scholarly journals Dual-Class System of Capital Company Formation in the BRICS Countries

2021 ◽  
Vol 12 (3) ◽  
pp. 274-287
Author(s):  
R. O. Voskanian
Keyword(s):  
Stock Exchange ◽  
Voting Rights ◽  
Business Environment ◽  
High Tech ◽  
Synthesis Methods ◽  
High Tech Sector ◽  
Class System ◽  
Brics Countries ◽  
The Moment ◽  
Dual Class

Purpose: this paper determinates the current level of penetration of the dual-class system of capital company formation in the BRICS group.Methods: are based on the use of methods of analysis, systematization, generalization. A comparative and synthesis methods have been also used to identify trends and patterns in the introduction of multi-voting shares in the BRICS group.Results: the dual-class system of capital company formation in Russia is practically not studied. The article reveals that in Brazil and Russia, despite the discussion of the possibility of distributing multi-voting shares, the legislation does not imply the possibility of using the dual-class system. This issue has not yet been discussed in South Africa.It has been identified that the main reason for the legislative permission for using multi-voting shares is the need to develop companies in the high-tech sector. Another reason is the massive listing of foreign high-tech companies on American stock exchanges, due to the possibility of using the dual-class system. This predetermined the introduction of amendments to the legislation of India and China, according to which companies in the high-tech sector that have not yet passed an IPO can use differential voting rights.It has been receiving that the Indian market is the only one where shares with differentiated voting rights are placed on the stock exchange. At the moment, three companies that passed the IPO before the amendments to the legislation use differentiated voting rights, but not upwards, but on the contrary – downwards: “four shares – three votes”. This characteristic determines the trading of such stocks at a discount.Conclusions and Relevance: harmonization of opportunities for the use of financial instruments in the BRICS market can strengthen the economic potential of states. Allowing the usage of multi-voting shares improves the business environment for high-tech companies and reduces the need for company founders to look for IPO opportunities in jurisdictions where a dual-class capital formation system is allowed.

scholarly journals Permitting dual class shares in the UK premium listing regime – a path to enhance rather than compromise investor protection

Legal Studies ◽  
2021 ◽  
pp. 1-23
Author(s):  
Min Yan
Keyword(s):  
Stock Exchange ◽  
Investor Protection ◽  
Market Mechanism ◽  
High Tech ◽  
Shareholder Protection ◽  
Shareholder Engagement ◽  
The One ◽  
Dual Class Shares ◽  
The Uk ◽  
Dual Class

Abstract Unequal voting rights arrangements under dual class share structures are increasingly favoured by entrepreneurs and founders of technology companies, in order to retain a degree of control over the company that is disproportionate to their equity shareholdings. The rise of such share structures around the world has put competitive pressure on the UK Government and the country's financial regulator to relax the one share, one vote principle in the premium listing regime of the London Stock Exchange, to ensure the UK equities market remains world-leading and fit for the future development of the economy. There is, however, a long tradition of institutional investors’ distaste for dual class share structures. In fact, the near extinction of dual class listings in the UK capital markets can be largely attributed to the opposition of large British institutions. Therefore, this paper will critically discuss the conflict between the demands to attract listings from high-tech and innovative companies and concerns of a race to the bottom in the UK context. It rebuts criticisms based on investor protection and argues that if dual class companies were permitted to list in the Premium Segment, the higher level of regulatory protection provided in the premium listing regime would help enhance minority shareholder protection and shareholder engagement. The additional safeguarding measures, as we have seen from other global financial centres, would also help to restrain the potential abuse of controllers’ weighted voting power. Together with the market mechanism, permitting dual class listings in the Premium Segment should be welcomed.

scholarly journals DENTIFICATION THE WAYS OF COUNTERACTION OF THE THREATS TO THE FINANCIAL SECURITY OF HIGH-TECH ENTERPRISES

2020 ◽  
Vol 21 (1) ◽  
pp. 1-9 ◽  
Author(s):  
Vasil Franchuk ◽  
Oleg Omelchuk ◽  
Stepan Melnyk ◽  
Mykhailo Kelman ◽  
Oksana Mykytyuk
Keyword(s):  
Negative Impact ◽  
High Tech ◽  
Financial Security ◽  
Rapid Adaptation ◽  
Operational Environment ◽  
High Tech Sector ◽  
Environment Identification ◽  
Hierarchical Ordering ◽  
The Moment

Identified key external and internal threats significantly affect the process of ensuring the financial security of the enterprise. The application of the mechanism of counteraction to the influence of external and internal threats is characterized by important. The mechanism for countering threats to the financial security of a high-tech enterprise, unlike existing ones, combines a certain essence and hierarchical ordering of the influence of key external and internal threats, involves targeted tracking of changes in the operational environment, identification of the moment of occurrence of threats, prediction of possible results of their implementation, regulating the choice of the established option actions (adaptive, active and protective), control over security, result from the application of which is the rapid adaptation to possible changes, to neutralize the negative impact of and response to threats of action in order to maintain the necessary level of financial security enterprise. The results of the study can be used in the practical activities of enterprises in the high-tech sector of the economy

Characteristics, Features of Development, Regional and Sectoral Determinants of High-tech Business in Russia

2017 ◽  
pp. 142-154 ◽  
Author(s):  
A. Yusupova ◽  
S. Khalimova
Keyword(s):  
Regression Analysis ◽  
Performance Indicators ◽  
Sustainability Assessment ◽  
Business Development ◽  
High Tech ◽  
Assessment Data ◽  
High Tech Sector ◽  
Fast Growing ◽  
High Level

The paper deals with the research devoted to characteristics of high tech business development in Russia. Companies’ performance indicators have been analyzed with the help of regression analysis and author’s scheme of leadership stability and sustainability assessment. Data provided by Russia’s Fast Growing High-Tech Companies’ National Rating (TechUp) during 2012-2016 were used. The results have revealed that the high tech sector is characterized by high level of uncertainty. Limited number of regions and sectors which form the basis for high tech business have been defined. Relationship between innovation activity’s indicators and export potential is determined.

