The Banking Sector and Corporate Finance

Fumikazu Sugiura
Additional contact information
Fumikazu Sugiura: Teikyo University

Chapter 10 in Organization and Development of Russian Business, 2009, pp 235-257 from Palgrave Macmillan

Abstract: Abstract A corporate financing mechanism plays a pivotal role in a market economy for growth. This chapter tries to clarify, both from a macro and a microeconomic viewpoint, what sort of mechanism is emerging in Russia. The country has been experiencing positive economic growth since 1999. Now that the effect of the drastic depreciation of the exchange rate in 1998 has faded, Russia is facing a test as to whether a sustainable economic growth is possible even in the event of adverse price movement of major export items, such as oil and gas, on international markets, or in other words, as to whether a sufficiently self-sustaining system has been developed to enable continued economic growth under market-economic principles. In the context of corporate finance, the enterprises, which used to rely completely on the state budget and the national bank (Gosbank) for their financing needs under the erstwhile command economy, can no longer hope to do so after the regime change. At the same time, they are now capable of making independent decisions regarding their financial needs. Their behavior is influenced not only by their needs but also by the efficiency of the financial sector as well as by various institutional frameworks surrounding it. Reforms to the latter were initiated from scratch after the regime change and have been evolving ever since. Hence, a study of enterprise behavior in the area of corporate finance would also clarify the extent to which the economic system has been transformed (Sugiura 2007).

Keywords: Banking Sector; Corporate Finance; External Finance; Communication Sector; Local Bank (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-24949-3_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230249493

DOI: 10.1057/9780230249493_11

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().