Transparency Of Russian Companies And Their Activity Decrease In The Financial Markets

Abstract

The authors consider the impact of economic sanctions, turbulence in stock markets on the willingness of companies to disclose information about their economic activities. There is a decrease in the number of new shares placements by Russian companies (IPO) in 2018-2019 on the Russian and foreign stock exchanges. The authors analyze the concepts of "delisting" and "buyback", systematize types and causes of these phenomena while specifying the legislative norms regulating these transactions. The authors provide a list of Russian companies that have delisted and repurchased shares from foreign stock markets and PJSC Moscow Exchange MICEX-RTS, point to differences in the objectives of companies conducting transactions on buyback, consider the example of PJSC LUKOIL, which conducted buyback to maintain the value of shares, and PJSC MegaFon, which conducted buyback for delisting. It is concluded that in a greater number of cases delisting is associated with a decrease in the investor activity and the threat of sanctions against companies and major shareholders. The authors emphasize the issue of information protection in the new economic conditions. The government of the Russian Federation adopted resolution No. 400 of April 4, 2019, allowing Russian companies not to disclose information that may entail sanctions. A large number of Russian companies have used this right. The impact of repurchase and delisting on corporate governance is considered in this article too. Under the sanctions of Western countries, the transparency of the corporate governance in Russian companies will not have any drivers for further growth and increase.