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Ownership Structure and Firm Performance in Russia: The Case of Blue Chips of the Stock Market

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  • Kuznetsov, Pavel
  • Muravyev, Alexander

Abstract

Based on panel data from 1995 – 1997, the paper focuses on the impact of ownership structure on the performance of Russian non-financial privatized companies that constitute the group of "blue chips" of the country's stock market. We find that ownership concentration results in higher technical efficiency of enterprises, but benefits from productivity improvements do not adequately materialize in higher profitability and market value of companies. This is consistent with the expropriation hypothesis that large owners use their power to extract private benefits of control. We also find that the association between ownership by different groups of owners and firm performance is relatively weak and subject to reversed causality. There is evidence that ownership by Russian non-state shareholders negatively affects firm value suggesting that this group of owners is inclined to the extraction of private benefits of control.

Suggested Citation

  • Kuznetsov, Pavel & Muravyev, Alexander, 2001. "Ownership Structure and Firm Performance in Russia: The Case of Blue Chips of the Stock Market," MPRA Paper 27231, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27231
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    References listed on IDEAS

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    Cited by:

    1. Kashif Rashid & Seep Nadeem, 2014. "The Role of Ownership Concentration, its Types and Firm Performance: A Quantitative Study of Financial Sector in Pakistan," Oeconomics of Knowledge, Saphira Publishing House, vol. 6(2), pages 10-61, June.
    2. repec:eee:touman:v:49:y:2015:i:c:p:87-96 is not listed on IDEAS
    3. Muravyev, Alexander & Bilyk, Olga & Grechaniuk, Bogdana, 2009. "Firm Performance and Managerial Turnover: The Case of Ukraine," MPRA Paper 13685, University Library of Munich, Germany.
    4. Ichiro Iwasaki & Satoshi Mizobata, 2017. "Post-Privatization Ownership and Firm Performance: A Large Meta-Analysis of the Transition Literature," KIER Working Papers 966, Kyoto University, Institute of Economic Research.
    5. repec:zbw:iamost:85 is not listed on IDEAS
    6. Muravyev, Alexander, 2002. "Federal state shareholdings in Russian companies : Origin, forms and consequences for enterprise performance," BOFIT Discussion Papers 12/2002, Bank of Finland, Institute for Economies in Transition.
    7. Muravyev, Alexander, 2017. "Boards of directors in Russian publicly traded companies in 1998–2014: Structure, dynamics and performance effects," Economic Systems, Elsevier, vol. 41(1), pages 5-25.
    8. Attiya Y. Javid & Robina Iqbal, 2010. "Corporate Governance in Pakistan: Corporate Valuation, Ownership and Financing," PIDE-Working Papers 2010:57, Pakistan Institute of Development Economics.
    9. Salla Pöyry & Benjamin Maury, 2010. "Influential ownership and capital structure," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 311-324.
    10. Ichiro Iwasaki, 2007. "Enterprise Reform And Corporate Governance In Russia: A Quantitative Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 21(5), pages 849-902, December.
    11. Vitaliy Zheka, 2006. "Corporate Governance and Firm Performance in Ukraine," CERT Discussion Papers 0605, Centre for Economic Reform and Transformation, Heriot Watt University.
    12. Muravyev, Alexander & Berezinets, Irina & Ilina, Yulia, 2014. "The structure of corporate boards and private benefits of control: Evidence from the Russian stock exchange," International Review of Financial Analysis, Elsevier, vol. 34(C), pages 247-261.
    13. Ichiro Iwasaki & Satoshi Mizobata & Alexander A. Muravyev, 2017. "Ownership Dynamics and Firm Performance in an Emerging Economy: A Meta-Analysis of the Russian Literature," KIER Working Papers 955 Classification-JD22, , Kyoto University, Institute of Economic Research.
    14. Sprenger, Carsten, 2011. "The choice of ownership structure: Evidence from Russian mass privatization," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 260-277, June.
    15. Muravyev, Alexander, 2003. "Государственные Пакеты Акций В Российских Компаниях: Происхождение, Типы И Влияние На Результаты Деятельности
      [Government-owned blocks of shares in Russian companies]
      ," MPRA Paper 27393, University Library of Munich, Germany.
    16. Kun Wang & Greg Shailer, 2015. "Ownership Concentration And Firm Performance In Emerging Markets: A Meta-Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 29(2), pages 199-229, April.
    17. Prempeh, Kwadwo Boateng & Nsiah Asare, Evelyn & sekyere, Allan McBright, 2016. "The Effect of Debt Policy on Firms Performance: Empirical Evidence from Listed Manufacturing Companies on The Ghana Stock Exchange," MPRA Paper 75200, University Library of Munich, Germany.
    18. Nadia Vanteeva, 2012. "The Re-Emerging Role of the State in Contemporary Russia," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 19(1), pages 23-34, September.
    19. Berezinets, Irina & Ilina, Yulia & Muravyev, Alexander, 2011. "CEO and Board Characteristics as Determinants of Private Benefits of Control: Evidence from the Russian Stock Exchange," IZA Discussion Papers 6256, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Russia; corporate governance; ownership structure.;

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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