Corporate Governance in Macedonia – micro and macro analysis

Apostolov, Mico (2010): Corporate Governance in Macedonia – micro and macro analysis. Published in: Risk Governance and Control - Financial Markets and Institutions, Vol. 1. No. 1, pp. 124-134, Winter 2011 (February 2011)

Abstract

The corporate governance issue in Macedonian companies has been brought forward during the recent few years. The main reason is the fact that the privatization process completion of socially-owned and partly state-owned enterprises has put emphasis to the challenge to reasonably regulate relationships established within companies on one hand, and relationships between companies and larger society on the other. All market economies, including those with longest tradition, have faced this kind of challenge so far.

Corporate governance becomes an increasingly important issue for the Macedonian economy. It is being taken with greater consideration by the companies, regulators and government. The strong wave of privatization programs from mid-90’ have resulted in an altered business environment, and new legal and institutional frameworks have been established. Indeed, corporate governance contributes to sustainable economic development by enhancing the performance of companies and increasing their access to external sources of capital.

In this paper we will make attempt to analyze the predominant factors that create prolific corporate governance environment in two terms; a) micro level and macro level.

• Item Type: MPRA Paper
• Language: English
• Keywords: governance, corporate governance, management strategy, transition, Southeast Europe, Macedonia
• 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

Barker Iii, V. L., & Duhaime, I. M. 1997. Strategic Change in the Turnaround Process: Theory and Empirical Evidence. Strategic Management Journal, 18(1): 13-38.

Bergh, D. D. 1995. Size and relatedness of units sold: An agency theory and resource-based perspective. Strategic Management Journal, 16(3): 221-239.

Bethel, J. E., & Liebeskind, J. 1993. The effects of ownership structure on corporate restructuring. Strategic Management Journal, 14(S1): 15-31.

Chang, S. J., & Hong, J. 2000. Economic Performance of Group-Affiliated Companies in Korea: Intragroup Resource Sharing and Internal Business Transactions. The Academy of Management Journal, 43(3): 429-448.

Cohen, W. M., & Levinthal, D. A. 1990. Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1): 128-152.

Cuervo, A., & Villalonga, B. 2000. Explaining the Variance in the Performance Effects of Privatization. The Academy of Management Review, 25(3): 581-590.

Djankov, S., & Murrell, P. 2002. Enterprise Restructuring in Transition: A Quantitative Survey. Journal of Economic Literature, 40(3): 739-792.

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

Estrin, S., & Wright, M. 1999. Corporate Governance in the Former Soviet Union: An Overview. Journal of Comparative Economics, 27(3): 398-421.

Filatotchev, I., Buck, T., & Zhukov, V. 2000. Downsizing in Privatized Firms in Russia, Ukraine, and Belarus. The Academy of Management Journal, 43(3): 286-304.

Filatotchev, I., Hoskisson, R., Buck, T., & Wright, M. 1996. Corporate restructuring in Russian privatizations: Implications for US investors. California Management Review, 38: 87–105.

Filatotchev, I., Wright, M., Uhlenbruck, K., Tihanyi, L., & Hoskisson, R. E. 2003. Governance, organizational capabilities, and restructuring in transition economies. Journal of World Business, 38(4): 331-347.

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

Hitt, M., Ireland, R., & Hoskisson, R. 2009. Strategic management: competitiveness and globalization : concepts & cases: South-Western Cengage Learning.

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

Hoskisson, R. E., Johnson, R. A., & Moesel, D. D. 1994. Corporate Divestiture Intensity in Restructuring Firms: Effects of Governance, Strategy, and Performance. The Academy of Management Journal, 37(5): 1207-1251.

Hoskisson, R. E., Johnson, R. A., Yiu, D., & Wan, W. P. 2006. Restructuring strategies of diversified business groups: Differences associated with country institutional environments. In Michael A. Hitt, R. E. Freeman, & J. S. Harrison (Eds.), Handbook of strategic management: 433–463. Oxford: Blackwell Publishers.

