Financial Disclosure and the Cost of Equity Capital: The Empirical Test of the Largest Listed Companies of Kazakhstan

Baimukhamedova,Aizhan,Baimukhamedova,Gulzada,Aimurzinov,Murat,Luchaninova,Albina 한국유통과학회 2019 KODISA ICBE (International Conference on Business Vol.2019 No.-

Providing information to the public is not a costless task. Among the costs of disclosure are the costs of information production and dissemination; for example, the costs of adopting an information system to collect, process data and report information about the company and the costs of hiring accountants and audits, etc. In this study, a framework for empirical tests of the relation between disclosure and the cost of equity capital is determined. This study extends research into whether disclosure of corporate and financial information is associated with firms’ costs of equity capital. Using cost of equity capital estimates derived from capital asset pricing model, we find that firms with higher levels of financial transparency are associated with significantly lower costs of equity capital. Economic theory assumes that by increasing the level of corporate reporting, firms not only increase their stock market liquidity, but also decrease the investors’ estimation risk, arising from uncertainty about future returns and payout distributions. The results show that firms on the Kazakhstan market can reduce their cost of equity capital by increasing the level of their voluntary corporate disclosures. Based on the analysis of existing empirical research, the disclosure index for a sample of 37 Kazakh companies has been constructed and regression analysis of the influence of the disclosure index on the cost of equity capital has been conducted. The obtained results show that the received findings correlate with foreign empirical studies, and the disclosure index in this sample has a negative impact on the cost of equity capital.

Asymmetric Timeliness of Earnings, Market-To-Book and Conservatism in Financial Reporting in Kazakhstan

Aizhan Baimukhamedova,Yelena Konovalova,Rashid Makarov,Gulzada S. Baimukhamedova 한국유통과학회 2017 KODISA ICBE (International Conference on Business Vol.2017 No.-

Abstract should stand alone, means that no citation in abstract. The abstract should concisely This study extends the theoretical framework developed by Roychowdhury and Watts (2007) by testing it on a sample of Kazakhstani companies and aims at investigating changes in relations between two measures of conservatism: asymmetric timeliness of earnings (AT) and the market-to-book ratio (MTB) over short and long periods. On the contrary to the recent studies that document negative relations between these two measures, we reveal that magnitudes of earnings response to good and bad news increase for cumulation over longer periods. Second, we observe positive relations between earnings response to good news and MTB at the beginning and end of the estimation period. Even though the authors of the framework have not found any support for positive relations on any combination of news and MTB, our results support their initial expectations about positive association between asymmetric timeliness and MTB. Interestingly, our findings document absence of conservatism for certain lengths of cumulation period which can be attributed to peculiarities of financial reporting system on Kazakhstani Stock Exchange.

Fuel Market in Kazakhstan: Problems and Solutions

Aizhan Baimukhamedova,Kanat Daubaev,Saltanat B. Mukasheva,Gulzada Baimukhamedova 한국유통과학회 2013 KODISA ICBE (International Conference on Business Vol.2013 No.-

In this article it's researched the causes of sharp price raise on engine fuel in Kazakhstan with a glance of Custom union functions. It's been considered classification of factors influencing on price raise and arising of deficit in the engine fuel market. It's been shown the conclusions, that the mechanism of government regulation of the petrochemicals market requires improvement on the sphere of Custom union function in connection of transition to UEA, and further planning to join the WTO.

Financial Disclosure and the Cost of Equity Capital: The Empirical Test of the Largest Listed Companies of Kazakhstan

Aizhan Baimukhamedova,Gulzada Baimukhamedova,Albina Luchaninova 한국유통과학회 2017 The Journal of Asian Finance, Economics and Busine Vol.4 No.3

This study extends research into whether disclosure of corporate and financial information is associated with firms’ costs of equity capital. This study sets out to examine empirically the determinants of corporate disclosure in the annual reports of 37 largest and most liquid firms listed on Kazakhstan Stock Exchange (KASE) in Kazakhstan. It also reports the results of the association between company-specific characteristics and disclosure of the sample companies. Based on the analysis of existing empirical research, the disclosure index has been constructed and regression analysis of the influence of the disclosure index on the cost of equity capital has been conducted. The obtained results show that the received findings correlate with foreign empirical studies, and the disclosure index in this sample has a negative impact on the cost of equity capital. Using cost of equity capital estimates derived from capital asset pricing model, we find that firms with higher levels of financial transparency are associated with significantly lower costs of equity capital. Economic theory assumes that by increasing the level of corporate reporting, firms not only increase their stock market liquidity, but also decrease the investors’ estimation risk, arising from uncertainty about future returns and payout distributions. The results show that firms on the Kazakhstan market can reduce their cost of equity capital by increasing the level of their voluntary corporate disclosures.

