Various aspects of credit risk have been studied by many researchers. Scientists and practitioners consider different credit risk assessment methods depending on its application, e.g. to determine capital adequacy, to make loss loan provisions, or to estimate its influence on the interest rate. At the same time, there are almost no studies that consider the relationship between loan loss provisioning framework and loan decisions. The study seeks to 1) understand how the practices and procedures of loan loss provisioning impact total gross loans of Russian banks, and 2) identify constraints for insufficient levels of lending and factors that can foster lending.With the use of an econometric model we estimate a quantitative effect of credit portfolio on the growth of loan loss provisions. We base our model on data derived from financial statements of 400 Russian credit institutions between 2014 and 2019. In addition to our empirical model, we analyze statistical data on the development of the Russian banking system and compare the loan loss provisions in Russian and foreign financial organizations. The estimates are based on Russian official statistics and financial statements of banks within and outside Russia. The study reveals that the existing credit risk assessment method that rests on the regulations provided by the Bank of Russia is responsible for excessive loan loss provisions accumulated by Russian banks. This, in turn, affects the volumes of bank loans.In our research we have arrived at the conclusion that the existing loan loss provisioning is excessive. Current loan loss provisions do not correspond to real lending losses. They negatively affect the financial results of credit institutions, resulting in ungrounded refusals to lend, which in turn limits economic growth. These results support the rationale for reinventing the existing framework of loan loss provisioning.
Performance audit is becoming increasingly ubiquitous in commercial and business spheres internationally. Due to itsimportant role in promoting efficient organisational and administrative practices, performance audit is becoming asubject more rigorously analised in the academic sphere.This study seeks to develop and test analytical tools of performance audit in Russian construction organisations. Weplace emphasis on the industry-specific dimensions of information disclosure. We intend to offer a solution to severalcrucial challenges in the field, which will allow for the development of a comprehensive method to implement analyticalprocedures. This is done with a view towards obtaining and collating sufficient and adequate audit evidence to helpachieve business goals.In order to devise a consistent methodology, first, a link is highlighted between construction industry constraintsand performance audit criteria. Second, an algorithm is developed to carry out comparative integrated estimation ofperformance audit criteria in order to shortlist relevant indicators. Third, the algorithm is tested using financial reportingof selected construction companies, which makes it possible to build a consistent system of performance audit criteriaand identify a reliable set of controlled parameters.A profile of practical analytical procedures, performance audit criteria and measurement indicators is formed throughfinancial and performance audit and imbedded statistical methods. Implementing this approach will be seen to closesome information gaps commonly found in the reporting data of construction industry, as it links the subject area ofperformance audit and the objective criteria of effectiveness, efficiency and economy.The findings are presented with reference to existing statistical surveys on construction industry constraints. Whilerecent studies provide a broader picture across construction industry, they do not address its regional aspects. Assuch, within this study we have carried out estimates of performance indicators for construction companies operatingin the Novosibirsk region. The estimates are based on the information available through Professional Market andCompany Analysis System. As a result, a system of performance audit criteria is identified in relation to the dimensionsof effectiveness, efficiency and economy and a framework of controlled parameters is shaped. The level of disclosureconcerning these parameters presented in a company’s reporting is supposed to determine the decisions of stakeholdersand potential investors.In consideration of further research, this study highlights that it is necessary to identify and validate performance criteriain view of the fact that only few construction companies are profitable. The mix of qualitative and quantitative analyticalprocedures demonstrated herein is an effective approach to address the challenges of information integrity assessment.We consider that the most promising aspect of this study is the analysis of how the quality and amount of informationdisclosed in the reporting of construction companies affects their public image and business activities. This can be seento have widespread industry and academic applications. Additionally, our approach represents a suitable framework forpossible adaptation towards not only other industries, but also further development of the methodological approachitself
The article seeks to examine and diagnose the current practices of forming financial and non-financial reporting followed by Russian metallurgical companies with regards to their environmental liabilities. The authors applied quantitative and qualitative methods of information analysis, as well as a morphological approach to generalizing the research results. The research has shown varying degrees of openness of metallurgical companies, which allowed the authors to formulate prospects for further research in this area.
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