IIA - a Step Forward, Giving a Leap into the Future

2021 ◽  
Vol 13 (3-2) ◽  
pp. 266-280
Author(s):  
Nikolay Anokhin ◽  
◽  
Nina Protas ◽  
Egor Shmakov ◽  
◽  
...  
Keyword(s):  
Stock Market ◽  
Local Level ◽  
The State ◽  
Stages Of Development ◽  
Financial Instrument ◽  
Advantages And Disadvantages ◽  
Regional Aspect ◽  
Russian Stock Market ◽  
Private Investors

The study examines all aspects of individual investment accounts as a long-term financial instrument. The authors analyze the advantages and disadvantages of this tool for private investors and the state, give the main indicators of the development of IIA and the stock market. The paper gives the forecast of the dynamics of the development of the Russian stock market and compares it with the stages of development of the American one. The authors define the new conditions of the “game” and give characteristics of qualified and unqualified investors. The authors pay special attention to the regional aspect, determine the key directions of the development of IIA at the local level. In the conclusion, the ways and prospects of its development are proposed. Individual investment account is investigated as a long-term financial instrument.

scholarly journals An empirical study of the performance of South African conglomerates

1989 ◽  
Vol 20 (1) ◽  
pp. 1-6
Author(s):  
J. F. Affleck-Graves ◽  
G. H. Burt ◽  
J. M. Cleasby
Keyword(s):  
Stock Market ◽  
Empirical Study ◽  
South African ◽  
Market Returns ◽  
Return On Assets ◽  
Return On Equity ◽  
Empirical Question ◽  
Advantages And Disadvantages ◽  
Stock Market Performance

Existant financial theory is unable to explain whether on aggregate conglomeration is beneficial to either individual shareholders or to the economy. Both advantages and disadvantages can be listed for the conglomeration process and it is thus an empirical question as to whether or not shareholders really do benefit from conglomeration. In this paper the long-term profitability of conglomerates is examined in an attempt to determine whether or not such shareholders earn superior returns on aggregate. This is done by contrasting the stock market performance of a sample of South African (SA) conglomerates over a six-year period with the performance of the overall market. In addition, their performance is contrasted with that of a random portfolio of non-conglomerate companies. Finally, a pseudo-conglomerate portfolio was constructed for each conglomerate in such a way that each portfolio had the same asset structure as its matched conglomerate. The performance of the conglomerates was then contrasted with that of the pseudo-conglomerate portfolio using market returns, return on assets, and return on equity. The results indicate that on aggregate, the conglomerates significantly underperform non-conglomerates. This is consistent with the view that conglomeration is in the interest of management rather than that of the shareholders.

Analysis of the concept of «efficiency» and methods for evaluating the effectiveness of enterprises

2020 ◽  
pp. 85-101
Author(s):  
Dmitry I. Zaykin ◽  
Irina V. Kosorukova
Keyword(s):  
Research Result ◽  
External Environment ◽  
Investment Decisions ◽  
The State ◽  
Economic Science ◽  
Minimal Cost ◽  
Advantages And Disadvantages ◽  
The Right ◽  
Comparative Description

Relevance. The article is devoted to the analysis of the concept of «efficiency», which is a rather complex category of economic science. The essence of this concept is revealed. Today, evaluating the effectiveness of enterprises is a necessary requirement for maintaining and improving their competitiveness, and making the right management decisions. The purpose of the study is to develop a system for evaluating performance that would take into account the results of long-term investment decisions and changes in the external environment of enterprises. The objectives of the study are to analyze the modern interpretation of the concept of «efficiency», analyze approaches to assessing the effectiveness of enterprises and determine practically significant approaches to assessing the effectiveness of enterprises. Research result. The analysis of the studied definitions of the concept of «efficiency» has shown that today there is no single interpretation of this category. Common to all definitions is the idea of efficiency as the ability of the system to achieve the goal with minimal cost. As a result of the study, the systematization of the main approaches and methods for evaluating the efficiency of the state of enterprises was carried out. The article presents a comparative description of methods for evaluating the effectiveness of enterprises, which have their own characteristics, advantages and disadvantages, which determines their use in different situations and for different industries. Special attention is paid to modern approaches to assessing the effectiveness of enterprises based on the assessment of strategic efficiency.

scholarly journals FINANCIAL ENGINEERING AS A TOOL FOR THE DEVELOPMENT OF CORPORATE BOND MARKET IN EASTERN EUROPE ON THE EXAMPLE OF UKRAINE

2018 ◽  
Vol 4 (4) ◽  
pp. 120-125
Author(s):  
Maria Iorgachova ◽  
Olena Kovalova ◽  
Ivan Plets
Keyword(s):  
Stock Market ◽  
Financial Engineering ◽  
Bond Market ◽  
The State ◽  
Corporate Bond ◽  
Financial Resources ◽  
General Level ◽  
Financial Instruments ◽  
Corporate Bond Market

