The Unintended Benefits of Empowering Boards in Conglomerates: The Case Study of Afk Sistema

Tatiana Dolgopyatova (), Alexander Libman () and Andrei Yakovlev ()
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Alexander Libman: National Research University Higher School of Economics
Andrei Yakovlev: National Research University Higher School of Economics

HSE Working papers from National Research University Higher School of Economics

Abstract: This paper investigates the role of boards of directors of conglomerate subsidiaries in emerging markets. The paper based on a case study of AFK Sistema—a large diversified Russian business group including subsidiaries in 15 sectors. We show that creating corporate governance institutions at the subsidiary level can have unexpected advantages for the group as a whole and can be used to improve the quality of decision-making in the group. Sistema implemented corporate governance at this level to attract capital and to satisfy the demands of the minority shareholders, but over time started to use the already established institutions of the corporate governance as a tool of corporate management.

Keywords: diversified corporation; board of directors; parent company; subsidiary; corporate governance; corporate management; emerging markets (search for similar items in EconPapers)
JEL-codes: G34 L25 M10 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2016
New Economics Papers: this item is included in nep-cis and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in WP BRP Series: Management / MAN, January 2016, pages 1-28

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Related works:
Journal Article: Unintended Benefits of Empowering Boards in Conglomerates: A Case Study of AFK Sistema (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:49man2016

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