Eng 
Рус Financial Journal Vol.16 No.6 2024
CONTENTS
I.A. Yakovlev, A.A. Tikhonova, V.Yu. Cherkasov
Cross-border Transactions: Challenges and Possible Solutions for BRICS, p. 8-23
Abstract
The article critically examines the idea of a supranational accounting and settlement unit of BRICS. The theoretical and historical excursion brings us closer to understanding the nature of modern money and leads to the conclusion about the reasons why the national fiat unit serves as a means of international liquidity. The experience of European monetary integration is analyzed through the prism of the theory of the optimal currency area. The bottlenecks of international settlements and possible infrastructural solutions based on a central bank digital currency or multilateral clearing are considered. It is proved that multilateral clearing is an effective means of addressing the challenges in cross-border settlements, while the solutions leading to currency integration are possible only if the economic benefits exceed the damage to national monetary sovereignty.
Keywords: BRICS, money, international liquidity, supranational currency, monetary integration, clearing, CBDC
JEL: B11, B12, E40, E42, E65, F33, F34, F36, N10, O31
Acknowledgments: The authors express their gratitude to their colleague Dr. Alexey Ponomarenko for the opportunity to present in the article his idea of a parsimonious settlement scheme on a digital platform using a notional supranational asset.
Note: This article expresses the opinion of the authors and should not be considered as a source reflecting the official position of Financial Research Institute.
For citation: Yakovlev I.A., Tikhonova A.A., Cherkasov V.Yu. (2024). Cross-border Transactions: Challenges and Possible Solutions for BRICS. Financial Journal, 16 (6), 8-23 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-8-23.
© Yakovlev I.A., Tikhonova A.A., Cherkasov V.Yu., 2024
I.V. Naumov, A.A. Bychkova, N.L. Nikulina
Theoretical and Methodological Approach to Assessing the Probability of Bankruptcy of Enterprises in Economic Sectors, p. 24-41
Abstract
In the context of the rapidly changing geopolitical situation and sanctions pressure on the Russian economy, it is critically important to assess the financial stability of enterprises, forecast the risks of decline in their financial solvency and the probability of bankruptcy in order to make effective management decisions on the development of economic sectors in the constituent entities of the Russian Federation. Currently existing methodological approaches to analyzing the probability of enterprise bankruptcy do not allow to fully assess the financial condition of economic sectors in the regions of Russia. The purpose of the work is to identify the advantages and disadvantages of the methods used in practice to analyze the financial solvency of enterprises and their adjustment to forecast the probability of bankruptcy of enterprises in the constituent entities of the Russian Federation. The novelty of the developed methodological approach is the use of multidimensional discriminant analysis of the probability of bankruptcy of enterprises in a specific sector of the economy in a constituent entity of the Russian Federation according to the modified Altman model, which eliminates the factor characterizing the ratio of the market value of shares of all enterprises in the industry to the sum of all liabilities, as well as the calculation of integral values of the probability of bankruptcy of enterprises in the industry with a breakdown into large, medium and small enterprises to study the scale of threats to financial solvency, taking into account industry specifics. In the course of the research the following results were obtained: an original methodological apparatus for assessing the probability of bankruptcy of enterprises in various sectors of the economy was developed, including the calculation of individual threshold values for each sector in the region based on the dynamics observed over a long period of time; zones of probability of bankruptcy of enterprises were determined. The resulting methodology was tested at enterprises of water supply, wastewater disposal, waste collection and utilization and pollution elimination in the Sverdlovsk region. The analysis of their financial condition revealed an increased probability of their bankruptcy. Moreover, the most vulnerable were both the largest and small enterprises which have insufficient liquidity of assets, lack of working capital and developing mainly at the expense of borrowed funds and attracted loans. As a result of the study, not only the insufficient level of financial stability and solvency of water supply, wastewater disposal, waste collection and utilization and pollution control enterprises in the Sverdlovsk region, but also a decreasing in the level of asset turnover and especially accounts receivable, as well as a high level of their debt load, were identified/designated (as the first/main signs of the threat of bankruptcy). The methodology modified by the authors allows to timely determine the probability of bankruptcy for all enterprises (large, medium, and small) taking into account the industry specifics and to initiate appropriate measures to prevent the critical financial condition of enterprises.
Keywords: bankruptcy probability, bankruptcy models, financial stability, economic sectors, multivariate discriminant analysis
JEL: G33
Funding: The research was supported by the Russian Science Foundation grant №24-28-00704 "Scenario modeling and forecasting of bankruptcy risks of industries in the Sverdlovsk region" (https:// rscf.ru/project/24-28-00704/).
