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Corporate Governance System and Regional Heterogeneity: Evidence from East and West Russia

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  • Iwasaki, Ichiro

Abstract

Using a unique firm-level dataset obtained from a large-scale questionnaire survey conducted in late 2015, we examined the generality and heterogeneity of corporate governance systems between the eastern and western regions of Russia. The survey results strongly suggest that various characteristics of corporate governance systems observed in industrial firms and listed companies are, in fact, common and long-term trends that are seen across all Russian business sectors. At the same time, however, we also found pronounced regional heterogeneity between the eastern and western regions, with companies in the east being more reluctant than those in the west to introduce a governance system to monitor and supervise top management. Regression analysis shows that this finding is robust, even after a series of firm-level attributes are simultaneously controlled for.

Suggested Citation

  • Iwasaki, Ichiro, 2017. "Corporate Governance System and Regional Heterogeneity: Evidence from East and West Russia," RRC Working Paper Series 72, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:rrcwps:72
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    References listed on IDEAS

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    1. Muravyev, Alexander, 2017. "Boards of directors in Russian publicly traded companies in 1998–2014: Structure, dynamics and performance effects," Economic Systems, Elsevier, vol. 41(1), pages 5-25.
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    11. Hirofumi Arai & Ichiro Iwasaki, 2016. "Market Quality in the Russian Far East from the Viewpoint of Company Management- Preliminary Report on Microeconomic Comparative Analysis with European Regions," Discussion papers 1602-2e, ERINA - Economic Research Institute for Northeast Asia, revised Nov 2018.
    12. Andrei B. Ankudinov & Oleg V. Lebedev, 2016. "Dividend payouts and company ownership structure amid the global financial crisis: evidence from Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 28(3), pages 384-404, July.
    13. Iwasaki, Ichiro & 岩﨑, 一郎, 2013. "What Determines Audit Independence and Expertise in Russia? Firm-Level Evidence," RRC Working Paper Series 27_v2, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    14. Peng, Mike W. & Buck, Trevor & Filatotchev, Igor, 2003. "Do outside directors and new managers help improve firm performance? An exploratory study in Russian privatization," Journal of World Business, Elsevier, vol. 38(4), pages 348-360, November.
    15. Iwasaki, Ichiro & 岩﨑, 一郎, 2016. "The Evolution of Corporate Governance in the Global Financial Crisis : The Case of Russian Industrial Firms," CEI Working Paper Series 2016-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
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    Cited by:

    1. Ichiro Iwasaki & Byung-Yeon Kim, 2020. "Legal forms, organizational architecture, and firm failure: a large survival analysis of Russian corporations," European Journal of Law and Economics, Springer, vol. 49(2), pages 227-275, April.
    2. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2023. "Board generational diversity in emerging markets," Emerging Markets Review, Elsevier, vol. 55(C).
    3. Ichiro Iwasaki & Yuko Adachi, 2024. "Legal Weakness, Investment Risks, and Distressed Acquisitions: Evidence from Russian Regions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(1), pages 1-69, March.
    4. Adachi, Yuko & Iwasaki, Ichiro, 2022. "Legal Weakness, Investment Risks, and Distressed Acquisitions: Evidence from Russian Regions," RRC Working Paper Series 98, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    5. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2020. "Corporate ownership and managerial turnover in China and Eastern Europe: A comparative meta-analysis," Journal of Economics and Business, Elsevier, vol. 111(C).
    6. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2022. "Ownership structure and firm performance in emerging markets: A comparative meta-analysis of East European EU member states, Russia and China," Economic Systems, Elsevier, vol. 46(2).
    7. IWASAKI, Ichiro & MA, Xinxin & MIZOBATA, Satoshi, 2024. "Board Structure in Emerging Markets : A Simultaneous Equation Modeling," RRC Working Paper Series 104, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    8. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2024. "Board structure in emerging markets: A simultaneous equation modeling," Journal of Economics and Business, Elsevier, vol. 128(C).

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    More about this item

    Keywords

    corporate governance system; legal form of incorporation; board of directors; audit system; regional heterogeneity; Russia;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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