The essence of corporate governance. Financial aspects of corporate governance Formation of corporate governance

Problem solving corporate governance carried out using various methods. Management methods, or technologies, include:

• a system of rules and procedures (tools) for solving various management problems in order to ensure the effective development of the corporation;
• a set of techniques and methods of influencing a managed object to achieve the goals set by the company.

The main content is realized through management methods management activities. When solving a particular management problem, methods serve the goals practical management, providing at his disposal a system of rules, techniques and approaches that reduce the expenditure of time and other resources on setting and implementing goals.

The multiplicity of management methods and different approaches to their classification complicate the task of choosing those that will be more effective in solving specific problems. management tasks. The trend towards an increase in the number and variety of management methods requires the ordering of their entire set by classification according to certain criteria. When characterizing management methods, it is necessary to reveal their focus, content and organizational form.

• Focus management methods are focused on the management system (object) (employee, department, division, company, etc.).
• Content- this is the specificity of techniques and methods of influence.
• Organizational form- impact on a specific situation. This can be direct (immediate) or indirect (setting the task and creating stimulating conditions) influence.

In management practice, as a rule, various methods and their combinations are used simultaneously. It should be noted that in the economic literature there is no uniform interpretation of the content, the object of influence and the classification of management methods.

Some authors classify management methods depending on their content, focus and organizational form, which essentially reflects the administrative, economic and social impact on the managed system. Others characterize them by the methods and methods of influence. One way or another, all management methods organically complement each other and are in constant dynamic balance.

It should be assumed that in a specific management method, content, direction, and organizational form. In this regard, the following management methods can be distinguished:

• organizational and administrative, based on direct directives;
• economic, due to economic incentives;
• socio-psychological, used to increase the social activity of employees.

Organizational and administrative methods

Organizational and administrative methods of management are methods of direct influence that are directive, mandatory in nature and based on discipline, responsibility, power, and coercion. Organizational and administrative methods include:

• organizational design;
• regulation;
• rationing.

Organizational and administrative methods are usually implemented in the form:

• order;
• regulations;
• orders;
• instructions;
• teams;
• programs of actions and events;
• recommendations.

Organizational and administrative methods have a direct impact on the managed object through orders, instructions, operational instructions given in writing or orally, control over their implementation, a system of administrative means of maintaining labor discipline etc. They are designed to ensure organizational clarity and labor discipline. These methods are regulated legal acts labor and economic legislation, the main goals of which are: legal regulation labor relations, strengthening the rule of law, protecting the rights and legitimate interests of the company and its employees in accordance with legislative acts.

Economic methods

Economic management methods are a system of techniques and methods of influencing performers using a specific comparison of costs and results (material incentives and sanctions, financing and lending, wages, cost, profit, price).

The main management method here is the system wages and bonuses, which should be maximally related to the performance of the performer. It is advisable to link a manager’s remuneration to the results of his activities in the area of ​​responsibility or to the results of the activities of the entire company.

Economic methods also include methods of influencing groups of workers, including cost accounting, pricing, financing, etc.

Unlike organizational and administrative economic methods guidelines involve the development of general and specific economic planning indicators and means of achieving them.

It's kind of economic mechanism in economic relations. As a result of increasing the effectiveness of economic levers and incentives, conditions are created under which the workforce and its members are encouraged to work effectively not so much by administrative influence (orders, directives, instructions, etc.), but by economic incentives. Based on economic management methods, organizational, administrative and socio-psychological methods should be developed and strengthened, and the professionalism and culture of their application should be improved.

The specific set and content of levers of economic influence are determined by the specifics of the managed system (company). In accordance with this, in management practice, economic management methods most often appear in the following forms:

• planning,
• analysis,
• self-financing,
• pricing,
• financing.

Despite the characteristic modern stage strengthening the role of economic levers and incentives, one should not limit organizational and administrative methods of influence, which, due to the centralization of management, help to fulfill intense planned tasks.

Social-psychological methods

Socio-psychological methods are a set of specific ways of influencing personal relationships and connections that arise in work groups, as well as social processes, flowing in them. They are based on the use of moral incentives to work and influence the individual through psychological techniques in order to transform an administrative task into a conscious duty, an internal human need. This is achieved through techniques that are personal in nature (personal example, authority, etc.). The main socio-psychological methods include motivating performers, social planning, regulating interpersonal and intergroup relations, creating and maintaining a moral climate in the team.

It has been established that labor results largely depend on a number of psychological factors. The ability to take these factors into account and, with their help, purposefully influence individual employees will help the manager form a team with common goals and objectives. Sociological studies indicate that the success of an economic manager depends 15% on his professional knowledge, 85% - from the ability to work with people.

