The project “Financing Policy of Russian Companies” continues the 2009 project “Capital Structure Choice of Russian Companies” by adding capital structure dynamic analysis, detail research of crisis circumstances and agency motives.

Project target:

Analysis of determinants and motives of Russian companies financing policy in comparison with companies, operating on other emerging capital markets, including BRIC countries and Eastern European countries.

 Project objectives:

1.      Analysis of capital structure determinants and the rate of adjustment to capital structure target level in comparison with companies, operating on other emerging capital markets, including BRIC countries and Eastern European countries.

2.      Empirical testing of market timing theory of capital structure applied for Russian companies

3.      Agency motives analysis on Russian market and comparison of agency motives degree of influence in Russia and other emerging markets

4.      The influence of global financial crisis on the changes in capital structure of Russian large companies

Project schedule and responsibilities:

March 2010

·        Literature review on recent capital structure researches

·        Database formation

April 2010

·        Choice of the research model

·        Pilot model testing

June 2010

·        Midyear report

2009 results dissemination:

·        Presentation of 2009 project results on the 11th International Academic Conference on economic and social development, 6-8 April, 2010

·        Presentation of 2009 project results at the European Association of Comparative Economic Studies workshop   "Comparative empirical studies: what can we learn for transition and developing countries?" 6-8 April, 2010

·        Drawing up chapters to the monograph “Corporate Financial decisions of Russian companies: Empirical Analysis”