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Have firms with better corporate governance fared better during the recent financial crisis in Russia?

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  • Farrukh Suvankulov
  • Fatma Ogucu

Abstract

We assess whether during the recent (2008--2009) financial crisis in Russia firms with better corporate governance have experienced a milder decline in stock prices and market value as well as lower stock price volatility. Using a structural break analysis, Ordinary Least Squares (OLS) and Instrumental Variable (IV) techniques, we find that firms that had better corporate governance prior to the crisis suffered a smaller decline in both stock prices and market value. We report no evidence of statistically significant relationship between corporate governance and volatility of stock prices.

Suggested Citation

  • Farrukh Suvankulov & Fatma Ogucu, 2012. "Have firms with better corporate governance fared better during the recent financial crisis in Russia?," Applied Economics Letters, Taylor & Francis Journals, vol. 19(8), pages 769-773, May.
    • Handle: RePEc:taf:apeclt:v:19:y:2012:i:8:p:769-773
    DOI: 10.1080/13504851.2011.603685
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    References listed on IDEAS

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    Cited by:

    1. Ichiro Iwasaki, 2015. "Global Financial Crisis, Ownership Change, and Corporate Governance Evolution Firm-Level Evidence from Russia," KIER Working Papers 925, Kyoto University, Institute of Economic Research.
    2. repec:zbw:bofitp:2021_008 is not listed on IDEAS
    3. Mäkinen, Mikko, 2021. "Does a financial crisis change a bank's exposure to risk? A difference-in-differences approach," BOFIT Discussion Papers 8/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Mäkinen, Mikko, 2021. "Does a financial crisis change a bank's exposure to risk? A difference-in-differences approach," BOFIT Discussion Papers 8/2021, Bank of Finland, Institute for Economies in Transition.
    5. Iwasaki, Ichiro & 岩﨑, 一郎, 2016. "The Evolution of Corporate Governance in the Global Financial Crisis : The Case of Russian Industrial Firms," CEI Working Paper Series 2016-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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