Socio-psychological management methods require that the team be led by people who are flexible enough and who know how to use various aspects of management. The success of a leader’s activities in this direction depends on how correctly he applies various forms of socio-psychological influence, which will ultimately form healthy interpersonal relationships. Planning can be recommended as the main forms of such influence. social development work collectives, persuasion as a method of education and personality formation, economic competition, criticism and self-criticism, permanent production meetings, which act as a method of management and as a form of workers’ participation in management.

Instrumental methods

Instrumental management methods are a system of methods, rules and procedures (tools) for solving various management problems in order to ensure the effective development of the company. Instrumental methods include:

• economic and mathematical modeling, which allows you to formulate the problem in the form of a mathematical problem. The main ones are models of mathematical programming, graph theory, balance models, models of probability theory and mathematical statistics, game theory, etc.;
• methods based on systems analysis, which are used to solve loosely structured problems characterized by significant uncertainty. These methods include formal and informal (heuristic) models that use the generalized experience and intuition of model specialists, including: methods of scenarios, graphs and decision trees, linguistic, etc.;
• simulation modeling, based on the construction of models simulating problem solving, decision making, situation analysis, and representing information system, including a set of logical-linguistic and mathematical models and methods, the necessary technical means, software, information and organizational support.

Information and communication methods are essential in corporate management. Its effectiveness depends on how successfully managers and company personnel use their potential and information technology to achieve the goals of the company and business.

One of the main processes for ensuring joint activities the company's personnel are developed communications, i.e. processes of transmitting information from one person to another. An analysis of activities in modern companies shows that from 50% (for ordinary employees) to 80% (for managers) of working time is spent on communications. Therefore, the effectiveness of communications is one of the main sources of effective operation of the entire company.

Oral communication is the most effective in terms of attracting and maintaining the attention of the recipient of information, as well as receiving feedback. In the same time oral communication does not allow the sender of the message to fully control its content and is associated with a significant level of interference in the system.

Written communication provides a higher degree of purity in the transmission of information and allows it to be kept unchanged for an indefinite period of time, which is very important for the implementation of the function management control, and also allows the recipient of information to clarify it an unlimited number of times.

Top-down communication plays a vital role in company management, as it directly affects the motivation and ability of employees to perform their tasks. production functions and therefore ensure the achievement of organizational goals. Its main goal is to provide information about what (how, when, where) company employees should do. Therefore, the main forms of top-down communication are orders, instructions, regulations, rules and procedures. Also, the most important function of top-down communication is the assessment of employee performance over the past period.

Bottom-up communication has traditionally played a purely informational role: in order to make decisions, managers at all levels need to know about the state of affairs on the ground. Majority modern companies has a formalized system of statistical and analytical reports, certificates, etc. However, the difference in status between those who provide and receive information, the dependence of the former on the latter create an objective threat of distortion of information. Subordinates often exaggerate their achievements and hide shortcomings, and are afraid to provide information that, in their opinion, could negatively affect their career or remuneration. As a result of providing distorted information, the quality of decisions made by managers suffers and the efficiency of company management decreases. Traditional methods of quality control of information provided from below are the collection of data from independent sources and random checks. Both of these methods are based on the employee’s understanding that deliberate misrepresentation of information will be identified and he may be punished. However, more important is the creation of an atmosphere of trust between management and employees of the company, which can arise through effective top-down communication that provides feedback and involvement of ordinary employees in the management of the company.

Horizontal communication is carried out between employees located at the same hierarchical level: deputy general directors, heads of personnel and sales departments, design bureau engineers. Main goal horizontal communication is the exchange of information to coordinate the actions of departments and employees, i.e. to optimize production behavior and achieve company goals. The importance of this type of communication increases as the number of hierarchical levels in the company and the time available for adoption are reduced. management decisions, both of these trends are clearly visible in the modern world.

The effectiveness of intra-organizational communication (the extent to which organizational resources spent on this process - financial, human, material - contribute to the implementation of goals) depends on many factors that can be divided into two large groups: individual and organizational.

Individual factors mean everything that is associated with company employees, their ability and desire to participate in information exchange. Research shows that there are a limited number of problems (communication barriers) that reduce the effectiveness of communication at the individual employee level.

Information and communication systems are the basis for the application of all management methods and technologies. The central task of designing effective information and communication systems is to improve the awareness of decision makers (DMs).

Information Technology, i.e. methods of communication and information processing are based on computer and non-computer methods. Computer information technologies are combined into corporate information systems.

The use of new information technologies and the provision of computer support for management and business processes is a mandatory element of the activities of any company. Information technologies rely on methods for modeling business processes and organizational structure.

In the scientific literature I have come across various interpretations of corporate governance. I will give some of them.

