Domestic Companies Research Articles

Multinationals, research and development, and carbon emissions: international evidence

ABSTRACT We investigate the relationship between research and development (R&D) and firm-level carbon emissions to determine whether firm type matters. Multinational corporations (MNCs) with high-level R&D expenditure have a greater ability than domestic companies to generate technologies that will contribute to controlling environmental pollution and climate change. However, we know less about whether MNCs contribute to reducing carbon emissions worldwide, because they also have the ability to overcome controls on pollution levels by shifting their production facilities from regions with more restrictions to those with fewer restrictions. The sample we use includes roughly 20,000 firm-year observations from 44 countries for the period 2003-2019. We find that MNCs decrease their carbon emissions by increasing their R&D spending more than domestic companies do. We further demonstrate that foreign direct investment (FDI) creates opportunities for MNCs to adjust their overall carbon emissions if they are located in developed countries. Key policy insights R&D investment in low-carbon technologies and practices decreases carbon emissions intensity and the impact on average is larger for MNCs than for domestic companies, showing that firm-type matters to emission reduction outcomes. MNCs manage their geographically diversified production so as to avoid reducing overall net global carbon emissions. MNCs may seek to operate in places that are weaker in enforcement of emissions reduction, which in turn raises their net global carbon emissions. MNCs located in developed countries are comparatively more important as corporate actors to drive carbon emission reductions due to changing location of operations.

American versus domestic digital companies in the Chinese market

The digital economy has become an increasingly important part of the world economy. It is vastly concentrated in two economies, namely, the United States and China. The main aim of our study is to investigate Chinese digital companies and government policy enabling the rapid development of the country’s digital economy and the largest American digital companies’ performance in the Chinese market. Our findings show that the largest American digital companies, which are globally active players, usually have a very limited market share in different segments of the Chinese digital economy or have been forced to leave the Chinese market after a short period of operation. In the future, Chinese government policy will continue to ensure the priority role of domestic digital companies in the upgrading and structural transformation of the Chinese economy driven by services, high-tech sectors, and consumption while limiting the role of American digital companies.

Важные аспекты финансово-хозяйственной деятельности компании в настоящих условиях ведения бизнеса

The article reveals important aspects of the financial and economic activities of modern economic entities in turbulent conditions. The instability of the economic situation, the epidemic caused by Covid-19 in 2020-2021, had a negative impact on most domestic companies, regardless of the scale and scope of their activities. Moreover, both small companies and corporations suffered, including Gazprom PJSC, Lukoil PJSC, Russian Railways OJSC. Some were eventually forced to leave the market. Large corporations urgently looked for ways and means to adapt to modern realities, finding solutions to existing problems and ways to reduce threats to their functioning.

Legal Basic Analysis of Unlicensed Futures Options Trading (Online Broker Case Study)

The purpose of this study is as follows to determine the mechanism for licensing and regulatory agreements of the parties related to futures options trading and to find out the legal review of futures options trading based on positive law and Islamic law. The approach method used in this study is the normative method, because in this research what will be examined are legal rules, legal principles regarding the legal basis of unlicensed futures options trading (case studies of online brokers). The type of research used is descriptive, namely to describe clearly the legal basis for trading futures options without a permit (online broker case study). The results of the study explain that the provisions regarding the licensing mechanism and the regulation of the agreement of the parties related to futures option trading are explained in Regulation Number 83/BAPPEBTI/Per/06/2010 concerning Procedures for the Implementation of Promotional Activities or Advertising, Training, and Meetings in the Field of Commodity Futures Trading. Any party who violates this provision will be subject to sanctions in accordance with the applicable provisions. For domestic futures companies, their business licenses will be revoked. As for foreign companies, CoFTRA has the right to ask the police to investigate these companies. In fiqh, this futures contract is referred to as a qad salam with "salam object" (al-muslam fih), is called bai'ul benefit (benefit sale and purchase). Determination of margins, in accordance with Surah an-Nisa' Verse 197.

