Г. Первичные публичные размещения акций: основные исследуемые аномалии // Корпоративные финансы. 2012. № 4. C. 144-151. 
Kokoreva M., Stepanova A. Financial Architecture and Corporate Performance: Evidence from Russia // Корпоративные финансы. 2012. No. 2. P. 34-44. 
Stepanova A. N., Olga I. Role of Corporate Governance in Banking Sector: Evidence from All over the World // Корпоративные финансы. 2012. Vol. 4. No. 24. P. 80-86. 
Ивашковская И. В., Кокорева М. С., Кадуров А. А. Взаимодействие корпоративных и макроэкономических детерминант политики финансирования на развивающихся рынках капитала, in: XIII Международная научная конференция по проблемам развития экономики и общества. В 4 кн. Кн. 1.. Москва : Издательский дом НИУ ВШЭ, 2012. С. 499-508. 
Ивашковская И. В., Кокорева М. С. Является ли политика финансирования инструментом создания стоимости компании? Эмпирическое исследование на данных компаний Центральной и Восточной Европы, in: XII Международная научная конференция по проблемам развития экономики и общества. В четырех книгах. Книга 4.. Москва : Издательский дом НИУ ВШЭ, 2012. С. 49-56. 
undefined. The Prediction of Bankruptcy in a Construction Industry of Russian Federation // Journal of Modern Accounting and Auditing. 2013. Vol. 9. No. 2. P. 256-272.