Maga A.A., Baranova E.S., Tumunbayarova Z.B..
Government ownership of corporate shares in Russia: an analysis of market value implications
// Financial Law and Management. – 2018. – є 2.
– P. 39-51.
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Abstract: The impact of government ownership of a firm’s equity has been a topic of heated debate in finance, economics, and politics. The extant literature provides evidence of both positive and negative effect of government ownership on the market value of firms with multiple reasons in favor of both effects. There has also been research on how such effects may differ in different markets. This paper aims to explore the value-relevance of such in the financial market of Russia. We are using a sample of 159 Russian listed companies to identify the relationship between market value and government ownership of equity. Even though the previous studies support a positive relationship between the two variables the evidence from Russian listed firms proves otherwise. We find that the Russian market does not reward governmental control, however, it doesn’t penalize it as well. The research connects to the efficient market hypothesis (EMH).
Keywords: efficient maket, financial peformance, financial market, firm's equity, value relevance, maket value, government ownership, industry sector, investor, stock exchange
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