For citation: Naumov I.V., Bychkova A.A., Nikulina N.L. (2024). Theoretical and Methodological Approach to Assessing the Probability of Bankruptcy of Enterprises in Economic Sectors. Financial Journal, 16 (6), 24-41 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-24-41.
© Naumov I.V., Bychkova A.A., Nikulina N.L., 2024
A.E. Abramov, M.I. Chernova
IPO of Russian Companies: Theory, Indicators, Trends and Prospects, p. 42-60.
Abstract
Since 2022, a new wave of IPO deals in Russia has shown that the stock market continues to successfully perform capital raising functions in a challenging environment. However, when analyzing current trends, the historical data on Russian IPOs accumulated since 1996 is often not taken into account. The purpose of the article is to identify the main trends in public offerings of Russian companies’ shares from 1996 to July 2024 and the features of the new wave of IPO deals since 2022. The analysis is based on a unique database on 185 IPOs and 88 SPOs. An extensive review of studies explaining the first trading day underpricing and subsequent cumulative abnormal returns (CAR) has revealed the importance of monitoring these indicators for assessing the performance of Russian IPOs. The empirical analysis has shown that the Russian IPO-SPO stock market in 2023–2024 is significantly inferior to deals in the previous historical period in terms of volume and size. However, the size of underpricing and CAR for the first 100 and 250 trading days of the new wave of IPOs is significantly higher, which indicates the greater efficiency of current deals for investors. A positive trend of the new wave is the predominance of IPOs over SPOs and cash-in deals over resale deals. Unlike many studies of foreign markets, this analysis has shown that the size of the first trading day underpricing has a positive effect on the cumulative excess return of shares over the medium-term time horizon. The significance of this relationship has noticeably increased in the new wave of deals, which may become an important factor in the growing popularity of IPOs and the inflow of new capital into the financial markets in Russia.
Keywords: initial public offering, secondary public offering, underpricing, cumulative abnormal return, financial market
JEL: G10, G11, G14, G17, G19
Funding: The article was written on the basis of the RANEPA state assignment research program.
For citation: Abramov A.E., Chernova M.I. (2024). IPO of Russian Companies: Theory, Indicators, Trends and Prospects. Financial Journal, 16 (6), 42-60
(in Russ.). https://doi.org/10.31107/2075-1990-2024-6-42-60.
© Abramov A.E., Chernova M.I., 2024
S.I. Rybakov, A.M. Shaikin
Mutual Insurance in Russia: Current State, Constraints and Paths of Development, p. 61-80
Abstract
The authors analyze the main factors affecting the development of mutual insurance in the Russian Federation: economic conditions, imperfect legislation, regulatory barriers and competition with alternative risk protection instruments. The article compares the competitiveness of mutual insurance against commercial insurance and highlights its advantages and disadvantages. It emphasizes the potential of mutual insurance to contribute to the economic stability and sovereignty of the Russian Federation, especially in the face of sanctions pressure on the Russian economy. The authors also emphasize the importance of implementing successful international experience and adapting Russian legislation to promote the growth of mutual insurance. The article reveals the fundamental contradiction between the interests of insurance consumers, such as households and the corporate sector (including companies with predominant state participation), and the functioning of the mutual insurance mechanism. The authors analyze quantitative indicators of mutual insurance in Russia from 2013 to 2023. The obtained data are compared with the results from the Russian insurance market and voluntary property insurance. The article proposes measures to improve the Russian mutual insurance market. These measures include state support, reduction of regulatory burden and expansion of the scope of mutual insurance in the interests of ensuring Russia’s economic sovereignty.
Keywords: insurance, mutual insurance, Russian insurance market, sanction, state policy in the insurance industry
JEL: G22, G28
Funding: The article was written on the basis of the Financial Research Institute state assignment research program.
For citation: Rybakov S.I., Shaikin A.M. (2024). Mutual Insurance in Russia: Current State, Constraints and Paths of Development. Financial Journal, 16 (6), 61-80 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-61-80.
© Rybakov S.I., Shaikin A.M., 2024
V.V. Olkhovik, R.S. Afanasev
Improvement of the System for Implementing Budget Revenue Administration Powers in the Russian Federation, p. 81-96
Abstract
At present, in the context of the task of modernization of the budget revenue management system and transition to a unified digital register model of administration, ensuring the formation of up-to-date information on revenue sources of the budget is of particular importance. The purpose of this article is to develop proposals for improving the system of implementation of revenue administration powers, taking into account the identified problem areas during the transition to a new system of assigning powers to the chief administrators of budget revenues on a permanent basis. The authors analyze the completeness and quality of information on budget revenue sources based on the requirements of the Ministry of Finance of Russia and assess the existing system of budget revenue administration. In the course of the study the shortcomings of the current system of formation and implementation of revenue administration powers were revealed and the ways to eliminate them were proposed. The article describes the main challenges that hinder the implementation of budget revenue administration powers in the subjects of the Russian Federation. Thus, some regions face various difficulties in the interaction of participants in the process of formation and maintenance of lists through information systems. There are examples when the information necessary for the list compilation is either not provided or not provided in full. Based on the identified problems, recommendations are offered to improve the system of implementation of budget revenue administration powers, including procedures for interaction between participants of the budget process. These recommendations are aimed at enhancing the efficiency of budget revenue administration, improving forecasting and digitalization of processes to ensure greater transparency and operational management of public finances.
