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Sanctions, disclosure and the performance of Russian publicly traded companies

Author

Listed:
  • Kambaralieva, K.

    (HSE University, Saint Petersburg, Russia)

  • Muravyev, A.

    (HSE University, Saint Petersburg, Russia
    Institute of Labor Economics (IZA), Bonn, Germany)

Abstract

Since 2019, the Russian regulator's policy on corporate information disclosure has undergone a number of significant changes. Amid unprecedented sanctions pressure from Western countries, companies were allowed to withhold material information about their operations, including financial statements. However, these measures, aimed at protecting domestic companies from sanctions, have introduced the risks of lower investment attractiveness and deteriorating performance of firms in the medium- and long-run. This paper studies disclosure practices by Russian public companies in the context of Western sanctions and evaluates their impact on firm performance. The dataset covers all Russian public companies the shares of which were listed at the Moscow Exchange in 2018-2023. Using descriptive, statistical and econometric methods, we find a dramatic increase in the number of companies that did not disclose financial statements in 2021-2022 and information about owners and boards of directors in 2022-2023, and also observe a decrease in the amount of disclosed information on plans and material events of companies in 2021-2023. The likelihood of information disclosure turns out to be related not only to sanctions, but also to the level of corporate governance in the pre-sanctions period. We also find a significant positive impact of information disclosure on the market value of companies. Thus, failure to disclose (including under the pretext of sanctions) material information leads to a decrease in the market value of firms, which must be taken into account when designing policies aimed to counter sanctions pressure.

Suggested Citation

  • Kambaralieva, K. & Muravyev, A., 2025. "Sanctions, disclosure and the performance of Russian publicly traded companies," Journal of the New Economic Association, New Economic Association, vol. 69(4), pages 58-86.
    • Handle: RePEc:nea:journl:y:2025:i:69:p:58-86
    DOI: 10.31737/22212264_2025_4_58-86
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    References listed on IDEAS

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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