The value of banks’ political and business connections in the Russian industrialisation of the 1890s and the crisis of 1899-1902
“Empire Speaks Out” is a result of the collaborative international research project whose participants aim to reconstruct the origin, development, and changing modes of self-description and representation of the heterogeneous political, social, and cultural space of the Russian Empire. The collection offers an alternative to the study of empire as an essentialized historical phenomenon, i.e. to those studies that construe empire retrospectively by projecting the categories of modern nation-centered social sciences onto the imperial past. It stresses dynamic transformations, adaptation, and reproduction of imperial patterns of sociability and governance. Chapters of the collection show how languages of rationalization derived from modern public politics, scientific discourses of applied knowledge (law, sociology, political economy, geography, ethnography, physical anthropology) and social self-organization influenced processes of transformation of the imperial space.
Article devoted to analysis the role and significance of Tatar-born Russian officials in gathering information about state and law of the Central Asian khanates – Bukhara, Khiva, Khoqand in the 18th-19th cc. on the examples of M.Bekchurin, M.Aitov and I.Batyrshin. All of them served as officials of the Orenburg Frontier Commission, two of them were diplomats in Bukhara and Khiva, last one contacted with informers from abovementioned khanates. The common feature for them was that they were Turks and Moslems. Firstly that fact provided Central Asian population’s sympathies to them (including favor of representatives of the ruling elites of the khanates) and gave an opportunity to gather more useful information. Secondly, as representatives of the Turkic-Islamic culture they could better understand and estimate the level of political and legal development of the Central Asian khanates and prepare impartial reports for their chiefs. Also it’s necessary to notice that their affiliation with Turkic-Islamic world didn’t influence on quality of fulfillment of missions by such officials: they tried all ways to contribute to realization of the Russian policy in the Central Asia and advance of the Russian Empire in this region.
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.
The article is devoted to historical continuity in the state governing. Issues of existing analogies in the process of forming of system and structure of executive bodies in Russia are considered. The special attention is given to a combination of branch and functional approaches to the organization of executive bodies at different historical stages. In the context of the presumption of "Ideally uniform government" questions of a parity of powers of monarch and ministers in the Russian empire and of the President and the ministries in the Russian Federation are mentioned.
The volume present papers on different aspects of the history of Russian Empire.
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.
Using data on foreign borrowing, I identify Russian banks that were affected by the sudden stop of external financing caused by the Lehman Brothers’ collapse. Applying the difference-in-difference method, I compare these «affected» banks to «unaffected» ones and find that the Russian Central Bank’s (CBR) anti-crisis financial assistance primarily went to the former group. Tracing the impact of the CBR’s liquidity infusions on banks’ portfolio allocation decisions, I find that banks used CBR funds not only to pay out foreign debt, but also to accumulate cash deposits in non-resident banks. I also find that affected banks increased their holdings of market securities significantly more than unaffected ones, which suggests that the CBR’s bailout policies impacted their risk-taking strategies. While there was no significant difference in corporate lending growth between the two groups after the sudden stop, lending to borrowers with weaker banking relationships (individuals and entrepreneurs) decreased more among affected banks.
The article constitutes a part of author’s studies on regions and mental geography of the Russian empire. The military actions within own territory normally produce a dramatic and long impact on the spatial imaginations. The Crimean war with its center in newly incorporated New Russia has helped to include this region to the mental maps as the Russian space. The article shows the new symbolic geography formation. It also analyses the efforts of propaganda aimed at maintaining the imperial durability. A special attention is paid to the state militia. The citizen soldiers – nobles and law classes representatives – had the unique opportunity to visit a number of regions. For the inhabitants of Central Russia the border with Little Russia was essential. The perception of Jews has demonstrated xenophobia long before pogroms. Although the authorities had enough reasons to be afraid of separatism, the final conclusion was that the imperial construction is rather healthy. As a result of such a conclusion an elaboration of this construction hasn’t become a part of common program of reforms in Russia. The author used unpublished documents, in particular those preserved in Kiev. The article is a part of the most significant recent international project on the Crimean war. The English translation of the article is published in USA.