KEY FACTORS OF CORPORATE GOVERNANCE MODEL DEVELOPMENT IN TRANSITION ECONOMIES
KEY FACTORS OF CORPORATE GOVERNANCE MODEL DEVELOPMENT IN TRANSITION ECONOMIES

Summary/Abstract: Based on the differences that exist in the legal and institutional framework of the countries, the development of corporate governance model is an important issue for both developed countries and transition countries, which are faced with specific problems of corporate governance. The most important criteria for differentiating corporate governance model are structures and the power of the owners, as well as the rights and obligations of the other actors on the basis of which it can extract three corporate governance models that apply in developed economies: the Anglo-Saxon model, the continental Europe model and the Japanese model. Starting from the premise that an isolated and individual analysis of the corporate governance models can lead to false conclusions, it is necessary to conduct comparative analysis of the similarities and differences of the above mention models. This analysis is base for drawing conclusions about the advantages and disadvantages of different models, and it should be the guideline of transition economies in solving problems that arise as a consequence of separation of ownership from control, the privatization process, and the effects of changes in the ownership and management structure. The research goal is to identify and analyze the most important factors that determine the development of a corporate governance model most suited to the transition countries, from the standpoint of the effectiveness of the relevant corporate control mechanisms. The research starts from the point that is necessary to develop a new corporate governance model appropriate specifics of transition economies. This model is based on theoretical knowledge and practical experience of the developed economies, with the necessary respect for differences that exist from the legal and institutional framework, political stability and configuration, the implications of the privatization process and the level of development of financial markets.

• Details
• Contents