Companies profitability under economic instability: evidence from the manufacturing industry in Russia

Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 3 Regression results (fixed effects estimates, robust estimates).

	Full sample	Enterprises in FO	Enterprises in JO	Enterprises in RO
Size of the enterprise	6.80 (0.29)^b	7.40 (1.43)^b	5.48 (1.48)^b	6.90 (0.28)^b
Fixed assets share	− 1.25 (0.14)^b	− 2.25 (0.77)^a	− 1.38 (0.73)	− 1.17 (0.15)^b
Current liquidity ratio	− 0.10 (0.09)	− 3.64 (1.58)	− 0.53 (1.61)	− 0.09 (0.09)
Gross profitability of sales	5.17 (0.22)^b	7.21 (1.02)^b	4.02 (0.99)^b	5.09 (0.22)^b
Share of borrowed capital	− 6.44 (0.23)^b	− 8.30 (0.88)^b	− 8.64 (1.30)^b	− 5.96 (0.24)^b
Average interest rates	− 0.64 (0.05)^b	− 3.11 (0.28)^b	− 1.58 (0.26)^b	− 0.37 (0.04)^b
Average annual exchange rate	0.04 (0.05)	1.49 (0.30)^b	0.91 (0.29)^a	− 0.14 (0.05)^a
Intercept	5.89 (0.00)^b	− 1.88 (1.04)	2.19 (0.74)^a	6.75(0.03) [p < 0.001]
Model 1 R²	0.070	0.051	0.077	0.077
Model 2 R²	0.165	0.149	0.140	0.178
Model 3 R²	0.266	0.277	0.240	0.273
Model 4 R²	0.272	0.330	0.262	0.276
∆R² of production efficiency^a	0.095	0.098	0.063	0.101
∆R² of financial factors^b	0.107	0.181	0.122	0.098
Including—internal	0.101	0.128	0.100	0.095
External	0.006	0.053	0.022	0.003
Number of enterprises in the sample	6134	470	294	5370

Standard errors are in parentheses. The coefficients and standard errors are given according to model 4. All constructed models (models No. 1–4) are highly significant for all samples (p ≪ 0.0001)
^a∆R² of production efficiency is calculated as the difference of R² (model 2) and R² (model 1) or it is equal ∆R² (model 2)
^b∆R² of internal financial factors is calculated as the difference of R² (model 3) and R² (model 2) or it is equal ∆R² (model 3). R² of external financial factors is calculated as the difference of R² (model 4) and R² (model 3) or it is equal ∆R² (model 4)