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Government directors and business–state relations in Russia

  • Frye, Timothy M.
  • Iwasaki, Ichiro

We 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.

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Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 27 (2011)
Issue (Month): 4 ()
Pages: 642-658

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Handle: RePEc:eee:poleco:v:27:y:2011:i:4:p:642-658
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