Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives
The term corporate governance is related to the agency problem, which is also known as the principalagent problem. In the microeconomic theory the relationship between principal and agent refers to the situation when the owner of the business and the manager running the business are not the same per...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Business in Osijek
2011-12-01
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| Series: | Ekonomski Vjesnik |
| Subjects: | |
| Online Access: | http://hrcak.srce.hr/file/112973 |
| _version_ | 1797332328482078720 |
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| author | Boris Crnković Željko Požega Domagoj Karačić |
| author_facet | Boris Crnković Željko Požega Domagoj Karačić |
| author_sort | Boris Crnković |
| collection | DOAJ |
| description | The term corporate governance is related to the agency problem, which is also known as the principalagent problem. In the microeconomic theory the relationship between principal and agent refers to the situation when the owner of the business and the manager running the business are not the same person.
In such a case ownership and management are separated, which is a good situation for managers, who can use it to promote some of their own goals which do not necessarily have to correspond to the objectives of the business, i.e. owner of the business. The term corporate governance may also include the way in which owners of the business successfully motivate managers to act in the best interest of the owner of the business, thus maximising the company’s profit. The relationship between the principal and the agent in case of state-owned companies is two-fold (citizens – politicians and politicians – managers). Therefore corporate governance in state-owned companies faces specific challenges. From the perspective of the Republic of Croatia it is clear that progress in the privatisation process cannot be expected soon due to political and economic reasons. Therefore it is necessary to ensure an efficient system of corporate governance in state-owned companies to ensure protection of the interests of the state, i.e. the citizens in
state-owned companies. |
| first_indexed | 2024-03-08T07:47:36Z |
| format | Article |
| id | doaj.art-3056e3e00953415e8b9cf2edabcee61c |
| institution | Directory Open Access Journal |
| issn | 0353-359X 1847-2206 |
| language | English |
| last_indexed | 2024-03-08T07:47:36Z |
| publishDate | 2011-12-01 |
| publisher | Faculty of Economics and Business in Osijek |
| record_format | Article |
| series | Ekonomski Vjesnik |
| spelling | doaj.art-3056e3e00953415e8b9cf2edabcee61c2024-02-02T15:28:54ZengFaculty of Economics and Business in OsijekEkonomski Vjesnik0353-359X1847-22062011-12-01XXIV2Challenges of Corporate Governance in State-Owned Companies – Croatian PerspectivesBoris CrnkovićŽeljko PožegaDomagoj KaračićThe term corporate governance is related to the agency problem, which is also known as the principalagent problem. In the microeconomic theory the relationship between principal and agent refers to the situation when the owner of the business and the manager running the business are not the same person. In such a case ownership and management are separated, which is a good situation for managers, who can use it to promote some of their own goals which do not necessarily have to correspond to the objectives of the business, i.e. owner of the business. The term corporate governance may also include the way in which owners of the business successfully motivate managers to act in the best interest of the owner of the business, thus maximising the company’s profit. The relationship between the principal and the agent in case of state-owned companies is two-fold (citizens – politicians and politicians – managers). Therefore corporate governance in state-owned companies faces specific challenges. From the perspective of the Republic of Croatia it is clear that progress in the privatisation process cannot be expected soon due to political and economic reasons. Therefore it is necessary to ensure an efficient system of corporate governance in state-owned companies to ensure protection of the interests of the state, i.e. the citizens in state-owned companies.http://hrcak.srce.hr/file/112973corporate governancestate-owned companiesprivatisationstate portfolioCroatian Privatisation FundAgency for State-Owned Assets |
| spellingShingle | Boris Crnković Željko Požega Domagoj Karačić Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives Ekonomski Vjesnik corporate governance state-owned companies privatisation state portfolio Croatian Privatisation Fund Agency for State-Owned Assets |
| title | Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives |
| title_full | Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives |
| title_fullStr | Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives |
| title_full_unstemmed | Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives |
| title_short | Challenges of Corporate Governance in State-Owned Companies – Croatian Perspectives |
| title_sort | challenges of corporate governance in state owned companies croatian perspectives |
| topic | corporate governance state-owned companies privatisation state portfolio Croatian Privatisation Fund Agency for State-Owned Assets |
| url | http://hrcak.srce.hr/file/112973 |
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