Corporate governance is a system of relationships between company managers and their owners (shareholders), as well as other interested parties, on issues related to ensuring the efficiency of the company and ensuring the interests of owners and other interested parties.

Corporate governance is the process by which a balance is established between economic and social goals, and between individual and public interests.

Corporate governance is a type of economic management of corporate

associations. Its main functions are strategic planning development of the economic units included in the corporation, and the corporation as a whole, by types of products, works and services produced. They are also responsible for the volume of product output, its renewal and development of types of production and technology, the use and reconstruction of equipment, achieving competitive advantages in the markets of new products and traditional markets, ensuring sustainable growth in labor productivity, improving the organizational structure of the corporation and communication relations between its elements and bringing them in accordance with changes in production and market conditions.

But don’t think that corporate governance is just about managing a corporation. In a broad sense, the concept of “corporate governance”, associated with the concept of “corporation”, will be understood as management characterized by a high level of organization, with special principles inherent in it. The basic standards of corporate governance adopted by many corporations in developed countries are enshrined in the OECD (Organization for Economic Co-operation and Development) Principles of Corporate Governance. Basically these principles boil down to the following:

Maintaining a balance of interests of certain categories of shareholders;

Subordination of shareholders to the activities of executive bodies and the board of directors of joint stock companies;

A clear delineation of competencies between the management bodies of joint stock companies ( general meeting shareholders, board of directors and executive body);

Ensuring transparency of activities and decision-making by all management bodies of joint-stock companies;

Independence of control bodies of joint stock companies.

Corporate governance in the narrow sense is a system of rules and incentives that encourage company managers to act in the interests of shareholders.

IN economic theory There is no evidence that “correct” corporate governance necessarily ensures high competitiveness of the company. For example, many large “family” companies that do not meet corporate governance standards are quite competitive. It is believed that corporate governance protects against abuse, but makes companies less flexible.

At the same time, companies that comply with corporate governance standards have a clear advantage when attracting investments (for example, through an IPO). According to investors, good corporate governance ensures the integrity of management and transparency of the company's activities, so the risk of losing funds is significantly reduced.

For companies in developing countries, corporate governance is especially important, as international investors have particular concerns about integrity and business qualities their management. Research shows that the capitalization of companies with good corporate governance is significantly higher than the market average. This difference is especially great for Arab countries, Latin American countries (except Chile), Turkey, Russia, Malaysia, and Indonesia.

In turn, the subjects of corporate governance are understood as: managers, shareholders and other interested parties (creditors, company employees, company partners, local authorities).

All participants in corporate relations have common goals, including:

1. creating a viable profitable company, ensuring the production of high-quality goods and jobs, as well as having high prestige and an impeccable reputation;

2. increasing the value of the company’s tangible and intangible assets, increasing the price of its shares and ensuring the payment of dividends;

3. gaining access to external financing (capital markets);

4. gaining access to labor resources(cadres of managers and other employees);

5. increase in jobs and overall economic growth.

At the same time, each participant in corporate relations has his own interests, and the difference between them can lead to the development of corporate conflicts. In turn, good corporate governance helps to prevent conflicts and, when they arise, to resolve them through established processes and structures. Such processes and structures are the formation and functioning of various management bodies, regulation of relationships between them, ensuring equal treatment of all parties, disclosure of appropriate information, maintaining accounting and financial statements in accordance with proper standards, etc. (Appendix 1)

How do the interests of corporate governance subjects differ?

Managers receive the bulk of their remuneration, usually in the form of a guaranteed salary, while other forms of compensation play a much smaller role. They are interested, first of all, in the strength of their position, the stability of the company and reducing the risk of exposure to unforeseen circumstances (for example, financing the company's activities primarily through retained earnings rather than external debt). In the process of developing and implementing a development strategy, companies, as a rule, tend to establish a strong long-term balance between risk and profit. Managers are dependent on shareholders, represented by the board of directors, and have an incentive to renew their contracts with the company. They also directly interact with a large number of groups that have an interest in the company’s activities (company personnel, creditors, clients, suppliers, regional and local authorities, etc.) and are forced to take into account, to one degree or another, their interests. Managers are under the influence of a number of factors that are not related to the tasks of increasing the efficiency and value of the company or even contradict them (the desire to increase the size of the company, expand its charitable activities as a means of increasing personal status, corporate prestige, etc.).

