Corporate governance, managers' independence, exporting and performance of firms in transition economies

Filatotchev, Igor, Isachenkova, Natalia and Mickiewicz, Tomasz (2006). Corporate governance, managers' independence, exporting and performance of firms in transition economies. Working Paper. University College London, London (UK).

Abstract

Using data on 157 large companies in Poland and Hungary this paper employs Bayesian structural equation modeling to examine interrelationships between corporate governance, managers' independence from owners in terms of strategic decision-making, exporting and performance. It is found that managers' independence is positively associated with firms' financial performance and exporting. In turn, the extent of managers' independence is contingent on the firm's corporate governance parameters: it is negatively associated with ownership concentration, but positively associated with the percentage of foreign directors on the firm's board. We interpret these results as an indication that (i) risk averse, concentrated owners tend to constrain managerial autonomy at the cost of the firm's internationalization and performance, (ii) board participation of foreign stakeholders, on the other hand, enhances the firm's export orientation and performance by encouraging executives' decision-making autonomy.

Divisions: Aston Business School > Economics finance & entrepreneurship
Full Text Link: http://discover ... 500/1/17500.pdf
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Published Date: 2006-01
Authors: Filatotchev, Igor
Isachenkova, Natalia
Mickiewicz, Tomasz ( 0000-0001-5261-5662)

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Version: Published Version

License: Creative Commons Attribution


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