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The Determinants of Board Composition in a Transforming Economy: Evidence from Russia

  • Iwasaki, Ichiro

Using a unique dataset of 730 joint-stock companies, we studied the determinants of corporate board composition in Russia. Despite the widespread image of insider control in the 1990s, a large number of Russian companies now actively appoint outsider directors to monitor top management. The findings reported in this paper strongly suggest that the theories and empirical methods of financial and organizational economics help to pinpoint the factors affecting the extent of outsider directorship. We also found that, among potential determinants, bargaining variables have considerable explanatory power. Furthermore, our empirical evidence demonstrated that Russia’s legal system and its peculiarities as a transition economy also exert a certain degree of influence on board composition.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/16269/1/RRC_WP_No9.pdf
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Paper provided by Russian Research Center, Institute of Economic Research, Hitotsubashi University in its series RRC Working Paper Series with number 9.

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Length: 28, [12] p.
Date of creation: Sep 2008
Date of revision:
Handle: RePEc:hit:rrcwps:9
Note: This paper is a product of a Japan-Russia joint research project entitled "Corporate Governance and Integration Processes in the Russian Economy" launched by the Institute of Economic Research, Hitotsubashi University (Tokyo), and the Institute for Industrial and Market Studies, State University - Higher School of Economics (Moscow). The research was financially supported by grants-in-aid for scientific research from the Ministry of Education and Science of Japan (No. 16530149; No. 17203019) and the Foundation of Japan Legislation Society.
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