jrge

Journal of Reviews on Global Economics

Evaluation of Cultural Impact on Regional Economic Development in Russia Pages 572-581

 

Inna V. Lukashenko and Elena A. Fedorova

DOI: https://doi.org/10.6000/1929-7092.2018.07.53

Published: 12 November 2018  


Abstract: Paper is devoted to Dependence of economic development of the Russian regions on their cultural level indicators. It determines and analyzes the influence degree of cultural components of the region development on its economic factors. The investigated statistical base consists of selected cultural and economic indices taken in the period of 2000-2015 years. The hypothesis of significant influence degree of the visits to museums and in particular, theatres number, on the amount of implemented innovational technologies was confirmed. A hypothesis about the close relationship between the volumes of expenditures of the Russian budget for culture and the level of research and development work, as well as directly the number of innovative industrial technologies introduced was confirmed. Hypotheses about the close interaction of cultural indices and such macroeconomic parameters as GDP growth, the volume of the capital investments have not been confirmed. A weak correlation between library holdings volume and the studied economic indicators was noted. The research can be used in design of the regional development programs, in forming budget priorities of budgets projects, or in taking other management decisions programming the basis for effective social and economic policy of the regions.

Keywords: Budget expenditures on culture, cultural development index, implemented innovative technologies.

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Journal of Reviews on Global Economics

Ratings of the Long–Term Projects: New Approach Pages 645-661

 

T.V. Filatova, P.N. Brusov, N.P. Orekhova and V.L. Kulik

DOI: https://doi.org/10.6000/1929-7092.2018.07.59

Published: 12 November 2018  


Abstract: The paper continues create a new approach to rating methodology: in addition to two papers, which have considered the creditworthiness of the non–finance issuers (Brusov et al., 2018c,d), we develop here a new approach to project rating. We work within investment models, created by authors. One of them describes the effectiveness of investment project from perspective of equity capital owners, while other model describes the effectiveness of investment project from perspective of equity capital and debt capital owners.

The important features of current consideration as well as in previous studies are: 1) The adequate use of discounting of financial flows virtually not used in existing rating methodologies, 2) The incorporation of rating parameters (financial "ratios"), used in project rating, into considered modern investment models.

Analyzing within these investment models with incorporated rating parameters the dependence of NPV on rating parameters (financial "ratios") at different values of equity cost k0, at different values of credit rates kd as well as at different values of leverage level Lwe come to very important conclusion, that NPV in units of NOI (NPV/NOI) (as well as NPV in units of D ((NPV/D) depends only on equity cost k0, on credit rates kd, on leverage level L as well as on one of the leverage ratios lj (on one of the coverage ratios ij ) and does not depend on equity value S, debt value D and NOI. This means that obtained results on the dependence of NPV (in units of NOI) (NPV/NOI) on leverage ratios lj (as well as on the dependence of NPV (in units of D) (NPV/NOI) on coverage ratios ij) at different equity costs k0, at different credit rates kd, at different leverage levels L carry the universal character: these dependencies remain valid for investment projects with any equity value S, any debt value D and any NOI.

Keywords: Long-term projects, rating, rating methodology, discounting of financial flows, Brusov-Filatova-Orekhova theory, coverage ratios, leverage ratios.

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Journal of Reviews on Global Economics

Problems of Determining the Cost of Collateral in the Conditions of Implementation Basel II, III Standards in Russia Pages 662-667

 

Marina A. Fedotova, Tatiana V. Tazikhina, Yana V. Nadezhdina and Inna V. Raeva

DOI: https://doi.org/10.6000/1929-7092.2018.07.60

Published: 12 November 2018  


Abstract: This paper analyzes the impact of the collateral value on the assessment of credit risk in the framework of the Advanced IRB approach and proves its impact on the LGD parameter and also provides a statistical analysis of the linear and multifactor models of the LGD score in order to detect a positive correlation. Based on the analysis, factors that influence the cost of collateral and the valuation of LGD are determined. The results of the research confirm the hypothesis put forward in the study that the valuation of collateral provides a significant influence on the measurement and management of the LGD indicator in conditions of building an Advanced IRB approach.

Keywords: LGD, Advanced IRB approach, collateral value, collateral value change factors, linear and multifactor valuation models LGD.

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Journal of Reviews on Global Economics

Integrating Sustainability Issues into Investment Decision Evaluation Pages 668-681

 

Olga V. Efimova

DOI: https://doi.org/10.6000/1929-7092.2018.07.61

Published: 12 November 2018  


Abstract: The paper investigates the issues of integrating ESG factors into investment decision-making process. Based on the available investor surveys, academic research, the analysis of the Russian companies` non-financial reports, Bloomberg ESG data, Corporate Sustainability and Responsibility indexes and their sectoral aspects, as well as Russian ecological-stock index ERAX and stock exchange index MICEX dynamics the paper concluded that ESG factors have a material impact on corporate financial performance. At the same time there are barriers to the full ESG integration in the investment process primarily connected with the lack of standardized data, information comparability, reliability, completeness and timeliness; limited knowledge and guidance for ESG risk and opportunity measures and appropriate analytical tools as well as lack of dialogue between the investment community and the reporting companies. To contribute to the problem development this paper presents an approach of integrating ESG factors at different stages of investment analysis and business valuation.

Keywords: Sustainability, investment decision process, ESG integration, ESG risks and opportunities, valuation models.

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