International financial management in Russian and Chinese companies’ practice

Abstract

The article examines the features of international financial management in the current business conditions in Russia and China to circumvent informal institutions and the informal institutional environment. It reveals the essence of international financial management developed in Russian and Chinese companies in order to avoid the negative impact of informal institutions and the informal institutional environment. It has been found that within the framework of the modern international financial management theory interaction between enterprises and the institutional environment is usually divided into three stages: institutional evasion, institutional adaptation and synergistic evolution of the institution. The author analyzes the reasons why informal institutions and informal institutional environments have led Russian and Chinese companies to evade institutional activities in international financial management, identifies their functioning mechanism. First, the presence of local Russian and Chinese institutions, as well as various informal organizations in «host» countries. Secondly, the state institution is an important
explanatory variable for effective internationalization. Thirdly, the international institution has a strong explanatory power for eff ective internationalization. Certain measures, areas of focus and activities aimed at solving the problems of institutional evasion by Russian and Chinese companies, within the framework of international financial management, are suggested. In order to address the existing challenges it is necessary to ensure efficient functioning of well-known international institutions, whose policy documents in the form of laws, by-laws, rules and regulations are binding upon almost all or many countries of the world, including Russia and China. It is imperative to create appropriate conditions for training a wide range of specialists and managers to improve their knowledge of modern international economic activity norms and regulations in order to facilitate the growth of international trade and business. It is important to ensure the presence of a wide range of leading telecommunications companies on global markets. In current conditions, coordination of the state regulation and self-regulation functions seems to be an effective measure, with an institutional matrix - its structure, nature and quality of individual elements - as the main object of regulation.