Return, Solvency and Capital Structure of Russian Public and Nonpublic Companies
Irina V. Kosorukova1, Izolda A. Yagodkina2, Maria A. Shuklina3, Natalia A. Bondareva4, Irina Feodosiyevna Zhuckovskaya5
1Irina V. Kosorukova, Moscow University for Industry and Finance «Synergy» («Synergy university»), Moscow, Russia.
2Izolda A. Yagodkina, Moscow University for Industry and Finance «Synergy» («Synergy university»), Moscow, Russia.
3Maria A. Shuklina, Moscow University for Industry and Finance «Synergy» («Synergy university»), Moscow, Russia.
4Natalia A. Bondareva, Moscow University for Industry and Finance «Synergy» («Synergy university»), Moscow, Russia.
5Irina Feodosiyevna Zhuckovskaya, Vladimir State University named after Alexander and Nikolay Stoletovs, Vladimir, Russia.
Manuscript received on 14 March 2019 | Revised Manuscript received on 19 March 2019 | Manuscript published on 30 July 2019 | PP: 4328-4337 | Volume-8 Issue-2, July 2019 | Retrieval Number: B2648078219/19©BEIESP | DOI: 10.35940/ijrte.B2648.078219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: An analysis of differences in the capital structure and yield of public and nonpublic Russian companies is presented in the article, along with an analysis of the effect of corporate finance concepts – namely, of the capital structure and the relationship between risk and yield in the Russian reality. The concept of the interrelation of risk and yield is widely used in the Russian practice of valuation of business and investment decisions by using CAPM (Capital Assets Pricing Model) to find the value of the discount rate. How customary for the Russian reality is the understanding of the need to account for additional risks for nonpublic companies compared to public ones, common in the theory of corporate finance? This and some other questions are answered in this article. The results of the study have practical significance for investors interested in acquiring Russian assets.
Index Terms: Business Value, Capital Structure, Corporate Finance, Organizational and Legal Forms of Organization, Public and Nonpublic Companies, Return on Assets, Return on Equity, Return on Sales, Risk, Solvency, Yield.
Scope of the Article: Bio – Science and Bio – Technology