THEORETICAL ASPECTS OF CORPORATE GOVERNANCE IN SERVICE OF CORPORATE CLIENTS

Abstract

The theoretical aspects of corporate governance principles that underpin the corporate governance code of the Organization for Economic Co-operation and Development (OECD) have been highlighted in the article. International models of corporate governance are analyzed, their advantages and disadvantages for integration and modernization into the Ukrainian model of corporate governance. It is noted that the modernization of corporate governance at the national level is now the top priority of most countries. The emergence of generally accepted standards of corporate governance is due, first of all, to an increase in attention to corporate governance in the conditions of globalization of financial markets, liberalization of the movement of capital. It is revealed that the international standards of corporate governance are also a response of society to the global financial crises and the desire for stability of financial markets. The central instrument that enables this goal to be achieved is the implementation of national principles (codes) for corporate governance. It has been proved that the main task of corporate governance is to create a system of relationships between owners, managers and third parties. Forming a clear structure for these bodies allows all interests to be taken into account and ensures their balance and sound performance, especially for large institutional investors, since many of them have long-term investment plans, and therefore such investors focus on effective corporate governance. First of all, it concerns the transparency and adequate protection of the rights of small shareholders in order to achieve sufficient long-term profitability growth. It has been found that corporate governance standards are important in making investment decisions and affecting investment attractiveness. Improving corporate governance will allow domestic and foreign investors to be assured of reliable protection of property rights, and will provide enterprises with resources for further development, which will contribute to the development and strengthening of the national economy of Ukraine.