Cross-Border M&A Deals between CIS and Persian Gulf Countries

2015 ◽  
pp. 28-34
Author(s):  
A. Nagimova
Keyword(s):  
Persian Gulf ◽  
Joint Venture ◽  
High Growth ◽  
Growth Potential ◽  
Abu Dhabi ◽  
Investment Fund ◽  
Cross Border ◽  
Gulf Countries ◽  
Agriculture Industry ◽  
Good Potential

The article analyses cross-border mergers and acquisition deals (M&A-deals) between the CIS and Persian Gulf countries in the period from 1990 till the present day. The author defines distinctive features, number, value, status and transparency of such M&A-deals, estimates average deal value and volume of the largest M&A-deals. In addition, the author shows country, industry and type breakdown of M&A-deals. Then the author reviews the main cross-border M&A-deals by industries. In the financial sector the biggest M&A-deal is between the Ministry of finance of Abu-Dhabi and the Russian direct investment fund (RDIF), the two main players from the CIS side are RDIF and VTB. Then the author analyses M&A-deals in extractive sector, and defines the biggest project which is joint venture of LUKoil in Saudi Arabia. In the production sector Russian metallurgical companies are the main investors. In the transport and infrastructure sphere the biggest project is the building of international transit corridor between Uzbekistan, Turkmenistan, Iran and Oman. The main investor in port sector of CIS is DP World from UAE. The author defines the sectors with high growth potential of cross-border M&A-activity. These are energy, agriculture, construction and tourism. The most significant deals in these sectors are the acquisition of Russian Enel OGK-5 by Emirates investors, building of Abu Dhabi Plaza in Astana (Kazakhstan) with the highest tower in the whole Central Asia and Russian-Emirates partnership for the building of satellite city in Moscow region. As far as Persian Gulf countries are the largest foodstuff importers in the world the potential of M&A-deals in agriculture industry and prospects for CIS grain exporters are also high. In conclusion, the author resumes that the trend in the number of cross-border M&A-deals is positive and that a good potential for development of investment cooperation between countries exists.

scholarly journals USE OF TRADING TO INCREASE PROFITABILITY OF SECURITIES PORTFOLIO IN INVESTMENT FUNDS

2021 ◽  
Vol 5 (40) ◽  
pp. 288-299
Author(s):  
І. Morhachov ◽  
L. Kostyrko ◽  
Е. Chernodubova ◽  
А. Martynov ◽  
М. Plietnov
Keyword(s):  
High Growth ◽  
Growth Potential ◽  
Active Management ◽  
Risk Level ◽  
Investment Efficiency ◽  
Investment Fund ◽  
Investment Funds ◽  
Tax Payments ◽  
Brokerage Commissions ◽  
Stock Portfolio

Abstract. It is determined that in investment processes, each percentage of returns is important. The hypothesis was considered that active management of the stock portfolio through intensive trading is a potential way of significantly improving the level of efficiency of investments in the stock market. The purpose of the work was to study the feasibility of using trading to increase the profitability of the securities portfolio and, in particular, for institutional investors. Trading of shares (intensive purchase and sale) is considered as a factor in increasing the profitability of investments in shares. The shortcomings of the intensification of trading are specified, which consists in an increase in taxes, brokerage commissions and lost profits due to the expectation of a better date for entering the transaction. As a research method, modeling based on the data of a three-year period of dynamics of Microsoft shares and hypothetical companies was used. The corresponding modeling made it possible to draw the following conclusions: the increase in trading intensity does not guarantee an increase in the level of investment efficiency; the increase in trading intensity leads to an increase in the tax burden and risk level, which ultimately neutralizes efforts on intensive trading. Investment funds which are actively managed and use intensive trading in activities do not have a significant advantage over funds that have passive management. The basis of the efficiency of investment funds is the minimization of overhead costs, including by minimizing taxes due to the reduction of the level of trading intensity to zero. It is important to pre-envisage promising shares for purchase, and keep them in their own portfolio for a long period of time with a minimum level of portfolio balancing intensity. Rebalancing the stock portfolio on the principle of profit fixing leads to an increase in tax payments and neutralizes capital growth opportunities due to the sale of shares with high growth potential. Keywords: trading, shares, investment fund, rebalancing of securities portfolio. JEL Сlassification G11, G14, G20 Formulas: 0; fig.: 4; tabl.: 5; bibl.: 14.