In turn, shareholders can receive income from the company’s activities only in the form of dividends (that part of the company’s profit that remains after the company pays off its obligations), as well as through the sale of shares in the event of a high level of their quotations. Accordingly, they are interested in the company's high profits and high stock price. At the same time, shareholders bear the highest risks: lack of income if the company’s activities, for one reason or another, do not generate profit; In the event of bankruptcy, companies receive compensation only after the claims of all other groups have been satisfied. Shareholders tend to support decisions that lead to high profits for the company, but also involve high risk. As a rule, they diversify their investments among several companies, so investments in one specific company are not the only (or even the main) source of income, and also have the opportunity to influence the company’s management in only two ways:

1. during meetings of shareholders, through the election of one or another composition of the board of directors and approval or disapproval of the activities of the company’s management;

2. by selling the shares they own, thereby influencing the stock price, as well as creating the possibility of the company being taken over by shareholders unfriendly to the current management. Shareholders do not directly interact with the company's management and other interested groups.

There is another group of participants in corporate relations, called other interest groups (“co-participants”), including:

1. Creditors:

They receive a profit, the level of which is fixed in the agreement between them and the company. Accordingly, they are primarily interested in the sustainability of the company and guarantees of return of the funds provided. Are not inclined to support solutions that provide high profits, but associated with high risks;

Diversify their investments among a large number of companies.

2. Company employees:

First of all, they are interested in the sustainability of the company and the preservation of their jobs, which are their main source of income;

Directly interact with management, depend on it and, as a rule, have a very limited opportunities impact on him.

3. Company partners (regular buyers of its products, suppliers, etc.):

Are interested in the stability of the company, its solvency and the continuation of activities in a certain area of ​​business;

Directly interact with management.

4. Local authorities authorities:

First of all, they are interested in the sustainability of the company, its ability to pay taxes, create jobs, and implement social programs;

Directly interact with management;

They have the ability to influence the company's activities mainly through local taxes.

As you can see, participants in corporate relations interact with each other in different ways, and the area of ​​divergence of their interests is very significant. A properly structured corporate governance system should minimize the possible negative impact of these differences on the company’s operations. The corporate governance system formulates and coordinates the interests of shareholders, formalizes them in the form of strategic goals of the company and controls the process of achieving these goals by corporate management.

The basis of the corporate governance system is the process of building and effective implementation internal control over the activities of the company's managers on behalf of its owners (investors), because It was thanks to the funds provided by the latter that the company was able to begin its activities and created a field for the activities of other interested groups.

The above allows us to conclude that corporate governance has two aspects: external and internal. The external aspect focuses on the company's relationship with the socio-economic environment: the government, regulators, creditors, securities market participants, local communities and other stakeholders. The internal aspect focuses on relationships within the company: between shareholders, members of supervisory, executive and control and audit bodies.

The corporate governance system is created to solve three main tasks facing the corporation: ensuring its maximum efficiency; attracting investments; fulfilling legal and social obligations.

A system of proper corporate governance is needed, first of all, by open joint-stock companies with big amount shareholders doing business in industries with high growth rates and interested in mobilizing external financial resources on the capital market. However, its usefulness is undoubted for JSCs with a small number of shareholders, CJSCs and LLCs, as well as for companies operating in industries with medium and low growth rates. The implementation of such a system allows you to optimize internal business processes and prevent the occurrence of conflicts by properly organizing the company’s relations with owners, creditors, potential investors, suppliers, consumers, employees, representatives government agencies and public organizations.

In addition, many firms sooner or later face limited internal financial resources and the impossibility of a long-term increase in debt burden. Therefore, it is better to implement the principles of effective corporate governance in advance: this will ensure the future competitive advantage company and thereby give it the opportunity to get ahead of its rivals

Effective corporate governance gives joint stock companies the following advantages:

Firstly, facilitating access to the capital market. Corporate governance practice is one of the most important factors, determining the ability of companies to enter domestic and foreign capital markets. The implementation of the principles of good corporate governance provides the necessary level of protection for the rights of investors, so they perceive effectively managed companies as friendly and capable of providing an acceptable level of return on investment.

Secondly, a decrease in the cost of capital. Joint stock companies that adhere to high standards corporate governance, can achieve a reduction in the cost of external financial resources used by them in their activities and, consequently, a reduction in the cost of capital in general. The cost of capital depends on the level of risk assigned to the company by investors: the higher the risk, the higher the cost of capital. One type of risk is the risk of violation of investor rights. When investor rights are well protected, the cost of equity and debt capital decreases. It should be noted that recently among investors providing borrowed capital(i.e. creditors), there is a clear trend to include corporate governance practices in the list of key criteria used in the investment decision-making process. Therefore, the implementation of effective corporate governance can reduce the interest rate on loans and borrowings.

Corporate governance plays a special role in countries with emerging markets, which have not yet created the same strong system of protection of shareholder rights as in countries with developed market economies. The level of risk and cost of capital depend not only on the state of the country’s economy as a whole, but also on the quality of corporate governance in a particular company. Joint-stock companies that have managed to achieve even small improvements in corporate governance can receive very significant advantages in the eyes of investors compared to other joint-stock companies operating in the same industries.

