CORPORATE GOVERNANCE AS A SYSTEM OF RELATIONSHIPS OF ACTIVITY PARTICIPANTSJournal: Herald of Kyiv National University of Trade and Economics (Vol.88, No. 2)
Publication Date: 2013-04-13
Authors : HUDIK Olena;
Page : 58-70
Keywords : Corporate governance; bank; agency problem; principle of the final control; theory of agency costs; stakeholders;
Problem. Given the growing interest of investors, creditors and supervisors, society, shareholders and management of banks to corporate governance, the proposed research is devoted to the unexplored and actual problem of understanding and interpretation of the essence of corporate governance in the introduction of the world's best practices in created and functioning national control systems. Analysis of sources on this issue showed the lack among modern academics of common approach to determine the category of "corporate governance". Solving the problem of inconsistent approaches to the interpretation of the essence of corporate governance by summarizing existing in modern economic theory and practice and the formulation of authot's conceptual approach to its interpretation is the aim of this study. Results. The article reviews and summarizes existing approaches to economic theory and practice to the problem of understanding and interpretation of the essence of corporate governance in the introduction of the world's best practices created and functioning of national control systems, in order to eliminate inconsistencies in the approaches, author's conceptual approach to its interpretation, which synthesizes process and system approaches was formulated. It is shown that corporate governance should not be seen as a simple set of legal, institutional norms and rules within which some corporation operates, but as a system of economic, even social and economic relations on the basis of which a relationship between all members of a particular structure, and between participants and external agents that are subjects of institutional regulation are formed. Conclusions. The essence of corporate governance is seen in the synthesis of process and system approaches. According to the definition of corporate governance its role is in the demarcation of responsibilities between actors of CG and ordering their relationship (in terms of cooperation and mutual control) with adjustments to the interests of various people concerned, which aims to increase the functioning efficiency of the bank.
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