On the Identification of Financial Instruments in the Aspect of Indicators of Financialization of the Economic Life of Economic Entities

  • O. ZhitlukhinaEmail author
  • E. Kiselevskaia
Conference paper
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 138)


The study is to show the problem of financialization of the economic entities as a result of development of the financial sector of economy, basing on using of financial instruments (FI) that have a “virtual” form. This includes financial instruments hold for trade and financial derivatives (PFI) that complicate financial relations based on financial speculation and divorced from the real sector of the economy into a parallel plane filled with abstract categories. Under these conditions entities use FI to generate additional income, which adversely affects the development of the real economy, both in general and at the level of the business unit (the entity). Therefore there are suggestions to classify FI and PFI according to their type, value measurement and their cash flow to assess their impact on financialization in the article. This allows to correct the financial items of the Statement of Financial Position by eliminating “non-financial” items related to cash flow and financial income reflected in the statement of Income Statement by excluding items that are not secured by cash flows (similar to the EBITDA analytical indicator). It also gives the opportunity to distinguish items directly influencing the processes of financialization, which include, first of all, FI that are revalued at fair value through profit and loss. Moreover, there are recommendations in the article about modification of the information base for financial analysis of entities and supplementing it with ratios that take into account the evaluation factor of financialization.


Financialization Financial instruments Derivative financial instruments Financial income Fair value 


