Quality of Corporate Governance in Big Russian Companies: Quantitative Assessment

Abstract

The best corporate governance practices, summarized in the form of international standards, serve as a means to increase the effective management of major corporations. The article analyzes the implementation of the Organization for Economic Cooperation and Development Principles corporate governance in some major Russian companies. For analysis, the assessment methodology of the corporate governance quality proposed by the International Finance Corporation (IFC) is used. The quality of implementing corporate governance standards was comparatively assessed in eight Russian companies. It was checked the implementation of 91 norms, which were grouped into four levels of corporate governance (initial, improved, developed, leadership). Quantitative assessments of the achievement by various large Russian companies of various levels of corporate governance are given. Оnly the initial level of implementation of the standard has been achieved, when mandatory requirements of the current corporate legislation are observed. When moving to more advanced levels, the degree of implementation of corporate norms in all companies is reduced. No correlation was found between the quality of corporate governance and performance indicators of companies.