Research advances in treatment methods and drug development for rare diseases.

As the incidence of rare diseases increases each year, the total number of rare disease patients worldwide is nearly 400 million. Orphan medications are drugs used to treat rare diseases. Orphan drugs, however, are rare and patients often struggle to utilize them and expensive medications during treatment. Orphan drugs have been the focus of new drug research and development for both domestic and international pharmaceutical companies as a result of the substantial investment being made in the field of rare diseases. Clinical breakthroughs have been made in every field, from traditional antibodies and small molecule drugs to gene therapy, stem cell therapy and small nucleic acid drugs. We here review the therapeutic means of rare diseases and drug development of rare diseases to show the progress of treatment of rare diseases in order to provide a reference for clinical use and new drug development of rare diseases in China.

ESG-transformation Policies and Procedures for Russian Companies

ESG-transformation of Russian companies is inevitable. The introduction of a “carbon” tax in many countries, fines for exceeding the level of greenhouse gas emissions provided for in Russian legislation, the introduction of adaptive and transformational sustainable development projects and their verification systems do not leave domestic companies any other way of development. For ESG transformation, companies need to develop and implement a package of policies and procedures. The study of the experience of leading Russian companies allowed us to define a framework list of policies and procedures necessary for ESG transformation and recommend the priority of their implementation. The purpose of the study is to identify and systematize the policies and procedures necessary for the ESG transformation of the corporation. The objectives of the study are the analysis of documents of Russian companies reflecting the implementation of the ESG agenda; the definition of framework policies and procedures and recommendations on the priority of their implementation. The study used methods of generalization, analysis and synthesis in terms of the study of methodological and legislative approaches to the formation of the ESG strategy of the corporation. It is necessary to start the transformation with the development of the G — corporate governance policy. Within the framework of this policy, the initial ones are image and control procedures, inventory of greenhouse gases, analysis of the industry value chain.

Ways of preserving investment activity of insurance companies during martime

The article analyzes the key indicators of domestic insurance companies and assesses the state of the insurance market in Ukraine in the pre-war period. An analysis of innovations in the insurance market regulation system of Ukraine was carried out, namely the adoption of the Law of Ukraine "On Amendments to Certain Legislative Acts to Improve Functions on State Regulation of Financial Services Markets" and the Law of Ukraine "On Insurance". The dynamics of insurance companies' activity in the insurance market of Ukraine in the pre-war period and during the war is studied. The analysis of directions of placement of assets and reserves of insurance companies is carried out. The interaction of the insurance market with the regulator of the non-banking services market by the National Bank of Ukraine during the imposition of martial law in the country is analyzed. The risk standards for the placement of insurance assets and reserves by insurance companies in Ukraine in the pre-war period have been studied and recommendations for regulatory changes during martial law have been developed. The mechanism of state regulation of investment activity of insurance companies by the Solvency II directive is analyzed, the problems of the Ukrainian approach are outlined and the methods of regulation of investment activity during martial law are offered. Measures to stabilize the national insurance market and preserve the investment activity of Ukrainian insurance companies are proposed. It is concluded that the use of SCR (Solvency Capital Requirement) for investment activities of insurers in Ukraine, in particular, when calculating investment risks on several models, the main of which is the so-called “Standard formula” given the correlation between investments types.

