Scientific journal NRU ITMO
Series "Economics and Environmental Management"
Registration certificate ЭЛ № ФС 77 – 55411 от 17.09.2013
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December 2018 (published: 27.12.2018)

Number 4(35)

Home > Issue > Capital Structure of Russian Airline Companies: Theoretical and Practical Aspects

UDC 336.647.648

Capital Structure of Russian Airline Companies: Theoretical and Practical Aspects

Volosatova K.I. , Markovskaia E.I.

This article investigates the capital structure by the example of airline companies in Russia. The relevance of the topic depends on the relationship between the decisions about the capital structure and the value of the company. The purpose of the work is to identify patterns in making decisions about the capital structure by the example of Russian air companies, as well as the analysis of these relationships in terms of classical theories. First the Russian airline market was identified, next, the study methodology was formulated. After that, the collected data were outlined, the model, which demonstrates an impact of the determinants on the financial leverage, was conducted. The choice of determinants of capital structure, which were included in the model in the empirical part of the work, was based on the conclusions of the classical theories that are presented in the work. A methodology for studying the structure of capital was formulated, a detailed description of the selected factors and proxy variables for them was presented. Hypotheses were formulated and a model was built for analysis. The model included fixed effects for companies. After an econometric analysis, the final model showed that the company's growth was a significant factor. In addition, the obtained results were compared with the provisions of classical theories and the author's hypotheses. The survey found the regularities in determining the capital structure by management. It was shown that these patterns are only partially explained by classical theories. The obtained results can be applied to make a decision about financing by start-ups.
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Keywords: factor analysis of airlines, capital structure of airlines, financial leverage, trade-off theory, agency theory, pecking order theory.

DOI 10.17586/2310-1172-2018-11-4-25-45

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