Kuznetsov, Pavel and Muravyev, Alexander (2001): Ownership Structure and Firm Performance in Russia: The Case of Blue Chips of the Stock Market.
Download (299kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Ownership Structure and Firm Performance in Russia: The Case of Blue Chips of the Stock Market|
|Keywords:||Russia, corporate governance, ownership structure.|
|Subjects:||G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance
G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill
|Depositing User:||Alexander Muravyev|
|Date Deposited:||06. Dec 2010 12:40|
|Last Modified:||11. Feb 2013 18:53|
Afanasiev, M., Kuznetsov, P., and Fominykh, A. (1997) Korporativnoe Upravlenie Glazami Direktorata (Corporate Governance as Viewed by Directors), Voprosy Ekonomiki, No 5 (in Russian).
Agrawal, A. and Knoeber, C.R. (1996) Firm Performance and Mechanisms to Control Agency Problems Between Managers and Shareholders, Journal of Financial and Quantitative Analysis 31 (3).
Baltagi, B. (1995) Econometric Analysis of Panel Data (Chichester: Wiley).
Barclay, M. and Holderness, C. (1989) Private Benefits from Control of Public Corporations, Journal of Financial Economics 25.
Becht, M. (1997) Strong Blockholders, Weak Owners and the Need for European Mandatory Disclosure, in: The Separation of Ownership and Control: A Survey of Seven European Countries, Preliminary Report to the European Commission, Vol. 1.
Bergloef, E. and von Thadden, E.-L. (1999) The Changing Corporate Governance Paradigm: Implications for Transition and Developing Countries (Paper presented at the Annual World Bank Conference on Development Economics, Washington, D.C., June).
Berle, A. and Means, G. (1932) The Modern Corporation and Private Property (New York: Macmillan).
Bevan, A., Estrin, S., and Schaffer, M. (1999) Determinants of Enterprise Performance during Transition (CERT discussion paper No 99/03).
Black, B., Kraakman, R., and Tarassova, A. (2000) Russian Privatization and Corporate Governance: What Went Wrong? Stanford Law Review 52.
Blasi, J. (1996) Corporate Ownership and Corporate Governance in the Russian Federation (Moscow: The Federal Commission for the Securities Market).
Boycko, M., Shleifer, A., and Vishny, R. (1995) Privatizing Russia (Cambridge, Massachusetts: The MIT Press).
Brown, D. and Earle, J. (2000) Privatization and Restructuring in Russia: New Evidence from Panel Data on Industrial Enterprises (RECEP Working Paper, No 1).
Buck, T., Filatotchev, I., Wright, M., and Zhukov, V. (1999) Corporate Governance and Employee Ownership in an Economic Crisis: Enterprise Strategies in the Former USSR, Journal of Comparative Economics 27.
Burkart, M., Gromb, D., and Panunzi, F. (1997) Large Shareholders, Monitoring and the Value of the Firm, Quarterly Journal of Economics 112 (3).
Claessens, S., Djankov, S., and Pohl, G. (1996) Ownership and Corporate Governance: Evidence from the Czech Republic (World Bank Working Paper No 1737).