Capital Structure Determinants of Russian Companies

This study aims to identify the capital structure determinants of the Russian companies. In addition, this article reviews the current capital structure theories and how they can be applied to the decision-making processes for choosing a capital structure. The determinants are the factors that would affect a firm’s financial leverage. The models were based on the panel data on 267 Russian companies from 6 industries of the economy in the period from 2013 to 2017. The factors studied are profitability, asset structure, company size and growth opportunities. The method utilized in this study is an econometric linear model of multiply regression. The study revealed that the return on assets and the share of tangible assets have a negative impact on financial leverage, and growth opportunities are positive. The results anticipated could lead to better understanding the process of formation of the capital structure in the Russian market.