Home  Journals  Financial Analytics: Science and Experience  4(366) - 2023 October-December

Provision of rating and analytical products to participants of the Russian corporate bond market as a factor in the development of the national financial market

Vol. 16, Iss. 4, DECEMBER 2023

Article PDF Version

Received: 20 April 2023

Received in revised form: 28 April 2023

Accepted: 6 May 2023

Available online: 30 November 2023

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: D12, G24, G32

Pages: 421–430

https://doi.org/10.24891/fa.16.4.421

Subject. The article addresses the prohibition, enshrined in Russian legislation, on preparation and publication of analytical products by appraisers as a factor that reduces the effectiveness and hinders the development of the Russian corporate bond market.
Objectives. The aim is to update the problem of unequal conditions and opportunities for participation of credit rating agencies, appraisers, and investment advisors in providing rating and analytical products to the Russian corporate bond market actors.
Methods. We employ methods of systematization, comparison, and systems analysis of interactions between subjects of the corporate bond market, which are perceived as unbalanced due to the ban on the preparation and publication of analytical products by appraisers.
Results. The paper underpins the economic expediency of lifting the ban on the preparation and publication of analytical products by appraisers that is fixed in the Russian legislation. The suggestion may be of interest to the subjects of the securities market.
Conclusions. It is advisable that the basic concepts for the development of the financial market, the securities market, the corporate bond market, would include services of developers of rating and analytical products, i.e. credit rating agencies, appraisers, and investment advisers, in the preparation for the reorganization of the market. Lifting the ban on the preparation and publication of analytical products by appraisers, enshrined in Russian legislation, will have a positive impact on solving the problem of information disclosure in the corporate bond market.

Keywords: bond, valuation, rating, market, regulation

References:

1. Fama E.F. Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 1970, vol. 25, no. 2, pp. 383–417. URL: Link
2. Sharpe W., Alexander G.J., Bailey J.V. Investments. Prentice Hall, 1995, 1058 p.
3. Xin Chang, Dasgupta S., Hillary G. Analyst Coverage and Financing Decisions. The Journal of Finance, 2007, vol. 61, no. 6, pp. 3009–3048. URL: Link
4. Efimova O.V. [Sustainable development reporting: Trends, drivers, and challengers]. Vestnik Rossiiskogo universiteta druzhby narodov. Ser.: Ekonomika = RUDN Journal of Economics, 2012, no. 4, pp. 75–82. URL: Link (In Russ.)
5. Chernysheva T.Yu., Ozhogova O.V. [Expert evaluation of forms of borrowed funds of the enterprise]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2013, no. 7, pp. 301–304. URL: Link (In Russ.)
6. Farooq O. Corporate reputation and analyst coverage: Evidence from Europe. Journal of Applied Business Research (JABR), 2016, vol. 32, no. 5, pp. 1301–1308. URL: Link
7. Sundgren S., Mäki J., Somoza-López A. Analyst Coverage, Market Liquidity and Disclosure Quality: A Study of Fair-Value Disclosures by European Real Estate Companies Under IAS 40 and IFRS 13. The International Journal of Accounting, 2018, vol. 53, iss. 1, pp. 54–75. URL: Link
8. Shilovskaya M.S. [Analysis of interrelation between the financial status and the level of corporate transparency of annual financial statements of Russian companies]. Daidzhest Finansy = Digest Finance, 2021, vol. 26, iss. 2, pp. 195–211. URL: Link (In Russ.)
9. Grishunin S., Bukreeva A., Suloeva S., Burova E. Analysis of Yields and Their Determinants in the European Corporate Green Bond Market. Risks, 2023, vol. 11(1). URL: Link
10. Jankowitsch R., Ottonello G., Subrahmanyam M.G. Regulation, Asset Complexity, and the Informativeness of Credit Ratings. The Review of Corporate Finance Studies, 2023, vol. 12, iss. 3, pp. 581–612. URL: Link
11. Saadaoui A., Elammari A., Kriaa M. Credit rating announcement and bond liquidity: The case of emerging bond markets. Journal of Economics, Finance and Administrative Science, 2022, vol. 27, iss. 53, pp. 86–104. URL: Link
12. Ed deHaan, Jiacui Li, Watts E.M. Retail bond investors and credit ratings. Journal of Accounting and Economics, 2023, vol. 76, iss. 1. URL: Link
13. Chunping Bush. Dealing with the conflicts of interest of credit rating agencies: A balanced cure for the disease. Capital Markets Law Journal, 2022, vol. 17, iss. 3, pp. 334–364. URL: Link
14. Pradhan R.P., Arvin M.B., Norman N.R., Bahmani S. The dynamics of bond market development, stock market development and economic growth: Evidence from the G-20 countries. Journal of Economics, Finance and Administrative Science, 2020, vol. 25, iss. 49. URL: Link
15. Shu Tian, Donghyun Park, Cagas M.A. Bond market development and bank stability: Evidence from emerging markets. Research in International Business and Finance, 2021, vol. 58, no. 101498. URL: Link
16. Wahidin D., Akimov A., Roca E. The impact of bond market development on economic growth before and after the global financial crisis: Evidence from developed and developing countries. International Review of Financial Analysis, 2021, vol. 77, no. 101865. URL: Link
17. Lehmann T., Weber M. Auctions versus bookbuilding: The effects of IPO regulation in Japan. The Financial Review, 2023, vol. 58, iss. 1, pp. 1174 –141. URL: Link

View all articles of issue

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 17, Iss. 1 March 2024

Archive