Analysis of the Impact of Monetary Policy on the Corporate Performance

In this paper, we study the impact of monetary policy instruments on capital structure and debt burden for 366 Russian companies in 12 sectors of the economy using a model for panel data with fixed effects. Based on the analysis of an extensive list of theoretical and empirical studies of Russian and foreign scientists, it is discovered that these indicators are core for business development and are organically integrated into the transmission mechanism of the Bank of Russia's monetary policy. The results of the study reveal that the monetary policy tightening leads to a drop in the debt burden of companies belonging to the Russian real economy. It is discovered that with the growth of the key rate, the total liabilities of companies are reduced, primarily due to short-term debt, which corresponds to the structure of total debt. The scientific novelty of the work is to conduct research in the sectoral context. The conclusion about the multidirectional influence of interest rates on the formation of the companies’ debt burden in different sectors of the Russian economy is made. The limiting influence of the interest rates’ growth on the level of the debt burden of trade companies, agribusiness and some segments of the manufacturing sector is noted. The co-directional influence of changes in interest rates and debt burden of oil and gas and metallurgy companies is discovered. Most of the companies in the study sample were insensitive to the dynamics of all the analyzed indicators of monetary policy, which is due to the insufficient level of conductivity of the transmission channels of the OST, as well as the influence of macroeconomic and institutional factors.