Centralization, Hierarchy and Management Control in Modern Corporate Groups

Despite the lack of a clear definition of the term «corporate group» in Russian legislation, experts consider it important to use it, as it has become a widespread phenomenon. Moreover, Moreover, corporate groups are currently reinforcing hierarchical structures once again. Having carefully studied the top 20 and top 10 global and domestic giants, the authors conclude that these entities remain stable and observe a slowdown in decentralization processes, even where horizontal and network structures were previously predicted. The largest corporations in the Russian Federation consist of complex, extensive networks of subsidiaries and affiliated entities, characterized by a high level of centralization despite significant business and legal entity diversification. Therefore, the authors argue that within the scope of this discussion, it is necessary to develop and implement advanced financial management models.