CORPORATE GOVERNANCE IN RUSSIAN STATE-OWNED ENTERPRISES: REAL OR SURREAL?

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Date

2022

Authors

Nurgozhayeva, Roza

Journal Title

Journal ISSN

Volume Title

Publisher

Asian Journal of Comparative Law

Abstract

The narrative that defines privatisation, corporatisation, and the separation of ownership and regulatory functions as the key prerequisites for a successful state-owned enterprises’ (SOE) governance structure represents the literature's leading approach. This approach has been embedded in national laws and policies across many countries. Nonetheless, some legal scholars have scrutinised and questioned this single-minded perspective, emphasising the impact of existing institutional conditions and calling for an alternative understanding of corporate governance dynamics in different SOEs. Notwithstanding a vigorous debate on SOEs, it almost exclusively focuses on China, while Russia, being another large state-driven economy, has been missing. This article fills this gap and offers a comparative and critical perspective on the state ownership system in Russia. The analysis of Russian SOEs reveals classic governance and incentive problems attributable to state ownership. However, the question is how despite close affiliation to the State and high transaction costs caused by state interference, Russian SOEs have gained a substantial international market presence. This article answers this paradox.

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Keywords

Type of access: Open Access, Russian State-Owned Enterprises, Corporate Governance

Citation

Nurgozhayeva, R. (2022). Corporate Governance In Russian State-Owned Enterprises: Real Or Surreal? Asian Journal of Comparative Law, 17(1), 24–50. https://doi.org/10.1017/asjcl.2022.3

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