Corporate governance in generating companies of the electric power industry: Best- and worst-ranked companies

• Main Author: Sheveleva, Galina I.
• Format: Conference Proceeding
• Language: English
• Subjects: Corporate governance; Electric industries; Electric power; Human resource management; Investments
• ISSN: 0094-243X; 1551-7616
• DOI: 10.1063/5.0115847

This study emphasizes the relevance of corporate governance in generating companies of the electric power industry as one of the main factors of boosting their appeal to investors, especially in the context of an unexpected inflow of private investors to the stock market who build their diversified investment portfolio based on confidence in the efficient use of funds provided by them, their safety, and protection from misuse. We assessed the corporate governance in these companies. The assessment was performed according to the Bank of Russia methodology recommended for Russian companies' reports "On Compliance with the Principles and Recommendations of the Corporate Governance Code" and by the method of quantitative analysis of interrelated financial performance ratios based on the Zaporozhan - Petrova - Kalvarskaya approach, with the introduction of additional components of the Dupont three-factor model. By summarizing all the data obtained, we identified the companies best- and worst-ranked with respect to corporate governance. We determined the generation companies most appealing to investors: they are Unipro PJSC, Enel Russia PJSC, InterRAO PJSC, and RusHydro PJSC. The clearly worst-ranked companies were TGC-2 PJSC and Quadra PJSC. New challenges and expectations of investors were outlined as distinct stages of further research in the development of corporate governance. They are mainly related to digital transformation, ESG agenda (environmental issues, social responsibility, and corporate governance), HR strategy (human resource management), and the use of IT technologies in corporate governance.