Motives of Capital Structure Choice of Russian Companies

This work will be devoted to the analysis of the tradeoff theory in dynamics which has resulted from improvement of static tradeoff theory. Unlike static model, the dynamic model assumes that managers consider constantly a flow of information on the company in the market and establish the target objective of a debt based on it. In this work the speed of adjustment to the target leverage load by the companies is estimated at the period covering economic downturn in the country. Comparative analysis of the speed of adjustment to the target leverage expressed by book value short term debt ratio and book value long term debt ratio is also performed. The object of research is the Russian public companies from non-financial sector. The subject of research is the process of capital structure formation of Russian companies. The purpose of final qualification work is the identification of capital structure formation of the companies in Russian market.