Ownership Structure and Financial Position of Firms in Russia; Empirical Analysis

Abstract

Whereas most research findings are similar as regards appraisal of shifts in enterprise ownership structure, findings of analyses of the ownership—performance relationship are often diametrically opposed or ambiguous. This paper focuses on the most controversial issues or those crucial for determining priorities of government regulation of the corporate sector. An original technique was used to develop a Corporate Conflict Index (CCI) which, based on indirect evidence, summarises the practices of corporate relations in specific companies based on a variety of indirect data, which enabled a relationship between the level of corporate conflicts and financial performance of enterprises to be established. This provides a rational basis for considering measures to protect minority shareholder rights in Russian firms as an important element of the modification of the emerging corporate governance system.