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Organisational culture and corporate governance in Russia: a study of managerial turnover

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  • Naohito Abe
  • Ichiro Iwasaki

Abstract

In this article we investigate the possible impact of ownership structure and corporate performance on managerial turnover using a unique dataset of Russian corporations. We argue that Russia is regarded as a country with a highly authoritarian and collectivism-oriented national culture and this peculiarity is the key to disentangling the puzzle of the statistically weaker relationship between firm performance and CEO renewal in Russian firms. We deal not only with CEO dismissal but also managerial turnover within a company as a whole. By conducting multinomial analysis that incorporates both factors, we found a significant relationship between firm performance and CEO dismissal, while, consistent with most previous studies, a standard logit analysis of CEO turnover revealed no clear relationships. We also found that the presence of a dominant shareholder significantly increased the likelihood of turnover of the whole management team, while foreign ownership tended to cause partial (CEO only) turnover.

Suggested Citation

  • Naohito Abe & Ichiro Iwasaki, 2010. "Organisational culture and corporate governance in Russia: a study of managerial turnover," Post-Communist Economies, Taylor & Francis Journals, vol. 22(4), pages 449-470.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:4:p:449-470
    DOI: 10.1080/14631377.2010.518455
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    1. Saul Estrin & Alan A. Bevan & Boris Kuznetsov & Mark E. Schaffer & Manuela Angelucci & Julian Fennema & Giovanni Mangiarotti, 2001. "The Determinants of Privatised Enterprise Performance in Russia," William Davidson Institute Working Papers Series 452, William Davidson Institute at the University of Michigan.
    2. Suchard, Jo-Ann & Singh, Manohar & Barr, Robert, 2001. "The market effects of CEO turnover in Australian firms," Pacific-Basin Finance Journal, Elsevier, vol. 9(1), pages 1-27, January.
    3. Naohito Abe & Taehun Jung, 2004. "Cross-Shareholdings, Outside Directors, and Managerial Turnover: The Case of Japan," Hi-Stat Discussion Paper Series d04-38, Institute of Economic Research, Hitotsubashi University.
    4. Urbi Garay & Maximiliano González, 2005. "CEO and Director Turnover in Venezuela," Research Department Publications 3214, Inter-American Development Bank, Research Department.
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    Cited by:

    1. Ichiro Iwasaki & Keiko Suganuma, 2015. "The impact of FDI and socio-cultural similarity on international trade: Poisson pseudo-maximum likelihood estimation of a Russian trade model," Economics Bulletin, AccessEcon, vol. 35(2), pages 1020-1033.
    2. 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).
    3. Iwasaki, Ichiro & Suganuma, Keiko, 2013. "A Gravity Model of Russian Trade: The Role of Foreign Direct Investment and Socio-Cultural Similarity," RRC Working Paper Series 40, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    4. Larisa Sh. KUDIN, 2018. "CEO Turnover in Russian Corporations," Upravlenets, Ural State University of Economics, vol. 9(5), pages 65-73, October.
    5. Ichiro Iwasaki, 2013. "Firm-Level Determinants of Board System Choice: Evidence from Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(4), pages 636-671, December.
    6. Bessonova, Evguenia & Gonchar, Ksenia, 2017. "Incentives to innovate in response to competition: The role of agency costs," Economic Systems, Elsevier, vol. 41(1), pages 26-40.
    7. Iwasaki, Ichiro & Ma, Xinxin & Mizobata, Satoshi, 2023. "Board generational diversity in emerging markets," Emerging Markets Review, Elsevier, vol. 55(C).
    8. Dulyak, Yulia (Дуляк, Юлия), 2015. "Empirical Analysis of the Boards of Directors’ Impact on the Corporate Performance of Russian Companies [Эмпирический Анализ Влияния Советов Директоров На Финансовые Результаты Деятельности Российс," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 126-148, February.
    9. 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.
    10. Iwasaki, Ichiro, 2011. "Executive Board: The Russian Experience," RRC Working Paper Series 32, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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