Экономические науки/корпоративное
управление
Ерменова Ш. Г.
Казахстанско-Британский
Технический Университет, Республика Казахстан
Corporate governance in
term of Custom Union
Corporate governance as part of management exists
long time ago, but the basic mechanisms were formed relatively recently…
Corporate governance as
part of management exists long time ago, but the basic mechanisms were formed
relatively recently. 1999 year can be considered as a major milestone - the
time when the standard OECD (Organization for Economic Cooperation and
Development) was adopted, which sets out the basic principles of corporate
management. [3] In Kazakhstan, the corporate form of ownership had appeared
relatively recently. We have not yet acquired our own experience of managing
public companies, experience of the problems, associated with the different
interests of owners and managers, the protection of the rights and property of
the shareholders. After more detailed investigation of this issue, it can be
concluded that in Kazakhstan corporate governance is at an early stage of
development.
For more precise
understanding of necessity of introduction ubiquitous corporate governance, it
is necessary to analyze the positive and negative aspects of corporate
ownership. Positive economic effects of corporate governance system for
companies and the whole economy include [1]:
1)
reduction of corruption;
2) improvement of the
quality of management;
3) capability of preventing
the crisis, even in those countries where shares of most companies are traded
in the stock market inactively;
4) in countries with a
developed system of corporate governance, where acts strong protection system
of the minority shareholders’ interests, i.e. the shareholders owning at least
10 % of the shares, capital markets are larger and more liquid. This stimulates
employment and economic growth of the country as a whole.
With regard to minuses
of applying by companies principles of corporate governance can be
distinguished following disadvantages which constrain the process of
development of corporate governance:
1) double taxation of
owners of corporate associations: shareholder’s income actually taxed twice -
at first as corporate income and then as income of individuals – shareholders;
2) more strict regulation
and control of corporate activity rather than an individual business or
partnership;
3) corporate governance
allows major shareholders more effective levers of power, while for the small
and medium-sized owners there is no such possibility;
4) at insufficient
development of legal base in Kazakhstan, corporate governance encounters a
number of challenges in case of disagreement between shareholders, managers and
the stakeholders. [3]
Unequivocally, that the state has some problems of
development of corporate ownership. What the reason of their appearance?
So, can be distinguished following reasons which
prevent the growth of level of the corporate governance:
1) weakness, inefficiency and corruption of the
state and the judiciary;
2) insufficient development of the stock market;
3) weak and inefficient
development of financial market in Kazakhstan, consequently stock prices do not
reflect the real value of the company and the market of corporate control.
It should be noted that
the development of corporate governance in Kazakhstan constrained by
unfavorable to business public policy. For example, increasing the transparency
unprofitable, as information openness makes company more vulnerable in front of
regulatory authorities and law enforcement agencies.
In general, the insufficient
development of corporate governance system entails the inability to attract
investment, bankruptcy, violation of rights and other problems of economic
development faced by different countries of the world.
In this perspective, the
Customs Union - is an attempt of post-Soviet countries to create most favored zone for their own business.
Using tariff, Kazakhstan, firstly invites foreign investors, secondly within
the union will attempt to reach a new level of competitiveness.
So, the creation of the
Customs Union is a great incentive for the development of corporate governance.
Customs Union makes Kazakhstan very attractive for investment. Companies that
complies the standards of corporate governance, have an undoubted advantage in
attracting investments (e.g. through the IPO). Investors believe that good
corporate governance provides the honesty and transparency of management of the
company; there for the risk of loss is substantially reduced.
The country entered into
the Customs Union with Russia and Belarus, thereby put their producers in equal
conditions with domestic producers. Entrance to the World Trade Organization
isn't far. All of this raises the required level of effective management of the
companies.
However, it is important
to understand that support is required by the state. Despite the fact that
Kazakhstan received a huge market about 180 million potential consumers, small
and medium enterprises is not able to work effectively and be competitive.
According to statistics, over two months of 2012, export decreased by 21 %,
while import grew by 29 %. [4] The main product for export still remains raw
materials. Kazakhstan imports finished products: machinery and equipment,
foodstuffs, petroleum products and metal products. [4] Based on the above data,
Kazakhstan at this stage has some problems related to coming into the Customs
Union. After all, corporate governance in the participating countries of the
association is at a high level, in comparing with the development of the
corporate form of ownership in Kazakhstan.
Among politicians,
business leaders and the general public grows recognition that corporate
governance is an essential instrument to improve the work of companies and
achieving faster development of a market democracy. Potential gains from
management reform in Kazakhstan are huge. [3] Creation of strong markets with
well-developed organizational structure and the introduction of the principles
of corporate governance in companies of any type will stimulate further growth
of investment, trade and business.
Conclusion
In this paper were identified the strengths and
weaknesses of the corporate form of ownership, level of corporate governance in
Kazakhstan was analyzed in the scope of the Customs Union and were identified
causes of problems of effective management of companies.
As the key directions of solving existing problems
can be identified:
1) Adoption of corporate governance principles in
Kazakhstan;
2) Improving the structure of the company's
management;
3) Improving the property management;
4) Expansion and control information transparency
of the company;
5) Development of the stock market and other
financial markets;
6) Settlement of corporate conflicts.
Useful resources:
[1] -Transparency
International-Kazakhstan/USAID, Educational Anticorruption Program (EAD) http://www.transparencykazakhstan.org/UserFiles/file/95i.pdf
[2] - http://bibliotekar.ru/biznes-64/58.htm
[3] – Corporate
governance: Kazakh context
http://www.cipe-eurasia.org/articles/Kaz_CG_Text.pdf
[4] – Kazakh Telegraph
Agency