Does Independence of Board Committees Enhance Corporate Performance? The Case of Russia

This article analyzes the service of independent directors on audit, compensation, nomination, and strategy committees as a driver of book- and market-based performance using a sample of 77 Russian listed non-financial firms during the period 2009-2019. We address endogeneity using the Heckman correction procedure and instrumental variables. We find that committee independence not only positively affects firm performance but also moderates the relationship between committee structure and firm outcomes. Thus, the positive impact of government experience and female ownership on firm performance may be enhanced by the independence of certain committees.