Third, promoting efficiency gains. As a result of improving the quality of corporate governance, the accountability system is improved, thereby minimizing the risk of fraud by company officials and their transactions in their own interests. In addition, control over the work of managers is improved and the connection between the remuneration system for managers and the results of the company’s activities is strengthened, and favorable conditions are created for planning the succession of managers and sustainable long-term development of the company.

Good corporate governance is based on the principles of transparency, accessibility, efficiency, regularity, completeness and reliability of information at all levels. If the transparency of a joint stock company increases, investors have the opportunity to gain insight into business operations and decide on further cooperation.

Thus, compliance with corporate governance standards helps improve the decision-making process that can have a significant impact on the efficiency of the company’s financial and economic activities at all levels. High-quality corporate governance streamlines all business processes occurring in the company, which contributes to the growth of turnover and profits while simultaneously reducing the volume of required capital investments.

Management methods must take into account the specifics of the subject of management and can be divided into:

· administrative;

· economic;

· legislative and regulatory legal;

· organizational.

At the same time, these management methods can be divided into levels of application by management subjects:

· corporate;

· level of business areas of the corporation;

· individual enterprises and divisions.

The process of managing all these types of corporate entities will be built within the framework of the general management cycle, however, in accordance with the specifics of management objects, this cycle can be transformed to improve the efficiency of functioning of a particular corporate property object.

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Khvichiya Revaz Avtandilovich

With2nd year undergraduate student, Department of Economics and Business, Tbilisi University “Gorgasali”, Tbilisi

Kakabadze Vazha Vladimirovich

scientific supervisor, Doctor of Economics, corresponding member of the Georgian Engineering Academy, Tbilisi

Annotation: The introduction of market economy processes in the former socialist republics posed difficult challenges for the country's economy, including in the formation and functioning of management decisions. Although in these countries the ways of effectively solving problems of analysis, planning and management issues are gradually being improved, they are still devoid of scientific foundations, do not meet the requirements existing in the world, and are devoid of reality.

Countries with advanced technologies, in the management process, mainly use methods for diagnosing management decisions and mathematical methods that ensure the success of management activities, which should be an example for former socialist countries, since the use of these methods in combination is characterized by the effect of a longer-lasting ability.

Keywords: Former socialist countries, management efficiency.

Introduction

A corporation is one of the forms of a capital company. Capital companies are companies that have capital divided into shares. Basically it is a joint stock company.

The corporate governance system is designed to regulate the relationship between company managers and their owners, as well as to coordinate the goals of stakeholders (company shareholders), ensuring the effective functioning of companies.

In the Anglo-American model, the interests of shareholders are represented by a large number of small investors, control is in the hands of the corporation's management. In the German (insider) model, all parties interested in the activities of the corporation have the right to participate in the decision-making process (shareholders, managers, personnel, banks, public organizations).

The Anglo-American and German models are two extreme options. Between them there are many intermediate national forms. The Japanese model of corporate governance is characterized as completely closed and based on bank control, which reduces the problem of managerial control. The family management model is common in all countries of the world; in this system, corporations are managed by members of close relatives (family). IN Russian model In corporate governance, the principle of separation of ownership and control rights is usually not recognized.

Despite the fact that limited liability companies partially have similar characteristics, the classic model of a corporation is still a joint stock company. They have a guaranteed capital provided for in the charter, which is divided into shares.

So when we're talking about about corporate governance, first of all we mean the management of joint stock companies. Corporate governance is carried out at the top level of management of a joint stock company and addresses its structure and processes to ensure fair, transparent and accountable behavior.

General situation of corporate governance in the former socialist republics

According to statistical data for 2011, there are 2,440 joint-stock companies in Georgia, 2,400 in Azerbaijan, and 2,443 in Armenia. From a quantitative point of view, in the total number of operating enterprises, the share of joint-stock companies ranges from 0.7 to 0.9%, but in terms of employment and production they occupy a significantly larger share.

In the former socialist countries, corporate governance went through difficult stages of development, which were mainly associated with an imperfect national legislative framework and a lack of qualified management personnel. For example, the Government of Georgia has developed only a few laws to regulate this area, in particular, the law “On Entrepreneurs”; the Law “On Securities”, the Civil Code of Georgia” and the Law “On Commercial Banks”, as well as the “Corporate Governance Code for Commercial Banks” created in 2009. As for Azerbaijan, laws similar to those of Georgia have been developed there, with the only difference being that in almost all laws the strict hand of the government is felt, for example, the law regulating the activities of commercial banks complicates the administrative procedure for merging banks. And in Armenia, the law regulating the activities of entrepreneurs almost ignores the interests of shareholders. All this causes a conflict of interests between economic entities and a decrease in management efficiency. Approximately the same picture is observed in other former socialist countries.