ESG-strategizing of industrial companies: domestic and foreign experience

Strategic development of social and economic agenda in corporate sector of economy is a noticeable trend. Strategic leadership of the companies in the 21st century is impossible without consideration of the economic and public efficiency issues. Investors tend to study non-financial factors within the investment analysis to reveal non-system risks and find strategic opportunities for growth. ESG-strategizing deals with extensive directions of the company activities such as human resources policy, ethics, corporate management, corporate social responsibility, responsible investment, etc. Achieving high results in ESG-strategy triggers development of the company strategic brand, builds up long-term loyalty of the employees, investors and government agencies, as well as increases the trust of local residents in the regions of the company’s presence. The author applies the methods of analysis and synthesis, comparison and generalization. The article contains analysis of the best practices of the implementation of ESG-standards into the activity of domestic and foreign companies in different industrial sectors including automobile, oil and gas, mining and creative industries. Basing on the conducted industry benchmark the author has developed conceptual architecture of ESG approaches’ implementation into the company development strategy. Such documents of the strategy as the mission and the vision should point out the company’s commitment to ESG principles. Considering the importance of communicating information to different actors correctly, the author adduces a set of tools of the strategic communication system. Use of the strategic communication system for promoting ESG-standards should be directed towards both the external and internal environments of the company. Digital tools of strategic communication meet the criterion of zero hydrocarbon emission in the most appropriate way.

MODERN REALIA OF BUSINESS PROCESS DIVERSIFICATION WITHIN THE EUROPEAN INTEGRATION FRAMEWORK

The article offers new insights into Ukrainian business integration processes in the context of entering European markets. The study presents a new model which relies upon the most critical factors of business process diversification for the competitive entry of domestic companies into new markets. A strong focus is placed towards the significance of the European market for the Ukrainian economy. A comparative survey of the Ukrainian and European economies has been conducted. The paper also explores major European market trends from the historical perspectives as well as reveals the latest imperatives including the globalization context, along with substantiating the need for a broader entry of Ukrainian businesses into European markets. The research provides evaluation of the objectives and risks associated with European market entry strategies of domestic enterprises. The study attempts to explore the key challenges and weaknesses of the Ukrainian economy inherited from the planned economy of the Soviet Union, as well as those intrinsic to market economies that have undergone a difficult path from total collapse to becoming economically independent. The paper reveals a set of decisive factors affecting companies’ success in their progress towards European economic integration as well as develops a pool of indicators that are critical to enabling entry to European markets with their established relationships, segments and economic patterns. A special emphasis is put on the viability of this model in the settings of globalization and aggressive economic and market expansion of Chinese business. Apart from that, the study focuses on the consumer industry market segment as a sector driving the national economy. The findings have detected the effects from the following five impact factors, i. e. uniqueness, quality, promotion, personal sales and personnel training contributing to further integration into the European market along with revealing their synergistic relationships. It is argued that successful capture of the European markets is hardly possible when one of the above factors is weak, and on the contrary, a comprehensive business support suggests the presence of all five strong factors – the weakness of just one of them will make it ineffective. This research provides implications for investigating possible effects from this model in imposing changes to the content of higher education study programmes in the consumer goods segment. According to the results of the study, among those five factors, personnel training is paramount in expanding Ukrainian businesses’ integration into European markets.

성장마인드셋, 고정마인드셋이 잡크래프팅을 매개로 혁신행동에 미치는 영향과 무형식학습의 조절효과

The purpose of the study is to examine the effect of mindset on innovation behavior through job crafting. Mindset’s effect on innovation behavior was confirmed by comparing the effect of a growth mindset with that of a fixed mindset. The study also verified the moderating effect of informal learning. For this study, a survey was conducted on 261 organizational members at domestic companies. The following is the results of the study: First, analysis of the relationship between a growth mindset and innovation behavior found that a growth mindset did not have a significant and direct effect on innovation behavior. A fixed mindset did not have any direct effect on innovation behavior either. Second, it was found that job crafting had a fully mediating effect on the relationship between a growth mindset and innovation behavior. Likewise, it was confirmed that job crafting had a fully mediating effect on the relationship between a fixed mindset and innovative behavior. Third, it was found that informal learning had a moderating effect on the relationship between a growth mindset and job crafting. On the other hand, it was confirmed that informal learning had no significant moderating effect on the relationship between a fixed mindset and job crafting.

