Modeling the impact of significant facts on the level of capitalization of Russian companies

Abstract

he article 30 of the Federal Law "On the Securities Market" establishes that significant facts are information that, if disclosed, may have a significant impact on the value or quotations of the issuer's securities and (or) on the decision to acquire or alienate the issuer's securities by any interested person acting reasonably and in good faith. At the same time, there are very few empirical studies proving the influence of significant facts on the value or quotations of securities of Russian issuers. Modeling of such influence in order to manage the value and capitalization level of Russian issuers is advisable for investors, owners and management of Russian public joint stock companies to study the possibilities of managing the value and capitalization level of companies. The solution to this problem is based on measuring the results of the joint-stock company's activities and publicly disclosing the information necessary for making managerial decisions, which in the Russian Federation includes, among other things, significant facts. Significant facts are events that can change the current state of the company, in particular, affect such an indicator of its activity as the level of capitalization, therefore, affect the decisions made by the interested person. A few studies on the impact of significant facts on the level of capitalization of Russian companies have already been conducted earlier, however, since their implementation, a number of regulatory documents have come into force that change the legislative environment and affect, among other things, the composition of mandatory registration and disclosure of significant facts. This paper presents the results of a study aimed at establishing a list of the most significant events characteristic of companies' activities, identifying events that are universal in terms of the frequency of occurrence and significance of consequences, and finding out whether there is a connection between their occurrence and the effects caused in the form of changes in the values of financial indicators. For the research, data from 20 large Russian companies representing the oil and gas, metallurgical, chemical and energy industries were used, and received in the form of reports for the period following the introduction of changes in the regulatory environment.