Analysis of legal aspects of corporate governance

International practice confirms that corporate governance is interconnected and goes through four stages, in particular:

· Compliance with legal and regulatory requirements.

· Measures taken to improve corporate governance.

· Improved corporate governance system.

· Leadership in corporate governance.

And also three ways to improve operational efficiency, in particular:

1. Improved oversight and accountability;

2. Improved decision making process;

3. Improved compliance, less conflict.

Let's look at all three operational efficiency indicators separately:

· Improved oversight and accountability means that improved governance within a company results in a healthier accountability system and reduces the risk of fraud. Improving accountability identifies problems before a crisis occurs, so action is taken to address them early. At the same time, corporate governance improves the activities of individuals and their control. In former socialist countries, the accountability system is well established and can be rated highly.

· Implicit in improved decision making is that adherence to standards of exemplary corporate governance contributes to improved decision making. For example, if the communication process is managed effectively, then the company's board members, directors and shareholders will make better decisions. This will happen because through good communication they will be more informed and will be able to better understand their own responsibilities. In socialist countries, less attention is paid to the communication process, which consequently hinders decision-making.

· Improved compliance, less conflict means compliance of the corporation's existing governance system with applicable rules, laws, rights and responsibilities of stakeholders. If this does not happen, then the parties begin to file complaints in court, which costs the company large amounts of money. In former socialist countries, this issue (improved compliance) has not been fully resolved, which indirectly indicates that the owners of the corporation represent corporations as entities separate from the state, and this circumstance is caused by the fact that corporations have their representatives (lobbyists) in the government.

It should be especially noted that proper corporate governance is the basis for improving access of capital to markets, which in turn is the basis for attracting free capital, both by issuing and selling shares and by attracting credit resources. Properly managed companies are seen as investor-friendly companies that can be trusted to generate profits without compromising shareholder rights.

Good corporate governance requires well-written reporting and transparency of the information contained therein. After reading such statements, investors have a real idea of ​​the borrowing company. Thus, financial statements increases (or decreases) the control value. According to a study by economic experts, it was found that in Western Europe For 45 percent of investors, reporting is of little significance, for 40 percent it is of equal importance, and for 15 percent it is more significant. In Eastern Europe it is the other way around. Here, for 15 percent of investors, reporting is less important, for 45 percent it is equally important, and for 40 percent it is more important. According to economics expert V. Kakabadze, this is due to the fact that the countries of Eastern Europe are former socialist countries (Georgia, Poland, Czech Republic, Hungary, etc.), with a low level of development and insufficient experience in market relations. Naturally, the level of trust in relation to their companies is lower than in relation to companies from Western European countries - Germany, France, England, etc. North America (USA and Canada) is equated to Western Europe, and Asia and Latin America are equated to Eastern Europe and Africa.

The benefit of good corporate governance is access to cheap capital. This is achieved by reducing the cost (price) of the capital raised. As you know, the higher the risk of raising capital, the higher the expense. These risks include the risk of violation of investor rights. If investors' rights are adequately protected, then the cost of raising capital can be reduced. In addition, the cost of raising capital and the level of risk is related to the economic and political state of the country. This especially applies to developing countries, including Georgia and Azerbaijan. For example, in Georgia the new the legislative framework, reforms in this area have not yet been completed and as a result of all this, foreign investors are refraining from investing in Georgian companies, and this at a time when astute investors are ready to pay premiums for investments in well-established companies. For this purpose, in Russia they pay 38 percent in the form of bonuses, in China - 25 percent, in the USA - 14 percent, in Poland - 23 percent, etc.

Investors associate the practical level of corporate governance with the size of its assets. According to their vision, if a company is well managed, then its assets also have greater volume. Indeed, the company's assets include such an asset as accounts receivable (claims). Such debt to the company arises from buyers of its products in installments (30, 60, 90, 120 days). The amount of accounts receivable is the property of the company, but due to payment in installments, it is diverted from the company. If a company is properly managed, it is obvious that the debt will be repaid on time, but if management is weak, the receivables may become uncollectible, or even uncollectible. In the latter case, it will reduce his assets. Moreover, according to the methodology for calculating the liquidity of a company’s assets, accounts receivable are included in highly liquid assets. In Georgia, this is recognized as a paradox, since 50-80 percent of receivables remain unrecovered and are written off as losses. The reason for this is the weak management of companies.

The benefit of good corporate governance is also the creation of a better reputation. Reputation, i.e. goodwill is an intangible asset of a company. The goodwill of a well-managed company has a high value. An increase in the value of goodwill causes an increase in confidence in the company’s products, which in turn determines high level sales and increasing the company's profitability. But in such former socialist countries as Georgia and Azerbaijan, this circumstance is not paid due attention. For example, despite the fact that significant economic reforms have been implemented in Georgia over the past years, this issue has not yet been resolved.