Relationships among Firm’s Convergence, Knowledge Management, and Innovation Performance

급변하는 시대에 기업은 부가가치를 창출하고 시장 경쟁력 확보를 위한 새로운 돌파구로써 융합(Convergence) 을 채택하고 있다. 융합은 기술뿐만 아니라 다양한 분야에서도 활용되어지며 기업은 융합을 활용하여 혁신성과를달성하고자 한다. 융합을 지향할 경우 새로운 지식을 도입하고 활용하고자 하는 지식경영활동을 수행할 때 보다더 높은 혁신성과를 창출할 것이다. 이에 기업의 융합(기술화, 서비스화, ICT화)지향이 제품 및 공정 혁신성과에 미치는 영향과 지식의 원천을 기준으로 한 내․외부 지식경영활동이 혁신성과에 어떠한 미치는지를 실증적으로 검증하고자 하였다. 선행연구를 기반으로 가설과 측정문항을 구성하였고 국내 전통 제조 기업을 대상으로 설문조사 및 분석을 수행하였다. 연구결과 16개의 가설 중에 8개가 채택되었다. 본 연구에서는 융합을 지향하는 유형에 따라 혁신성과의결과가 다르게 나타나 혁신 성과를 달성하기 위한 융합의 방향성을 제시하였고, 융합 지향과 혁신성과 간의 관계에서 지식경영활동의 매개효과를 검증하였다. 융합 지향의 성과가 단기적인 성과로 이루어지지 못하는 점을 감안하여 혁신성과에 대한 시계열적 분석과 기업유형별로 혁신성과를 달성하기 위한 융합 유형에 대한 표준화의 필요성을 향후 연구방향으로 제시되었다.In order to respond to a rapidly changing era and create added value, companies are adopting ‘Convergence’ as a new breakthrough to secure competitiveness in market. Convergence is utilized in not only technology but also in various fields, and companies want to achieve innovation performance by utilizing convergence. In the case of orienting convergence to achieve innovative performance, higher innovation performance will be created than when performing knowledge management activities to introduce and use new knowledge. Therefore, in this study, it was intended to be verified empirically the effects of corporate convergence(Technicalization, Servitization and ICT conversion) orientation on product and process innovation performance and how internal and external knowledge management activities based on knowledge sources have an effect on innovation performance. Hypothesis and measurement items were constructed based on prior research, and surveys and analysis were conducted on domestic manufacturing companies. As a result of the study, 8 out of 16 hypothesis were accepted. In this study, since a result of innovation performance appeared differently according to the direction of convergence orientation, it suggested a direction for achieving innovation performance and verified the mediating effects of knowledge management activities in the relationship between convergence orientation and innovation performance. Considering that the convergence-oriented performance cannot be achieved in the short term, the need for time-series analysis on innovation performance and standardization of convergence types to achieve innovation performance by company types is suggested as a future research direction.

제3자 복호화명령의 도입에 관한 비교법적 고찰

Even if the investigative agency knows that the crucial information necessary to investigate the crime is stored in the mobile phone, unless the password is released, there is no proper way to confirm or secure it. Although the number of cases requiring forensics that can find the substantive truth of a case using digital forensic technology is rapidly increasing every year, successful decryption of mobile phones is not so common that they are considered a major obstacle to digital forensics success. It is a social problem that the case is buried because the relevant information necessary for the discovery of the substantive truth of an important event is not secured in a timely manner.
 As a solution, the method of forcing the suspect to release the mobile phone password or requesting their cooperation through the decryption order system can be considered. However, this may excessively infringe on personal privacy and may violate the constitutionally guaranteed privilege to refuse self-incrimination. This is because the violation of the right to refuse to make a statement can be a problem depending on whether it is understood as personal information or a statement according to the characteristics of the mobile phone password.
 Therefore, it was investigated whether the introduction of the decryption order to unlock the password of the mobile phone infringes on the basic rights guaranteed by the Constitution. This is because the degree of protection will vary depending on whether the view of the password is personal information or personal information and whether it is a statement or not, that is, depending on the nature and status of the password. In this case, if it is impossible to force a decryption order on individuals such as criminal suspects due to the fundamental rights guaranteed in the Constitution, we examine whether it is possible to force a decryption order or request cooperation from a third party, a mobile phone manufacturer, to solve this problem. searched for. In particular, third parties and companies were divided into mobile phone manufacturers and information and communication service providers, and reviewed from the perspective of protection and exceptional use of personal information.
 In principle, personal information is subject to protection under the current law, and exceptional use other than the purpose of collection is specifically stipulated in the “Personal Information Protection Act”. However, since the specific interpretation and application are not necessarily clear, we looked at foreign legislative cases comparatively in relation to the provision of personal information to a third party. Although there are means to acquire, this method of cooperation takes a long time, so it was judged that it is not an appropriate means for securing evidence for digital crimes in the information society. In addition, the introduction of a decryption order to a third party is necessary as a means to secure criminal information not only to domestic companies under judicial jurisdiction but also to global companies abroad. It also struggled to find a harmonious way with an appropriate balance to raise the problem of discrimination.

