GOVERNANCE OF STAKEHOLDER’S FINANCIAL RELATIONSHIPS: EVIDENCE FROM UKRAINIAN BANKING

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Maryna Brychko ORCID logo

https://doi.org/10.22495/cocv11i1c7art7

Abstract

This paper makes two related contributions to corporate finance theory and stakeholder theory. First, the author intend to examine relationship between sustainability of stakeholders’ financial relations and efficiency of corporate governance, taking into account lagging of decision-making corporate governance in banks to it financial performance. Second, the author seeks to prioritize stakeholders’ financial relations of the emerging stakeholder model of corporate governance at banks by analyzing two relevant dimensions of this model: contribution valued resources to the bank and power that the stakeholders have within the bank. The findings confirm that efficiency of bank management in the system of stakeholder’s financial relationships in absolute efficiency of corporate governance achieved solely through sustainable financial relations of “principal-agent” (where principals are individuals and agent is apparatus of corporate governance). The results show that the role of individuals as sub-agents, enterprises as principals and sub-agents, shareholders as principals formed negative effect.

Keywords: Financial Relations, Stakeholders, Corporate Finance, Corporate Governance, Corporate Efficiency, Bank Management

How to cite this paper: Brychko, M. (2013). Governance of stakeholder’s financial relationships: evidence from Ukrainian banking. Corporate Ownership & Control, 11(1-7), 706-714. https://doi.org/10.22495/cocv11i1c7art7