Origin and Development of Corporate Governance

Abstract

Transformations in the conduct of entrepreneurial activity determine metamorphoses in corporate governance. Based on this, we can safely say that the effectiveness of corporate governance largely depends on a clear understanding of its essence by enterprise managers. The purpose of the article is to systematize issues related to the formation and development of corporate governance in the world and in Ukraine. Scientific research is based on the study of a system of historical and empirical events, economic laws, developmental features and theoretical aspects of corporate governance. The ontogenesis of forms of business associations in the context of the stages of corporate governance formation was refined. The study results show that at the initial stage of development, corporate governance was characterized by purely production processes, processes of organizing production, and the formation of the resource base of entrepreneurial associations. It was revealed that subsequently in foreign science and management practice five main theories were formed (Stewardship theory, Agency theory, Transaction Cost Economics theory, Stakeholder theory, Resource Dependence theory), which introduced their specificity into the modern concept of corporate governance and supplemented the methods of analysis of the management mechanism. In these theories, attention is focused on the internal environment of the organization as an object of management. The common core of these theories is the relationship between the main groups: shareholders, the Board of Directors, managers, and other interested parties. It was determined that the development of corporate relations in Ukraine has gone through several stages since independence by the country. They can be divided into four main blocks, which include: processes of property reform and mass privatization, the formation of legislation in the field of corporate relations, the implementation of corporate governance.

Keywords

• corporation
• corporate governance
• business associations
• corporate governance theories
• corporate governance development in ukraine