ПРОБЛЕМИ ФОРМУВАННЯ ТА ВПРОВАДЖЕННЯ СТРАТЕГІЧНОГО УПРАВЛІННЯ ВЕЛИКИХ КОМПАНІЙ УКРАЇНИ

The article examines the problems of the formation and implementation of strategic management of large Ukrainian companies. A study of the content of strategic management and its process of formation and implementation in the organization was conducted. On the basis of the analysis of scientific literature, a proper definition of strategic management was formulated. The main ways of increasing the market share of domestic companies are identified. An analysis of the strategic management of the largest domestic and American retailers was carried out.
 Based on the results of the analysis, the reasons and prerequisites for the emergence of existing problems of strategic management in Ukraine were summarized. The components of strategic management, such as the mission, strategic vision and organizational structure, were compared in one of the largest domestic and American retailers. The main groups of strategic management problems in Ukraine have been identified. A graphic diagram has been developed that reflects the connections in the mechanism of strategic management for similar companies. By comparing such components as: defining a strategic vision and forming a mission, setting long-term and short-term targets, publicity, developing a strategy, implementing the chosen organizational strategy and evaluating activities, introducing corrections to the mission, target indicators and evaluating differences in approaches, ways of solving existing problems in the areas of strategy management. The leading elements of strategic management of large companies and the prospects for further development in this direction are indicated.

Managing the Development of the Innovation Market in the Service Sector in the Republic of Kazakhstan

An ability to innovate is more commonly observed as a crucial element in obtaining a sustainable competitive advantage. Although the issue of innovational development within product companies has been an object of research, there are still questions to answer regarding how innovational management should be conducted in service organizations, especially in the context of the Republic of Kazakhstan. The main aim of this investigation is to develop the new theoretical concept of stimulation of innovative processes among service providers in the Republic of Kazakhstan. Thus, the central question in this paper asks what measures should be taken to increase the competitiveness of domestic companies offering services by virtue of managing the market of innovations taking into account the national peculiarities. The results of this study provide an important opportunity to advance the understanding of the innovation market as the unique sphere from other industries can benefit from. As the result of the investigation, the authors proposed the theoretical concept including the element of a customer, whose role of co-producer is especially important in the service sphere. Also, because of the difference in the innovational activity and economic differences among the territorial division of the country, it is more effective to grant the local innovational offices more power to set the priority directions in service innovation for each region. The current research sets a new ground for the following investigations in the area of innovation management in the service industry in Kazakhstan.

Among Nations, Texts and Media: Spectatorship, World War I and the Occupation of Istanbul

