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.
|Number of pages||16|
|Journal||Emerging Markets Finance and Trade|
|Publication status||Published - Sep 2007|
- corporate governance
- strategic independence
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Best paper award in international management category - Corporate governance, managers' independence, exporting, and performance of firms in transition economies
Mickiewicz, Tomasz (Recipient), 2005
Prize: Prize (including medals and awards)