Key features of national models of corporate governance in Brazil, Russia, India and China are considered. The scheme of the comparative analysis of the given models is offered.
The Working Paper examines the peculiarities of the Russian model of corporate governance and control in the banking sector. The study relies upon theoretical as well as applied research of corporate governance in Russian commercial banks featuring different forms of ownership. We focus on real interests of all stakeholders, namely bank and stock market regulators, bank owners, investors, top managers and other insiders. The Anglo-American concept of corporate governance, based on agency theory and implying outside investors’ control over banks through stock market, is found to bear limited relevance. We suggest some ways of overcoming the gap between formal institutions of governance and the real life.
This paper aims at explaining the differences in valuation of banking firms in Russia through the impact of selected elements of corporate governance. We rely upon value-based management theory to test the hypothesis that expenses on corporate governance system create shareholder value. The price at which share stakes are acquired by strategic foreign investors is for us a criterion of market-proven value, so we use the standard valuation tool, i.e. price-to-book-value of equity (P/BV) multiple, as the dependent variable. The set of corporate governance parameters whose materiality for a would-be external investor we would like to test includes: the degree of concentration of ownership and control; maturity of corporate governing bodies; degree of Board independence; qualification of external auditors; stability of governing bodies (Management Board and Board of Directors); and availability of external credit ratings from the world’s leading rating agencies. We test our approach on a sample of acquisition deals and public offerings over the period 2004-2008 that we develop for the first time. Firstly, we find out which factors are statistically significant and relevant to a bank’s selling price. Secondly, a least squares multiple linear regression model is devised to check how each individual variable impacts the dependent variable. We discover that external investors attach value to high concentration of ownership, external credit rating coverage, stability of the Board of Directors, and involvement of well-established external auditors. Investors of a strategic nature tend to pay a higher acquisition premium. Independence of the Board of Directors might be perceived by external strategic investors as a disadvantage and might destroy shareholder value.
The article discusses the issues of sustainable development. The implementation of the sustainable development concept involves the integration of different levels of government and bringing the approach to the level of business and individual projects.A company may have a different degree of economic stability, the measurement of which can be accomplished through the analysis of the cost structure of the product sold, including the costs of maintaining the environment. Evaluation of the project can be carried out taking into account the levels of initiation and levels of its impact on sustainable development. We propose a method of evaluation that allows taking into account all three aspects: economic, social and environmental.In the process of assessing the sustainability of the project it is advisable to take into account the full life cycle.The article shows how to take into account the parameters that characterize the activity and the product produced by the asset. By themselves, the project or the circumstances of its implementation could result in your loss of stability of the system in which it is located. It is recommended to evaluate the loss of stability in private terms, and as a whole for the project — based on the calculation of the integral indicator.