Sinemanın kurumsallaşması, İstanbul’da 1900-1910 arasına rastlayan dönemde, Batı Avrupa ve Kuzey Amerika ile neredeyse eşzamanlı olarak ilk sinema salonlarının açılmasıyla başlamıştır. Kurumsallaşma süreci, yerli film prodüksiyon şirketlerinin kuruluşu, düzenli sinema dergilerinin çıkmaya başlaması ve özellikle film yıldızlarına dair yazıların yaygınlaşmasıyla gerçekleşmiştir. Bu, aynı zamanda, Osmanlı İmparatorluğu'ndan ulus-devlete geçiş dönemidir. Ayrıca, Birinci Dünya Savaşı’na, işgal dönemine ve Kurtuluş Savaşına, sinemanın yeni bir teknoloji ve sanat formundan adeta kamusal bir alana dönüşmesi süreci eşlik etmiştir. Bu süreçte, film piyasasının ulus-aşırı dinamikleri İstanbul’un bu dönemdeki çok uluslu ve çok dinli yapısıyla uyumlu ilerlemiş, savaşın kaybı, İstanbul’un işgali ve Milli Bağımsızlık Mücadelesi şehirde gösterilen filmlerin milliyetlerini de etkilemiştir. Bütün bunlar filmlerin alımlanması sürecinde özellikle erkek yazarlarda cinsiyet temelli bir ayrımı tetiklemiş, edebi tahayyülün sinemasal üsluba yakınlaşmasına yardımcı olmuştur. Öte yandan dönemin edebi yazınında sinemaya dair en ayrıksı yaklaşımlardan biri Halide Edip Adıvar’ınkidir. Onun romanlarında, hafıza, hatırlama, hayal kurma gibi bilişsel süreçler ile sinema arasındaki estetik benzerliklere çokça rastlanır. Bu nedenle çalışmada, bilişsel süreçler ile sinema arasındaki fark Halide Edip’in romanlarından, sinema seyircisinin cinsiyetlendirilmesi de dönemin çoğunluğu erkek diğer romancılarının yazınından yola çıkılarak analiz edilmiştir. Analiz yapılırken, sinema seyirciliğinin cinsiyetlendirilmesinde savaşların film dağıtımına etkisi ve dağıtımla bağlantıları da göz önünde bulundurulmuştur. Bu kapsamda makalede, Birinci Dünya Savaşı ve İşgal dönemi İstanbul’unda sinema ve seyirciliğin duygusal ve kültürel tarihine odaklanırken çok boyutlu ve feminist bir bakış açısı ortaya konulmuştur. Analiz kapsamında ilk olarak dönemin gazeteleri, ticari kayıtları ve belgeleri aracılığıyla şehirdeki film dağıtımının ulusal/uluslararası niteliklerine, sonrasında da kurgu yazında dağıtımın etkilerine bakılmıştır.

Influence Model Design of National Culture in Shaping the Organisational Management Cultures: The Case between China and the USA

This research topic investigates the inquiry on how national cultures shape the organisational management cultures. Similarities and differences between the national cultures of China and the USA are being scrutinised for the purpose to examine the impacts of such features on the management cultures and strategies of organizations located in these two main world financial centres so as to achieve a majority of data to confirm how national culture relates and assists to shape the organisational management. This research uses the data collection methods of non-governmental organizations, including the invitation of participants or volunteers via social media, working emails, and invitation letters, involving the issues such as designing human rights and privacy. The result has established that high mobilization of culture differences in the USA had a notable positive consequence on companies’ organisational management culture. Alternatively, the Chinese cultures may bring some positive effect to the companies’ culture, but it was only significant to shape management culture influence in their domestic companies, excluding most of the multinational companies. Moreover, the differences in national cultural characteristics will greatly affect each organisation to choose their own management strategies. Raising up for cross-cultural and transnational management will be a huge challenge for organizations to take, especially if countries wish to establish bilateral or trilateral business relations and partnerships.

