Home  Journals  Finance and Credit  35(755) - 2017 September

An impact of corporate management on the capital structure of Russian companies

Vol. 23, Iss. 35, SEPTEMBER 2017

Article PDF Version

Received: 15 May 2017

Received in revised form: 20 June 2017

Received in final form: 19 July 2017

Accepted: 28 August 2017

Available online: 29 September 2017

Subject Heading: FINANCIAL CAPITAL

JEL Classification: G02, G32

Pages: 2076–2087

https://doi.org/10.24891/fc.23.35.2076

Importance In this paper, we investigate the capital structure of the biggest Russian companies.
Objectives We aim to identify and analyze the impact of corporate management, as well as other internal factors, on the capital structure of Russian public companies.
Methods The article studies the degree of dependence with the help of econometric models such as linear regression and least squares.
Results We have partially confirmed the following hypothesis: the larger the value of the company's financial indicators, the greater share of borrowed funds the company has. The hypothesis that the higher the manager's age, the more borrowed funds in the capital structure, has been also partially confirmed. Besides, we partially confirmed hypothesis that the larger the size of the board of directors, the greater the amount of borrowed funds in the capital structure.
Conclusions and Relevance The research carried out can be used when forecasting the capital structure of firms operating on the Russian market. The results can be useful to Russian managers and members of boards. It can help them to predict the impact of corporate management on its capital structure.

Keywords: capital structure, corporate management, CEO, financial indicator, board of directors

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