ORGANIZATIONAL CONDITIONS OF CORPORATE GOVERNANCE IN AN AGRARIAN INTEGRATED ENTERPRISE
Journal Title: International Interdisciplinary Scientific Journal "Expert" - Year 2024, Vol 1, Issue 2
Abstract
The article is devoted to the study of scientific knowledge on the general organizational conditions for corporate governance in an agrarian integrated enterprise. Based on the analysis of scientific knowledge on the conditions and features of corporate governance in integrated agricultural structures, the authors have found that relations arise not between the owners of a corporation, but between the corporation and the owners, and thus relations in the group of owners are absent or minimized. In practice, the key element of contracting is not an attempt to determine the behavior of the CEO in all possible situations, but to develop a structured system of remuneration for managers. The main goal of this operation is to find the optimal combination of different types of remuneration for top managers, which will ensure mutually beneficial interests of both shareholders and managers of the corporation. The author proves that the most effective mechanism of internal control over the activities of a corporation's management personnel is to involve shareholders in protecting their interests through agents (outsiders) who are not employees of the corporation but are vested with certain controlling powers. It is assumed that these agents will not be directly related to the operational management of the corporation, and thus they become the defenders of the interests of the owners. It is found that there is a direct relationship between agency conflicts and corporate governance mechanisms. The result of the study is the identification of positive and negative aspects of capital concentration in a corporation. This leads to the conclusion that with an increase in the manager's shareholding, the level of agency conflicts decreases. The authors propose a detailed model of corporate governance that takes into account the interests of all participants. The conflict of interests between owners and managers of a corporate structure is investigated. The peculiarities of functioning of the external mechanism of control by the financial market in the corporate governance system and their shortcomings are highlighted. The institutional factors influencing the corporate governance system of an integrated agricultural enterprise are demonstrated.
Authors and Affiliations
Ivan Filchenko, Denys Sartakov, Vladyslav Kryzhniy, Andrii Laiko
Keywords
Related Articles
- EP ID EP754938
- DOI https://doi.org/10.62034/2815-5300/2024-v1-i2-009
- Views 1
- Downloads 0
FACTORS CAUSING THE EMERGENCE OF NON-PERFORMING (PROBLEM) ASSETS IN THE BANKING SECTOR IN MODERN CONDITIONS
Today, Ukraine is in an extremely difficult economic, social and political situation, which in turn determines the need to ensure the effective functioning of all spheres of the state's life, especially its financial sec...
ESTABLISHMENT OF FISCAL POLICY OF CHINA AND UKRAINE AND PROSPECTS FOR THE DEVELOPMENT OF UKRAINIAN-CHINESE ECONOMIC ACTIVITIES
The article examines the formation of the fiscal policy of the People's Republic of China and the fiscal policy of Ukraine. The theoretical aspects of the formation of fiscal policy are highlighted, the stages of the for...
BUSINESS RESTRUCTURING AS A STRATEGY FOR ENTERPRISE ADAPTATION TO CHANGES IN WAR CONDITIONS Liudmyla Zavidna, Iryna Mykolaichuk, Yevhen Namliiev
The full-scale war in Ukraine had a significant impact on the business environment. Modern enterprises operate under high uncertainty, significant variability, and unpredictability of the surrounding factors. Within the...
ORGANIZATIONAL AND ECONOMIC DEVELOPMENT MECHANISM OF TELECOMMUNICATION SERVICES MARKET ENTITIES
The interpretation of the definition of the organizational and economic mechanism of enterprise development is presented as a set of strategically directed management decisions and actions that, based on the enterprise's...
ECONOMY AS A BACKGROUND OF CONTEMPORARY INTERNATIONAL CONFLICTS: THEORETICAL ASPECTS
The article examines the economic aspect of international conflicts, in particular the role of the economic component in international conflicts. Individual causes of occurrence, management methods and principles of conf...