Decomposition of reasons influencing the utilization of multiple voting shares on the financial market
Year: 2024
Type: article
Abstract: Multiple voting shares are a relatively new financial instrument for the global financial market and a completely new one for the Russian one, which is confirmed by the fact that in Russia the regulatory regulation of multiple voting shares appeared in 2022 and so far only for international companies. In view of this, a set of reasons is of interest, encouraging financial market regulators to allow the circulation of multiple voting shares. This article focuses on dissecting the factors that contribute to the use of multiple voting shares in the financial market, with the goal of exploring their potential for addressing strategic challenges in the Russian economy. Identifying four blocks of reasons is essential for achieving this goal, including financial, spatial, technological, and corporate factors. The largest block is formed by corporate reasons related to risk management in the implementation of the company's financial policy and the formation of invested capital. The block of financial reasons is related to the need to develop the financial market and increase the level of stability of the financial system. The concept of spatial zoning is linked to the potential for economic growth in specific regions of the Russian Federation through the augmentation of tax income from companies registered as IPJSC, particularly through the utilization of multiple voting shares. The block of technological reasons is associated with the development of a competitive economy, high-tech production and a decrease in the level of dependence on high-tech imports. The author's decomposition supported the idea that multiple voting shares can contribute to financial stability by reducing stock volatility in the corporate sector of the Russian market.
Source: Federalism
Author: R. O. Voskanian
Institution: Financial University
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405757648