Corporate Financial Architecture at different lifecycle stages: Performance Effect in Russia

Abstract

Authors: Anastasia N. Stepanova National Research University The Higher School of Economics, anstepanova@hse.ru

Evgenia Aleksandrovna Balkina National Research University The Higher School of Economics

This article presents the results of our recent study of the relationship between the corporate financialarchitecture and strategic performance of Russian companies measured by Tobin's Q coefficient. We determine a stage of the company’s life cycle by comparing the revenue growth rates for two consecutive periods and the industry average growth rates for those periods. The study analyses three stages of the company 's life cycle: the stage of rapid growth, maturity stage and the stage of the recession. The earlier stages of the life cycle are not considered due to the nature of the sample, which includes only the largest Russian public company. Results demonstrate that there are significant differences in the impact of the ownership structure, capital structure and the board characteristics on the company's performance depending on the stage of the life cycle, which proves the need to take into account the life cycle issues when developing company’s strategy and managing the firm.