THE FINANCIAL ARCHITECTURE OF RUSSIAN BUSINESS GROUPS

Abstract

The paper discusses the conception of financial architecture of business groups proposed by S. Myers in 1999. We offer the methodology to evaluate the main characteristics of financial architecture of Russian business groups. The methodology bases on data from Internet and includes the main characteristics of financial architecture such as: form and concentration of ownership, form of corporate governance and corporate control, incentives and reasons of creation, size, including amount and types of activities, as well as sources of financing and interaction with financial institutes. On the basis of the data the typical financial architecture of Russian business groups was constructed. Its distinctive features is suggested to be the cross-financing of financial resources; the mechanism of prognosis is proposed as well. The function of its calculation is, in fact, the optimization problem to find the best value in accordance with expert opinion, time series analysis and compliance of limits of financial resources.