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ИД «Финансы и кредит»






Finance and Credit

The impact of ownership structure and board of directors on performance, financing, environmental, social, and governance

Vol. 29, Iss. 10, OCTOBER 2023

Received: 30 March 2023

Received in revised form: 29 June 2023

Accepted: 13 July 2023

Available online: 30 October 2023

Subject Heading: INVESTING

JEL Classification: G3

Pages: 2292–2313


Elena V. KRASIL'NIKOVA Central Economics and Mathematics Institute Russian Academy of Sciences, Moscow, Russian Federation


Subject. The article addresses the features of agency relations, i.e. concentration, ownership structure and Board of Directors that act as non-financial factors affecting the performance of companies.
Objectives. The study aims to substantiate and empirically establish linkages between the specifics of agency relations, as non-financial drivers, with company’s performance and responsibility, measured through ESG.
Methods. The use of methods of econometric analysis and least-squares estimation determine the links and strength of the impact of non-financial factors on return, Tobin’s Q, debt-to-asset ratio, and ESG.
Results. For Russian companies, the paper underpins and evaluates the impact of concentration on an increase in return on assets and equity, but a decrease in value. Government ownership decreases performance, but raises financing. The structure of the Board of Directors impacts an increase in ROA, ROE, and Tobin’s Q, and a decrease in debt-to-asset ratio. For some Russian, U.S., European and Japanese companies, the paper empirically proved a stimulating effect of the size and presence of women in the Board of Directors on ESG. Decomposition of ESG refines the results. The size of the Board of Directors to a greater extent improves Environmental for American, European companies, and independent directors – Environmental for Russian companies. The presence of women improves Governance for American and European firms, and Social – for Russian and Japanese companies.
Conclusions. The findings enhance understanding of agency relations with company performance, value, and fund raising. Conclusions about ESG dependence on the Board of Directors structure and size are applied in the context of the Sustainable Development Goals.

Keywords: ownership concentration, Board of Directors, ESG


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