The goal of the project is to present a model of the impact of the ownership structure as the element of corporate governance structures on the corporate performance.  We are going to build up a classical model and then to verify it using econometric methods on the sample of the quoted companies from East European countries, Russia and CIS. We investigate the possibility of using the same model for developed economies and emerging markets finance.

            As a result, we are going to receive the model of the corporate performance dependence on so-called “external ownership” (the management ownership, ownership of the institutional investors and strategic shareholders) and on the capital structure and other individual factors. We suppose that the model verified on the sample of companies from emerging markets and the one using the sample of companies from Western and Central Europe won’t be the same.

Recent researches such as Himmelberg, Hubbard, Palia (1999) propose to reject the classical assumption of the ownership structure exogeneity. However this hypothesis has been proved only in the particular cases. It’s clear that the variables’ character could change the whole model. That’s why we consider the endogeneity testing as one of the key objectives of our research.

In addition to the theoretical significance, the conclusions could be used for the optimization of the ownership structure that leads to the maximization of a company market value.