NAŠE GOSPODARSTVO / 
OUR ECONOMY

The Importance of Corporate Governance of Banks Concerning the Ownership in the International Environment

Mejra Festić, Polona Črepinko, Borut Bratina

Abstract


The analysis of the factors of corporate governance is divided into four
thematic sections. In the first part corporate governance is defined as part
of the broader economic context. The second part deals with the principles
of corporate governance. In the third part, the relation between the
index of corporate governance and individual indicators (an indicator of
commitment, transparency, and disclosure, caring for partners, and control
and audit) regarding ownership is defined. An analysis was undertaken for
the countries of Central and Eastern Europe. A higher level of foreign ownership
had a positive correlation with the corporate governance index. On
the other hand, the correlation between state ownership and corporate governance
index was not clear. The prevention of poor banking practices does
not only lie in controlling functions, but also in the general corporate and
risk-taking cultures, and the social perception of managerial roles, regardless
of ownership structure.


Keywords


corporate governance index, state ownership, ownership structure, corporate governance principles, board independence

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