Corporate Governance, Managers’ Independence, Exporting And Performance Of Firms In Transition Economies

Igor Filatotchev (), Natalia Isachenkova () and Tomasz Mickiewicz

No wp805, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: Using data on 157 large companies in Poland and Hungary this paper employs a Bayesian structural equation modeling to examine interrelationships between corporate governance, managers’ independence from owners in terms of strategic decision-making, exporting and performance. It is found that managers’ independence is positively associated with firms’ financial performance and exporting. In turn, the extent of managers’ independence is negatively associated with ownership concentration, but positively associated with the percentage of foreign directors on the firm’s board. We interpret these results as an indication that (i) concentrated owners tend to constrain managerial autonomy at the cost of the firm’s internationalization and performance, (ii) board participation of foreign stakeholders, on the other hand, enhances the firm’s export orientation and performance by encouraging executives’ decision-making autonomy.

Keywords: corporate governance; strategic independence; exporting; performance (search for similar items in EconPapers)
JEL-codes: G32 G34 L21 L22 L25 P31 (search for similar items in EconPapers)
Pages: pages
Date: 2005-11-01
New Economics Papers: this item is included in nep-eff, nep-fin and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Corporate Governance, Managers' Independence, Exporting, and Performance of Firms in Transition Economies (2007)
Working Paper: Corporate governance, managers' independence, exporting and performance of firms in transition economies (2006)
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