The United Arab Emirates: Statehood and Nation-Building in a Traditional Society

2005 ◽  
Vol 59 (3) ◽  
pp. 357-375 ◽  
Author(s):  
Frauke Heard-Bey
Keyword(s):  
Economic Development ◽  
United Arab Emirates ◽  
Nation Building ◽  
Abu Dhabi ◽  
Traditional Society ◽  
National State ◽  
Gulf Countries ◽  
The Individual

Nationals represent barely 20% of the population in the United Arab Emirates, but form the economically and socially privileged group of UAE citizens. The Rulers of the seven emirates were able to retain the historical loyalty of the “Emiratis” by advancing the economic development of the individual states, while Abu Dhabi-financed federal development helped to create a viable national state. Democratization is not of the same urgency as in some neighboring Gulf countries.

Explaining the Growth Potential of a Market Leader and Challenger: Evidence from Japan’s Telecommunications Services Industry

2021 ◽  
pp. 227853372198952
Author(s):  
Mostafa Saidur Rahim Khan ◽  
Naheed Rabbani
Keyword(s):  
High Growth ◽  
Growth Potential ◽  
Book Value ◽  
Good Investment ◽  
Growth Firms ◽  
Price Earnings Ratio ◽  
Equity Ratio ◽  
Market Leader ◽  
Services Industry ◽  
Telecommunications Services

This study examines the growth potential of the market leader and market challenger in Japan’s telecommunications services industry. We focus on Nippon Telegraph and Telephone Corporation (NTT) and KDDI, the market leader and challenger (respectively) in terms of sales revenue, total assets, and market share. Following finance literatures, we use higher values of price–earnings ratio (P/E) and market-to-book-value-of-equity ratio (MV/BV) as the indicators of growth potential. High growth firms have the potential to outperform the overall market over a significant period of time providing a good investment opportunity for retail and institutional investors. This study uses financial data of the NTT and KDDI from the period between 2001 and 2016 and applies several regression models to examine the growth potential of the market leader and market challenger in Japan’s telecommunications services industry. Using the P/E and MV/BV as indicators of growth potential, we show that the market challenger’s growth potential is significantly higher than that of the market leader, even after controlling for firm size, liquidity, profitability, leverage, cash flow, and age.

Conventional Legal Regulation of Value-Added Taxation by the Member States of the Gulf Cooperation Counci

2021 ◽  
pp. 232-238
Author(s):  
Dmitry G. Bachurin ◽  
Keyword(s):  
Persian Gulf ◽  
Value Added ◽  
Legal Framework ◽  
Legal Regulation ◽  
Gulf Cooperation Council ◽  
Legal Aspects ◽  
Gulf Countries ◽  
The Common ◽  
National Tax ◽  
The Persian Gulf

The article discusses the legal aspects of supranational legal regulation of value added taxation in the Persian Gulf countries. The novelty of the research lies in the comparative aspect of the legal study of supranational law on the value-added tax in the Gulf countries, which allows formulating fundamentally new characteristics and interpretations that extend the theoretical and legal views on the legal mechanism of VAT, and analyzing the key provisions of the legal regulation of VAT of the states that are parties to the Common VAT Agreement. The issues of the Agreement for the countries of the Gulf Cooperation Council, as well as acts of national legislation on this tax, were studied. The analysis of the provisions of the Agreement allows concluding that the tax instrument this Agreement regulates can be classified as a type of neutral legal regulation of value-added taxation. Its peculiarity is that the country for one reason or another introduces VAT into the national tax system with minimal tax rates and continues to keep it at a low level that does not have a restraining effect on the development of its own industry. This is the reference point for the Common VAT Agreement for the countries of the Gulf Cooperation Council. The research shows that the supranational legislation of the Persian Gulf countries covers the most complex and fundamentally significant issues of legal regulation of value-added taxation, which developed taking into account the accumulated world experience in the administration of this tax. Conclusions have been obtained that the main direction of the adopted supranational legislation is the creation of a unified legal framework for the development of a coordinated legal regulation of VAT in each of the six Arab states of the Persian Gulf. The definitions of concepts that are crucial for VAT regulation are given, among which the following can be distinguished: reverse VAT accrual, input tax, deductible tax, net tax, mandatory registration threshold, voluntary registration threshold, and tax group. In the final part of the work, it is concluded that the second regional system of legal regulation of value-added taxation after the European one is being created, which begins its development on the basis of supranational legislation. Within its framework, the states that are parties to the Agreement shall organize administrative cooperation in the following areas: (1) exchange of information necessary for determining tax accuracy; (2) coordination of synchronized audit procedures and participation in audits; (3) assistance in tax collection and adoption of necessary procedures related to VAT collection.

scholarly journals Social Challenges of the Digital Economy: Russia in a Global Context

