Lean against the wind: The moderation effect of foreign investments during the economic recession in Russia

Using a unique panel database of more than 1000 Russian public companies covering the period from 2004 to 2014, this study uses quantile regression techniques to investigate the moderating effects of foreign partners on company performance during the economic recession. The empirical findings are robust and confirm the positive impact of foreign ownership on limiting the negative effect of the recession on company performance. The strength of the impact depends on the level of firms' financial results. The outcomes have implications for company investment policy. The evidence supports government policy towards encouraging foreign entry liberalization in emerging markets during periods of turbulence.