New Risk Management Research Has Been Reported by a Researcher at Corporate and Project Management Institute (Moscow (Business Profitability And Monetary Policy of The State): Insurance – Risk Management

NewsRx Policy and Law Daily

2023 MAR 02 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Research findings on risk management are discussed in a new report. According to news reporting from the Corporate and Project Management Institute (Moscow by NewsRx journalists, research stated, “The author examines the features of the management policy and the monetary policy of the state on the profitability of the activities of Russian public companies (business profitability). The tightening of the monetary policy of the state (in particular, the growth of the key rate of the Bank of Russia without reference to the return on assets) may negatively affect the profitability of economic activity.”

Our news correspondents obtained a quote from the research from Corporate and Project Management Institute (Moscow: “The indicator of dividend payments is a signal for shareholders and potential investors. In addition, dividend payments are an indicator of the financial limitations of companies. Financial constraints are associated with the problem of adverse selection of financing - the choice of a source of financing taking into account its price. Effective management of current assets will allow rational use of them as an additional source of investment. The indicator of the contribution of management or internal growth allows you to evaluate external factors: market fluctuations, macroeconomic features, as well as the actions of financial speculators. This indicator establishes the real contribution of management to the value of the company. Systematic unprofitability of the company’s economic activity is a consequence of short-sighted financial policy or erroneous strategic decisions on the part of management. Management acts in accordance with fiduciary duties of integrity and reasonableness in the interests of the company and its shareholders expecting an increase in the value of the business. Therefore, the management decision should be made from the position of maximising market capitalisation.”

According to the news reporters, the research concluded: “Then Russian public companies will act in the logic of a precautionary motive, saving a significant part of the funds for subsequent investment in priority projects under conditions of financial restrictions and sectoral sanctions. The growth of sales provides additional opportunities for the company to invest. The Wald, Breusch - Pagan and Hausman tests were carried out in order to identify an adequate forecasting model.”

For more information on this research see: Business Profitability And Monetary Policy of The State. Strategic decisions and risk management, 2023,13(4). (Strategic decisions and risk management - http://www.jsdrm.ru). The publisher for Strategic decisions and risk management is Real Economy Publishing.

A free version of this journal article is available at https://doi.org/10.17747/2618-947x-2022-4-326-332.

Our news editors report that more information may be obtained by contacting S. I. Lutsenko, Institute for Economic Strategies of the Social Sciences Division of the RAS (Moscow, Russia), Corporate and Project Management Institute (Moscow, Russia).

ORCID is an identifier for authors and includes bibliographic information. The following is ORCID information for the author of this research: S. I. Lutsenko (http://orcid.org/0000-0002-0957-5375).