Sailing through the storm – performance of Russian manufacturing subsidiaries of multinational corporations in the first year of the COVID-19 pandemic

The aim of this study is to depict the performance of Russian manufacturing subsidiaries of multinational corporations during the first year of the COVID-19 pandemic. Using a unique handcrafted database of financial reports from 259 subsidiaries for 2019 and 2020, we retraced three indicators of business robustness: the dynamics of revenues, positive profitability, and the level of financial solvency. Most of the studied subsidiaries (85%) were able to withstand the crisis and maintain satisfactory financial solvency. Revenues decreased in 2020 to 40% of the studied subsidiaries, and the share of loss-making subsidiaries reached 31%. However, more than 40% of the studied subsidiaries achieved both an increase in revenues and positive profitability of sales in 2020. In this respect we may assess the level of ‘ownership advantage' of multinational corporations regarding assisting their subsidiaries to achieve different elements of business robustness during the pandemic.

Total expenses for managerial remuneration in foreign manufacturing subsidiaries during the COVID-19 pandemic: A pilot exploration of applied policies

Purpose: This study aimed to reveal the policies applied to determine the total expenses for managerial remuneration in manufacturing subsidiaries during the COVID-19 pandemic. Design/methodology/approach: The author analyzed the annual financial reports of Russian manufacturing subsidiaries containing data on managerial remuneration and compared the dynamics of annual revenues and the amount of annual managerial remuneration. Findings: The author identified four types of policies regarding the total amount of managerial remuneration. In a minority of cases, when revenues decreased, the share of the total amount of managerial remuneration in total revenues also decreased. The author also observed "payment for efforts";although revenues decreased in 2020, the share of the total amount of managerial remuneration in total revenues increased. In 17% of cases, when revenue increased, the share of the total amount of managerial remuneration in revenue also increased. Finally, in 50% of cases, the COVID-19 pandemic served as a pretext to generate savings from the reduction in the total amount of managerial remuneration despite the increase in revenues. Originality/value: This is the first study to use real financial reports to evaluate the dynamics of the total amount and share of managerial remuneration in revenue during a crisis. (PsycInfo Database Record (c) 2022 APA, all rights reserved)