The Influence of the Share of Foreign Participation in the Corporate Borrower's Capital on the Probability of Default of this Company

When searching for new customers, banks began to be actively interested in companies with the participation of foreign capital. These enterprises, according to numerous studies, are more efficient, more productive and more profitable than domestic firms. In this regard, there was a need to assess the presence of foreign participation in the capitals of Russian borrowers and develop a model for forecasting the probability of default, which would take into account this factor and determine its significance. The data was collected on firms with foreign investments and without them, as well as medium-sized businesses. The analysis was carried out using the method of logistic regression. As a result of the research, it turned out that foreign participation in the company's capital reduces the probability of default of the company, improves the reliability of the borrower, and also positively influences the adoption of a loan decision.