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Chapter 12
DOI: 10.4018/978-1-4666-6551-4.ch012
International Integration
and Corporate Governance
Practices in Russia
ABSTRACT
This chapter considers the institutional environment in Russia, its potential impact upon governance
practices, and the attitudes of Russian executives towards the alignment of governance processes rela-
tive to international standards. Focusing on corporate board directorship, the research addresses the
extent that the harmonization of governance to international standards may assist boards of directors
to improve their corporate development. Using a survey questionnaire, the authors explore perceptions
of directors of public companies concerning the challenges of corporate governance development in the
country. The study illustrates unanimity among the respondents about the reforms needed for interna-
tional convergence of corporate governance standards. The results reveal that institutional alignment
with good governance principles will foster strategic corporate development in the Russian economy.
The study ofers insights to policymakers in terms of enhancing legitimacy of corporate governance in
the Russian context and provides a perspective for executives of foreign companies considering invest-
ment in the country.
INTRODUCTION
The Russian Federation is presently undertaking
further economic transition aimed at building a
developed economy as part of a modern society
(Puffer & McCarthy, 2011). Somewhat ambitious
objectives have been announced by the govern-
ment including further privatization of the state
controlled assets, a reduction of government
presence in the economy, accession to the Orga-
nization of Economic Cooperation and Develop-
ment (OECD), and the conversion of Moscow
into a world financial center. The main focus is
to introduce innovative approaches of produc-
Andrey Yukhanaev
Northumbria University, UK
Thuyuyen Nguyen
Northumbria University, UK
Dilek Demirbas
Yıldırım Beyazıt University, Turkey
Peter Galvin
Curtin University, Australia