Influence of Cross-Listing on Corporate Governance in Russia - The Effects of Cross-Listing on Financial Performance and Board Characteristics of Russian Companies in Russia and Abroad
Influence of Cross-Listing on Corporate Governance in Russia - The Effects of Cross-Listing on Financial Performance and Board Characteristics of Russian Companies in Russia and Abroad
RESULTS
Integrated approach has been adopted to test the hypothesis based on the variables included in the study. Multiple statistical approaches have been adopted to analyze the data of CL and NCL groups of companies. This section presents the descriptive and inferential statistical analysis for each of the hypothesis.
Descriptive Statistics Analysis of Group Statistics
Table 1 given below presents the group statistics of the variables included in the study. This table shows that the standard deviation for the proportion of independent directors is almost equal for both CL and NCL companies included in the study. Standard deviation of CL companies stood at 0.176 compare to 0.181 for NCL Companies. Remarkable difference is observed in the size of the board; firms categorized as CL had higher representation of members in the board. In contrast, NCL companies had fewer members in the board. Mean difference of 1.78 members was observed in the size of the board with the inter-group difference of 0.78 in the total number of committees.
CL group companies have a higher number of committees with mean value of 3.17 committees in every organization included in the study compare to the mean value of 2.39 for NCL group organizations. Notable differences are observed in the Nominal Committee, Human Recourse and Remuneration Committee, and Strategy and Public Affairs Committee. Results show that all companies included in the study had audit committees. Representation of other committees on the board is also higher CL companies with mean value of 0.47 compare to NCL companies having mean value of 0.39. Proportion of women on the board is similarly low in both cases. CL and NCL firms both had almost equal representation of women on the board with mean value of 0.049 and 0.059 respectively, showing no marginal differences.
Table 1: Group Statistics: CL/NCL and Board Characteristics
Group Statistics
CL1NCL0
N
Mean
Std. Deviation
Std. Error Mean
PR of IND D
1
32
.348764
.1763479
.0311742
0
20
.341468
.1812506
.0405289
Sizeoftheboard
1
35
9.57
1.852
.313
0
28
7.79
1.912
.361
TOTALNO.COMT
1
36
3.17
1.320
.220
0
23
2.39
1.270
.265
AUD
1
36
1.00
.000a
.000
0
23
1.00
.000a
.000
NOM
1
36
.19
.401
.067
0
23
.00
.000
.000
HRandREM
1
36
.89
.319
.053
0
23
.74
.449
.094
STRandPUBLAF
1
36
.61
.494
.082
0
23
.26
.449
.094
Other
1
36
.47
.845
.141
0
23
.39
.839
.175
PR of W
1
35
.049627
.0731024
.0123566
0
28
.059867
.0941566
.0177939
a. t cannot be computed because the standard deviations of both groups are 0.
Descriptive statistics show that Russian firms listed on international exchanges earn more operating profits. Standard deviation in their earnings is also less than the deviation in earnings of NCL companies. However, mean number of employees in CL companies was also higher than NCL companies.
Table 2: Group Statistics: CL/NCL, Log Operating Profit and Log Number of Employees
Hypothesis Testing
This section shows the hypothesis testing using differential statistical tests depending on appropriateness to assumptions taken in the hypothesis. First hypothesis test the differences in proportion of independent directors in CL and NCL companies.
Hypothesis 1: There is a significant difference in the proportion of independent directors between CL and NCL companies
Testing of hypothesis 1 using independent sample t-test shows provides insignificant results. Levene's test for equality of variance was higher ...