Abstract
There is inherent conflict of interests between owners and managers. They try to solve it in different ways. In this paper we have tried to briefly introduce the most important internal mechanisms of corporate governance (monitoring by the board of directors, incentive system for managers, internal audit and the importance of institutional investors). The financial scandals that included the world-famous corporations as well as current world economic crisis suggests that the protection of owners should continue to work to improve existing or new solutions that will improve the level of corporate governance.
Highlights
THE IMPORTANCE AND ROLE OF THE CORPORATE GOVERNANCE MECHANISM IN INCREASING THE LEVEL OF MANAGEMENT EFFICIENCY
There is inherent conflict of interests between owners and managers. They try to solve it in different ways
The financial scandals that included the world-famous corporations as well as current world economic crisis suggests that the protection of owners should continue to work to improve existing or new solutions that will improve the level of corporate governance
Summary
Sažetak: Inherentan konflikt interesa između vlasnika i menadžera pokušava se rešiti na različite načine. U ovom radu smo pokušali da ukratko predstavimo najznačajnije interne mehanizme korporativnog upravljanja (monitoring od strane upravnog odbora; sistem podsticaja menadžera, internu reviziju i značaj institucionalnih ulagača). Finansijski skandali u koje su uključene svetski poznate korporacije, kao i aktuelna svetska ekonomska kriza ukazuju nam da se na zaštiti interesa vlasnika treba i dalje raditi, kako bi se poboljšala postojeća, ili pronašla nova rešenja kojim će se poboljšati nivo korporativnog upravljanja. Ključne reči: korporativno upravljanje, agencijski problem, interni mehanizmi, kontrola upravnog odbora, sistemi podsticaja menadžera, interna revizija, institucionalni ulagači
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