Government directors and business–state relations in Russia
AbstractWe propose three ideal types of business–state relations in a transition economy and explore the impact of government directors on corporate boards for firm behavior. Using a unique dataset of joint-stock companies in Russia, we find that the presence of government directors on corporate boards is more consistent with a “collusion” ideal type of relations between firms and the state than with a managerial discipline or rent-extraction ideal type. The state sends directors to firms that both extract resources from the state, but that also provide important benefits and services to the state.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal European Journal of Political Economy.
Volume (Year): 27 (2011)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505544
Politically connected firm; Government directorship; Business–state relationship; Corporate governance quality; Russia;
Find related papers by JEL classification:
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
- P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
- P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
- P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Linck, James S. & Netter, Jeffry M. & Yang, Tina, 2008. "The determinants of board structure," Journal of Financial Economics, Elsevier, vol. 87(2), pages 308-328, February.
- Hillman, Arye L., 2010. "Expressive behavior in economics and politics," European Journal of Political Economy, Elsevier, vol. 26(4), pages 403-418, December.
- Dalgic, Engin & Long, Ngo Van, 2006.
"Corrupt local governments as resource farmers: The helping hand and the grabbing hand,"
European Journal of Political Economy,
Elsevier, vol. 22(1), pages 115-138, March.
- Engin Dalgic & Ngo Van Long, 2004. "Corrupt Local Government as Resource Farmers: The Helping Hand and the Grabbing Hand," CESifo Working Paper Series 1248, CESifo Group Munich.
- Ichiro Iwasaki, 2007. "Enterprise Reform And Corporate Governance In Russia: A Quantitative Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 21(5), pages 849-902, December.
- Dani Rodrik, 2008.
NBER Working Papers
14050, National Bureau of Economic Research, Inc.
- MARA FACCIO & RONALD W. MASULIS & JOHN J. McCONNELL, 2006. "Political Connections and Corporate Bailouts," Journal of Finance, American Finance Association, vol. 61(6), pages 2597-2635, December.
- Smyth, Russell & Qian, Joanne Xiaolei, 2009.
"Corruption and left-wing beliefs in a post-socialist transition economy: Evidence from China's 'harmonious society',"
Elsevier, vol. 102(1), pages 42-44, January.
- Russell Smyth & Xiaolei Qian, 2008. "Corruption And Left-Wing Beliefs In A Post-Socialist Transition Economy: Evidence From China'S ???Harmonious Society???," Monash Economics Working Papers 02/08, Monash University, Department of Economics.
- Bonnie Wilson & Jac Heckelman, 2010.
"The Political Economy of Investment: Sclerotic Effects from Interest Groups,"
2012-03, Saint Louis University, Department of Economics.
- Coates, Dennis & Heckelman, Jac C. & Wilson, Bonnie, 2010. "The political economy of investment: Sclerotic effects from interest groups," European Journal of Political Economy, Elsevier, vol. 26(2), pages 208-221, June.
- Hellman, Joel S. & Jones, Geraint & Kaufmann, Daniel, 2003. "Seize the state, seize the day: state capture and influence in transition economies," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 751-773, December.
- Raymond Fisman, 2001. "Estimating the Value of Political Connections," American Economic Review, American Economic Association, vol. 91(4), pages 1095-1102, September.
- Becker, Sascha O. & Egger, Peter H. & Seidel, Tobias, 2009. "Common political culture: Evidence on regional corruption contagion," European Journal of Political Economy, Elsevier, vol. 25(3), pages 300-310, September.
- Paul A. Gompers & Joy L. Ishii & Andrew Metrick, 2001.
"Corporate Governance and Equity Prices,"
NBER Working Papers
8449, National Bureau of Economic Research, Inc.
- Kaplan, Steven N. & Minton, Bernadette A., 1994. "Appointments of outsiders to Japanese boards: Determinants and implications for managers," Journal of Financial Economics, Elsevier, vol. 36(2), pages 225-258, October.
- Klapper, Leora F. & Love, Inessa, 2004.
"Corporate governance, investor protection, and performance in emerging markets,"
Journal of Corporate Finance,
Elsevier, vol. 10(5), pages 703-728, November.
- Klapper, Leora F. & Love, Inessa, 2002. "Corporate governance, investor protection, and performance in emerging markets," Policy Research Working Paper Series 2818, The World Bank.
- Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
- Iwasaki, Ichiro, 2008.
"The determinants of board composition in a transforming economy: Evidence from Russia,"
Journal of Corporate Finance,
Elsevier, vol. 14(5), pages 532-549, December.
- Iwasaki, Ichiro, 2008. "The Determinants of Board Composition in a Transforming Economy: Evidence from Russia," RRC Working Paper Series 9, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
- Shleifer, Andrei & Vishny, Robert W, 1994. "Politicians and Firms," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 995-1025, November.
- Mark Gradstein, 2007. "Inequality, democracy and the protection of property rights," Economic Journal, Royal Economic Society, vol. 117(516), pages 252-269, 01.
- Bjorvatn, Kjetil & Soreide, Tina, 2005. "Corruption and privatization," European Journal of Political Economy, Elsevier, vol. 21(4), pages 903-914, December.
- Vitaliy Zheka, 2005. "Corporate governance, ownership structure and corporate efficiency: the case of Ukraine," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(7), pages 451-460.
- Boubakri, Narjess & Cosset, Jean-Claude & Saffar, Walid, 2008. "Political connections of newly privatized firms," Journal of Corporate Finance, Elsevier, vol. 14(5), pages 654-673, December.
- Timothy Frye & Andrei Shleifer, 1996.
"The Invisible Hand and the Grabbing Hand,"
NBER Working Papers
5856, National Bureau of Economic Research, Inc.
- Mara Faccio, 2006. "Politically Connected Firms," American Economic Review, American Economic Association, vol. 96(1), pages 369-386, March.
- Sergei Guriev & Andrei Rachinsky, 2005. "The Role of Oligarchs in Russian Capitalism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 131-150, Winter.
- Denis, David J. & Sarin, Atulya, 1999. "Ownership and board structures in publicly traded corporations," Journal of Financial Economics, Elsevier, vol. 52(2), pages 187-223, May.
- Ichiro Iwasaki & John van Reenen & Toby Wolfe, 2011. "Economic transition, firm organisation and internal control: determinants of audit structure in Russian firms," Working Papers 126, European Bank for Reconstruction and Development, Office of the Chief Economist.
- Iwasaki, Ichiro, 2013.
"Firm-Level Determinants of Board System Choice: Evidence from Russia,"
RRC Working Paper Series
32, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
- Ichiro Iwasaki, 2013. "Firm-Level Determinants of Board System Choice: Evidence from Russia," Comparative Economic Studies, Palgrave Macmillan, vol. 55(4), pages 636-671, December.
- Iwasaki, Ichiro, 2014. "Global financial crisis, corporate governance, and firm survival:," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 178-211.
- Ebrahim, M. Shahid & Girma, Sourafel & Shah, M. Eskandar & Williams, Jonathan, 2014. "Dynamic capital structure and political patronage: The case of Malaysia," International Review of Financial Analysis, Elsevier, vol. 31(C), pages 117-128.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.