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Ownership Structure and Firm Performance in Russia: The Case of Blue Chips of the Stock Market Author info | Abstract | Publisher info | Download info | Related research | Statistics Kouznetsov Pavel ()
Muravyev Alexander ()
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Based on panel data from 1995 – 1997, the paper focuses on the impact of ownership structure on the performance of Russian non-financial privatized companies that constitute the group of "blue chips" of the country's stock market. We find that ownership concentration results in higher technical efficiency of enterprises, but benefits from productivity improvements do not adequately materialize in higher profitability and market value of companies. This is consistent with the expropriation hypothesis that large owners use their power to extract private benefits of control. We also find that the association between ownership by different groups of owners and firm performance is relatively weak and subject to reversed causality. There is evidence that ownership by Russian non-state shareholders negatively affects firm value suggesting that this group of owners is inclined to the extraction of private benefits of control.
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Paper provided by EERC Research Network, Russia and CIS in its series EERC Working Paper Series with number
01-10e.
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Length: 57 pages
Date of creation: 01 Dec 2001Date of revision:
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Keywords: Russia ; corporate governance ; ownership structure ; Find related papers by JEL classification: G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
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Full
references Cited by : (explanations , 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.)
Alexander Muravyev, 2003.
"Federal state shareholdings in Russian companies: Origin, forms and consequences for enterprise perfomance ,"
Macroeconomics
0303007, EconWPA.
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Other versions: Vitaliy Zheka, 2006.
"Corporate Governance and Firm Performance in Ukraine ,"
CERT Discussion Papers
0605, Centre for Economic Reform and Transformation, Heriot Watt University.
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