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Economic Analysis: Theory and Practice
 

A study of factors affecting the financial cycle of oil and gas enterprises in Russia

Vol. 21, Iss. 10, OCTOBER 2022

Received: 4 August 2022

Received in revised form: 15 August 2022

Accepted: 31 August 2022

Available online: 27 October 2022

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: C23, G39, L69

Pages: 1918–1933

https://doi.org/10.24891/ea.21.10.1918

Tat'yana Yu. KUDRYAVTSEVA Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation
kudryavtseva_tyu@spbstu.ru

ORCID id: not available

Evgenii A. EFIMOV Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation
evg.efimov97@gmail.com

ORCID id: not available

Nikita A. BLAGOI Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russian Federation
nikita_1915@bk.ru

ORCID id: not available

Subject. Financial cycle management is a business strategy designed to ensure the efficient operation of a company by monitoring its current assets and liabilities for their most effective use. Oil and gas industry enterprises need to find a balance between the acceptable value of financial cycle and liquidity together with the profitability of their activities.
Objectives. We aim to identify and evaluate the relationship of financial cycle with factors influencing it, through constructing a linear regression model; to statistically prove the effect of resource efficiency indicators on changes in the financial cycle of oil and gas companies.
Methods. The study employs methods of observation, measurement, generalization of information, systematization, comparison, grouping of data, etc.
Results. We constructed a linear regression model, which turned out to be statistically significant. The analysis of the model showed that the hypothesis of the study was confirmed, i.e. the financial cycle of oil and gas companies in Russia is affected by the following factors: operating profit, financial leverage, maneuverability coefficient (direct relationship with financial cycle), return on assets, autonomy coefficient, and operating profit margin (inverse relationship with financial cycle).
Conclusions. The findings can be used to improve the efficiency of financial cycle management together with the optimization of regressors that have a direct impact on the calculation of the indicator, according to the economic theory.

Keywords: financial cycle, oil and gas company, regression analysis, working capital

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