Analysis of the Impact of Non-Financial Factors on the Steel Companies' Value

What factors determine the creation of economic profit? There is a large number of researches aimed at studying financial factors that form value of companies. However, non-financial factors are often overlooked, the influence assessment of which requires a deeper analysis and understanding of the specifics of firms' activities. Such factors determine the basis on which the financial results are subsequently formed. In this study, three leading Russian steel companies were studied in the format of a case study. Using their example, the relationship between non-financial factors of companies' activities and the level of their economic profit was evaluated. The scientific novelty of the research includes formation of economic value creation map, identification of the most significant non-financial factors for evaluating operational and innovative activities of steel companies, an overview of steel industry leaders last innovations, ranking of companies in terms of production profile, sales profile, ESG and innovation. The following characteristics were studied: the degree of vertical integration, geography of production and sales, structure of the product portfolio and share of high value added products (HVA), ESG, innovation. According to the results of this research, the hypotheses were confirmed that the leading companies in the field of innovation are characterized by higher economic profits, as well as that the degree of vertical integration and the geography of production and sales determine the level of economic profit. The claim that companies leading in the field of sustainable development (ESG) have higher economic profits has not been reliably confirmed and requires additional research.