Economic Analysis: Theory and Practice

Patterns and trends in the development of Russian automotive industry enterprises by type of ownership in 2012–2016

Vol. 16, Iss. 12, DECEMBER 2017

Received: 20 October 2017

Received in revised form: 31 October 2017

Accepted: 10 November 2017

Available online: 22 December 2017


JEL Classification: F23, G30, L62, O14

Pages: 2316–2331

Spitsyn V.V. National Research Tomsk Polytechnic University, Tomsk, Russian Federation

Importance The Russian automotive industry is going through a difficult period. A crisis that replaced the growth in 2011–2012, foreign investment and expansion of foreign-owned and joint enterprises, could not but affect the financial performance of the latter ones.
Objectives The study focuses on investigating the patterns and development trends in the automotive industry enterprises of Russia over 2012–2016 and identifying differences and sustainability of financials by form of ownership and size of enterprise.
Methods The study draws on my own methodology for assessing the time series of financials from the perspective of statics, dynamics, and sustainability. Under this methodology, the dynamics and sustainability of indicators were calculated based on linear trend models.
Results Enterprises of any form of ownership face problems with revenue growth, though demonstrate positive asset growth rates. Despite the crisis, most enterprises in local ownership earned net profit, increased retained earnings and equity. Large foreign-owned enterprises, in contrast, experienced problems like a drop in revenues, uncovered losses, and a decrease in equity. The analysis shows the profit performance instability, especially of foreign-owned enterprises.
Conclusions Local ownership enterprises have some advantages during the period under investigation. Negative changes in important indicators and hefty losses of large foreign-owned enterprises and joint ventures can adversely impact their paying capacity and financial stability.

Keywords: automotive industry, foreign investment, trend data, development trend, assessment methodology


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