| Variable name | Explanatory notes on the variable |
|---|---|
| ROA | Return on assets calculated as net income divided by book value of total assets |
| M/B | The ratio of the equity market value and equity book value |
| Structural power | A binary metric that equals one if a CEO is a member of a BoD in the same company |
| Expert power | CEO tenure divided by the sum of CEO tenure and tenures of the four most experienced board membersa |
| Prestige power | CEO prestige is calculated as the difference between the binary metric equals to one if a CEO has a political background and the share of board members with a political backgroundb. We recognize that a CEO/director has a political background if he/she has working experience in a governmental body |
| Ownership power | CEO % of shares divided by the sum of CEO % of shares and % of shares of the four board membersc |
| Oligarch ownership | A binary variable equal to 1 if an oligarch owns a share in a companyd |
| State ownership | A binary variable equal to 1 if the Russian state owns a share in a company |
| Extractive industry | A binary variable equal to 1 if a company represents the extractive industry (oil, gas, metals, etc.) |
| Firm age | Log of the number of years since a company's establishment |
| Firm size | Company size indicator calculated as the natural logarithm of company total sales |
| Leverage | Financial leverage is defined as the ratio of total debts to shareholders' funds |
| Board size | Number of directors on a board |
| Tangibility | A ratio of fixed assets to the book value of total assets |
| Variable name | Explanatory notes on the variable |
|---|---|
| ROA | Return on assets calculated as net income divided by book value of total assets |
| M/B | The ratio of the equity market value and equity book value |
| Structural power | A binary metric that equals one if a CEO is a member of a BoD in the same company |
| Expert power | CEO tenure divided by the sum of CEO tenure and tenures of the four most experienced board membersa |
| Prestige power | CEO prestige is calculated as the difference between the binary metric equals to one if a CEO has a political background and the share of board members with a political backgroundb. We recognize that a CEO/director has a political background if he/she has working experience in a governmental body |
| Ownership power | CEO % of shares divided by the sum of CEO % of shares and % of shares of the four board membersc |
| Oligarch ownership | A binary variable equal to 1 if an oligarch owns a share in a companyd |
| State ownership | A binary variable equal to 1 if the Russian state owns a share in a company |
| Extractive industry | A binary variable equal to 1 if a company represents the extractive industry (oil, gas, metals, etc.) |
| Firm age | Log of the number of years since a company's establishment |
| Firm size | Company size indicator calculated as the natural logarithm of company total sales |
| Leverage | Financial leverage is defined as the ratio of total debts to shareholders' funds |
| Board size | Number of directors on a board |
| Tangibility | A ratio of fixed assets to the book value of total assets |
Note(s): a, where CEO tenure – the number of years a CEO has worked in his position in a particular company; Most experienced directors' tenure – the sum of tenures of the four most experienced board members
b, where CEO (board member's) political background equals one if a CEO (board member) has working experience in a governmental body
c where CEO's % of shares – the percentage of this company's shares a CEO own; BoD % of shares – the sum of this company's shares, owned by the four board members with the highest ownership
dAn oligarch is assumed to be a person included in the Forbes' annual list of Russia's 25 wealthiest businessmen
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