In the context of the gap between the financial and real sectors of the Ukrainian economy, there is a problem of the absence of financial instruments able to solve the issue of financing the development of the national economic system on a long-term basis. At the current stage of the stock market development, financial engineering has a significant potential for the effective application since it can become an instrument that meets the current needs of the market. The purpose of this article is to study the current dynamics of development and features of the corporate bond market in Ukraine, as well as to develop the parameters of the new profit-bonds with the help of financial engineering, which takes into account investors’ inquiries in the formation of an investment portfolio and supposed to be a profitable form of attracting financial resources for issuers. Methodology. Materials of periodicals, analytical market reviews, resources of the Internet are the informational and methodological basis of the investigation. The research is based on general scientific and special methods, such as: comparison, systematic approach factor analysis, economic and mathematical methods. A comparative analysis of the parameters of financial instruments has been carried out that allowed determining the investors’ inquiries, investment trends and features of the choice of financial instruments by investors and accordingly to offer competitive debt securities according to the parameters of payment, maturity, security, repayment order, issue of currency. The results of the study indicate that there is the necessity of reformation of the stock market in terms of expanding the range of financial instruments based on financial engineering. The introduction of profit-bonds will allow offering participants of the Ukrainian market competitive conditions for the issue of securities, which are based on the modelled parameters of bonds. A schematic algorithm for the implementation of profit bonds is developed; it joins a complex of interrelated stages of implementation, which are sensitive to internal and external factors of influence. Practical implications. Directions for improving financial instruments on the basis of financial engineering can be applied by the participants of the stock market that will increase the general level of economic activity in the national economy and permit to accumulate financial resources on the profitable terms. Value/originality. The article reveals the development of the domestic market for corporate bonds as an important segment of the stock market through the application of financial engineering and the use of new financial products created to address the issue of attracting the necessary financial resources to the real sector. The introduction of financial engineering as a tool for the development of Ukrainian corporate bond market and its schematic algorithm of the implementation will allow an investor to react in time to the market changes. The creation of the State Fund for the Guaranteeing of Income of the Investors Market Act, which is formed at the state level by analogy with the existing Guarantee Fund for Individual Deposits, will allow the fulfilment of the security parameter that will classify profit bonds as long-term debt instruments with a high credit rating.

scholarly journals The extent of debt financing within state-owned corporations in Kenya

2015 ◽  
Vol 12 (4) ◽  
pp. 895-905 ◽  
Author(s):  
Micah Odhiambo Nyamita ◽  
Nirmala Dorasamy ◽  
Hari Lall Garbharran
Keyword(s):  
Public Sector ◽  
Stock Market ◽  
Agency Theory ◽  
The State ◽  
Debt Financing ◽  
Descriptive Statistics ◽  
Cross Sectional ◽  
The Public ◽  
Public Sector Reforms

The public sector reforms’ programme in Kenya, has witnessed five state-owned corporations being privatised, and several more, from hotels to banks, have been scheduled to be privatised. However, many of Kenya’s state-owned corporations are in considerable debt, which reduce their value in the process of privatisation. This study attempted to determine the extent and the theory suitable for explaining debt-financing within the state-owned corporations in Kenya from 2007 to 2011. The study applied both descriptive statistics and a hybrid of cross sectional and longitudinal quantitative surveys. The results observed some level of stability on the aggregate long-term debt ratios, with minimal use of stock market instruments, which implied the application of the agency theory.

scholarly journals Building a private investor's portfolio on the stock market

2020 ◽  
Vol 26 (5) ◽  
pp. 1151-1169
Author(s):  
M.Zh. Galustyan ◽  
I.V. Sycheva
Keyword(s):  
Stock Market ◽  
Methodological Approach ◽  
Minimal Risk ◽  
The Sustainable Development ◽  
Private Investor ◽  
Russian Stock Market ◽  
Private Investors ◽  
Stock Market Trading

Subject. This article deals with the issues of involvement and participation of private investors in stock market trading. Objectives. The article aims to systematize stock risks in terms of improving the quality of private investor risk management and develop a scientific and methodological approach to the construction of a private investor's portfolio on the stock market, which helps minimize risk in various stock trading strategies. Methods. For the study, we used the methods of logical and statistical analyses, correlation, and classification. Results. The article presents a classification of stock market risk, helping apply the criteria of quantitative assessment and source of risk. The developed methodology helps a private investor build a portfolio with minimal risk on the Russian stock market. Conclusions. The existing methods to identify a number of risks are incorrect and need to be refined. For the sustainable development of the country's stock market, it is necessary to develop new and disseminate the current methods to reduce stock risk for the private investor. Based on the presented classification of stock risk, it is possible to develop other new effective methods.

scholarly journals Female investors in the stock market: a look from Russia

2020 ◽  
Vol 186 (11-12) ◽  
pp. 58-65
Author(s):  
Boris Podgorny ◽  
Keyword(s):  
Stock Market ◽  
Social Aspects ◽  
Social Characteristics ◽  
Investment Strategies ◽  
Gender Ratio ◽  
Private Companies ◽  
Average Monthly Income ◽  
Russian Stock Market ◽  
Private Investors ◽  
Investment Behaviour

