The impact of capital structure on the performance of companies in Russia

Subject. This article examines the relationship between the capital structure and the performance of companies in Russia. Objectives. The article aims to identify and analyze of the nature of the capital structure impact on the operational efficiency of enterprises in Russia for 2020–2022. Methods. For the study, we used a panel regression equation. Results. Using the panel regression method, we tested the hypothesis that an increase in the debt level leads to a decrease in the company's performance. The results of the study refute the hypothesis that an increase in the debt level has a positive effect on the company's performance in the subsequent period. Conclusions and Relevance. The conclusions of this study coincide with the results in developed capital markets and are also consistent with the conclusions obtained in the Egyptian market. At a low level, debt can play a constructive role in performance improving, providing companies with additional resources to invest in development and therefore, increasing their competitiveness. The results of the study can be used to predict and determine the capital structure, which is important for the top management of Russian companies, members of the board of directors, financial analysts and other stakeholders.