Empirical research of Russian enterprises' debt burden

Abstract

Subject. The article investigates the level of debt burden of Russian enterprises and the factors affecting it. Objectives. The aim is to perform a comprehensive analysis of the level of debt burden of economic entities operating in various industries and assess its relationship with the risk of bankruptcy, identify and assess the impact of macroeconomic, industry, and specific factors that determine the ability of enterprises to service debt. Methods. We employed methods of logical, comparative, correlation and regression analysis. The SPARK information resource was used as data source. The data analysis covered the period from 2012 to 2021. For the regression analysis of the level of debt burden, we considered the dollar exchange rate, key rate, producer price index, and production index as explanatory variables of the model. Results. We offered a systems approach to the analysis and assessment of the level of debt burden. We built 54 regression models that enabled to assess the impact of macroeconomic and industry factors on the debt burden of Russian enterprises. The results of the study help reveal trends that are significant for increasing the validity of financial decisions. Conclusions. The study enabled to form a methodology to analyze the debt burden of Russian enterprises, to determine industry trends and dynamics of characteristics of the debt burden of economic entities. The findings may form the basis for the current and predictive analysis of capital structure risks, which is necessary for sound financial decisions.