One of the reasons for Georgia's economic failure is that the country does not have a good corporate governance system. Directors and managers of a corporation do not consider themselves to be representatives of shareholders or accountable to them and often gain personal benefit at the expense of the shareholders or the company. It should also be noted that complex tax legislation caused the introduction of distorted management practices in Georgia, in particular, the fact that company directors were forced to introduce “black” and “white” accounting.

In 2008, the international financial corporation IFC conducted a study of corporate governance in 150 Georgian companies. She conducted a similar study in 2004. According to the latest study, it was found that “Desirable changes in the corporate governance of Georgian companies have been realized over the past 3 years; Although the knowledge of corporate governance has improved significantly, there is no progress in “knowledge and fidelity”. Violations still remain in other corporate governance issues, in particular:

· Ownership and separation of control. Most control shares act the same as CEO and are represented on the Supervisory Board. Even those companies that differentiate between ownership and control only have it written down on paper. Typically, such companies have weak reporting and control structures, with the majority of controlling shareholders exercising oversight themselves in the role of director or member of the Supervisory Board.

According to the IFC study, it was also found that in only 50 percent of Georgian companies shareholders are able to familiarize themselves with the balance sheet, in 41.3 percent - familiarization with the profit and loss statement, in 25.3 percent - familiarization with changes in capital, in 19.3 percent - familiarization with the identities of shareholders owning a controlling stake.

Of course, foreign companies also have problems, but in former socialist countries there are more of them, which is mainly due to the fact that post-communist countries have not yet switched to market psychology.

Bibliography:

1. Drucker P. Management challenges in the 21st century. Tutorial. M., 2007 -472 p. (in Russian)
2. Kruglova N.Yu. Fundamentals of business (entrepreneurship): textbook. M., 2010 - 480 p. (in Russian)
3. Kakabadze V. Investments and project management. Publishing house "Meridian", Tbilisi, 2011 - 376 p. (in Georgian)
4. Kakabadze V. Business administration (twelve steps of perfection). Publishing house "Meridian", Tbilisi, 2011 - 314 pp. (in Georgian)
5. Corporate Governance Guide, Georgia, International Finance Corporation - IFC. Report, Tbilisi, September 2010 - 311 p. (in Georgian and English)
6. Statistical bulletin “Entrepreneurship in Georgia, statistical information.” Publishing house "Depart. Stat.”, Tbilisi, 2010 - 202 p. (in Georgian)
7. Chanturia L. Corporate governance and responsibility of managers in corporate law. Publishing house "Samartali", Tbilisi, 2006 - 403 pp. (in Georgian)

The essence and criteria of corporate governance. Participants in corporate relations. Types of corporate associations. Principles of corporate management. Features of the development of corporate governance in the Russian Federation.

Regulatory documents

1. Civil Code of the Russian Federation (part one). dated November 30, 1994 N 51-FZ.

2. the federal law"About joint stock companies» dated December 26, 1995 N 208-FZ

Textbooks

1. Antonov V.G. Corporate governance. Textbook / V.G. Antonov, V.V. Krylov, A.Yu. Kuzmichev. – M. – 2012. – 288 p.

2. Vesnin V.R. Corporate governance / V.R. Vesnin. – M.: MGIU, 2011, 153 p.

3. Voronkova A.E. Corporate governance Textbook for universities / A.E. Voronkova, G.V. Kozachenko, A.M. Kozachenko. – M.: Libra. – 2012. – 368 p.

4. Dementieva A.G. Fundamentals of corporate governance: Textbook / A.G. Dementieva. – M.: Master 2009. – 575 p.

3. Periodicals

1. Problems of management theory and practice

2. Russian magazine management

3. Management in Russia and abroad

Internet sources

1. Administrative and management portal [ electronic resource] // http:// aup.ru

2. Economics and management at enterprises: scientific and educational portal [electronic resource] // http:// eup.ru

Discipline "Research of control systems"

1. Research of processes and control systems: basic concepts.

Research concept. The concept of the subject and object of research, the methodological principles of their identification. Factual research Scientific and practical research. Types of research. Collective and individual research. The role of research in various areas of production development. Need, incentives and quality of research. Methodology and organization of the study. Problems in the study of processes and control systems.

Methods in the study of control systems.

Concept and classification of methods in the study of control systems. General scientific and private research methods. Exploring management through socio-economic experimentation. Testing in control systems research. Factor analysis of control systems. Sociological studies of management systems. Expert assessments in the study of control systems. Scientific and practical effectiveness of the research

Textbooks

1. Zhukov B. M., Tkacheva E. N. Research of control systems B. M. Zhukov, E. N. Tkacheva. – M.: Dashkov and Co., 2011. – 208 p.

