27 Lebedeva Ulitsa, Room 306
Phone: +7 (342) 200-95-39
School Head — Mariia Molodchik
PhD, Associate Professor
State owned theatres are balancing between maximizing attendance and revenue. Using Perm opera data we reveal an effect of price on demand for various types of performances and places. Using censored quantile regression we estimate parameters of demand function. We reveal that demand is weakly elastic by price. Moreover, we prove that estimates of demand function parameters are biased if we not control for quality of performances and seats and for limited capacity of a house.
This paper explores the relationship between socioeconomic factors—particularly, the rate of time preferences and alcohol consumption in Russia. The rate of time preferences shows an individual’s willingness to delay the utility from consumption to future periods of time. The relationship between this rate and indicators of alcohol consumption is examined separately for men and women. We find significant differences in men’s and women’s patterns of consumption of alcohol. Our findings suggest that the rate of time preferences, along with age, educational level, income, place of residence, and health substantially, affects an individual’s decision to drink alcohol. We show that employment status is endogenous to alcohol consumption and that estimating a system of binary equations is necessary.
Purpose: The paper explores factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap in competitiveness.
Design/Methodology: The framework of resources-based view is used to examine causality between the resources employed and competitiveness measured by Economic Value Added. Controlling for the most relevant factors, we place an emphasis on those intangible resources that are considered in the literature as being the most critical for Russian companies when contending for global competitiveness: productivity, strategic long-term orientation of companies, quality of human capital, innovative behaviour of companies, foreign investments, and corporate networks. The dataset of more than 1000 Russian companies benchmarked to the dataset of more than 1600 European companies during a period of 10 years: 2004-2013 is analyzed to test the hypothesis put forward.
Findings: Causal effect of the gap in intangible endowment and competitiveness of Russian companies compared with European rivals is revealed. According to our analysis, gaps in productivity, strategy implementation, qualifications of the board of directors and company location play critical roles in the global competitiveness of Russian companies. Meanwhile, underinvestment in structural resources, like those such as ERP systems and other intangible assets, are considered positive factors that reduce gaps in EVA.
Originality/value: The paper introduces original approach for studying the gap in performance caused by gap in employed resources.
In the era of the knowledge economy intangibles are recognized by investors as pivotal value drivers. This paper proposes an intangibles-based tool for picking companies with value growth potential.
We suggest a model to select companies that effectively use unique intangibles (in contrast to the generic intangibles). To test whether these results can be explained by skill we implement a bootstrap procedure. Companies that are able to use unique intangibles efficiently are combined in a portfolio.
Only 22% of companies have the skills to use unique intangibles, but all of them are characterized by the efficiency of their use. The created portfolio demonstrates a higher cumulative return, Sharpe ratio and lower drawdown than S&P500. We also find the increasing importance of intangibles for investors during the crisis.
Both the created portfolio and the benchmark (S&P 500 index) are analyzed without transaction costs. Also the benchmark construction is based on equal-weighted sum of company M/B ratios.
We take into account the quality of intangibles (efficiency of unique intangibles use) while previous research of portfolio forming methods is based on quantity of intangibles.
This research combines theories of civil society and local self-governance in describing citizen participation in solving neighborhood problems. Similar to neighborhood associations elsewhere, in Russia “organizations of territorial social selfgovernance” (TOS) have been formed to facilitate citizen participation in improving their communities. This research presents the first ever study of TOS across all Russian regions, drawing on a range of secondary data, lists of registered groups, and a phone survey of potential collaboration partners conducted in 2015. This paper explores the current state of these groups and their potential for collaboration with other civic organizations, government and business.
The purpose of of the paper is to explore consumers' willingness to purchase a processed food containing GM ingredients in Tajikistan.
In this study, we use a sample of 192 listed shipping companies and employ a logit model in order to investigate the determinants of the probability of default. We enhance our analysis by isolating not only the cases of company liquidations but also those cases where companies had to change their legal status due to warning liquidity signals. Our key findings are in line with prior research and moreover we depict a changing trend in the marginal effects of relevant variables, on the probability of default. We further show, through an empirical application, how the obtained results can be used in a managerial decision-making process and in a bank credit underwriting process in order to assess the creditworthiness of a shipping company.
People are intent to make similar choices especially in consumer goods markets. To address both explanations of this persistence, i.e. state dependence and heterogeneity in preferences, we use random coefficient logit model based on scanner panel data on juice purchases. The product differentiation of the chosen category allows us to model three dimensions of state dependence on brand, size and flavor characteristics. We provide evidence that the persistence in brand choices is positively correlated with persistence in size and flavor choices, thus the consumer pattern is prone to be inertial or variety seeking in every product characteristics. Simultaneously we show that the more sensitive to price and promotional activities consumers are, the less inertial is their behavior.
