ABSTRACT
Based on the analysis of numerous media reports, Chapter 3 shows the perpetrators and victims of raiding campaigns and underlines their major characteristics as well as methods of hostile takeovers and defenses employed against them. Distinct from Western-type corporate raiding, in Russia both entrepreneurs and ordinary people suffer from raiders. Entrepreneurial activities are aimed at receiving profit. However, raiders are often interested not in the profit that a firm receives from its business activities, but in extracting profit from a hostile takeover and sale of certain valuable economic assets, be it an enterprise, real estate, housing unit, or any other asset that has market value. It is obvious that corrupt law enforcement agencies cannot fight themselves effectively in an attempt to eradicate unlawful corporate raiding, especially if they profit from it. The solution might be in developing institutions of civil society. Chapter 3 exploits data on ranking of the top business environment obstacles for firms in Russia from Enterprise Surveys by the World Bank in order to explore the applications of the corruption, coercion, and control model.
