The Determinants for Capital Structure Choice for Listed Russian Companies

Abstract

The contemporary situation in the business environment dictates the new rules of behavior, which leads to the reconsideration of the settled criteria and honed action, since they don’t bring the expected effects, and need to be adjusted. The aim of this research was to identify the determinants of capital structure choice for listed Russian companies, and to find out if the existing theories are still applicable in the period of years 2008-2010. The results of the research were drawn by using regression analysis. It was concluded that in the analyzing period of time the Russian companies didn’t follow theories, when choosing their capital structure. Also it was concluded that there was a slight increase in the debt load, comparing to period of 2003-2006; and Firm Size became statistically significant determinant with the positive relation with the leverage level.