Importance In connection with the worsening of the debt problems of Russian companies, the development of tools for measuring the impact of financial dependence on profits and cost-effectiveness, taking into account the particularities of the national stock market has acquired greater urgency. In the course of privatization in Russia, preferred shares were issued, now widely distributed, dividends to which make up a certain percentage of net profit. By the influence on profit and profitability, these preferred shares differ from the classical preferential shares that assume fixed dividends. Objectives The purpose of the article was the consideration of peculiarities of the Russian preferential shares in the algorithms of assessment of the degree and effect of financial leverage. Methods The goal was reached by building a model at the level of both individual and group of companies (parent and subsidiaries). Because of the complexity of the whole relationship between organizations within the group, the traditional methods of economic analysis have been supplemented by a method of abstraction, which is typical of theoretical research. Results Financial leverage, as measured by its level, is created only by the preferred stock dividends on which are fixed. Preferential shares with dividends proportional to net profits do not give rise to financial leverage, but without affecting the effect, they increase the level of financial leverage generated by preferred stock with fixed dividends. For the group as a whole, the level of operational, financial and total leverages is a harmonic mean combination of indicators included in the group of units. Return on controlling interest of the group is the weighted arithmetic average of return on common equity for units included in the group. Conclusions and Relevance The developed algorithms allow to take into account the peculiarities of Russian securities and thereby improve the quality of management decisions on the structure of the attracted capital and marketing policy.
Keywords: level, operational leverage, financial leverage, total leverage, preferred stock, returns on capital, non-controlling interest, group of companies
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