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Finance and Credit
 

Factors influencing the structure of the Russian companies' capital

Vol. 26, Iss. 7, JULY 2020

Received: 4 June 2020

Received in revised form: 18 June 2020

Accepted: 2 July 2020

Available online: 30 July 2020

Subject Heading: THEORY OF FINANCE

JEL Classification: E00, G30, G31, G32

Pages: 1647–1660

https://doi.org/10.24891/fc.26.7.1647

Likhacheva O.N. Financial University under Government of Russian Federation, Moscow, Russian Federation
olihacheva@fa.ru

ORCID id: not available

Belikevich A.S. Financial University under Government of Russian Federation, Moscow, Russian Federation
abelikevich@gmail.com

https://orcid.org/0000-0002-8984-6349

Subject. In the uncertain market environment, the optimal structure of capital is getting more important because it influences the competitiveness of a firm, its financial sustainability and solvency and, consequently, a success. Herein we dwell upon the hypothesis presuming the existence of capital structure determinants.
Objectives. We review empirical studies on the subject, analyze determinants of the Russian companies’ capital structure.
Methods. The study is based on the systems approach and methods of statistical analysis.
Results. It is necessary to monitor how capital is shaped and formed. We investigated proceedings on factors influencing the capital structure and discovered relevant hypotheses, carrying out the correlation analysis of such factors.
Conclusions and Relevance. It is especially important to examine factors influencing the capital structure, and find the appropriate format for the economy struggling through the crisis. The coronavirus pandemic unavoidably reshapes the global economic landscape, which has already been under the pressure of deglobalization processes (trade wars, repudiation of oil contracts). The correlation analysis did not reveal any relationship of the variables in question (the company’s age, ROE, ROA, MOEX, key rate, GDP, PPI) and the capital structure. Further research should be devoted to other factors and consider the unreasonableness and psychological background of managers’ behavior who make decisions concerning the capital structure.

Keywords: capital structure, financial leverage, finance, debt, equity

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