Board of Directors and Financial Performance: the Study of Russian Traded Companies

Abstract

The goal of this study is to establish the relation between firm’s financial performance and characteristics of board of directors. The mains tasks of the study are: analyze previous studies on the link between board characteristics and financial performance, examine specifics of board of directors in Russian companies, conduct an empirical study in order to specify the impact of board characteristics on firm’s financial performance The result of this study is following: for Russian boards there in no link between financial performance and proportion of non-executive directors, board age and gender diversity. There is a positive relationship between equity holding by the board and financial performance. Also there is a negative relationship between multiple directorships and financial performance.