Using data from a large enterprise-level panel, this paper accounts for enterprise performance in Russia. It links performance to four aspects of the economic environment outlined in the literature: enterprise ownership; corporate governance; market structures and competition; and financial constraints. It concludes that private ownership and better performance are not correlated, though restructuring is positively associated with the competitiveness of the market environment. Limited evidence is found that financially unconstrained firms are better in their undertaking of restructuring measures then financially constrained firms. Further analysis suggests that causality runs from restructuring to financial constraint, rather than the reverse. Finally, the findings indicate strong complementarities between the four factors influencing improved company performance, confirming the view that these factors need to be considered jointly.
Discussion Paper Series, Centre for New and Emerging Markets, London Business School, No. 21, London, UK, 111 pp.