Ilyukhin E.V.PhD in Biology, Associate Professor of Department of Economics, Management and Informatics, Institute of Aviation Technology and Management (Ulyanovsk State Technical University) evgeny.ilyukhin@gmail.com
The study suggests that stock market finance is important for industry's growth because financial markets tend to allocate capital more effectively to the firms with high-opportunity projects. Moreover, a stock market may provide a significant source of finance to the firms based in less financially developed countries. The article aims to show that some industries with higher dependence on stock market finance experience faster growth in Russia. In the research I developed a variable that shows an industry's dependence on stock markets finance. The standard accounting items (total stockholders' equity and total assets) are used to calculate this variable. In addition, I use a comparable variable that shows an industry's dependence on external finance. I have used ordinary least squares approach to run a regression of the proposed models with interaction of the variables. I also emphasize that stock market finance promotes growth of oil and gas industry that actively uses this source of financing. The paper's findings are sufficiently reliable for the industry. It is noteworthy that the metals and mining industry has a series of negative coefficients on the main interaction, at the same time, the findings results are not dependable enough. These findings partly contradict the main hypothesis of the research. There are no results of significant levels for both the chemical and petrochemical industry and the electric power industry. The findings may be used by both executives of industrial firms to pay more attention to stock market as a source of financing and by policymakers in order to develop stock markets in their countries, although there are some limitations in the study.
Keywords: stock market finance, stockholders' equity, assets, least squares approach, accounting items, capital allocation
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