On the Corporate Financial Policy under Shocks and Restrictions

Occupation: analyst
Affiliation: Institute for Economic Strategies of the Social Sciences Division of the Russian Academy of Sciences
Address: Russian Federation, Moscow

Journal name

Obshchestvo i ekonomika

Edition

Issue 8

Pages

84-94

Abstract

Organizational capital is a metric for the quality of corporate governance. The author scrutinizes the influence of the organizational capital, shocks and flexibility on the company's financing policy. External shocks (like increased funding costs, external sanctions) force Russian public companies to switch to internal sources of funding, acting in accordance with the “prevention motive” hypothesis of John Maynard Keynes: under conditions of financial constraints, an economic entity uses dividends as an investment resource. Financial flexibility allows responding to external shocks by adjusting the capital structure to allocate cash flows for subsequent financing of investment projects.

Keywords

financial policy, shock, financial constraints, financial flexibility, organization-al capital, capital structure, warning motive

Received

28.09.2023

Publication date

29.09.2023

Number of characters

22151

Cite

GOST	Lutsenko S. On the Corporate Financial Policy under Shocks and Restrictions // Obshchestvo i ekonomika – 2023. – Issue 8 C. 84-94 [Electronic resource]. URL: https://oie.jes.su/S020736760027018-8-1 (circulation date: 04.05.2024). DOI: 10.31857/S020736760027018-8
MLA	Lutsenko, Sergey "On the Corporate Financial Policy under Shocks and Restrictions." Obshchestvo i ekonomika 8 (2023):84-94. DOI: 10.31857/S020736760027018-8
APA	Lutsenko S. (2023). On the Corporate Financial Policy under Shocks and Restrictions. Obshchestvo i ekonomika (8), pp.84-94 DOI: 10.31857/S020736760027018-8

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