2. Ignatieva A.V., Maksimtsov M.M. Research of control systems / A.V. Ignatieva, M.M. Maksimtsov. – M.: UNITY-DANA, 2010. – 167 p.

3. Korotkov E.M. Research of control systems: Textbook. – M.: “Deka”, 2010.

4. Saunders M. Methods of conducting economic research / M. Saunders, F. Lewis, E. Thornhill; [transl. from English]. – 3rd ed. – M.: Eksmo, 2010. – 640 p.

2. Periodicals

1. Sociological research

2. Forecasting problems

3. Russian Journal of Management

Internet sources

1. Administrative and management portal AUP.RU [electronic resource] // http://www.aup.ru/

2. Library of the Libertarium (“Moscow Libertarium Library (Russian)”) [electronic resource] // http://www.libertarium.ru/library/

3. Website “Corporate Management” [electronic resource] // http://www.cfin.ru/

4. Materials on the study of control systems [electronic resource] // http://www.inventech.ru/lib/analis/

5. Materials on the study of control systems [electronic resource] // // http://e-college.ru/xbooks/xbook192/book/index/index.html

6. Electronic journal“Economic sociology” [electronic resource] // http://www.ecsoc.msses.ru.

GLOSSARY

Research algorithm – This is a certain, rigid sequence of carrying out research procedures in order to achieve the required result.

Questionnaire is a collective term used to refer to all methods of data collection in which all respondents answer the same set of questions in a predetermined sequence.

Validity– a characteristic showing how accurately the collected data reflect the phenomenon under study.

Deduction– this is the process of movement of thought from the general to the individual, from the law to its individual manifestations.

Dialectics– a theory of cognition that reveals the process of cognition, the interaction of its main elements in the process of comprehending the truth.

Induction– the process of movement of thought from the particular to the general, from a number of factors to the law.

Study– the process of scientific study of any object (subject, phenomenon) in order to identify its patterns of emergence, development and transformation in the interests of society.

Content analysis– this is the translation into quantitative indicators of mass textual (or recorded on various media) information with its subsequent statistical processing.

Control System Research Concept– a set of hypotheses used in developing a research project.

Logics(Greek logike - thought, mind) is the science of the laws and forms of thinking, methods of cognition and methods of reasoning that ensure verification of the truth of knowledge and judgments about any object.

Delphi method– a set of methods for organizing an examination, interviewing experts, processing and evaluating their results, obtaining a group conclusion that meets certain general requirements.

Control system research methodology– a set of algorithm, special rules and techniques for obtaining information about the object of study.

Research methods– represent methods and techniques for conducting research, the competent application of which contributes to obtaining reliable and complete results regarding the problems that have arisen in the organization.

Brainstorm– is a set of methods for group discussion with the aim of generating alternative, non-traditional solutions for the objects under study, and the formation of new, original ideas.

Observation – a method of collecting primary social information about the object being studied through direct perception and direct registration of all factors related to the object being studied and significant from the point of view of the study.

Scientific effectiveness of the study determined by the increase in knowledge in a particular area that has occurred as a result of research.

Object of study– the bearer of a problem situation, a specific area of ​​social reality, the sphere of activity of a subject of social life, included in the process of scientific knowledge.

Survey - a method of obtaining primary sociological information based on oral or written appeal to the population under study with questions, the content of which represents the research problem at the empirical level.

Organization of the study is a system of regulations, standards, instructions that determine the procedure for its implementation, i.e. the distribution of functions, duties, responsibilities and powers for carrying out research work.

Subject of study– this is a set of essential features (or variables) that describe the phenomenon being studied.

Study plan – this is a set of indicators reflecting the connection and sequence of key activities (actions, actions, etc.) leading to the full implementation of the program and resolution of the problem .

Research program - This is a set of provisions that define the goals and objectives of the study, the subject and conditions of its conduct, the resources used, as well as the expected result.

System analysis – this is a set of studies aimed at identifying general trends and factors in the development of an organization and developing measures to improve the management system and all production and economic activities of the organization.

Systems approach – a concrete scientific method of dialectical-materialist methodology, which has general scientific significance.

Test is a method of studying the deep processes of human activity through his statements or assessments of factors in the functioning of the control system.

Functional analysis– study of the dynamic characteristics of the system by determining: the processes of change in its state over time based on accepted operating algorithms.

Experiment – a method of obtaining social information as a result of the influence of certain manageable and controllable factors (variables) on the object of study.

Efficiency– the degree of compliance of the real (actual or expected) results of the management process with the required ones, i.e. it is the degree to which the management goal is achieved.

Discipline "Quality Management"

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