Empirical analysis of the factors affecting the company's results of operations (using company data with and without FDI in the Russian Federation)

Автор: Kholopov A.V.

Журнал: Экономика и социум @ekonomika-socium

Статья в выпуске: 5-2 (24), 2016 года.

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This article analyzes the hypotheses related to the factors affecting the company's results of operation. The article deals with the data for 2006-2012 by using data for 49 thousand companies on 23 different factors. The analysis is performed by linear regression method. The objective of the article is to identify the factors having the greatest impact on the results of the company operation.

Короткий адрес: https://sciup.org/140124618

IDR: 140124618

Текст научной статьи Empirical analysis of the factors affecting the company's results of operations (using company data with and without FDI in the Russian Federation)

This work devoted to the study the relationship between firm performance and the factors influencing the results. The empirical study is to identify factors that are directly or indirectly related to foreign direct investment in a particular company, industry enterprises and companies to the region and influencing the performance of companies.

To identify the factors mentioned above requires the use of an approach that will allow for the analysis of large data, in our case series consists of 49,507 enterprises separated for analysis at 83 regions and 35 aggregated industries. For this purpose was developed a method to identify the impact of 23 factors on the performance of individual firms.

In order to identify the most important factors affecting the performance of the company will put forward a number of hypotheses for further empirical testing of econometric methods.

In order to assess the impact of factors on firm performance, we use the procedure used in most scientific papers on this subject - the Cobb-Douglas model. In the most general form of the model is written as:

Q=A∗Lα∗ Kβ

This model describes the dependence of output (revenue) from Q by creating its factors, namely labor expended by the company, L, and capital of the firm K.

Table 1 is made up of all hypotheses that can be tested on the basis of available data, and the factors influencing them.

Table 1

Hypotheses	Variables
1. The results of operations of the company are directly dependent on the performance of internal labor and capital.	1. The natural logarithm of capital growth
	2. The natural logarithm of firm age
	3. The natural logarithm of the share of foreign capital
	4. The natural logarithm of the number of staff
	5. The natural logarithm of capital intensity
2. The revenue of the company is in direct proportion to the regional factors promoting attraction of FDI to the region.	6. GRP (million rubles)
	7. Foreign Investments in the Russian Federation (bln. Rub.)
	8. Extraction of mineral resources

	9. Manufacturing
	10. Production and distribution of electricity, gas and water
	11. Agricultural production (mln. Rubles).
	12. The retail trade turnover
	13. Organizations that perform research and development
	14. Density railroad tracksof general use
	15. The number of crimes per 100 000 population
	16. Net migration rates per 10 000 population
3.The presence of foreign direct investment in the regions bordering with the region, have a positive effect on the activities of firms in the region.	17. The regional effect of the presence of FDI.
4. The revenue of the company has a direct relationship with the presence of firms in the industry to foreign direct investment.	18. The presence of firms in the industry with FDI firms (weighted according by labor)
	19. The presence of firms in the industry with FDI firms (weighted by revenue)
5. On revenues of Russian companies affects both horizontal and vertical (forward and backward) spillovers.	20. The horizontal spillover
	21. Vertical forward spillover
	22. Vertical backward spillover
6. The level of monopolization of the industry negatively affects the firm's revenue.	23. Herfindahl-Hirschman index

Summing all the factors in one model, we get the following initial model:

1П Г = «о + ^ Uj * Xjt + £t

E(£t) = 0; c(£t) = const

where:

lni^Y- the natural logarithm of of revenue,

Xit– i-th variable from Table 1

αi – parameters (sensitivity of the explained variable to changes of the explainable variable)

ɛ t – the disturbance term

Main data was taken from Ruslana bureau van dijk base. It was selected by the following criteria:

• organizational and legal form of the enterprise:

PLC, Ltd, LLC.

• number of employees in the company more than 50 people.

• information about foreign capital is available.

More information on regional and social factors was collected from official statistical compilations.

After removal of the incomplete records in the database analysis remains 310 097 unique records.

The analysis revealed that 10 of the 24 variables are not significant, so they were excluded and further results are given for a model consisting of 14 significant variables.

The specification of our model with calculated parameters are presented below:

ln У = «о + ^ «i * Xj + £t i=i

= 18590,24; Fcrit = 1,529

E2 = 0,72; tcrit = 2,45

Where:

Ini^Y- the natural logarithm of of revenue,

Xit– i-th variable from Table 2

αi – parameters (sensitivity of the explained variable to changes of the explainable variable) from Table 2

Table 2

i	Variable (Xi)	Coefficient (αi)
0	Constant	5,236
1	Extraction of mineral resources	-0,0000003

2	Manufacturing	0,00000017
3	Agricultural production (mln. Rubles).	0,00000012
4	Organizations that perform research and development	-0,001
5	The number of crimes per 100 000 population	-0,000027
6	The presence of firms in the industry with FDI firms (weighted according by labor)	0,228
7	The presence of firms in the industry with FDI firms (weighted by revenue)	0,097
8	Vertical forward spillover	-0,27
9	Vertical backward spillover	0,225
10	Herfindahl-Hirschman index	-0,001
11	The natural logarithm of capital growth	0,725
12	The natural logarithm of firm age	0,058
13	The natural logarithm of the share of foreign capital	0,039
14	The natural logarithm of capital intensity	-0,349

This model is tested by F-test, t-test, Goldfield-Quandt and Durbin-Watson tests confirms that we can use OLS – method to check the model, and it has high R2=0,72, all this confirms the consistency of the model

Список литературы Empirical analysis of the factors affecting the company's results of operations (using company data with and without FDI in the Russian Federation)

Е.А. Федорова, Б.К. Коркмазова, М.А. Муратов/Jценка эффективности компаний с прямыми иностранными инвестициями: отраслевые особенности в РФ, «Пространственная Экономика 2015. 2. С. 47-63 УДК 332.1
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Aitken, Brian J., and Ann E. Harrison. 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela." American Economic Review, 89(3): 605-618

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