Сorporate governance analysis process: essence, main stages

Abstract

Corporate enterprises are an influential factor in the development of the economy of any country. Corporate entrepreneurship has been widely promoted by managers and researchers as an effective means for improving companies’ financial development. The analysis of the corporate governance system is a blueprint for the successful development of such companies. Moreover, it is a tool for regulation of interests between shareholders and managers, because it can help to identify the weaknesses and strengths, threats and opportunities in their relations. Our discoveries highlight those companies will have a better achievement, which will have a regular corporate governance analysis. In an attempt to improve the corporate governance study, the methodological procedures of the corporate governance analysis are proposed. The paper determinates the goals, objectives, plan, and program for the corporate governance analysis. It has special attention to the importance of criteria and its indicators in legal documents and standards. Furthermore, it takes into account the influence of external and internal factors on the activities of the corporate governance system. The proposed methodological approach allows us to determine the method of analysis, the timing, and schedule of the report, and to indicate its control procedures.

Keywords

• corporate governance
• corporate governance process analysis
• corporate enterprises
• joint stock companies
• methodological approach of corporate governance analysis