RESEARCH ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE QUALITY AND THE FINANCIAL STATE OF CORPORATIONS

Abstract

The purpose of the study is to empirically test the relationship between the quality of corporate governance of Russian corporations and their financial position. PJSC ANK Bashneft (a subsidiary of PJSC NK Rosneft), PJSC MTS and PJSC Transneft are taken as the research objects. Calculation of the multiple regression model and multiple correlation, obtained on the basis of regression equation, makes it possible to prove the existence of an inverse relationship between the quality of corporate governance and the financial condition of enterprises. This nature of dependence is explained by the manifestation of the conflict of agency relations and the asymmetry of information. With a low level of corporate governance, managers mislead existing and potential investors. They distort financial statements and inflate the level of the company's financial position.