Factors of the Market Capitalization of Oil and Gas Companies

These days market capitalization of companies tends to play an important role in assessing firms’ performance and is considered to be a reflection of markets’ opinion on companies’ prospects. This paper aims to conduct a comprehensive analysis of various macroeconomic, sectoral and microeconomic factors that influence the market capitalization of oil and gas companies from different states. Additionally, this study investigates whether the extent of this influence is different for Russian raw-material industry given the existence of economic sanctions imposed by the USA and the EU on Russian companies due to the Ukrainian crisis. Although empirical literature offers a multitude of approaches to the estimation of these effects, it lacks both a complex perspective on this issue and a specified analysis of the current situation in the commodity sector of the Russian Federation. Thus, to fill this gap, the research includes a multifaceted quantitative approach to this problem. In order to receive consistent and verifiable results an OLS panel data regression is applied to the data.