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The Relationship between Corporate Governance Indices and Dividend Payments of Russian Stock Market Companies: A Comparative Analysis

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  • P. O. Shchukina

    (Lomonosov Moscow State University, Moscow, Russian Federation)

  • P. A. Lavrinenko

    (Financial Research Institute, Moscow, Russian Federation; Institute of Economic Forecasting, Russian Academy of Sciences, Moscow, Russian Federation)

  • A. G. Mirzoyan

    (Lomonosov Moscow State University, Moscow, Russian Federation)

  • A.A. Galich

    (Lomonosov Moscow State University, Moscow, Russian Federation)

Abstract

The article is devoted to a comparative analysis of various approaches to the construction of corporate governance quality indices and their relationship with dividend payments of companies in the Russian stock market. The main emphasis is placed on the comparison of two approaches to assessing the quality of corporate governance: the first is based on compliance with the recommendations of the Bank of Russia’s Corporate Governance Code, while the second is based on the analysis of objective characteristics of the board of directors. The data used are characteristics of 28 public companies in the Russian stock market for the period from 2010 to 2024. Two methods were used to construct indices: equal weights and the principal component method. As a result of constructing regression models for the period up to 2022, a positive correlation between the quality of corporate governance and dividend payments was revealed. Using the random forest model, it was demonstrated that the highest explanatory power was shown by the index that included both objective characteristics of the board of directors and variables reflecting compliance with the recommendations of the Bank of Russia’s Corporate Governance Code, while the lowest was shown by the index that took into account only the characteristics of the board of directors with equal weights. Nevertheless, a structural shift is observed in 2023 and 2024: the constructed indices have ceased to be significant predictors of dividend payments.

Suggested Citation

  • P. O. Shchukina & P. A. Lavrinenko & A. G. Mirzoyan & A.A. Galich, 2025. "The Relationship between Corporate Governance Indices and Dividend Payments of Russian Stock Market Companies: A Comparative Analysis," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 93-109, October.
    • Handle: RePEc:fru:finjrn:250506:p:93-109
    DOI: 10.31107/2075-1990-2025-5-93-109
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    1. P. O. Shchukina & P. A. Lavrinenko & A. G. Mirzoyan & A.A. Galich, 2025. "The Relationship between Corporate Governance Indices and Dividend Payments of Russian Stock Market Companies: A Comparative Analysis," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 93-109, October.

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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