Economic Themes (2008) 46 (3) 11, 165-179
Slađana Savović
Abstract: This study analyzes one of internal mechanisms of corporate control – concentration of ownership. The first part of the study emphasizes importance of corporate governance for effective decision-making, company performance improvement and protection of shareholder interests. The second part of the study contains explanation of two dominant models of corporate governance, one of which is characteristic for Anglo-Saxon countries while the other is characteristic for continental Europe and Japan. The system of corporate governance implemented in a certain country determines the use of internal or external mechanisms of corporate control whose purpose is to reduce the costs emerging due to separation of ownership and control and to adjust the interests of owners and managers. The third part analyses concentration of ownership as one of the internal mechanisms of corporate control, which is most often used in the model implemented in continental Europe.
Keywords: corporate governance; mechanisms of corporate control; concentration ownership
CONCENTRATION OF OWNERSHIP AS INTERNAL MECHANISM OF CORPORATE CONTROL
Slađana Savović
Abstract: This study analyzes one of internal mechanisms of corporate control – concentration of ownership. The first part of the study emphasizes importance of corporate governance for effective decision-making, company performance improvement and protection of shareholder interests. The second part of the study contains explanation of two dominant models of corporate governance, one of which is characteristic for Anglo-Saxon countries while the other is characteristic for continental Europe and Japan. The system of corporate governance implemented in a certain country determines the use of internal or external mechanisms of corporate control whose purpose is to reduce the costs emerging due to separation of ownership and control and to adjust the interests of owners and managers. The third part analyses concentration of ownership as one of the internal mechanisms of corporate control, which is most often used in the model implemented in continental Europe.
Keywords: corporate governance; mechanisms of corporate control; concentration ownership
