Year of Graduation
The Impact of Informational Transparency on the Russian Companies' Value
This paper investigates the relationship between corporate transparency and firm performance in Russia. While there has been significant research based on the sample consisted of European or Asian companies, there is little empirical evidence whether corporate transparency influences the Russian companies’ value or not. To achieve the main goal of this study three transparency indices was constructed, it enables to analyze corporate transparency from different angles: the first index measures the clarity of company’s information environment, the second one estimates the degree of firm-specific information in stock prices and the third one evaluates the quality of reported results. Using the regression analysis, the main hypothesis was examined for 101 public companies. The results revealed that the higher level of disclosure increases the company’s value. However, due to weak governance quality and high expropriation risk some companies choose suboptimal transparency level, so they demonstrate the negative effect of disclosure on firm’s performance.