International Conference on Eurasian Economies
1-3 July 2014 – Skopje, MACEDONIA
Paper detail
Paper ID : 913
Status : Paper published
Language : English
Topic : Microeconomics and Entrepreneurship
Presenter: Assoc. Prof. Dr. Ekaterina Nikolaeva
Session : 6A Microeconomics
Transaction Costs of Large and Mid-sized Corporations in Russia
Transaction Costs of Large and Mid-sized Corporations in Russia
- Assoc. Prof. Dr. Ekaterina Nikolaeva (Chelyabinsk State University, Russia)
- Assoc. Prof. Dr. Dmitri Pletnev (Chelyabinsk State University, Russia)
- Mr. Stanislav Lushnikov (Chelyabinsk State University, Russia)
Abstract
In the times of economic instability in most developed countries, a decrease is experienced in the effectiveness of many large public corporations. Such corporations are facing high expenditures (transaction costs mostly) and extremely low return on invested capital. Medium-sized businesses, on the contrary, prove to be more efficient: they show an acceptable level of profitability and total cost savings. The purpose of the present study is to calculate and analyse transaction costs of medium and large corporations and identify an impact of these costs on the performance of companies. Within the the framework of a neoinstitutional approach a complex of institutional factors influencing a company’s development is being explored. The efficiency of institutional forms is determined through studying such factors as transaction costs. In line with this theory, the transaction cost level of corporations is estimated, which enables one to make their comparative analysis in economic sectors. The analysis has revealed that the relative level of transaction costs with large corporations is two times higher than that in the event of middle ones. A comparative analysis of return on sales in two groups of companies has pointed to a fact that after 2010 the margin of middle-sized companies exceeded the profitability of large companies. The relationship between the level of transaction costs and return on sales in two groups of companies is being quantified as well. We have proved that middle-sized corporations have shown a direct relationship. On the contrary, transaction costs negatively affect profitability in large corporations.
JEL codes: D23, L25
Nikolaeva, Ekaterina, Pletnev, Dmitri, Lushnikov, Stanislav (2014). "Transaction Costs of Large and Mid-sized Corporations in Russia" in Proceedings of International Conference of Eurasian Economies 2014, pp.189-193, Skopje, MACEDONIA.
DOI: https://doi.org/10.36880/C05.00913
