Assessment of Corporate Governance Impact on Focused and Diversified Firms` Performance

Current research deals with analysis of separate corporate governance characteristics in Russian firms. An object of this research are Russian diversified and focused companies as the development strategy defines internal organizational and administrative structure of the company. Research objective is to assess the impact of separate components of corporate governance on diversified and focused firms` performance. The paper consists of 3 chapters, 6 tables, 6 appendices and 87 references. It contains the information about general methods and results of studies in the sphere of corporate governance, corporate performance and diversification strategy, and provides the model of interrelation between chosen components of corporate governance and firms` performance expressed by economic value added indicator (EVA). During the empirical research it has been revealed that the impact of separate components of corporate governance on firm performance depends on the chosen development strategy. In particular, Russian companies should improve the level of corporate efficiency by increasing of independent directors regardless the type of the development strategy. The companies with the strategy of unrelated diversification are recommended to develop without participation of the state in their share capital while the companies with the strategy of the related diversification need support from the state. Besides, it has been revealed that the choice of diversification strategy doesn't lead to decrease in efficiency of the Russian companies.