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Analysis of the debt burden in Russian economy sectors

Author

Listed:
  • Svetlana Popova

    (Bank of Russia, Russian Federation)

  • Natalia Karlova

    (Bank of Russia, Russian Federation)

  • Alexey Ponomarenko

    (Bank of Russia, Russian Federation)

  • Elena Deryugina

    (Bank of Russia, Russian Federation)

Abstract
This work provides an analysis of the debt burden of Russian companies and raises the issue of debt-level heterogeneity across economic sectors. In order to identify the causes of this heterogeneity, we estimated a regression model that included both the fundamental explanatory variables of companies and industry fixed effects. The results of the analysis demonstrated that standard variables such as profitability, company size, asset turnover and fixed-asset turnover ratio have a strong statistical significance. However, these do not fully explain the variation in the debt levels of companies in different sectors. According to model estimation, there are industry specific factors that produce an imbalance between fundamental factors and companies' debt levels. An understanding of the formation process and structure of debt burden in individual industries is extremely important for the financial stability of companies, and effective monetary policy.

Suggested Citation

  • Svetlana Popova & Natalia Karlova & Alexey Ponomarenko & Elena Deryugina, 2018. "Analysis of the debt burden in Russian economy sectors," Bank of Russia Working Paper Series wps29, Bank of Russia.
    • Handle: RePEc:bkr:wpaper:wps29
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    debt burden; capital structure; sector analysis; microdata of Russian companies; emerging markets.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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