Financial Architecture and Economic Profit Creation in Russia: Corporate Governance Issue in the Pre-Crisis and Post-Crisis Economy

25 Pages Posted: 12 Oct 2012

See all articles by Irina Ivashkovskaya

Irina Ivashkovskaya

National Research University Higher School of Economics (Moscow)

Anastasia Stepanova

HSE University

Date Written: September 1, 2011

Abstract

The paper discusses corporate performance modeling through the integrated conception of corporate financial architecture. We examine the influence of financial architecture based on ownership structure, capital structure and corporate governance over strategic performance of Russian nonfinancial companies. First, we conduct a comparative analysis of different measures for corporate performance using economic profit and Tobin’s Q as dependent variables. Second, we test our model using the unique research database of 70 Russian companies that allowed us to test different dimensions of corporate governance quality and to demonstrate the high correlation between the quality of corporate governance and Russian companies’ performance. Third, we contribute to the challenging issue of exploring the relationship between boards and corporate performance before the global crisis and within the crisis. We contribute to the literature by applying new approach derived from corporate financial architecture concept to economic profit modeling in an emerging market.

Keywords: corporate governance, performance, financial architecture, ownership structure, emerging markets, economic profit

JEL Classification: G32, G34

Suggested Citation

Ivashkovskaya, Irina and Stepanova, Anastasia N., Financial Architecture and Economic Profit Creation in Russia: Corporate Governance Issue in the Pre-Crisis and Post-Crisis Economy (September 1, 2011). Available at SSRN: https://ssrn.com/abstract=2160879 or http://dx.doi.org/10.2139/ssrn.2160879

Irina Ivashkovskaya

National Research University Higher School of Economics (Moscow) ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Anastasia N. Stepanova (Contact Author)

HSE University ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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