Aim of the study is to develop a model of corporate performance based on the financial architecture approach

Description:

In this study we tested the hypotheses concerning the influence of 4 ownership structure indicators (management ownership, ownership concentration, ownership of investors involved into corporate governance process, government ownership) and 2 corporate governance proxy variables (number of independent directors, size of Board of directors) over corporate performance measured with q-Tobin coefficient. We proposed the original model of corporate performance based on the complex conception of corporate financial architecture.

Results:

-         we demonstrated the importance of application of the complex approach to corporate performance modeling ;

-        we develop integrated rather than segmented approach combining the intrinsic components of corporate financial architecture (ownership structure, capital structure and corporate governance quality) in one research model;

-        using the international sample we concluded that ownership structure as well as capital structure does matter for corporate performance measured with q-Tobin;

-        we demonstrated the influence of ownership structure and BoD independence over corporate performance differs depending on the country.

Preliminary results: 10.06.2009
Final results: 16.11.2009

     Results of the study were presented during the 10-th International Conference on the Problems of Economic and Social Development in Higher School of Economics (Moscow), April 7-9, 2009

     Publications:

(in Russian) Ivashkovskaya I.V., Stepanova A.N. Ownership Structure as a Component of Corporate Financial Architecture. Influence over Corporate Performance // Finance and Business. 2009. Vol. 3.