Unintended Benefits of Empowering Boards in Conglomerates: A Case Study of AFK Sistema

Tatiana Dolgopyatova (), Alexander Libman and Andrei Yakovlev

Journal of East European Management Studies, 2018, vol. 23, issue 2, 177-202

Abstract: The paper investigates the role of corporate governance institutions at the subsidiary level in conglomerates in emerging markets. The literature typically highlights that these institutions are necessary to reassure minority shareholders and thus to attract investors. We show that corporate governance institutions, particularly supervisory boards, can be applied for a different purpose - to organize communication within a group and thus to improve the quality of strategy formulation. Thus, a conglomerate can empower its subsidiary boards even if there is no immediate IPO goal for them. The paper uses a case study of a large Russian business group, AFK Sistema, to explore this mechanism, its advantages and its limitations.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.nomos-elibrary.de/10.5771/0949-6181-2018-2-177 (application/pdf)

Related works:
Working Paper: The Unintended Benefits of Empowering Boards in Conglomerates: The Case Study of Afk Sistema (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nms:joeems:10.5771/0949-6181-2018-2-177

Ordering information: This journal article can be ordered from
Nomos Verlagsgesellschaft mbH & Co. KG, Waldseestraße 3-5, 76530 Baden-Baden, Germany
https://www.nomos-sh ... w.aspx?product=29288

DOI: 10.5771/0949-6181-2018-2-177

Access Statistics for this article

Journal of East European Management Studies is currently edited by Thomas Steger, editor-in chief

More articles in Journal of East European Management Studies from Nomos Verlagsgesellschaft mbH & Co. KG
Bibliographic data for series maintained by Nomos Verlagsgesellschaft mbH & Co. KG ().