The influence of national values and the business environment on managerial discretion in Russian companies in comparison with Germany, Japan and USA

Abstract

The goal of this study is ascertain the influence of country specific factors on managerial discretion. Main objectives: 1. Study informal institutions in the Germany, Japan, Russia, USA 2. Study formal institutions in the Germany, Japan, Russia, USA 3. Define what influence on managerial discretion can these institutions have 4. Study financial results of sample of Russian companies 5. Calculate the proportion of variance of financial results of which can be attributed to the CEOs 6. Compare the levels of CEO effect on company’s performance among the Germany, Japan, Russia, USA Main results: Country specific factors influence the level of discretion in countries 1. Individualism/collectivism dimension of national culture influences the level of discretion managers have 2. Ownership concentration exert evident influence on the leeway managers have in decision making and subsequent implementation of this decision 3. Restrictions imposed by corporate governance model influence managerial discretion in the country 4. Power distance doesn’t influence managerial discretion in the country 5. Uncertainty avoidance doesn’t directly influence the level of managerial discretion in the country 6. Country specific factors influencing discretion do not exist independently of each other. Some of them can be moderated or reinforced by other country specific factors.