Corporate Governance, Managers’ Independence, Exporting And Performance Of Firms In Transition Economies
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.
Year of publication: |
2005-11-01
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Authors: | Filatotchev, Igor ; Isachenkova, Natalia ; Mickiewicz, Tomasz |
Institutions: | William Davidson Institute, University of Michigan |
Subject: | corporate governance | strategic independence | exporting | performance |
Saved in:
freely available
Series: | |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Number wp805 |
Classification: | G32 - Financing Policy; Capital and Ownership Structure ; G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; L21 - Business Objectives of the Firm ; L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration ; L25 - Firm Size and Performance ; P31 - Socialist Enterprises and Their Transitions |
Source: |
Persistent link: https://www.econbiz.de/10005784774