Investment Duration and Corporate Governance

In this paper, I want to analyze the impact of institutional investors on corporate governance through their investment portfolio in a company and corporate governance index of the target company. Specifically, how long the investor invested in the company, and what effect did this investment and other investments of other institutional investors have on the corporate governance index in the company target. Only Russian actively traded companies with public information are considered. The impact will be investigated through “Duration” in the model analysis, but it is maturity until which for how many years a pool of institutional investors in the company have their shares in overall through period 2015-2018. The analysis will be taken only on available information, but the background of the situation in Russia and the conclusions will be seen also from perspective of influence of “unseen” variables. Before analyzing the official data directly, applying the model and description of the applied corporate index, the paper will also describe: what and why happened in Russia with corporate governance; examples of the work of both institutional investors and corporate governance in different companies will be analyzed; as well as the overall interaction between investors and corporate governance