Harmonisation of corporate governance practices in Russia through institutionalisation of Boards of Directors

Andrey Yukhanaev, Dilek Demirbas, Thuyuyen Nguyen, Peter Galvin

Research output: Contribution to conferencePaperpeer-review

Abstract

It is becoming of a paramount importance for the ultimate success of modern enterprises to be governed by adept ‘councils of directors’ with adequate international exposure and comprehension of contemporary business environment with its challenges and opportunities. The current study renders a conceptualised facilitation framework for international integration of Russian enterprises by drawing a boardroom-centred governance perspective. Focusing on four fundamental areas of corporate board directorship: functions and responsibilities, configurations of the corporate boards, outside directors’ contributions and effective involvement of board members, our research question addresses imperativeness of corporate boardrooms in international harmonisation process and strategic corporate development. The main aim of this paper is to examine the strategic role of the boards of directors in Russia with specific attention to their independence, engagement and tendency of successful adaptation to the internationally acceptable corporate governance standards. Using a survey questionnaire on a sample obtained from companies listed on the Russian Trading Systems (RTS) Stock Exchange, we explored perceptions of the Russian board directors towards the current obstacles to international integration and strategic corporate development in Russia. In 2009, a sample of 200 companies was randomly selected for the survey and two hundred questionnaires were distributed via corporate emails of the board members. There were 55 responses with 28% overall response rate. An independent sample t-test analysis was employed to test the hypotheses. We found that (1) further improvement of the corporate boards’ functions and responsibilities will positively impact on fostering strategic corporate development of the Russian companies; (2) improving contributions of the independent board members and (3) the boards of directors’ professional involvement will have a positive impact on successful international harmonisation of the corporate governance practices in Russia. This study provides analytical discussion and rare empirical support at firm-level for the strategic importance of efficient institute of corporate boards of directors in achieving sustainable economic development. As such we suggest new dimensions for research on international integration of Russian corporate enterprises through professional boardroomcentred governance from new institutional perspective. We also offer insights to policy makers interested in enhancing legitimacy of corporate governance within the Russian context at micro level and provide a macro-level analysis for the executives of multinational companies either already operating in Russia or considering direct investments in the largest transition economy of the Post-Soviet period.
Original languageEnglish
Publication statusPublished - 6 Sep 2012
Event4th Cambridge International Regulation and Governance Conference - Queens College, University of Cambridge
Duration: 6 Sep 2012 → …
http://www.anglia.ac.uk/ruskin/en/home/faculties/aibs/news/events/joint_4th_cambridge.html

Conference

Conference4th Cambridge International Regulation and Governance Conference
Period6/09/12 → …
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