IFC. 2008. Corporate Governance Manual for Macedonian Companies: International Finance Corporation.

Johnson, R. A. 1996. Antecedents and Outcomes of Corporate Refocusing. Journal of Management June 22: 439-483.

Johnson, R. A., Hoskisson, R. E., & Hitt, M. A. 1993. Board of director involvement in restructuring: The effects of board versus managerial controls and characteristics. Strategic Management Journal, 14(S1): 33-50.

Kornai, J. 1992. The socialist system: the political economy of communism: Clarendon Press. La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, Robert W. 1998. Law and Finance. Journal of Political Economy, 106(6): 1113-1155.

Lyles, M. A., & Salk, J. E. 1996. Knowledge Acquisition from Foreign Parents in International Joint Ventures: An Empirical Examination in the Hungarian Context. Journal of International Business Studies, 27: 877–903.

Mahoney, J. T. 1995. The management of resources and the resource of management. Journal of Business Research, 33(2): 91-101.

Megginson, W. L., & Netter, J. M. 2001. From State to Market: A Survey of Empirical Studies on Privatization. Journal of Economic Literature, 39(2): 321-389.

Morck, R., Shleifer, A., & Vishny, R. W. Management ownership and market valuation: An empirical analysis. Journal of Financial Economics, 20: 293-315.

Newman, K. L. 2000. Organizational Transformation during Institutional Upheaval. The Academy of Management Review, 25(3): 602-619.

North, D. C. 1990. Institutions, institutional change and economic performance. Cambridge: Cambridge University Press.

North, D. C. 1994. Economic Performance Through Time. The American Economic Review, 84(3): 359-368.

Peng, M. W., & Heath, P. S. 1996. The Growth of the Firm in Planned Economies in Transition: Institutions, Organizations, and Strategic Choice. The Academy of Management Review, 21(2): 492-528.

Puffer, S. M., McCarthy, D. J., & Peterson, O. C. 2001. Navigating the Hostile Maze: A Framework for Russian Entrepreneurship [and Executive Commentary]. The Academy of Management Executive (1993-2005), 15(4): 24-38.

Sachs, J. D., Warner, A., Åslund, A., & Fischer, S. 1995. Economic Reform and the Process of Global Integration. Brookings Papers on Economic Activity, 1995(1): 1-118.

Spicer, A., McDermott, G. A., & Kogut, B. 2000. Entrepreneurship and Privatization in Central Europe: The Tenuous Balance between Destruction and Creation. The Academy of Management Review, 25(3): 630-649.

Stark, D. 1996. Recombinant Property in East European Capitalism. The American Journal of Sociology, 101(4): 993-1027.

Steensma, H. K., & Lyles, M. A. 2000. Explaining IJV survival in a transition economy through social exchange and knowledge-based perspectives. Strategic Management Journal, 21: 831–851.

Uhlenbruck, K., Meyer, K. E., & Hitt, M. A. 2003. Organizational Transformation in Transition Economies: Resource-based and Organizational Learning Perspectives. Journal of Management Studies, 40(2): 257-282.

Uhlenbruck, N., & Castro, J. d. 1998. Privatization from the Acquirer's Perspective: a Mergers and Acquisitions Based Framework. Journal of Management Studies, 35(5): 619-640.

Whitley, R., & Czaban, L. 1998. Institutional transformation and enterprise change in an emergent capitalist economy: The case of Hungary. Organization Studies, 19: 259–280.

Wright, M., Buck, T., & Filatotchev , I. (2002) Post-Privatization Effects of Management and Employee Buy-outs. Annals of Public and Cooperative Economics, 73: 303–352.

Wright, M., Hoskisson, R. E., Busenitz, L. W., & Dial, J. 2000. Entrepreneurial Growth through Privatization: The Upside of Management Buyouts. The Academy of Management Review, 25(3): 591-601.