Governance and Enterprise Restructuring in Southeast Europe – gross domestic product and foreign direct investments

Apostolov, Mico (2011): Governance and Enterprise Restructuring in Southeast Europe – gross domestic product and foreign direct investments.

Abstract

This paper is to be concerned with the corporate governance mechanisms’ influence on governance and enterprise restructuring in Southeast Europe (Western Balkans) transition economies: Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro and Serbia.

The institutional changes and corporate governance mechanisms in national governance systems are essentially important for the transition process, thus there are specificities of corporate governance mechanisms in transition economies that indicate the progress towards market based economy. Most notable are: the market-based corporate governance mechanisms, management-structure based corporate governance mechanisms, ownership structure, boards of directors, management compensations schemes, that is, management structures and financial structures. Corporate governance mechanisms are seen through governance and enterprise restructuring indicator which has already established link to gross domestic product and foreign direct investments in the literature.

The data set is of Southeast European economies, and will be examined the interrelationships between governance and enterprise restructuring, set of policies that influence the governance patterns, gross domestic product and foreign direct investments.

• Item Type: MPRA Paper
• Language: English
• Keywords: governance, enterprise restructuring, corporate governance, transition, Southeast Europe
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P31 - Socialist Enterprises and Their Transitions; G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General; L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L33 - Comparison of Public and Private Enterprises and Nonprofit Institutions ; Privatization ; Contracting Out

References

Apostolov, M. 2010a. Attributes to corporate governance and enterprise restructuring in the Macedonian economy. CEA Journal of Economics, 5(2): 5-17.

Apostolov, M. 2010b. Governance and Enterprise Restructuring - the case of Macedonia. 2nd International Conference on Economies of Central and Eastern Europe: Convergence, Opportunities and Challenges organised by the Society for the Study of Emerging Markets (USA), Tallinn, Estonia

Apostolov, M. 2010c. Governance and Enterprise Restructuring in Southeast Europe. London School of Economics and Political Science Symposium, 2010.

Apostolov, M. 2011. Corporate Governance in Macedonia Micro and Macro Analysis. Risk Governance and Control - Financial Markets and Institutions, 1(1): 124-134.

BA. http://www.bankofalbania.org/: Bank of Albania.

Berglöf, E. 1995. Corporate Governance in Transition Economies: The Theory and Its Implications in Masahiko Aoki and Hyung-Ki Kim (eds.) Corporate Governance in Transition Economies - Insider Control and The Role of Banks: World Bank, 1995.

Bloom, M., & Milkovich, G. T. 1998. Relationships among risk, incentive pay, and organizational performance. Academy of Management Journal, 41: 283–297.

CBBH. http://www.cbbh.ba/: Central Bank of Bosnia and Herzegovina

CBM. http://www.cb-mn.org/: Central Bank of Montenegro

Chan, K. H., Lin, K. Z., & Zhang, F. 2007. On the Association between Changes in Corporate Ownership and Changes in Auditor Quality in a Transitional Economy. Journal of International Accounting Research, 6(1): 19-36.

CNB. http://www.hnb.hr/: Croatian National Bank

Dharwadkar, R., George, G., & Brandes, P. 2000. Privatization in Emerging Economies: An Agency Theory Perspective. The Academy of Management Review, 25(3): 650-669.

EBRD. 1994-2009. Transition report: European Bank for Reconstruction and Development, London.

Fama, E. F. 1980. Agency Problems and the Theory of the Firm. The Journal of Political Economy, 88(2): 288-307.

Fama, E. F., & Jensen, M. C. 1983. Separation of Ownership and Control. The Journal of Law and Economics, 26(2): 301.

Firth, M., Fung, P. M. Y., & Rui, O. M. 2006. Firm Performance, Governance Structure, and Top Management Turnover in a Transitional Economy*. Journal of Management Studies, 43(6): 1289-1330.

Freedman, D. A. 2005. Statistical Models: Theory and Practice: Cambridge University Press

Hoskisson, R. E., Eden, L., Lau, C. M., & Wright, M. 2000. Strategy in Emerging Economies. The Academy of Management Journal, 43(3): 249-267.

Jensen, M. C. 1993. The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems. The Journal of Finance, 48(3): 831-880.

Jensen, M. C. C., Smith. 2000. Stockholder, Manager, and Creditor Interests: Applications of Agency Theory, Theory of the Firm: Governance, Residual Claims, and Organizational Forms,. Cambridge, MA: Harvard University Press.

King, L. P. 2001. The basic features of post communist capitalist, in Eastern Europe: Firms in Hungary, the Czech Republic, and Slovakia. Westport, CT: Praeger.

Le, S., Kroll, M., & Walters, B. 2010. The impact of institutional changes on corporate governance mechanisms in transition economies. Journal of Management and Governance, 14(2): 91-114.

NBRM. http://www.nbrm.gov.mk/ National Bank of the Republic of Macedonia

NBS. http://www.nbs.rs/: National Bank of Serbia

Ocasio, W. 1999. Institutionalized Action and Corporate Governance: The Reliance on Rules of CEO Succession. Administrative Science Quarterly, 44(2): 384-416.

Peng, M. W. 2000. Business strategies in transition economies. Thousand Oaks, CA: Sage Publications, Inc.

Peng, M. W. 2003. Institutional Transitions and Strategic Choices. The Academy of Management Review, 28(2): 275-296.

Porta, R. L., Lopez-De-Silanes, F., & Shleifer, A. 1999. Corporate Ownership Around the World. The Journal of Finance, 54(2): 471-517.

Prowse, S. 1995. Corporate governance in an international perspective: A survey of corporate control mechanisms among large firms in the United States, the United Kingdom, Japan and Germany. Cambridge, MA: Blackwell.

Shleifer, A., & Vishny, R. W. 1997. A Survey of Corporate Governance. The Journal of Finance, 52(2): 737-783.

WB. http://data.worldbank.org/: World Bank Database.

Williamson, O. E. 1985. The economic institutions of capitalism: Firms, markets, relational contracting. . New York, NY: The Free Press.

Young, M. N., Peng, M. W., Ahlstrom, D., & Bruton, G. D. . 2002. Ownership structure and corporate governance: Can we generalize from US evidence? Best Paper Proceedings, Academy of Management Annual Meeting.