Determinants of Companies Investment Decisions in the BRICS Countries

This research is devoted to the analysis of factors, influencing companies’ investment decisions in the BRICS Countries. While conducting the research we investigated interrelation between capital expenditures that are considered to be dependent variable and different financial and non financial factors. The use of OLS method enabled us to test our hypotheses about direction of the influence of one or another factors on capital expenditures. As a result of research it was proved that CFO is directly correlated to companies’ investments. Moreover, we received the evidence that such factors of corporate governance as percent of shares in the government possession and number of independent directors in the board of directors have a positive influence on company investment expenditures. The results also proved the hypothesis that the joint effect of CFO and the fact of dividend payments influence positively on companies’ investments. It is necessary to mention that the result of this research prove results of the previous papers, analyzing company investment activity. Therefore we can say that this work made a small contribution to existing base of empirical studies in corporate finance.