title: Assessment of the feasibility of establishing financial slack in a company: The model and its empirical verification
metadata.name: dc.contributor.author
metadata.value: Berezinets, Irina V.
metadata.lang: -
metadata.name: dc.contributor.author
metadata.value: Nikulin, Egor D.
metadata.lang: -
metadata.name: dc.contributor.author
metadata.value: Okulov, Vitaly L.
metadata.lang: -
metadata.name: dc.date.accessioned
metadata.value: 2023-02-14T20:42:58Z
metadata.lang: -
metadata.name: dc.date.available
metadata.value: 2023-02-14T20:42:58Z
metadata.lang: -
metadata.name: dc.date.issued
metadata.value: 2022-12
metadata.lang: -
metadata.name: dc.identifier.citation
metadata.value: Berezinets I. V., Nikulin Е. D., Okulov V. L. 2022. Assessment of the feasibility of establishing financial slack in a company: The model and its empirical verification. Vestnik of Saint Petersburg University. Management 21 (4): 497–526. http://doi.org/10.21638/11701/spbu08.2022.401 (In Russian)
metadata.lang: en_GB
metadata.name: dc.identifier.other
metadata.value: http://doi.org/10.21638/11701/spbu08.2022.401
metadata.lang: -
metadata.name: dc.identifier.uri
metadata.value: http://hdl.handle.net/11701/39135
metadata.lang: -
metadata.name: dc.description.abstract
metadata.value: Financial slack refers to excessive financial resources of a company that exist in addition to those
  that are necessary for operating activities. Is it feasible for a company to create financial slack? The
  answer to this question is ambiguous. On the one hand, the existence of slack provides a company
  with resources that can be used, for example, in case of financial constraints or for investing. On
  the other hand, the creation of financial slack means that the underlying cash reserves cannot be used for other purposes, for example, for distribution to stockholders. The paper presents the
  model for valuing a company’s financial slack that builds on the investment motive for forming
  the slack. The slack itself is considered to be a real option. The proposed model stipulates the conditions
  under which the creation and storage of financial slack is expedient. Those conditions are
  determined by the current value of business as well as by its riskiness. The empirical verification
  of the model was conducted by using the sample of 180 Russian public companies, the shares of
  which were traded in 2012–2019. The study confirmed that the return on financial slack in the
  current period will be higher specifically for those companies which were recommended to form
  financial slack in the prior period according to the proposed theoretical model.
metadata.lang: en_GB
metadata.name: dc.language.iso
metadata.value: ru
metadata.lang: en_GB
metadata.name: dc.publisher
metadata.value: St Petersburg State University
metadata.lang: en_GB
metadata.name: dc.relation.ispartofseries
metadata.value: Vestnik of St Petersburg University. Management;Volume 21; Issue 4
metadata.lang: -
metadata.name: dc.subject
metadata.value: asset value
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: riskiness of business
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: financial slack
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: investment motive
metadata.lang: en_GB
metadata.name: dc.subject
metadata.value: real option
metadata.lang: en_GB
metadata.name: dc.title
metadata.value: Assessment of the feasibility of establishing financial slack in a company: The model and its empirical verification
metadata.lang: en_GB
metadata.name: dc.type
metadata.value: Article
metadata.lang: en_GB
resources.filename: 927.pdf
resources.url: https://dspace.spbu.ru/bitstream/11701/39135/1/927.pdf
resources.format: Adobe PDF
resources.size: 2,15 MB