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


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: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
Last Modified: 29 Nov 2023 14:18
Date Deposited: 23 Apr 2013 11:21
Full Text Link: http://discover ... 500/1/17500.pdf
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PURE Output Type: Working paper
Published Date: 2006-01
Authors: Filatotchev, Igor
Isachenkova, Natalia
Mickiewicz, Tomasz



Version: Published Version

License: Creative Commons Attribution

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