Corporate governance model in Ukraine: The conflict resolution problems
Corporate governance model in Ukraine: The conflict resolution problems

Summary/Abstract: The purpose of the article is to examine whether there is a corporate governance model that could minimize thenegative effects of conflicts, align of managers’ behavior with stockholders, and provide stock markets development.The analysis of numerous studies helps to clarify the basic issues including objectives, interests, methodsof achievement, and benefits of managerial and stakeholder conflicts. The corporate sector development demonstratesthe use of mixed model in Ukraine, based partly on the application of the principals of American, andGerman models of corporate governance.The causes of corporate governance conflicts are considered in Ukraine. The application of the economic andlegal mechanisms for corporate conflicts elimination is proposed. Specific policy proposals designed to achievethe goal to separate regulators from company management and owners. Governance must clearly definethe functions and relationships of the various parties, and separate oversight from operational and financialmanagement. The public accountants objectivity can be introduced in Ukraine through creation of institutionalstructures that define and require regulation, records, and audit. In the new context, auditors will be privatecontractors serving as regulators, and they will work for boards of directors. Management is not involved.The article analyses the measures that have been taken to create an effective corporate governance modelin Ukraine. The international accounting standards application, based on American and European accountingstandards in corporate governance, will be directed to create mechanism for disclosures and frauds preventingin all companies. The national accounting agencies foundation in East European countries, including Ukrainewill provide the adoption of international accounting standards at the country’s level.

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