University of Westminster

 

 

 

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WESTMINSTER INTERNATIONAL UNIVERSITY IN TASHKENT 

6 

001023, 00953, 000933, 001012 

Methodology 

In this research, secondary data obtained from the World Bank website is used. The firm level data was 

collected by surveying over 4,000 firms in Russia in 2007 and is available at worldbank.org. The dataset 

includes firms from different industries ranging from food industry to transport. The dependent variable is a 

firm’s performance and in this paper, the total sales of the firm’s will be used as an indicator of the 

performance. Based on the available literature on firm performance, four important variables, R&D, firm’s age, 

manager’s years of experience and expenditure on fixed assets were chosen to analyze among wide range of 

data.  

 

The relationship between performance drivers of the firm and the firm performance is linier as it is mentioned 

in most literature. Therefore, for empirical analysis, the simple OLS regression will be used. To eliminate the 

problem of omitted variables bias, the model specification test will be conducted. Further, the VIF and White 

tests will be used to eliminate the problems of multicolliniarity and heteroskedasticity.