Financial Resilience of Russian Non-financial Companies in the Structural Crisis

The aim of this thesis is to analyze the impact of various structural crises on the financial resilience of Russian non-financial companies by using the Taffler-Tishaw Z-score model. The research examines three structural crises (2014-2015, 2020 and 2022). The relevance of the thesis is associated with the high significance of the financial resilience as an indicator of the company’s financial health, and the consequences of each addressed crises, which have different effects on the performance of companies. The research is based on the gathered data of 52 Russian non-financial companies of 13 industries that have publicly available financial statements prepared in accordance with IFRS for 2013-1H2023 period. In order to determine the relationship between financial resilience, economic profit and the company's horizon index, linear correlation and Spearman rank correlation coefficients were calculated. Based on the results of the research conducted, the following key conclusions were drawn. Firstly, the monetary and financial crisis of 2014–2015 had the greatest impact on the financial resilience of the studied companies. The fact that companies faced the consequences of sanctions and currency fluctuations for the first time had a very strong impact on the efficiency of their operations, which contributed to a decrease in the level of their financial resilience. Secondly, most companies remained in the categories of absolutely or more financially resilient throughout the structural crises under consideration. Such a high share indicates that companies have the capabilities and resources to adapt their activities during periods of structural crises. Thirdly, the financial resilience of companies is influenced by both external (mainly industry-specific) and internal factors (capital structure, operational efficiency, income stability, strategic management). Fourthly, companies that faced sanctions before or during 2014 were able to adapt better to the consequences of the 2022 crisis by reorienting their sales markets, optimizing their supply chains and transforming their business models. Fifthly, industries which activities are aimed at foreign markets and which are working more with foreign partners are more vulnerable. In turn, industries aimed at producing primary commodities are less vulnerable.