+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Economic Analysis: Theory and Practice
 

Market attractiveness of oil and gas companies as a factor affecting the socio-economic development in regions of their business operations

Vol. 20, Iss. 1, JANUARY 2021

Received: 8 October 2020

Received in revised form: 19 October 2020

Accepted: 29 October 2020

Available online: 28 January 2021

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: Q4, Q23, Q28, R12

Pages: 124–141

https://doi.org/10.24891/ea.20.1.124

Sergei G. MARICHEV Ufa Federal Research Centre of Russian Academy of Sciences (UFRC RAS), Ufa, Republic of Bashkortostan, Russian Federation
prophet314@gmail.com

https://orcid.org/0000-0002-0131-2984

Subject. I address the impact of market capitalization of oil and gas companies on their contribution to the socio-economic development of regions of presence.
Objectives. The purpose is to determine to what extent the factor of high market capitalization of the oil company is crucial in the changing the market environment.
Methods. The study draws on methods of economic and statistical analysis.
Results. I considered the current state of the Russian oil industry in the context of tax maneuver, and the future evolution of the oil and gas sector from the perspective of government authorities’ desire to develop oil refineries. I performed the financial analysis of operations of two large regional oil companies, namely, Bashneft and Tatneft, examined their contribution to the regions of presence in accordance with the level of market capitalization and ownership structure. The paper highlights the key factors, influencing the contribution of companies to the socio-economic development of regions.
Conclusions. In addition to the unfavorable global market conditions, changes in the taxation of oil companies in Russia in the form of tax maneuver are the additive factors that negatively affect the profitability of the industry as a whole. The growth of oil companies’ capitalization has a positive impact on their contribution to the development of regions of presence, depending on the specifics of equity structure. In the face of adverse external factors, the influence of high market capitalization of the oil company reduces drastically due to cumulative decline in business profitability.

Keywords: oil industry, tax maneuver, profitability, equity capital, socio-economic development

References:

  1. Idrisov G., Kaukin A. [Tax maneuver: Economic growth acceleration to the detriment of budget consolidation]. Ekonomicheskoe razvitie Rossii = Russian Economic Developments, 2016, vol. 23, no. 6, pp. 35–39. URL: Link (In Russ.)
  2. Bobylev Yu. [Tax maneuver in Russia's oil sector]. Ekonomicheskoe razvitie Rossii = Russian Economic Developments, 2015, vol. 22, no. 8, pp. 45–49. URL: Link (In Russ.)
  3. Kaukin A., Miller E. [Best time to complete tax manoeuvre in Russia's oil industry]. Ekonomicheskoe razvitie Rossii = Russian Economic Developments, 2018, vol. 25, no. 7, pp. 50–54. URL: Link (In Russ.)
  4. Zul'karnai I.U. [Fiscal incentives for socio-economic development of regions]. Vestnik UGUES. Nauka, obrazovanie, ekonomika. Seriya: Ekonomika = Bulletin of Ufa State University of Economy and Service (USUES). Science, Education, Еconomy. Series Еconomy, 2013, no. 4, pp. 80–85. URL: Link (In Russ.)
  5. Aguzarova F.S. [Role of extraction of mineral resources tax in Russian Federation budgetary system]. ETAP: ekonomicheskaya teoriya, analiz, praktika = ETAP: Economic Theory, Analysis, Practice, 2017, no. 6, pp. 98–105. URL: Link (In Russ.)
  6. Nureev R.M., Dement'ev V.V. Postsovetskii institutsionalizm [Post-Soviet Institutionalism]. Donetsk, Kashtan Publ., 2005, 480 p.
  7. Vil'danov F.Sh., Agabekov V.E. et al. [Dendrochemistry: A current state and development prospects. Part 1. Pulp-and-paper and hydrolytic manufacture]. Bashkirskii khimicheskii zhurnal = Bashkir Chemical Journal, 2012, vol. 19, no. 4, pp. 208–212. URL: Link (In Russ.)
  8. Sokolenko T.G. [Study of the relationship between the structure of ownership and quality of development of the forest industry (experience of countries with developed timber industry)]. Ekonomicheskie nauki = Economic Sciences, 2010, no. 12, pp. 250–253. URL: Link (In Russ.)
  9. Zul'karnai I.U. [Institutes of Rent-Taking in the Forestry Sector]. Evraziiskii yuridicheskii zhurnal = Eurasian Law Journal, 2017, no. 9, pp. 357–359. (In Russ.)
  10. Kobzii A., Novak M.A., Kozlova E.I. [Influence of the Russian oil industry on the country's economy and prospects for solving this dependence]. Innovatsionnaya ekonomika: perspektivy razvitiya i sovershenstvovaniya = Innovative Economy: Prospects for Development and Improvement, 2018, vol. 1, no. 7, pp. 211–217. URL: Link (In Russ.)
  11. Khristoforova I.V., Dedkova M.V. [Capitalization: Evolution and classification]. Servis plus, 2007, no. 3, pp. 36–45. (In Russ.) URL: Link
  12. Freeman R.E., McVea J. A Stakeholder Approach to Strategic Management. SSRN Electronic Journal, 2001. URL: Link
  13. Maslennikov M.I. [Regional tendencies of business capitalization in conditions of growth of financial instability]. Ekonomika regiona = Economy of Region, 2014, no. 2, pp. 141–150. URL: Link (In Russ.)
  14. Jensen M.C. Value Maximization, Stakeholder Theory, and the Corporate Objective Function. European Financial Management, 2001, vol. 7, no. 3, pp. 297–317. URL: Link
  15. Wood D.J., Jones R.E. Stakeholder Mismatching: A Theoretical Problem in Empirical Research on Corporate Social Performance. The International Journal of Organizational Analysis, 1995, vol. 3, iss. 3, pp. 229–267. URL: Link
  16. Razgulina E.D. [Estimation of the largest enterprises' impact on the socio-economic development of territories]. Ekonomicheskie i sotsial'nye peremeny: fakty, tendentsii, prognoz = Economic and Social Changes: Facts, Trends, Forecast, 2014, no. 3, pp. 223–234. URL: Link (In Russ.)

View all articles of issue

 

ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 20, Iss. 2
February 2021

Archive