People are intent to make similar choices especially in consumer goods markets. To address both explanations of this persistence,
i.e. state dependence and heterogeneity in preferences, we use random coefficient logit model based on scanner panel data on
juice purchases. The product differentiation of the chosen category allows us to model three dimensions of state dependence on brand, size and flavor characteristics. We provide evidence that the persistence in brand choices is positively correlated with persistence in size and flavor choices, thus the consumer pattern is prone to be inertial or variety seeking in every product characteristics. Simultaneously we show that the more sensitive to price and promotional activities consumers are, the less inertial is their behavior.
This study explores the value creation and agent conflict in a company that employs intangibles. The conceptual model of value creation is used to test how intangibles affect companies' outperforming and simultaneously build investors' expectations. The research is carried out using a sample of more than 1,650 European companies covering the period from 2004 to 2011. The study reveals the diverse impact of intangibles on the outperforming of a company by Economic Value Added (EVA) and its ability to create market value (MVA). The study discovers that managers are prone to set positive signals for investors rather than create sustainable competitive advantages. This work contributes primarily to the field of corporate governance in companies that employ intangibles. The issues to be considered when designing rules and incentives for proper communication between managers and investors that drive both outperforming and sustainable value creation are emphasized.
Purpose - The purpose of this paper is to examine the relationship between export activity and firm performance for a positive impact of foreign direct investments. We also analyse two possible causes of the effect: technology transfer and financial support. The theoretical background is rooted in the resource-based approach taking into account multinational companies’ perspective and the specifics of emerging markets. Design/methodology/approach - We propose testable hypotheses based on a review of the theory. To test the hypotheses, we build a sample of over 500 Russian public manufacturing firms covering the period from 2004 to 2014 and estimate regression models. Given concerns about endogeneity, the instrumental variable approach for panel data, using GMM-estimator, is implemented. Findings - Consistent with the view that foreign direct investments generate spillover effects, our results support the positive impact of foreign ownership on the link between exports and firms’ performance. Our results underline the importance of foreign ownership: shareholders from developed countries can provide benefits to exporting companies through transferring advanced technologies and loosening financial constraints by lowering interest and raising availability of bank loans.
Originality/value - We provide new insights on the relationship between exports and firm performance. Given our focus on Russia, a market with high potential to draw foreign investments, our research sheds some light on how emerging country firms can benefit from having foreign shareholders with paying attention to geographical distribution of such investments. Specifically, through the overcoming of technological barriers and loosening of financial constraints, we show empirically that foreign capital can make up for weak local institutional infrastructure and enhance the company’s’ returns from internationalization.
Studying the heterogeneity of consumers allows to price the product differently for consumer segments or groups of a product. In this paper we estimate a model of aggregate demand for Perm Opera and Ballet Theatre focusing on the heterogeneity in price effect on demand for tickets on different performances and seats. We estimate parameters of demand function using censored quantile regression that accounts for the limited capacity of the theatre house. We reveal the price effect variation across different types of theatrical productions and seats with lower elastic demand on ballets and for seats of higher quality.
The present study analyzes Perm, Russia residential housing market supply focusing on sellers' heterogeneity. Many indicators of heterogeneity were consi- dered in the previous research, and all of them were proved to have a great impact on housing prices and time on the market. However, the gap exists in evaluating sellers’ pricing strategies in dynamics mostly because of unavailable data. Current study clears out the effect of time on price using data on asking price dynamics. We employ semiparametric sample selection estimation proce- dure which accounts for the unobserved property characteristics and non-random selection of objects out of the sample. We consider two main types of sellers: real estate agents and property owners, and show that real estate agents appear to be more impatient compared to property owners. Specifically, they set a lower asking price initially and are more likely to revise it over time if the object is not sold.
Purpose: This paper examines heterogeneity of preferences of mortgage borrowers of Russian state-owned supplier of residential housing mortgages.
Methodology: Analysis takes into account the underwriting process and the choice of contract terms of all loans originated from 2008 to 2012. Our dataset contains demographic and financial characteristics for all applications, loan terms and the performance information for all issued loans by one regional bank which operates government mortgage programs. We use a multistep semiparametric approach to estimate the determinants of bank and borrower choice controlling for possible heterogeneity of preferences, sample selection and endogeneity of contract terms.
Findings: We found that demand of low-income households who are unable to afford improving of housing conditions by other instruments than government mortgage is less elastic according to the change both in interest rate and maturity compared with higher incomed households.
Originality: The main contribution to the literature is modeling choice of contract terms as interdependent by structural system of simultaneous equations with heterogeneous marginal effects.
