ESG factor in assessing the value of Russian rapid growth companies
Abstract
High growth companies are those whose characteristic features include rapid growth rates of economic indicators, in particular revenue, over several subsequent financial periods. Companies have particular economic and social significance for the national economy and are of interest to many economic entities, including potential investors (both retail and investment companies). Since there is a trend towards ESG investing in the stock market, it seems relevant to assess the impact of the ESG factor on the value of rapid growth companies, taking into account that the main goal for most high growth companies is to maintain high rates of development. The methodological basis of the study consists of general scientific (generalization, formalization and comparative analysis) and empirical methods (modeling and observation). The valuation of rapid growth companies was based on the discounted cash flow method as the optimal method for assessing investment attractiveness for this group of companies. As a result of the research, the authors came to the conclusion that the integration of the ESG factor into the model for assessing the investment attractiveness of rapid growth companies is irrational at this stage of development of the Russian stock market. In addition, compliance with ESG principles, which invariably leads to additional costs, does not always have a favorable effect on the intrinsic value of rapid growth companies.
About the Authors
Yu. A. Lukina
Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs of the Russian Federation
Russian Federation
Russian Federation
Yulia A. Lukina – Lecturer at the Department of Accounting, Statistics and Auditing
Moscow
S. N. Chernaya
Moscow State Institute of International Relations (University) of the Ministry of Foreign Affairs of the Russian Federation
Russian Federation
Russian Federation
Sofya N. Chernaya – Lecturer at the Department of Accounting, Statistics and Auditing
Moscow
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Review
For citations:
Lukina Yu.A., Chernaya S.N. ESG factor in assessing the value of Russian rapid growth companies. Vestnik of Samara State University of Economics. 2024;(7):85-94. (In Russ.)
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