Global Financial Crisis, Corporate Governance, and Firm Survival: The Russian Experience

28  March 2013    5:00 pm

Ichiro Iwasaki, Professor, Doctor of Economics Russian Research Center, Institute of Economic Research Hitotsubashi University, Tokyo

Venue

wiiw, Rahlgasse 3, 1060 Vienna, lecture hall (entrance from the ground floor)

Description

Global Financial Crisis, Corporate Governance, and Firm Survival: The Russian Experience: Using a unique dataset obtained from large-scale panel enterprise surveys conducted in 2005 and 2009, we clarify the survival status of Russian industrial firms before and after the global financial crisis and empirically examine the determinants of firm survival. The estimation of the Cox proportional hazard model provided evidence that the independence of company’s governance bodies, their human resource abundance, and influence over corporate management are statistically significant factors affecting the survival probability of the surveyed firms. In particular, the board of directors and the audit committee are likely to play a vital role in reducing the potential exit risk. We also found that there is a significant difference in the viewpoints of economic logic for firm survival held by independent firms and group companies.

Shortages and the Informal Economy in the Soviet Republics: 1965-1989: Following measurement of the informal economy and shortages from 1965 to 1989, we estimate the relationships between the informal economy and shortages using various methods including fixed-effects model and instrument variable approach. We find that the informal economy and shortages positively affect each other, indicating that the Soviet economic system based on central planning would not sustain in the long-run. (co-authored with Professor Byung-Yeon Kim, Seoul National University)

ICHIRO IWASAKI is a full professor of economics at Russian Research Center, Institute of Economic Research, Hitotsubashi University (Kunitachi, Tokyo). He received his doctoral degree in economics at Hitotsubashi University in 2001. His research interests are focused upon transition economies, comparative economic systems, and financial and organizational economics. He is the author and editor of numerous books including: Organization and Development of Russian Business: A Firm-level Analysis, published by Palgrave Macmillan (co-edited, 2009); and Economic Transformation and Industrial Restructuring: The Hungarian Experience, published by Maruzen Publishing Co. (co-authored, 2012). His recent articles appear in Comparative Economic Studies, European Journal of Political Economy, International Economic Journal, Journal of Comparative Economics, Journal of Corporate Finance, Journal of Economic Surveys, Transnational Corporations, and other international journals.

YOSHISADA SHIDA is a research associate at Russian Research Center, Institute of Economic Research, Hitotsubashi University (Kunitachi, Tokyo). He received his master degree in economics at Hitotsubashi University in 2004, and currently is working on Ph.D dissertation entitled “Forced Savings and the Informal Economy under Centrally Planned Economies: Empirical Analysis of the Soviet Republics, 1965-1989, 1965-1989”. His research interests are focused upon comparative economic systems, quantitative economic history, and consumer behavior. He wrote several articles on Soviet historical statistics utilizing unpublished archival materials in Japanese journals.


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