An article by a professor at the IEM TSU was published in a journal included in the Scopus database
The article by Marina Ryzhkova, Professor at the IEM Department of Economics, “Profitability of Russian Industrial Enterprises under Economic Instability” was published in the Journal of Economic Structures, the official journal of the Pan-Pacific Association of Researchers (PAPAIOS). The magazine is included in the list of Scopus Q2 magazines and is published by Springer Open (USA). The research by TSU professor is devoted to the analysis of factors affecting the efficiency (profitability) of enterprises in foreign, joint, and domestic ownership in countries with unstable economies.
The study was carried out in partnership with Vladislav Spitsin (TPU), Darko Vukovits (Geographical Institute of the Serbian Academy of Science and Art), and Sergey Anokhin (St. Cloud State University, Minnesota, USA).
- The novelty of the study is that for the first time such an analysis was conducted for the manufacturing industry in Russia, whose economy is characterized by instability (crisis), external sanctions, and an internal trend for import substitution, says Marina Ryzhkova. - We use panel data for 6,134 enterprises operating in several industries of Russia in 2012-2016. In general, production efficiency and economies of scale positively affect profitability, while the share of borrowed capital, the share of fixed assets and rising interest rates have a negative impact. Three groups of factors are considered: production efficiency, domestic, and international financial factors. The contribution of international financial factors to the efficiency of domestic firms is minimal, which is different for international firms and jointly owned firms. Production efficiency is particularly affected by the profitability of the automotive industry, the production of machinery and equipment, and metallurgy. In the chemical, electrical, optical industries, and the food industry, by contrast, domestic economic factors act as a powerful predictor of profitability. The type of ownership structure does not affect profitability if the company is not loaned (leverage ratio below 50%). Otherwise, the profitability of the company is largely determined by internal economic factors.
In general, data processing and preparation of the text of the article took about a year. Another year went to work with publishers and adjusting the article taking into account the comments of reviewers.