2021 ◽  
Vol 65 (9) ◽  
pp. 14-24
Author(s):  
E. Sadovaya
Keyword(s):  
Global Economy ◽  
Technological Development ◽  
High Growth ◽  
World Order ◽  
Digital Economy ◽  
Digital Transformation ◽  
Growth Potential ◽  
Raw Material ◽  
Soviet Period ◽  
Labor Resources

The subject of the research is the challenges of the digital economy for the employment sector in Russia. The need to reduce costs in the face of a deteriorating situation in the global economy is a factor in accelerating the digital transformation of employment in the country. The transformation is carried out through the automation of the main business processes, as well as through the development of platform employment formats. Specific features of the process of digital transformation of employment form the shape of the development of the Russian labor market in the post- Soviet period. Its main factor was the country’s entry into the global system of division of labor, which led to the formation of the modern structure of employment. The economy of Russia, recognized as raw material, turned out to be “commercial” in terms of employment, since it was this industry that created the bulk of jobs during that period. The commerce sector, which had high growth potential in the early 1990s in Russia, provided jobs for all those labor resources that were released from the industry. However, at the moment this source has been exhausted. Digitalization threatens the most labor-intensive sectors of the Russian economy. Commerce turns out to be the first industry to undergo automation and digitalization of jobs. At the same time, the most massive professions (accountants, bank employees, HR specialists, salesmen, cashiers, couriers, security guards, secretaries, packers, call center workers, drivers) are under the threat of “disappearance”, while new ones in demand by the market are more likely “unique” and they are mostly associated with robotization, digitalization and biotechnology. The unmet demand for these professions is a reflection of the complexities of training highly qualified interdisciplinary specialists and not a physical shortage of labor resources, and this is a serious challenge for the vocational education system. The study aims to gain a deeper understanding of the processes taking place in the social and labor sphere in Russia, to create a conceptual basis for the development of a socio-economic policy of the state that adequately responds to the challenges of the digitalization of the economy. Acknowledgements. The article was prepared within the project “Post-crisis world order: challenges and technologies, competition and cooperation” supported by the grant from Ministry of Science and Higher Education of the Russian Federation program for research projects in priority areas of scientific and technological development (Agreement № 075-15-2020-783).

DESIGN AND VALUATION OF CORPORATE SECURITIES WITH STRATEGIC DEBT SERVICE AND ASYMMETRIC INFORMATION

1999 ◽  
Vol 02 (02) ◽  
pp. 201-219 ◽  
Author(s):  
YONGHUA PAN
Keyword(s):  
Asymmetric Information ◽  
Information Asymmetry ◽  
Risk Premium ◽  
High Growth ◽  
Cash Flows ◽  
Debt Service ◽  
Growth Potential ◽  
Unified Framework ◽  
Financing Decisions ◽  
Corporate Securities

This paper studies the effects of strategic debt service, asymmetric information and their interaction on the valuation of corporate securities and on corporate financing decisions. By introducing information asymmetry into a continuous-time setting, our model is able to integrate these two factors in a unified framework. Such a model allows for obtaining valuation results in a separating equilibrium. The basic results of this paper imply that the risk premium of debt could be partly contributed by information effect. This part of risk premium could be very significant for those good firms with a project which will produce much higher cash flows than what the market expects. We also find that a firm's financing decision depends on its primitives: firms are more apt to rely on equity if they have: (1) high growth potential, (2) riskier projects, (3) higher ratio of intangible assets to total assets and (4) lesser information asymmetry; firms would prefer debt, otherwise.

scholarly journals The condition of forest stands on afforested agricultural land in the Orlické hory Mts

2017 ◽  
Vol 63 (No. 1) ◽  
pp. 1-8 ◽  
Author(s):  
Cukor Jan ◽  
Baláš Martin ◽  
Kupka Ivo ◽  
Tužinský Marek
Keyword(s):  
Agricultural Land ◽  
High Growth ◽  
Dry Mass ◽  
Growth Potential ◽  
Forest Stands ◽  
Tree Biomass ◽  
Humus Layer ◽  
The Status ◽  
Spruce Stands ◽  
High Growth Potential

The paper presents an evaluation of the growth of newly established forest stands on former agricultural land and furthermore describes the state of the upper part of the soils in these stands in comparison with neighbouring grassland in the Orlické hory Mountains. The new Norway spruce stands show an extremely high growth potential, usually significantly higher in comparison with areas forested for more generations/rotations. The formation of the surface humus layer also showed fast progress, the amount of dry mass of soil organic matter reaching values almost typical of permanently forested sites. The soils of newly afforested lands tend to resemble the status of forest soil – there was observed a process of acidification and nutrient depletion, probably connected with accumulation of the tree biomass.

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