High-growth firms' sustainability and efficiency in the Russian energy sector during pandemic

Abstract

High-growth firms (gazelles) are important drivers of economic growth, being one of the key employment creators. COVID-19 pandemic hit the global and national economy. Dozens of industries suffer from epidemic restrictions. Gazelles did not stand aside and also suffered losses. Current research reveals the difference in performance of normal and high-growth firms in Russian energetic industry based on the financial reports data. The sample of energetic firms includes 3,066 normal and 162 high-growth firms. The performance is evaluated through the system of 6 indicators. The authors test 6 hypotheses (using one-way ANOVA) of better gazelles’ ability to grow, efficiency, solvency, and employability than normal firms in 2019-2021. The pandemic hit firm’s revenue growth in 2020, but gazelles had better ability to grow in 2019-2020. However, normal firms increased revenue greater than HGFs in 2021. Gazelles have higher profitability, solvency and employment creation abilities in comparison with normal firms. Firm efficiency doesn’t significantly differ between normal firms and HGFs.