Corporate governance, managers' independence, exporting, and performance of firms in transition economies

Igor Filatotchev, Natalia Isachenkova, Tomasz Mickiewicz

Research output: Contribution to journalArticle


Using data on 157 large companies in Poland and Hungary, this paper employs Bayesian structural equation modeling to examine the relations among corporate governance, managers' independence from owners in terms of strategic decision making, exporting, and performance. Managers' independence is positively associated with firms' financial performance and exporting. In turn, the extent of managers' independence is negatively associated with ownership concentration, but positively associated with the percentage of foreign directors on the firm's board. We interpret these results as indicating that concentrated owners tend to constrain managerial autonomy at the cost of the firm's internationalization and performance, but board participation of foreign stakeholders enhances the firm's export orientation and performance by encouraging executives' decision-making autonomy.
Original languageEnglish
Pages (from-to)62-77
Number of pages16
JournalEmerging Markets Finance and Trade
Issue number5
Publication statusPublished - Sep 2007



  • corporate governance
  • strategic independence
  • performance
  • exporting

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