Corporate Governance In Transition Economies- Comparative Analysis Of Contemporary Corporate Governance Issues In Selected Of This Economies In South-Eastern Europe. The Albanian Case.

Rezart Dibra

doi:10.12955/ejbe.v7i0.130

Abstract

This article aims at introducing the main corporate governance mechanism’ influence on governance in South Eastern Europe (Western Balkans) transition economies: Albania, Bosnia and Herzegovina, Croatia, Serbia and Slovenia. The implementation of corporate governance in transition economies, where Albania is one of the countries that have implemented such corporate governance principles, require a suitable legal framework and relevant protection of minority shareholders. In 2008 the new law “On entrepreneurs and commercial companies”was enacted.The latter introduced new practices and concepts, some of them not familiar to the Albanian legal system. This paper discusses comparative insight on the most pressing issues of corporate governance in selected economies of South-East Europe (Western Balkans). It is widely accepted that both private sector and governments can benefit from identification of the most important determinants and implications of good corporate governance. Corporate governance systems have a common goal – protection of investor’s rights and transparency of the system in which transactions take place. However, it is also well recognized that systems of corporate governance in attempt to gain necessary level of harmonization and consistency rely heavily on contextual factors of specific economy. Specifically, the research covers corporate governance in Albania, Bosnia and Herzegovina, Croatia, Serbia and Slovenia.

Highlights

Corporate governance has become a topic of a worldwide economics debate
A series of events over the last two decades has placed corporate governance issues including the power and responsibilities of boards of directors, ownership structure, the rules governing takeovers, management compensations schemes as a top concern for both the international business community and international financial institutions
The problems of governance in the transition economies vary with the ownership, which in turn are an outcome of the diverse methods of privatization employed in the region

Summary

Introduction

Corporate governance has become a topic of a worldwide economics debate. A series of events over the last two decades has placed corporate governance issues including the power and responsibilities of boards of directors, ownership structure, the rules governing takeovers, management compensations schemes as a top concern for both the international business community and international financial institutions. Development of corporate governance in Croatia is set parallel with the processes of privatization and market economy institution building (Tipuriæ et al,2004: 255292).

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