Lost in translation? Corporate governance, independent boards and blockholder appropriation

Dr Anna Grosman has recently released a new publication in Journal of World Business: ‘Lost in translation? Corporate governance, independent boards and blockholder appropriation’.

Dr Anna Grosman, Lecturer (US eq. Assistant Professor) within the Institute for Innovation and Entrepreneurship at Loughborough University London, alongside Professor Ruth V. Aguilera (Northeastern University and ESADE Business School) and Professor Mike Wright (Imperial College, University of Ghent and ETH Zurich) study the role that independent directors play in mitigating blockholder appropriation of firm wealth in Russia, a country controlled by the state and ultra-wealthy businessmen, or oligarchs.

Key topics that were covered include:

Do independent board directors matter in weak institutional environments? Do they fulfill their expected roles, such as disciplining controlling blockholders?

They further analyse how exposures to international corporate governance, through international expansion of Russian firms, cross-listing and the presence of foreign directors on Russian firms’ boards, activate the monitoring functions of independent directors.

There are no prior empirical studies in leading international business journals on corporate governance effectiveness in the ‘new’ Russia. Hence, Anna, Ruth and Mike believe this research is timely and also joins the comparative corporate governance debate on how governance practices travel across different institutional environments and the role of internationalisation in bridging these diverse governance worlds.

Their findings have some relevant implications for policymakers and, in particular, for corporate governance reforms. Policy making should progress to a more context-dependent understanding of corporate governance.

The full article is available to read on Journal of World Business.

Loughborough is one of the country’s leading universities, with an international reputation for research that matters, excellence in teaching, strong links with industry, and unrivalled achievement in sport.

The University has been awarded five stars in all areas according to the independent QS Stars university rating scheme. It has also been named the best university in the world for sports-related subjects in the 2019 QS World University Rankings, top in the country for its student experience in the 2018 THE Student Experience Survey and University of the Year by The Times and Sunday Times University Guide 2019 and the Whatuni Student Choice Awards 2018.

Loughborough is in the top 10 of every national league table, being ranked 4th in the Guardian University League Table 2019, 5th in the Times and Sunday Times Good University Guide 2019 and 7th in The UK Complete University Guide 2019. It was also named Sports University of the Year by The Times and Sunday Times Good University Guide in 2017.

Loughborough has risen to 5th place in the Times Higher Education (THE) ‘Table of Tables’ 2019 and is in the top 10 in England for research intensity according to the latest Research Excellence Framework (2014). In recognition of its contribution to the sector, Loughborough has been awarded seven Queen's Anniversary Prizes.

Specialising exclusively in postgraduate-level study, Loughborough University London is based on the Queen Elizabeth Olympic Park and offers cutting-edge master’s and PhD degrees, as well as business collaboration, research and enterprise opportunities.

The seven specialist institutes at Loughborough University London include: Design Innovation, Digital Technologies, Diplomacy and International Governance, Innovation and Entrepreneurship, International Management, Media and Creative Industries, and Sport Business. Close industry partnerships with a wealth of leading businesses and creative organisations means teaching and learning is informed by real-life challenges and driven by true industry pressures.