Estimation of the Level Of Sustainable Development in Kazakhstan Regions and Recommendation For Its Increase

Gulzada S. Baimukhamedova,Nailya K. Nurlanova,Sharzada Akhmetova 한국유통과학회 2012 KODISA ICBE (International Conference on Business Vol.2012 No.-

In this article, the dynamics of resource consumption in the Asia-Pacific region and Kazakhstan have been investigated; the evolution of existing theories and concepts of sustainable development and "Green growth" in the world economic science in terms of their adaptation to the spatial development ofKazakhstan have been studied. The authors took into account the fact that in the global and domestic economics controversial questions about the choice of criteria and indicators to assess the degree of stability of regional systems are still remaining. Onthis basis, the authors proposed an original methodology to assess the potential and conditions for sustainable development of the country with regard to a regional peculiarity. The proposed methodology in this article is based on the indicators typical of traditional and new factors of the economy and conditions for regional systems’functioning. The choice of indicators was carried out in concordance with the main tasks of Kazakhstan regions in future. This author's method is proposed to be used on two levels, on the national and regional, and later on the local level (districts, municipalities, cities). The author's method has been tested on the materials of Kazakhstan regions along with the use of a statistical information data bulk. On the assumption of the analysis, the tendency of strengthening the polarity of the Republic’s regions in accordance with the majority of key indicators of sustainable regional development was established. As a result of analysis, the authors have substantiated a number ofsuggestions to improve economic regulation methods of regional development, to implement institutional reforms in the economic development of natural resources, as well as to ) upgrade regional statistics. The article provides sufficiently broad recommendations that can be successfully used in practice to implement new regional strategies for future-oriented sustainable development.

Estimation of the Level of Sustainable Development in Kazakhstan Regions and Recommendation for its Increase

Gulzada S. Baimukhamedova,Nailya K. Nurlanova,Sharzada Akhmetova 한국유통과학회 2012 유통과학연구 Vol.10 No.7

The purpose of this study is to investigate existing world economic science theories and concepts of sustainable development as well as create original system of criteria and indicators to assess potential and conditions for sustainable development from a regional perspective and based on the above justify proposals for public authorities to improve methods of economic regulation for regional development. To achieve the goal evolution process of existing theories and concepts of sustainable development and “green growth” have been studied in terms of its adaptation to the spatial development of Kazakhstan, comparative dynamics of natural resources consumption in the Asia-Pacific region and Kazakhstan were investigated as well. Methodology. World best theory and practice methods for assessment of the level of sustainable development of the country and some of its territories were also studied. We selected the best system of criteria and indicators for assessment of economic, social and environmental sustainability of regional systems. Methods offered in this article are based on traditional and new factors of economic development and conditions for operation of regional systems. Indicators are chosen with a glance to basic goals for future development of regions in Kazakhstan. It is recommended to use two levels of methodology offered by author, namely national and regional, and at the local level later (districts, municipalities, cities). The results. Method offered by the author has been tested based on materials and statistics of regions in Kazakhstan. Suitability and usability of the proposed system of criteria and indicators for measuring of economic, social and environmental sustainability of regional systems was proved. Based on this analysis it was found out that there are regions in Kazakhstan that differ from each other by most of key indicators of sustainable regional development and this tendency is increasing. Conclusions and recommendations. As a result of this analysis, the authors have substantiated a number of proposals on methods of analysis to be used, improvement of methods of regional development, implementation of institutional reforms, as well as improvement of regional statistics. This article provides recommendations that can be successfully used in the management practices by public authorities to implement a new regional strategy focused on sustainable development in future.