Investigation of Factors Influencing Investment Decisions of Russian Companies

The main aim of this study is to identify factors which influence investment decisions of Russian companies operating in the industries of electricity, gas, steam and hot water (thermal power). Measurement of investment decisions in this paper is carried out using such measure as invested (involved) capital. The econometric analysis is based on panel data collected through a specialized database, SPARK, among Russian companies during three-year the period from 2011 to 2014. Scientific experience of previous researchers in this area was taken into account in the formation of a set of determinants. The empirical analysis has revealed that the percentage of the company's debt is a factor of its financial constraints. In addition, it was proven that the current ratio has a positive effect on the investment decisions of Russian companies in the investigated sectors. The results of this work can be useful: first, to familiarize managers of companies operating in the studied sectors; secondly, it can serve as a basis for new research in this field and for comparison of the results.