Financing nascent industry : Leverage, politics, and performance in Imperial Russia

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dc.contributor Bank of Finland Gregg, Amanda Nafziger, Steven 2020-03-09T13:54:09Z 2020-03-09T13:54:09Z 2020
dc.identifier.issn 1456-5889
dc.description.abstract This paper explores the dynamics of corporate finance during the early stages of industrial growth by examining a newly constructed panel database of Imperial Russian industrial corporations’ balance sheets. We document large differences in financial strategies and outcomes across industries, over time, over firms’ life cycles, and between two Russian corporation types. Russian corporations’ profits and dividend payouts followed the Russian business cycle. Russian corporate debt ratios mostly follow modern capital structure theories, but tangible assets were not associated with higher debt levels, suggesting that Russian corporate debt was short-term, that collateral was irrelevant, or that agency problems dominated. We also find evidence that investors needed to be compensated for poor protections, since dividends were valued and widely-held corporations enjoyed greater returns. While the evidence suggests the presence of these and other frictions, our findings are consistent with the Imperial Russian financial system functioning well enough to enable early industrial development.
dc.format.extent 51
dc.language.iso ENG
dc.subject Bofit-kokoelma
dc.subject Venäjä
dc.subject.other corporate finance
dc.subject.other financial history
dc.subject.other industrialization
dc.subject.other Russia
dc.subject.other Russian empire
dc.title Financing nascent industry : Leverage, politics, and performance in Imperial Russia
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-202003092012
dc.subject.jel N23
dc.subject.jel N63
dc.subject.jel G32 BOFIT Discussion Papers
dc.series.year 2020
dc.series.number 7/2020
dc.series.sortingnumber 0007 8.3.2020
dc.subject.yso rahoitus
dc.subject.yso yritykset
dc.subject.yso taloushistoria
dc.subject.yso teollistuminen
dc.contributor.orgunit Institute for Economies in Transition (BOFIT)
dc.type.okm D4

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