Construction Companies in Russia: Does Size Matter?

Abstract

Construction industry includes companies of different sizes—large, medium, small, and microenterprises. The diversity of companies and their interaction make it possible to ensure the proper scale of the construction industry in combination with the flexibility, variety and quick response to new trends, demands, and challenges. The size of the company determines its ability to attract financial resources, available forms, and methods of forming its equity and debt, thereby determining the capital structure of the company. The objective of the current research is to identify opportunities and threats to different size construction companies’ development. The object under consideration is the capital structure of Russian construction companies—their sources of financing and corresponding financial and economic indicators. The study uses financial and economic analysis and statistical methods. The conclusions made on the results of research may be useful to the heads of particular companies, to financial and credit organizations and to the governing bodies of the construction industry.