Centre for Comparative Economics (CCE), SSEES, UCL
Abstract
This paper considers the behavior patterns of Russian firms before and during the financial crisis of 2008-2009. To facilitate comparison, we define three main
groups of actors at the firm level in the Russian economy – large, politically connected companies; mid-size firms that expanded in the 2000s with the help of administrative support, and successful mid-size firms driven by market factors.
Many of the large companies practiced highly risky financial policy and experienced a decrease in efficiency before the crisis, and the managers and owners of some Russian firms have been engaging in opportunistic behavior
during the crisis; the forms and causes of this behavior are analyzed here. We conclude by proposing some policy implications with emphasis on supporting successful mid-size firms driven by market factors