The Effect of Sanctions on the Social Capital of the Board of Directors of Russian Listed Companies

This paper examines the impact of sanctions on the social capital of members of the Board of Directors of Russian listed companies. The empirical analysis is based on data provided by the International Laboratory for the Economics of Intangible Asset Management (IDLAB) of directors of 116 large and publicly traded Russian companies for the period 2012-2019. These data allow the use of a fixed effects model for panel data. As a result of the study, the following conclusions were drawn. The 2014 sanctions have a positive impact on the internal social capital of the Board of Directors, namely on such indicators as joint work experience and the number of directors on the board. The sanctions of 2014 and 2018 have a negative impact on such an external indicator of social capital as the degree of centrality of the council. The hypothesis that sanctions have a positive effect on the share of directors associated with the state was confirmed only when analyzing companies with state participation.