How Do Corporate Governance Factors Influence Banks’ Value? Evidence from Russia

Natalia  Uskova

doi:10.17323/j.jcfr.2073-0438.17.1.2023.27-43

Natalia Uskova PJSC Sberbank, Moscow, Russia https://orcid.org/0000-0001-7998-1929

DOI: https://doi.org/10.17323/j.jcfr.2073-0438.17.1.2023.27-43

Keywords: bank, corporate governance, valuation of corporate governance efficiency, empiric model

Abstract

In this research study we built 3 models that evaluate the panel data of 30 Russian banks with the largest assets and highest reliability. Comparison of all three models by means of specification tests led us to the conclusion that the OLS model with the explanatory power of 67% is optimal.

The presence of women on the board of directors negatively affects the banks’ valuation, while the number of the board of directors’ meetings, number of directors and presence of an audit committee have a positive impact on the net asset value of banks. If the share of women increases by 1%, the bank’s net asset value will decrease by 86%. If the board of directors
has a functioning risk management committee, the bank’s net asset value will grow by 225%. In case of an increase in the number of the board of directors’ members by 1%, the bank’s net asset value will grow by 4.4%. If the number of meetings of the board of directors per year grows twofold, the bank’s net asset value will increase by 118%.

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