Keywords: budget revenue administration, budget revenue sources, digital registry model, chief administrators of budget revenues, Russian regions, modernization of revenue management system
JEL: H83
Funding: The article was written as part of scientific and methodological research under the state assignment of the Financial Research Institute.
For citation: Olkhovik V.V., Afanasev R.S. (2024). Improvement of the System for Implementing Budget Revenue Administration Powers in the Russian Federation. Financial Journal, 16 (6), 81-96 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-81-96.
© Olkhovik V.V., Afanasev R.S., 2024
I.P. Dovbiy, Zh.A. Mingaleva, E.E. Zhulanov
Managing the Development of Regional Industrial Potential: Integrating Climate Finance into Investment Strategies, p. 97-115
Abstract
The requirements for the implementation of climate policy are becoming increasingly important in the processes of formation of global and local value chains and directly affect the development of export potential of both individual economic entities and regions. The purpose of the study is to develop recommendations for improving the tools for managing the development of industrial potential of regional systems under the current conditions of financing the climate agenda in the amount of the country’s commitments. The article analyzes the investment and financial conditions and factors determining the region’s export potential in the context of the implementation of two strategies of the climate agenda — mitigation and adaptation to climate change. A comparative analysis was carried out for the regions located along the middle and lower reaches of the Volga River. The analysis included the following meso- and micro-level areas: investment climate characteristics; conditions for financing of economic entities; investment and innovation activity of the regions and commitment to ESG principles of business entities and regional authorities; quality and elaboration of regional investment standards and climate change adaptation plans, etc. The analysis has shown the impact of the climate agenda, implemented in climate change mitigation and adaptation strategies, on the export potential of the Russian regions under study. It is concluded that the regions are not sufficiently prepared for the growing challenges of the climate agenda and the financial system is poorly developed in relation to the climate agenda. It is shown that a clear identification and understanding of the factors and conditions contributing to the inclusion of national economic entities in value chains can help government agencies and economic entities make effective decisions on the implementation of measures to ensure the formation of favorable investment and financial conditions for managing the development of the region’s industrial potential.
Keywords: climate agenda, industrial potential, investment and financial instruments, regions, development management, The CSDDD Directive
JEL: G23, G28
For citation: Dovbiy I.P., Mingaleva Zh.A., Zhulanov Е.Е. (2024). Managing the Development of Regional Industrial Potential: Integrating Climate Finance into Investment Strategies. Financial Journal, 16 (6), 97-115 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-97-115.
© Dovbiy I.P., Mingaleva Zh.A., Zhulanov Е.Е., 2024
E.I. Skobleva
State Development Programs as a Tool for Financing Education, p. 116-131
Abstract
The article is devoted to the issues of education financing with a focus on the application of state development programs aimed at supporting education in Russia. The author analyzes the results of the implementation of federal target programs, state programs and, as part of them, national projects and federal projects in the field of science and education. The study pays special attention to the analysis of public expenditures on higher education, which is largely financed from the federal budget. Higher education is the most important factor in the economic and social development of the country, as it largely forms the human capital, which opens up opportunities for the search for non-standard solutions, creation of new knowledge and development of technologies. One of the objectives of sustainable development in the field of education is to ensure equal access to quality vocational and higher education, including university education. The aim of the paper is to study the problems of using program instruments of education financing in Russia. The author considers federal target programs as a form of “pinpoint” financial support of the education system; shows the mechanism of transition to the program method of education financing and the transformation of program documents that determine the volume and directions of education financing; examines national projects in the context of program financing of education; analyzes the items of federal budget expenditures on higher education and draws conclusions about their content and dynamics. The article is based on official statistical data and analytical reports of the Ministry of Finance of the Russian Federation, the Federal Treasury, and the Accounts Chamber of the Russian Federation.
Keywords: education financing, higher education, sustainable development, science and universities, state program, national projects, program-target method
JEL: H52, I22, I25, O38
For citation: Skobleva E.I. (2024). State Development Programs as a Tool for Financing Education. Financial Journal, 16 (6), 116-131 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-116-131.
© Skobleva E.I., 2024
