Effective Boards of Directors: A New Approach

Belikov, Igor

doi:10.17323/j.jcfr.2073-0438.13.1.2019.120-130

Cited by 5 publications

(8 citation statements)

References 8 publications

(14 reference statements)

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“…Most likely, this becomes possible due to the lack of a clear separation of the functions of the state as a regulator and as a shareholder. In the role of a regulator of corporate relations, the state has achieved some success in recent years, however, as an owner, it exercises only its own rights, ignoring the interests of other shareholders [13].…”

Section: Risks Of Ownership Rotationmentioning

confidence: 99%

“…In the case the company is owned by large private owners, it was noted that they can usurp the powers delegated "de jure" to the boards of directors. In such companies, the majority shareholders, as a rule, are closely connected with the top management, and the boards of directors turn into formal participants in corporate relations, often into mere observers [13][14]. Related party transactions, expropriation of minority shareholders, overpayments for resources or asset purchases, underpriced products or asset sales, extension of loans to affiliates, or excessive compensation to management are not uncommon.…”

Section: Risks Of Ownership Rotationmentioning

confidence: 99%

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Transformation of corporate governance in the face of modern challenges

Sheveleva

2023

E3S Web Conf.

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Russian generating companies in the power industry require a certain transformation of corporate governance to reduce the investment risks associated with today’s challenges in order to increase investment attractiveness. For this purpose, the paper examines the rotation of ownership in these companies, the updated methodology of the Bank of Russia for assessing corporate governance, including in the context of the ESG agenda, HR strategy and growing digitalization. The results of a general assessment of the corporate governance of generating companies are presented; an additional analysis of the compliance of companies with the criteria for each of the sections of the Russian Corporate Governance Code was carried out; a comparative analysis of the structural characteristics of the boards of directors of Russian generating companies and foreign companies that are similar in terms of concentration of ownership (Germany) and the presence of the state in it (France) was carried out; the article presents the results of the assessment of internal documents. The generalization of the obtained data makes it possible to formulate proposals for further transformations of corporate governance in generating companies in the face of modern challenges, including new corporate governance standards with a certain set of additional compliance criteria, reorganization of boards of directors by updating the structural characteristics of the board, as well as the composition and content of internal documents.

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Section: Risks Of Ownership Rotationmentioning

confidence: 99%

Section: Risks Of Ownership Rotationmentioning

confidence: 99%

Transformation of corporate governance in the face of modern challenges

Sheveleva

2023

E3S Web Conf.

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“…в ряде работ (см ., напр . : [Haque, 2017;Belikov, 2019]) указывается, что характеристики совета директоров могут в большей степени влиять на «формальное» соответствие лучшим практикам, нежели на реальные изменения . Так, в [Haque, 2017] анализируется влияние характеристик корпоративного управления на корпоративную ответственность в части охраны окружающей среды .…”

Section: обзор литературыunclassified

Board of directors characteristics: How they are related to ESG rankings and value of Russian companies

Makeeva,

Popov,

Dikhtyar

et al. 2022

RMJ

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Goal: the goal of this paper is to determine effects of board of directors characteristics on corporate value creation, taking into account ESG (Environmental, Social, Governance) principles. Methodology: the methodological tool applied in this study is an econometric analysis of panel data for 48 Russian non-financial public companies with ESG score provided by Thomson Reuters Eikon in the period from 2015 to 2020. Findings: we have found a non-linear impact of board size on ESG performance, and significant positive impact of board independence on both ESG performance and firm market value. We also find that higher board gender diversity leads to higher corporate ESG score and market value, while higher share of foreign directors does not affect significantly these indicators of performance of Russian companies. Board sustainability committee enhances both corporate ESG performance and market value, board strategy committee contributes to ESG score’s increase as well. Originality and contribution of the authors: our study contributes to the development of academic literature devoted to corporate governance effects on firm’s performance on understudied market, in the context of growing demand for corporate sustainability. Application of our findings will allow to formulate the best practices of corporate governance for market value creation of Russian companies basing on ESG principles.

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“…Despite being extremely important, the relations between Russia and the West and the fate of non-state listed companies in the new economic landscape have not been addressed in the prior studies. In previous works we have addressed the ownership structure policy pursued by controlling shareholders of Russian listed companies and their basic business orientation in the context of the evolving role and interests of the Russian state and its vision of the global politics and economy [Belikov, 2019a;2019b]. In this paper we intend to continue this approach.…”

Section: Introductionmentioning

confidence: 99%

Russian Listed Companies: Controlling Shareholders and Their Conduct

Belikov¹,

Dementieva

2019

Russian Management Journal

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The high concentration of ownership has remained the key feature of Russian companies, including publicly traded companies. Even at the peak of the romance with Western portfolio investors, the controlling shareholders of Russian listed companies put the full control at the top of their priorities. In the 2000s, the Russian listed companies' controlling shareholders sought gradual accommodation with minority shareholders and a gradual acceptance of Western corporate governance practices and thus espoused market capitalization as an important strategic goal. This was reversed in the 2010s as the rapidly tightening grip of the state on private business and mounting restrictions on Western investment in the Russian economy took hold. It has also reduced a market demand for Western best corporate governance practices on the part of Russian controlling shareholders. After 2014, most controlling shareholders of Russian listed companies have switched to the strategy of acting as junior partners of the state. This switch has largely diminished their market orientation and the demand for Western-style corporate governance. The future of the large Russian listed companies fully depends on the relations of their majority owners with the Russian state and thus remains uncertain.

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Effective Boards of Directors: A New Approach

Cited by 5 publications

References 8 publications

Transformation of corporate governance in the face of modern challenges

Transformation of corporate governance in the face of modern challenges

Board of directors characteristics: How they are related to ESG rankings and value of Russian companies

Russian Listed Companies: Controlling Shareholders and Their Conduct

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