In pursuit of economic growth and development, companies have tried to strike a balance between competition and monopoly power. This paper reviews the evidence on industrial concentration and its economic correlates (notably firms’ performance as measured by innovation output) in frame of emerging markets conditions. Competition theory was developed in countries under assumptions that do not necessarily fit the emerging countries. Our main research question is whether the level of local market concentration influences (and if it does, in which way) on innovation activity undertaken by companies operating on emerging markets. Apart from linear association, the empirical literature suggests that industrial concentration could exhibit an inverted U-relationship as far as its link to certain economic indicators of success, such as innovation output. We measure concentration by using the Herfindahl-Hirshman Index. This paper finds empirical evidence in support of the Schumpeterian hypothesis that more concentrated industries stimulate innovation and observes the inverted U-relationship curve. Further, the empirical model demonstrates the relative importance of technological leadership in concentration industries for enhance innovations. This suggests a role for recalibrating firm and industry policies amend.
Prior research on market timing theory in relation to developing markets only analyzes equity issuance and provides contradictory results. Using a sample of large Russian companies in nonfinancial sectors between 2008 and 2015, this paper analyzes both equity and debt market timing to explore the impact of market timing on firms’ capital structure. To test the robustness of the results, we use several proxies for both timing types and include Russian-specific control variables of corporate governance and ownership. The results show that Russian companies time the debt market to attract extra capital if the value of the interest rate in the current period is lower than the rates in previous periods. The net debt issued decreases when interest rates are high, which indicates debt market timing. Consistent with previous studies, we find that Russian companies do not time the equity market. Added corporate governance factors suggest that younger boards of directors prefer debt financing to equity issuance, as well as more experienced ones. State ownership is negatively connected with leverage.
This paper investigates how the recent crisis of 2008 changed relations between innovation and firm performance in Western Europe. We apply a structural framework of CDM modelling, which incorporates different stages of the knowledge creation process and takes into account the complex nature of innovations. The study is based on a balanced panel data of 420 listed manufacturing firms from the U.K., Germany and France. All the information is gathered from common sources, thereby reducing subjectivity, a typical problem in the field. We found, the crisis resulted in appreciable changes in the model. The most important evidence is enhancement of the role of firm resources in the post-recession period. We also reveal larger barriers for innovations, increased uncertainty and lower state dependence in R&D engagement, product creation and economic performance. These results could indicate the ‘cleaning effect’ of the crisis, which has worsened the business environment and enhanced competition.
Purpose: the paper aims to theoretically justify the link between the endowment of intellectual capital and product novelty, and to find empirical evidence for such a link for SMEs in the Russian business environment.
Design/methodology/approach: the study implements an intellectual capital based view and the concept of novelty proposed by Schumpeter to highlight the crucial role of knowledge for transition to a higher level of competition. Drawing on a literature review, the authors determine three specific components of intellectual capital: foreign human capital, ICT capital developed at an international level and cooperation with foreign partners in order to pinpoint a premier position on the next level of the market. For empirical testing of the proposed model, a dataset comprising more than 1400 Russian manufacturing SMEs was used. Estimations were performed with the help of a principal component analysis and ordinal logistic regression.
Findings: the findings reveal that higher intellectual capital endowment promotes the level of product novelty. For Russian manufacturing SMEs, the most important is R&D capital. At the same time, ICT capital developed at an international level and cooperation with foreign partners contribute significantly to the probability of transition to a new market level.
Research limitations/implications: the study employs cross sectional data that restrict the analysis of innovation dynamics.
Practical implications: the study appears to have policy implications for the development of governmental programmes for Russian SMEs such as the creation of IC awareness, training for IC management, special programmes for R&D support and ICT capital accumulation.
Originality/value: this paper proposes a new approach for investigating the “knowledge-innovation” link, shifting the focus from a general analysis of product innovation to a level of novelty for product innovation. This is the first empirical study of the relationship between intellectual capital components and the level of product novelty for SMEs in the context of the Russian business environment.
Purpose of the paper is to examine macroeconomic factors that are significantly related to consumption of various alcoholic beverages in Russia.
Design/Methodology. We consider 78 Russian regions for the period from 2008 to 2012. Data was collected from the Federal State Statistics Service of Russia. We investigate differences in the volume and structure of consuming absolute alcohol in aggregate, vodka, beer, and wine. Estimating fixed effect panel models enables us to reveal the relationship between alcohol consumption and the set of macroeconomic factors that include economic development of regions and living standards, the effect of unemployment, and the degree of urbanization.
Findings. Alcohol consumption is procyclical in Russia. Two main alcoholic beverages in Russia are vodka and beer. Welfare and urbanization of regions are positively related to consuming alcohol. Unemployment rate affects consumption of different types of alcoholic drinks in a different way. For absolute alcohol, vodka and beer, this relationship is negative. However, it is positive for wine. The effect of unemployment on absolute alcohol and vodka increases over time. For beer, it is remained unchanged. For wine, this effect weakens over time.
Originality/value. To our knowledge, our paper is the first one to analyze macro-level factors of consumption of different alcoholic beverages in Russia. Conclusions made on aggregate macroeconomic data add to understanding of drinking patterns in Russia as a country with the large territory and great regional differences. Findings can be used for correcting the alcohol policy implemented in the country and in particular regions.