Borrowed Capital as Risk Factor for Large Construction Companies in Russia

[摘要] The paper investigates the features of the formation of the capital structure of large construction companies from the standpoint of the financial risks and opportunities for companies' development. The authors compare the opportunities and risks linked with the use of the own and borrowed capital, analyze the capital structure of large Russian construction companies, identify factors affecting the capital structure and determining the ratio of own and borrowed sources of financing. In the paper the hypothesis is considered that companies use larger volumes of borrowed capital by means of their assets increase.

[发布机构] Graduate School of Public Administration and Financial Management, Peter the Great St. Petersburg Polytechnic University, Polytechnicheskaya 27, St.-Petersburg; 195251, Russia^1

[学科分类] 土木及结构工程学

[关键词] Capital structure;Construction companies;Financial risks;Risk factors