Global financial crisis, corporate governance, and firm survival:: The Russian experience

Iwasaki, Ichiro—Global financial crisis, corporate governance, and firm survival: The Russian experience Using a unique dataset obtained from large-scale panel enterprise surveys conducted in 2005 and 2009, we clarify the survival status of Russian industrial firms before and after the global financial crisis and empirically examine the determinants of firm survival. The estimation of the Cox proportional hazard model provided evidence that the independence of company’s governance bodies, their human resource abundance, and influence over corporate management are statistically significant factors affecting the survival probability of the surveyed firms. In particular, the board of directors and the audit committee are likely to play a vital role in reducing the potential exit risk. We also found that there is a significant difference in the viewpoints of economic logic for firm survival held by independent firms and group companies. Journal of Comparative Economics 42 (1) (2014) 178–211. Institute of Economic Research, Hitotsubashi University, 2-1 Naka, Kunitachi City, Tokyo 1868603, Japan. 2013 Association for Comparative Economic Studies Published by Elsevier Inc. All rights reserved.