  1. 1.
    Hesin, E.S.: Modern world economy: finance and capital accumulation. Inf. Anal. Mater. 8, 31–36 (2016)Google Scholar
  2. 2.
    Goldstein, J.P.: Introduction: the political economy of financialization. Rev. Radic. Polit. Econ. 41, 453–457 (2009)CrossRefGoogle Scholar
  3. 3.
    Davis, G.F., Kim, S.: Financialization of the economy. Ann. Rev. Sociol. 41, 203–221 (2015)CrossRefGoogle Scholar
  4. 4.
    Lazonick, W.: Profits without prosperity: stock buybacks manipulate the market and leave most Americans worse off. Harv. Bus. Rev., 46–55 (2014)Google Scholar
  5. 5.
    Dasgupta, Z., Sen, S.: Financialisation and corporate investments: the Indian case. Rev. Keynes. Econ. 6, 96–113 (2018)CrossRefGoogle Scholar
  6. 6.
    Orhangazi, Ö.: Financialisation and capital accumulation in the non-financial corporate sector. Camb. J. Econ. 32, 863–886 (2008)CrossRefGoogle Scholar
  7. 7.
    Lapavitsas, C.: Financialised capitalism: crisis and financial expropriation. Hist. Mater. Res. Crit. Marx. Theory 17, 114–148 (2012)Google Scholar
  8. 8.
    Marx, C.T.: Capital. Criticism of Political Economy. State Publishing House of Political Literature, Moscow (1961)Google Scholar
  9. 9.
    Borisov, A.B.: The Big Economic Dictionary, 2nd edn. The World of Books, Moscow (2006)Google Scholar
  10. 10.
    Pollard, J., Richter, P., Down, S., Ram, M.: Financialisation and small firms: a qualitative analysis of bioscience and film and media firms. Int. Small Bus. J. Res. Entrep. 3(36), 247–264 (2017)Google Scholar
  11. 11.
    Kaltenbrunner, A., Painceira, J.P.: International and Domestic Financialisation in Middle Income Countries; the Brazilian Experience. Financialisation, Economy, Society (2016)
  12. 12.
    Arnold, P.J.: The political economy of financial harmonization: the east Asian financial crisis and the rise of international accounting standards. Acc. Organ. Soc. 37, 361–381 (2012)CrossRefGoogle Scholar
  13. 13.
    Komlik, O.: What is Financialization? Marxism, Post-Keynesianism and Economic Sociology’s Complementary Theorizing. Economic Sociology and Political Economy, 31 January 2015.
  14. 14.
    Servaas, S.: Financialization and economic development: a debate on the social efficiency of modern finance. Dev. Change 49(2), 302–329 (2018)CrossRefGoogle Scholar
  15. 15.
    Krippner, G.: Capitalizing on Crisis: The Political Origins of the Rise of Finance. Harvard University Press, Cambridge (2011)Google Scholar
  16. 16.
    Statistics of Trading Volume of the Moscow Stock Exchange. Interactive Data Analysis.
  17. 17.
    Tiejun, M., McGroarty, F.: Social Machines: how recent technological advances have aided financialisation. J. Inf. Technol. 32, 234–250 (2017)CrossRefGoogle Scholar
  18. 18.
    IAS 32—Financial Instruments: Presentation (adopted by Order of the Ministry of Finance of Russia of December 28, 2015 No. 217n)Google Scholar
  19. 19.
    IFRS 9 Financial Instruments (was enacted in the territory of the Russian Federation by Order No. 98n of the Ministry of Finance of the Russian Federation of June 27, 2016) (as amended on June 27, 20, 16) (as amended and supplemented, effective from 01.01.2018)Google Scholar
  20. 20.
    Makshanova, A.V.: Derivative financial instruments: concept, types and basic use strategies. Young Sci. 11, 214–216 (2014). (дaтa oбpaщeния 01 May 2018
  21. 21.
    Safonova, T.T.: Operations with Derivative Financial Instruments; Accounting, Taxes, Legal Regulation, p. 441. Alpina Publisher, Мoscow (2013)Google Scholar
  22. 22.
    Feldman, A.: The current crisis and derivative financial instruments. Issues of economics 5 (2009)Google Scholar
  23. 23.
    Safonova, T.: Derivative financial instruments - a way to manage risk or its source. Finance, money, investments 3 (2012)Google Scholar
  24. 24.
    Order of the Ministry of Finance of the Russian Federation dated 02.02.2011 N 11n “On approval of the Accounting Regulations” Cash Flow Statement “(PBU 23/2011)” (Registered in the Ministry of Justice of the Russian Federation on 29.03.2011 N 20336)Google Scholar
  25. 25.
    IAS 39 Financial Instruments: Recognition and Measurement (was enacted on the territory of the Russian Federation by the Order of the Ministry of Finance of the Russian Federation of December 28, 2015 No. 217n) (as amended on June 27, 2016) (as amended and supplemented, effective from 01.01.2018)Google Scholar
  26. 26.
    We Check Incomes and Expenses in the Report on Financial Results, Magazine “Glavbukh”.
  27. 27.
    Satherland, D.T.: Accounting and Finance: Key Concepts. Balance Busice Books, Dnepropetrovsk (2005)Google Scholar
  28. 28.
    Walsh, K.: Key Management Indicators. A Comprehensive Guide to Working with Critical Numbers that Manage Your Business. Companion Group, Kiev (2008)Google Scholar
  29. 29.
    Teplova, T.V.T.: Corporate Finance, part 1. Urait, Moscow (2016)Google Scholar
  30. 30.
    Order of the Ministry of Finance of Russia from 06.05.1999 N 32n (as amended on 04/06/2015) “On approval of the Accounting Regulations” Revenues of the organization “PBU 9/99” (Registered in the Ministry of Justice of Russia on 31.05.1999 No. 1791)Google Scholar
  31. 31.
    Order of the Ministry of Finance of Russia of 06.05.1999 N 33n (as amended on 06.04.2015) “On approval of the Accounting Regulations” Expenses of the organization PBU 10/99 (Registered in the Ministry of Justice of Russia on 31.05.1999 N 1790)Google Scholar
  32. 32.
    Leila, E.: Identifying the “financialization” of the nonfinancial corporation in the U.S. economy: a decomposition of firm-level balance sheets. J. Post Keynes. Econ. 39(1), 115–141 (2016)Google Scholar
  33. 33.
    Ryazanov, V.T.: (Not) real capitalism. The political economy of the crisis and its consequences for the world economy and Russia. Economy, Moscow (2016)Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Far Eastern Federal UniversityVladivostokRussia

Personalised recommendations