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 39
- Downloads 0
APICULTURE AS A LIVELIHOOD ACTIVITY IN MAYO DARLE, CAMEROON: A SUSTAINABLE LIVELIHOOD FRAMEWORK ANALYSIS
Beekeepers in Mayo Darle consider beekeeping to diversify their income sources. Nonetheless, this agricultural sub-sector is confronted with so many challenges ranging from limited knowledge and skills in production, pes...
CHALLENGES OF DIGITAL TRANSFORMATION OF ECONOMIC SYSTEMS AS DESTABILIZING FACTORS OF ECONOMIC SECURITY OF THE REGION
The digital economy is proposed to be understood as: a type of economy characterized by the active implementation and practical use of digital technologies for the collection, storage, processing, transformation and tran...
THE IMPACT OF ADMINISTRATIVE AND LEGAL MECHANISMS ON THE STABILITY AND ADAPTATION OF THE FINANCIAL SYSTEMS OF EU COUNTRIES: A COMPARATIVE ANALYSIS OF POLAND AND BULGARIA
This article examines how administrative and legal mechanisms influence the stability and adaptability of financial systems in European Union (EU) member states, through a comparative analysis of Poland and Bulgaria. Usi...
STRATEGIC DIRECTIONS FOR IMPROVING INSTITUTIONAL SUPPORT FOR INVESTMENTS IN THE AGRICULTURAL SPHERE
The article presents an analysis of the institutional support for the development of investment activity in the agricultural sector of Ukraine, which is considered as a set of legislative, regulatory, organizational and...
FUNDAMENTAL PRINCIPLES OF BALANCED ECONOMIC DEVELOPMENT: THEORETICAL ASPECT
The essence of balanced economic development lies in ensuring sustainable growth that harmonizes environmental, social, and economic objectives. This article delves into the foundational principles that underpin balanced...