Corporate Governance in Russian Companies: Globalization and Crisis Effects

Abstract

The paper studies the development of corporate governance in Russian companies both in economic growth and world crisis context. Interests of domestic or foreign shareholders and top-managers are working as incentives for improving corporate governance tools. These interests are determined by a number of economic and institutional conditions. In 2000s Russian businesses have entered world financial markets (including stock exchanges) and mergers and acquisitions markets. Participation of foreign shareholders in the equity and control over domestic companies has been spreading. These trends have resulted in intense use of corporate governance standards under the impact of stock market regulations and disciplined influence of foreign shareholders, managers, and non-executive (independent) directors. The crisis has brought dramatic reduction of decision-making horizon, discredit to IPO, violation of minor shareholders rights, rise in management opportunism and stockholders return to executive management.