Market for Executives in Ukraine

Abstract

Transformation of the structure of corporate ownership in Ukraine should be followed with transformation of approaches to decision making at all levels. This concerns executives, who are responsible for the day-to-day management of a company. As Berle and Means noted, to govern companies effectively, executives should avoid conflict of interests and managerial opportunism. This will facilitate reducing agency costs and improve corporate performance. From this perspective, executive nomination and monitoring play the most important role in reaching the above objective. Both these corporate control mechanisms are established by shareholders. Therefore, we suppose that an executive performance depends on the structure of corporate ownership and the type of controlling owner. Regrettably, since the beginning the process of privatization in 1992 no research has been conducted to answer the question: "Is there a relationship between ownership structure and efficiency of decision making by executives?"

В статті досліджуються аспекти роботи виконавчих директорів в компаніях України. Автор намагається відповісти на питання чи існує залежність між структурою власності корпорації та ефективністю прийняття рішень виконавчими директорами.