A new perspective on the management of joint-stock property companies with state participation: theoretical aspects

Abstract

The article presents the author’s view of a management of joint-stock property companies with state participation. Such concepts as joint stock property, company with state participation, corporate management and the management mechanism of joint stock ownership in the companies with state participation are defined The model and the management mechanism of joint stock property in companies with state participation are investigated. The author believes that considering the unstable external situation, both theoritical and practical economists need to pay more attention to the management of joint-stock property companies with state participation taking into consideration that such companies harbor a large improvement potential. Keeping in mind that there exist many companies of such kind and that they present a substantial share in different branches these companies can become drivers of economy progress. The analysis of joint stock property allows to conclude that this property is characterized by some distinctive features: the owner possessing the property is actually separated from the management (in case when operational management is separated from the strategic one), a specific approach to forming and attracting the capital. The author suggests the model of joint stock company with state participation where the internal (property structure, incentive system, decision making system, capital structure, internal audit) and external mechanisms (legal regulations, external audit, mechanism of insolvency (bankruptcy), the corporate control market) are interlinked.. Proposals for the development of joint-stock property companies with state participation management mechanism based on the OECD club recommendations are suggested.