The relationship between board structure and financial performance of Russian open joint stock companies with state ownership

Abstract

Goal of empirical study is to investigate relationship between structure of board of directors and financial performance of companies with state ownership, in which direct share of state is less than 50%. Results of econometric analysis showed, that exists negative relationship between share of state representatives and such indicators of financial performance as ROA, ROE and ROS, also there is no difference in these indicators between companies, which have specialized committees (audit and strategy) and companies, which don’t have such committees. Research does not prove the statistically significant relationship between busyness of members of the board of directors and indicators of financial performance.