(Development of the High-Tech Sector of the Economy in Russia)

2018 ◽  
Author(s):  
Vera Barinova ◽  
Stepan Zemtsov ◽  
T. Lanshina
Keyword(s):  
High Tech ◽  
High Tech Sector

The High-Tech Sector

2021 ◽  
pp. 527-554
Author(s):  
Neil Gandal ◽  
Stefania Roccas Gandal ◽  
Nadav Kunievsky
Keyword(s):  
High Tech ◽  
High Tech Sector

The relationship between narcissism, managerial overconfidence and comparability of financial statements of listed companies

2021 ◽  
Vol 19 (5) ◽  
pp. 681-700
Author(s):  
Mohammad Almaleki ◽  
Mahdi Salehi ◽  
Mahdi Moradi
Keyword(s):  
Stock Exchange ◽  
Chief Executive ◽  
Financial Statements ◽  
Business Environment ◽  
Multiple Regression Model ◽  
Content Type ◽  
Institutional Settings ◽  
Managerial Overconfidence ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the impact of managerial narcissism and overconfidence on financial statements’ comparability. In other words, this paper seeks to answer the question of whether the personality characteristics of managers may affect the level of financial statements’ quality of commercial entities or not. Design/methodology/approach The research hypotheses are tested using a sample of 896 observations taken from the Tehran Stock Exchange and 245 observations from the Iraqi Stock Exchange during 2012 and 2018 using the multiple regression model based on the combined data technique. Findings The findings show that managerial narcissism is positively and significantly associated with Iran’s financial statement comparability. In contrast, Iraqi data articulate a negative association between these two variables. This paper finds that Chief Executive Officer overconfidence and financial statements’ comparability are negatively related in both countries. Following the market variation, the different findings suggest that institutional settings such as the general managerial style, adopting international accounting standards (now IFRS) leading to the extent of auditing market globally in Iraq and suffering from international sanctions in Iran, the governing business environment may play an allocative role in preparing financial statements. Originality/value The present research is the first research conducted in two emerging markets (Iran and Iraq) examining the relationship between managers’ narcissism and overconfidence and financial statements’ comparability. Therefore, the present research in this area can significantly contribute to the development of science and knowledge.

Founders without Limits

2021 ◽  
Author(s):  
Bobby V. Reddy
Keyword(s):  
Stock Exchange ◽  
High Growth ◽  
Global History ◽  
Public Markets ◽  
The Us ◽  
History Of ◽  
The Uk ◽  
Dual Class ◽  
Blue Chip

Big Tech has flourished on the US public markets in recent years with numerous blue-chip IPOs, from Google and Facebook, to new kids on the block such as Snap, Zoom, and Airbnb. A key trend is the burgeoning use of dual-class stock. Dual-class stock enables founders to divest of equity and generate finance for growth through an IPO, without losing the control they desire to pursue their long-term, market-disrupting visions. Bobby Reddy scrutinises the global history of dual-class stock, evaluates the conceptual and empirical evidence on dual-class stock, and assesses the approach of the London Stock Exchange and ongoing UK regulatory reforms to dual-class stock. A policy roadmap is presented that optimally supports the adoption of dual-class stock while still protecting against its potential abuses, which will more effectively attract high-growth, innovative companies to the UK equity markets, boost the economy, and unleash the true potential of 'founders without limits'.

BRICS Countries Possible Areas for Scientific Cooperation

2015 ◽  
pp. 14-23
Author(s):  
I. Dezhina
Keyword(s):  
Research And Development ◽  
New Technologies ◽  
Technological Development ◽  
High Tech ◽  
Preliminary Evaluation ◽  
Exploratory Research ◽  
Scientific Cooperation ◽  
Brics Countries ◽  
The World ◽  
A Share

The article evaluates science sectors and effectiveness of scientific research in the countries forming the BRICS group, as well as the current state of scientific and technological cooperation among the group members. The science sectors of the countries under consideration differ markedly, while facing similar problems relating to government regulations and external environments. The differences exist in total expenditures on research and development (as a share of GNP), in the scope of governmental funding (large in Russia and India, but small in China), and in the distribution of allocations among various areas and types of R&D activities. China appears to have the most well-adjusted science sector among the BRICS members. It includes not only strong universities but also high-tech companies that invest actively into research and development. The overall impact (inferred from citation indexes) of fundamental and exploratory research performed in BRICS countries remains low. BRICS's scientists prefer to collaborate with their colleagues from the world-leading countries rather than with their fellows from BRICS. Yet, in contrast to the world trend, in all BRICS countries, except Russia, a share of internationally co-authored publications is now decreasing. BRICS members have more similar interests and priorities in technological development, including infrastructural and large technological projects, than in science. Currently, bilateral cooperation in technology prevails, while the projects involving all members of the group still remain at the stage of preliminary evaluation and discussion. Russia cooperates most closely with China and India, including joint projects in such high-priority directions as new materials, photonics, biomedical, space and information technologies. For Russia, cooperation in technological development appears to be of most interest because it can lead not only to introduction of new technologies but also help to create large Russian innovative companies. Development of successful multilateral cooperation in science and technology among the BRICS members is the key for this group, originally formed for geopolitical reasons, to evolve into an effective economic union.

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