Factors Affecting Capital Investment in Russian Industrial Companies

This paper examines the factors influencing the investments of Russian industrial companies. Based on previous studies there were identified some internal and external factors of investment activity. Empirical research were also analyzed. In this research we use the data collected in the framework of the Russian Enterprises in the Global Economy project (2014) “Industrial enterprises research”. The binary choice of a company to make capital investments was considered as an indicator of investments. The impact of various factors on the Russian industrial companies capital investments has been estimated and significant results were obtained. The results of the research confirmed the impact on the capital investments of some financial and nonfinancial factors and some features of the investment behaviour of Russian industrial companies were highlighted.