Exploring the antecedents of high-performance work practices: empirical evidence from Ibero-America

PurposeThis article analyzes the impact of the national culture, the dependence of the sector of activity on human capital, and the multinational character of the firm involved, on the degree of implementation of high performance work practices (HPWPs) in Ibero-American companies.Design/methodology/approachThis quantitative study results from a survey of 614 Ibero-American firms, in 6 different countries. Multiple regressions were performed to test the hypothesis proposed.FindingsHPWPs for employee recruitment and selection have been frequently implemented in Ibero-American countries. Three factors, i.e. national culture, degree of multinationality, and degree of dependence of the sector of activity on human capital, have a strong influence on the degree of implementation of HPWPs in general, at different degrees. For example, recruitment and selection practices are conditioned by the degree of multinationality, individualism, uncertainty avoidance, and power distance, while they are not influenced by masculinity and by the sector of activity.Practical implicationsHR managers must align the design and execution of HPWPs with the national culture, and with the characteristics of the sector of activity, they belong to. Domestic companies should also aspire to achieve the higher standards of multinational companies for specific HPWPs.Originality/valueThis study, to the authors’ best knowledge, is the first to provide insights into the influence of the three factors mentioned above on the degree of implementation of HPWPs in Ibero-American firms, using multiple regression analysis. The authors examine in this article a larger set of HPWPs than does most of the existing empirical literature.

CORPORATE SOCIAL RESPONSIBILITY: AN ANALYTICAL REVIEW OF INITIATIVES AND PRACTICES IN THE BANKING INDUSTRY OF PAKISTAN (A CASE STUDY OF PRIVATE COMMERCIAL BANKS)

Corporate Social Responsibility (CSR) is a leading business management concern over the globe. In Pakistan CSR, mostly multinational firm engagement is an early stage. Domestic companies due to resource constraints, political changes, cultural tradition, crisis effects, and lack of competition are not paying the required attention. Recently made mandatory for the corporate sector by SECP’s directive, the governing body in Pakistan. This study focuses on and presents an analytical review of CSR initiatives taken by the Banking Industry of Pakistan for the period (2010-2014). The banking industry plays a tremendous role in financial transactions, business investment, loan provisions, and many other activities to generate economic growth. Research findings suggest that in Pakistan banks have a perception that CSR is corporate philanthropy aimed at addressing socioeconomic development challenges. The present study provides a link between the financial sector and social investment in health, education, development, employment, sports, and the environment.

The impact of innovation on CO2 emissions: The threshold effect of financial development

We show that innovative activities exacerbate environmental degradation based on data covering 52 countries between 1990 and 2014. Yet, innovative activities carried out in countries with greater financial development pose less environmental harm. Additionally, we show the equity market is more effective concerning dampening effect of innovation on carbon emissions. With a dynamic panel threshold method, we find that innovation is significantly associated with improvements in environmental quality when the private sector credit and market capitalization of listed domestic companies exceed threshold levels of about 65 and 16% as a share of GDP respectively. We also look into the relationship between financial structure and the innovation-pollution nexus. We show that innovation promotes environmental quality in countries that have a relatively more equity-based financial system. Our empirical evidence calls for policymakers to identify the optimal level of finance to mitigate pollution resulting from innovative activities and realign the financial structure in accordance with the innovation-pollution nexus.

How Do External Shocks Affect the Economic Efficiency of Companies with Foreign Direct Investment?

The purpose of this study is to assess the effectiveness of export and import activities of domestic companies with foreign direct investment during the external shocks. The relevance of the research is due to the fact that the impact of side effects of FDI on domestic companies and economic uncertainty after the sanctions and the outbreak of the pandemic was ambiguous. The empirical base contains about 170,000 observations on 18,799 operating companies with a foreign capital share of at least 10% for the period from 2012 to 2020, obtained from the Ruslana database - Bureau Van Dijk. For the purposes of the study, the companies are grouped by the industry and their roles in international trade. Efficiency assessment is measured by using the data envelopment analysis (DEA), taking into account the spillover effects from foreign direct investment. The results of the study confirm that firms that trade in both directions have better performance. Next come companies focused only on export or import. Companies that are not involved in international trade are the least efficient (hypothesis 1). Industries that benefit from FDI inflows include more capital-intensive sectors (hypothesis 2). External shocks have a negative impact on the efficiency of companies with FDI (hypothesis 3). This understanding has important implications for long-term economic growth and the recovery of the Russian economy in the current external shocks.