Scoring Modeling in Estimating the Financial Condition of Russian Agro-Industrial Companies

The chapter presents the authors' estimations according to the scoring modeling techniques; also, internationally spread models of bankruptcy forecasting are systematized. Advantages and disadvantages of dynamic modelling methods as applied to financial condition assessment are presented here. Methodological problems of financial modelling are explained here in detail. Regression, logit-regression, and discriminant models are built on the basis of data on the Rosselkhozbank and Sberbank of Russia regulations, taking into account the agrarian specifics of organizations and regional specificity of the Omsk region. An attempt has been made to balance the simplicity of calculations and the accuracy of predictions. Graphs, to be used for express analysis, are constructed on the basis of two core financial indicators.

Financing of International Business Through Private Equity

The global financial crisis has greatly limited access to both public and private sources of finance in the recent decades. Markets and national governments emitted low interested and multi-structured financial means with low liquidity. In the post-crisis period national governments tend to regulate their financial sectors more strictly, paying more attention to risky and low interest financial sources, necessary for investments, on which private equity is dependent. Private equity funds grew significantly in the last two decades, both in the USA and in Europe. Such new ways of debt financing and cheap money support massive growth in the industrial sectors of individual countries. This research is studying the positive impact of private equity on management of the whole industries and economies in Europe. Our analysis stems from the general assumption that private equity has positive influence on industrial performance and our empirical data evidences that private equity reacts to economic decrease more intensively than under the business model without financial leverage. The goal of this chapter is to show how private equity contributes to the growth of industrial sectors, performance of industrial companies, with a special emphasis on the mining sector.

Financing at the Housing Market

Instruments of financing at the housing market allow increasing the efficiency of branch operation, accumulating more money resources, and redistributing them among the segments of this market. The chapter is based on the analysis of the housing markets' functioning in different countries, taking into account the possibilities of their financing. Recommendations have been formulated on the use of the foreign countries' experience in Russian practice in order to improve the efficiency of financing for the housing market in Russia. It is determined that the main instrument of financing at the majority of national housing markets is mortgage lending. The author has analyzed single-level and two-level models of mortgage lending to determine the advantages and disadvantages each of them has. In the German model, such a mechanism is implemented as a system of “building saving,” which involves gradual accumulation of the initial contribution.

Features of Financial Policy Development by Russian Companies in Today's Conditions

The chapter includes the proposals regarding the development of rational financial policies by Russian companies in today's conditions. The authors have identified the following areas of difficulties: sales; deficit of financial resources for investment in development and distribution; instability and unpredictability of external conditions. Changes in price policies, optimization of components and volume of trade account receivables are some of the suggested ways of how to improve company's sales. The solution to the lack of financial resources for company's investment development can be found through selecting more effective forms of financing. The authors also point out the limitations in investment activities' financing under the conditions of current import substitution while suggesting author's own and original composition of indicators for innovation activity. The study leads the readers to the conclusion that the state today faces the challenge of creating favorable conditions for strengthening the financial stability of companies.

Environmental Accounting Implementation and Stimulation of National Business Global Competitiveness

Today's system of accounting does not contain sufficient volumes of information about environmental incomes and losses of organizations; therefore, it is nearly impossible to evaluate precisely the efficiency of environmental actions taken and environmental protection systems being implemented in order to maintain and/or increase the environmental balance. One of the key elements in the mechanism increasing the quality of economic performance is the system of environmental accounting. This chapter explains both theory and methodology of environmental accounting and also determines its role and place within the system of existing types of accounting and reporting in accordance with the IFRS requirements and also the Kyoto Protocol. The presented organizational economic mechanism of environmental accounting allows implementing the latter at concrete enterprises to promote and support more efficient managerial decision making.

Financial Systems Reforms in Western Balkans Countries

Tax system and tax policy today are becoming the most important instruments of national economic policy. Globalization process is objective in nature and is also inherent in market economy, whereas the neoliberal model of globalization is constantly getting more popular in both developed and developing countries. While developing countries in this regard are concentrating mostly on a multitude of potential reforms and resolving their numerous economic and social problems which are getting only more complicated, the interest of developed countries concerns mostly newest innovative technological trends and their application in a specific economic context. That is, in order to provide better conditions for full convergence of socioeconomic systems with higher rates of economic growth reforms, tax systems and tax policies are needed to reduce the barriers to free and global movement of goods, services, capital, and manpower.

Model of Socioeconomic Development Based on Market Economy and Public-Private Partnership (PPP) Mechanism

This chapter systematizes the main components of the socio-market model of the economy. Its basis is formed by market economy and public-private partnership as the mechanism stimulating the attraction of private investments. Using the opportunities of the market economy and PPP mechanism creates a real opportunity for the formation of a new model of socio-market economy. This model does not imply the weakening the role of the state and infringement of democracy as such, but rather strengthening of institutions and PPP mechanisms with the aim to attract private investments and improve social relations at the same time. This chapter is thus aimed at revealing the main elements of this socioeconomic model along with the theoretical, methodological, and practical aspects of its main components: the market economy and the PPP mechanisms.

Taxation System in Slovakia

A common European area without any internal borders between the EU Member States creates greater risks in terms of tax evasion and avoidance by economic entities. Increasing tax burden during the financial and economic crisis led to an increase in tax evasion as a result of changes in the behavior of taxpayers. This chapter deals with the current problems of taxation in Slovakia in the context of effective tax collection and tax evasion prevention. The aim of the chapter is to assess the development of corporate income tax, excise tax on alcoholic beverages, and value added tax, which are considered to be the most risky ones in terms of tax evasion.

Financial Instruments of Regional Economic Policy Implementation

This study is dedicated to the rationalizing of theoretical and methodological principles as well as elaboration of practical recommendations for the improvement of the financial mechanisms of regional development. Scientific findings in the area of financial mechanisms of regional development have been subject to analysis; the purpose and the main objectives have been set and financial principles and instruments of regional development have been defined. The role of financial support has been rationalized in relation to the specifics of the social and economic interests of the region and its steady development. The main purpose of reforming the financial mechanisms has been set as such providing for the social and economic development of the regions in the Russian Federation. It has also been clarified that the financial potential of the region is a key factor in serving social and economic interests of the region by means of financial mechanisms.

Financial Security of Economic Activity

Under the conditions of megarisks, the general level of the world economy's instability rises, the number of unprofitable organizations with overdue debts increases, thus, creating additional threats to the financial security of states. In this regard, presented here, research results have scientific and applied importance for risk management and financial security of economic entities on the basis of the control and analytical concepts which cover: monitoring, diagnostics, prevention of crisis situations, including bankruptcy, corporate fraud and various other financial irregularities in the economy. Accounting for the specifics of economic entities in the course of analysis, diagnostics, and control over their activities is aimed at the creation of effective corporate fraud prevention and bankruptcy management systems. The conceptual principles of information and analytical support, improved methods for analyzing, and evaluating and monitoring financial security contributes to the development of a common methodology for economic analysis and control activities, ensuring their effectiveness and transparency. The comprehensive toolkit for diagnosing financial security allows identifying the areas of increased bankruptcy risks, fraudulent actions or ineffective business management; and unifies the control process, thereby reducing labor intensity and improving the quality of control measures.