Project description:

The aim of the research is to find out the sustainability of Russian companies’ growth followed from the company’s ability to demonstrate the quality of growth and generate positive economic value added (EVA) for the enduring period . The project continues the concept of growth quality and its contribution to company’s value. The company’s growth is estimated through several financial measures; sales growth, capitalization growth and spread of return on capital employed. On the basis of spread the concept of sustainability growth index (SGI) is explained.

Project fulfillment and results received:

1.      A sample of Russian companies with IFRS is prepared for the period 2002-2007.

2.      A model of sustainability growth is worked out on the basis of SGI.

3.      The model is tested on the sample of the companies.

4.      The following results are received:

4.1.   The relationship between growth types of Russian companies and their tendency to sustainable growth found in the ability to show a positive spread of return on capital employed.

4.2.   An additional analysis of the companies is conducted.

4.3.   The results of a research are properly estimated.

4.4.   The research is extended to the analysis of companies’ behavior in the period of financial crises in 2008.