Professors in the Board of Directors on Russian Market and Their Impact on Firm Performance

This study investigates the impact of professors in the board of directors on firm performance on Russian market. It is found out that around 17.5 percent of companies quoting on MOEX (excluding financial firms) had academics on board during 2012 – 2017 period. The analysis of manually collected data reveals that half of academics are leaders of departments, faculties and universities. Only 40% of all professors are independent directors. There was a tendency in increasing of number of independent directors on board during last 3 years. The main part of analysis shows that professors do impact firm performance measured as Tobin-Q and ROA. Relative number of academics on board is insignificant and show no relation to operating results. Moreover, if a professor holds administrative position at the university his impact on firm performance is insignificant comparing with non-administrative academic. Overall, professors bring positive impact on firm performance when they are added on board.