The Effect Of Corporate Board Composition On Company Performance Of Russian Companies: Evidence From The 2008 Economic Crisis

In this paper, we examine the relationship between Board of Directors’ characteristics and Russian companies’ performance. Based on theoretical aspects and samples of Russian firms in 2007-2010, we define main characteristics, which have an influence on company’s performance. We find negative influence of Board of Directors’ size because of delaying decision-making process. Director’s stake increases firm’s performance because of personal interest in high company’s results. The age of the Board of Directors does not matter, but gender diversification allows firms archive higher results. We find that foreign directors enhance corporate financial performance because of theirs knowledge and experience of management in market economy conditions. We find that independent directors reduce firm performance during the financial crisis because they prefer overly conservative business strategies. Keywords: corporate governance, company’s performance, board of directors, Russian companies, financial crisis.