Corporate Governance: Mechanisms for Control and Alignment of Interests of Participants of Corporate Relations in the Transitive Economy

Abstract

The article presents findings of an empiric sociological survey of corporate governance at middle-sized industrial corporations in Russia. Evaluation of the effect of a market, federal law, internal corporate standards, and actions of corporate governance bodies on control and alignment of interests of participants of corporate governance has been given. Based on a content-analysis technique, which was applied to annual statements of middle-sized industrial corporations, formation of an insider model of corporate governance, approval of major owners at the corporate governance bodies, who are usually chairpersons of the Board of Directors and general managers of such companies, has been confirmed. A degree of focus on interaction with main stakeholder groups, such as consumers, customers, suppliers, personnel, partners and banks, and governmental authorities was discovered in the course of survey. According to the survey, the corporate law is the primary regulator of corporate relations, internal corporate standards and rules are hardly demanded, and non-formal relations with representatives of the governmental structures take an important place, and behaviour motivation is defined by rational profit motives. Activity of corporate governance bodies is formalized, ensuring solutions for matters of procedure. Evaluation of the corporate governance at middle-sized industrial corporations was obtained by way of a questionnaire survey. The level of agreement of interests of their parties was discovered. This article presents a detailed analysis of the matter of conflicts of participants of corporate relations, ways of overcoming such conflicts, based on defining priorities in fulfilling interests of participants of corporate governance. The respondents measure the level of corporate governance at middle-sized corporations as satisfactory and corresponding to interests of main participants of corporate relations.

DOI: 10.5901/mjss.2015.v6n4s4p118