With the growing impact of the Russian stock market on economic processes in the country, there arises a need for detailed and systematic information on various social aspects, including the existing and projected number of investors, their gender ratio, social characteristics and investment behaviour. The article presents data on the gender ratio of private investors, as well as detailed characteristics of Russian females investors and their investment strategies. It is shown that the Russian stock market is moving towards gender balance. The largest number of females investors belongs to the age of 25-34. Most of them live in cities and work as employees of private companies. One half of female investors have an average monthly income per family member of less than USD 350. Nowadays, 25 years after the Russian privatization, about one third of all females investors have a negative opinion about this process and its results. Russian females investors have gone through the following investment strategies: about 40% have stopped operations, becoming formal investors; about one third have opened individual investment accounts; the others are divided into the following categories: investors, inactive traders, intraday traders and scalper traders. There exist at least two problems, the solution of which will contribute to the development of the market and increase the number of private investors. They include a limited number of issuers whose shares are available on the organized Russian stock market and the lack of offers to invest in real projects.

scholarly journals Problems of Transformation of Household Savings into Investments

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Yulia Bubnova ◽  
Ekaterina Maslennikova
Keyword(s):  
Stock Market ◽  
Necessary Conditions ◽  
The State ◽  
Dynamic Study ◽  
Special Role ◽  
Household Savings ◽  
The Past ◽  
Investment Function ◽  
Develop Economy ◽  
Private Investors

In modern conditions, searching for investment sources to develop economy is very relevant. The authors of the article focus on household savings as one of the most significant sources of investment, seeing that their investment function is not fully implemented in modern Russian practice. The article represents a dynamic study of population savings for over the past ten years and identifies the reasons for their decline. The authors analyze changes in the structure of savings and their investment directions and come to the conclusion about their inefficient use due to the predominance of passive ways of savings and insufficient use of the opportunities of a stock market. It is also determined the reasons that prevent the transformation of these savings into investments and the ways for solving these problems. The article considers an individual investment account as the most promising investment mode which is getting more and more popular. A special role in the transformation of household savings is assigned to the state, which must create the necessary conditions and provide access to the tools of the stock market for a large number of private investors.

scholarly journals JUSTIFICATION OF THE ESSENCE, FUNCTIONS AND PURPOSE OF GRAIN FUTURE EXCHANGE MARKET OF AGRICULTURAL PRODUCTS

2021 ◽  
Author(s):  
Hrechaniuk L. M.
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Market Price ◽  
The State ◽  
Agricultural Products ◽  
Commodity Market ◽  
Exchange Market ◽  
Financial Instrument ◽  
Domestic Stock ◽  
Future Exchange

In the article analyzes the development of the domestic stock market. It is substantiated that crop futures are a derivative financial instrument on the stock exchange, which provides for the obligation of its seller or buyer to periodically transfer sums of money to the opposite party depending on changes in the market price of grain, and (or) the obligation delivery of grain on time. It is determined that only under the conditions of joint efforts on the part of the state, the exchange community, participants of the agrarian market that will allow bringing the exchange commodity market closer to civilized bases.

The Development of China's Stock Market, 1984–2002. By Stephen Green. [London and New York: RoutledgeCurzon, 2004. xv+287 pp. £65.00. ISBN 0-415-32466-1.]

2004 ◽  
Vol 178 ◽  
pp. 513-514
Author(s):  
Laixiang Sun
Keyword(s):  
New York ◽  
Stock Market ◽  
Institutional Economics ◽  
Convincing Evidence ◽  
Fund Raising ◽  
The State ◽  
Market Participants ◽  
Short Period ◽  
Pessimistic Scenario ◽  
Private Investors

Does the spectacular development of China's stock market present a theoretical puzzle? On one hand, within a short period of a little more than a decade (1990–2002), the total capitalization of the market grew from a negligible size to a level equivalent to more than 50 per cent of the country's GDP, and even if excluding non-floating shares held by the state and legal persons, the capitalization level was still equivalent to some 16 per cent of GDP. On the other hand, until very recently few of the institutions that underpin successful stock markets elsewhere were present. This seems to be in contradiction to the teaching of neo-institutional economics, which holds that only when the state is credibly committed to clarifying and defending functional institutions will people feel confidence enough to engage in complex transactions like stock trading. Does this imply a paradox? The author argues in this book that it is not so straightforward.The book provides detailed and convincing evidence to show that the impressive growth of China's stock market since 1990 has been to a great extent a result of policy-driven development favoured by a lack of alternative investment opportunities for increasingly wealthy private investors. Chinese companies in general viewed stock listing as a privilege and a fund-raising mechanism. Market participants perceived that the quality of listed companies was generally poor but that investors were protected because of the constant financial and policy supports provided by both local and the central governments. As a consequence, market participants had little incentive to pay much attention to corporate governance and other fundamentals. Would such features lead to a pessimistic scenario, meaning that the development would not be sustainable? Not so simple, the author suggests.

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