Analysis of the Corporate Governance Impact on the Default of Russian Companies

Nowadays in the conditions of an unstable economic situation and constant changes, the problem of forecasting bankruptcy is relevant for the bankruptcy risk minimization and an effective anti-crisis management of the company. Most of the studies on this subject are devoted to studying the impact of various financial indicators, but little attention is paid to the quality of corporate governance. We believe that it is necessary to take into account these indicators for the most accurate forecasts. The purpose of this research is to study the impact of corporate governance factors on the probability of bankruptcy of the Russian companies example. To realize the goal, it is necessary to complete a number of tasks: 1. To analyze the existing models of forecasting bankruptcy and identify their main advantages and disadvantages; 2. To put forward a number of hypotheses for research; 3. To argue the choice of models used in the analysis; 4. To make a database of financial indicators, calculated on the basis of financial statements of companies, as well as indicators of corporate governance quality; 5. To do an analysis and identify the most important factors that affect the bankruptcy probability The objects of the study are the Russian companies belonging to three industries: Wholesale and retail trade, Production (Manufacturing), Construction. The practical significance of the results is due to the fact that a final model will determine the most significant factors that increase the risk of bankruptcy and will also answer the question whether corporate governance indicators influence on the bankruptcy risk or not.