Financialization and innovation activity of Russian companies: Empirical research

Russian Journal of Economics. 2024. Vol. 10. No. 2. P. 168–189.

Fokin I., Розмаинский И. В.

In this paper, we conducted an empirical study to assess the nature of the relationship between financialization and the level of innovation activity in Russian publicly listed companies. We relied on previous research in this area and on the models proposed by the researchers. In the empirical part, we prepared four models, based on the sample including 245 Russian publicly listed companies and having the observation period from 2000 to 2021. We applied Ordinary Least Square (OLS), Pooled Least Square (PLS) models, as well as panel data models with fixed and random effects. According to our hypotheses, financialization has a negative impact on the level of innovation in firms and its impact is varying for firms with different levels of financial constraints. The results of the study have shown that these hypotheses were partially confirmed. We have been convinced of the negative impact of financialization on innovation activity, however, if financial constraints were taken into account, not all coefficients had an unambiguous interpretation. Our assumptions and the results obtained, which generally confirmed the hypotheses put forward, are based on a theoretical understanding of the role of shareholder value orientation in this process. Confirmation of these assumptions is set as the goal of further research.

Ключевые слова: инновации, панельные данные, российская экономика, innovation, shareholder value, акционерная стоимость, financialization, финансиализация, Russian economy, panel data