Corporate Governance and It`s Impact on the Value of the Company in Terms of Sanctions

Corporate governance plays an important role in the development of the company. Opinions in the field of corporate governance diverge, research yields contradictory results regarding the relationship between corporate governance and market value. Based on agency theory and institutional theory, the goal was to investigate the relationship between the quality of corporate governance and market value in 50 Russian companies from 2011 to 2016. As financial indicators, net assets were taken, the profitability of goods, and the turnover of current assets. The financial statements were collected from corporate websites, the corporate governance rating was taken from the site of "Arsagera Management Company", data on the market value of the companies were taken from the Moscow Exchange website. The results of multiple regression tests revealed a statistically significant relationship between corporate governance and the market value of companies. This study can contribute to social change by building confidence in the Russian market and improving the lives of stakeholders and society as a whole. The results can help business owners understand the impact of corporate governance on the value of a business.