Empirical Analysis of Capital Structure Determinants of Russian Oil and Gas Companies

Игоревна, Марковская Елизавета; Сергеевна, Аношкина Екатерина

doi:10.18288/1994-5124-2018-5-80-109

Cited by 9 publications

(1 citation statement)

References 17 publications

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“…It is well-recognised that frequent government interventions in market mechanisms are typical properties of emerging and less developed economies (e.g. see [11]; [12]), and the Russian financial market is no exception. One third of the Russian banking system is state-owned.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Economic Policy Uncertainty on Capital Structure: Evidence from Russia

Granville¹,

Matoušek²,

Sokolov³

2019

КФ

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This paper is a study of the influence of economic policy uncertainty on the capital structure of companies operating in the Russian market. The sample size is particularly notable (over 16,000 companies and 230,000 observations are included) insofar as previous studies have invariably used smaller selections due to the complexities of data processing. Several hypotheses are proposed and treated which concern the interrelations between company debt policies and the status of individual, sectoral, or industry relevant commercial activity, where the constant threat of economic uncertainty due to political or other external machinations affects the market. This research paper examines the following capital structure determinants: profitability, asset structure, company size, tax shield, non-debt tax shield, growth opportunity, and risk. The following methods are applied to test a series of nine hypotheses proposed as the most salient indicators of the present state of academic consensus: the Pool model (Pool), the fixed effect model (FE), and the random effect model (RE). In this context, the influence of economic uncertainty on the status of different debt types in 16,882 Russian companies between 2000 and 2017 was studied using the economic policy uncertainty index calculated in 2012. The results serve to confirm many of the extant hypotheses in the academic literature in the area of capital structural evaluation. For example, it is immediately apparent that the influence of uncertainty is of less significance for large companies as regards all types of debt (joint, short-term and long-term), due to their greater stability and lower risks for creditors. Among other conclusions, it is confirmed that as long as serious government participation is characteristic of the Russian banking system, the efficacy of the debt financing system is not equal for all sectors, and those sectors which are of strategic importance for the state are particularly resilient in troubled economic periods. However, interestingly, in the case of a short-term debt leverage such influence does not materialise. From a theoretical point of view this paper will be useful for researchers studying the fluctuating market conditions of developing or transitional markets (the large sample size will make this study particularly attractive for further evaluation at all levels of academic analysis). An understanding of the multivariate interrelations described in this paper may also be useful to company managers and investors who will gain insight into the consequences of fluctuations in levels of economic uncertainty for different types of companies.

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Section: Introductionmentioning

confidence: 99%

The Impact of Economic Policy Uncertainty on Capital Structure: Evidence from Russia

Granville¹,

Matoušek²,

Sokolov³

2019

КФ

View full text Add to dashboard Cite

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Econometric analysis of the capital structure of oil and gas companies in Russia

2021

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The article is devoted to an in-depth study of the capital structure of oil and gas companies in Russia and the identification of key factors that affect the ratio of equity and debt capital. In the context of ongoing technological sanctions, an increase in the share of hydrocarbon production in the framework of capital-intensive projects for the development of hard-to-recover reserves and high depreciation of fixed assets, the need for investment, and justification of an effective borrowing strategy is sharpening.

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Financial stability ratios of the world's leading publicly traded oil and gas corporations as an indicator of the investment attractiveness of domestic vertically integrated oil and gas companies

SHIMKO

2023

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Subject. The article considers the main financial stability ratios of the twenty five leading publicly traded oil and gas companies within 2006 through 2018. Objectives. The study aims to determine the current level of values of the main indicators of financial stability of the leading publicly traded oil and gas companies, as well as identify the key trends in their changes within the studied period, and establish factors that caused those changes. Methods. For the study, I used the methods of comparative, financial and economic analyses, summarizing financial reporting data. Results. The article reveals certain deterioration of the key indicators of financial stability of the leading publicly traded oil and gas companies within the studied period. The article finds that the global financial crisis as a whole did not have a significant negative impact. A decrease in the book value of assets as a result of revaluation, as well as the implementation of mergers and acquisitions with the attraction of an impressive corporate-wide debt capital can have a serious negative impact on the financial stability of companies in the industry. The trend towards improvement of financial stability indicators was outlined in the stock market sector of the industry after the industry crisis. Conclusions and Relevance. The leading oil and gas companies are able to pay off their own debt obligations in times of crisis. The findings can help evaluate, forecast and develop measures to improve the financial stability of publicly traded oil and gas companies.

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Empirical Analysis of Capital Structure Determinants of Russian Oil and Gas Companies

Cited by 9 publications

References 17 publications

The Impact of Economic Policy Uncertainty on Capital Structure: Evidence from Russia

The Impact of Economic Policy Uncertainty on Capital Structure: Evidence from Russia

Econometric analysis of the capital structure of oil and gas companies in Russia

Financial stability ratios of the world's leading publicly traded oil and gas corporations as an indicator of the investment attractiveness of domestic vertically integrated oil and gas companies

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