Corporate Governance Index for the Prague Stock Exchange and Zagreb Stock Exchange Listed Companies

• Název v anglickém jazyce: Corporate Governance Index for the Prague Stock Exchange and Zagreb Stock Exchange Listed Companies
• Klíčová slova: corporate governance; corporate governance index; The Czech Republic; Croatia; OECD
• Klíčová slova anglicky: corporate governance; corporate governance index; The Czech Republic; Croatia; OECD
• Akademický rok vypsání: 2010/2011
• Typ práce: diplomová práce
• Jazyk práce: angličtina
• Ústav: Institut ekonomických studií (23-IES)
• Vedoucí / školitel: PhDr. Mgr. Jana Gutiérrez Chvalkovská
• Řešitel: skrytý - zadáno vedoucím/školitelem
• Datum přihlášení: 07.06.2011
• Datum zadání: 07.06.2011
• Datum a čas obhajoby: 28.06.2012 00:00
• Místo konání obhajoby: IES
• Datum odevzdání elektronické podoby: 17.05.2012
• Datum proběhlé obhajoby: 28.06.2012
• Oponenti: PhDr. Mgr. Tatjana Vukelić

Zásady pro vypracování

1. Introduction
2. Literature review: starting with theoretical background on corporate governance in transition countries and corporate governance indices
3. Questionnaire to companies listed on Prague and Zagreb Stock Exchanges
4. Development of own corporate governance index
5. Robustness and consistency checks
6. Conclusion and suggestions

Seznam odborné literatury

Aksu M. And Kosedag A. (2005): The Relationship between Transparency & Disclosure and Firm Performance in the ISE: Does IFRS Adoption Make a Difference?, European Financial Management Journal 2006

Ananchotikul N. (2008): Does Foreign Direct Investment Really Improve Corporate Governance? Evidence from Thailand; Bank of Thailand Discussion Paper DP/03/2008

Andreff W. (1996): Corporate Governance of Privatized Enterprises in Transforming Economies: A Theoretical Approach; In: Most 2

Arrow K. (1963): Social choice and individual values, 2nd edition, Wiley, New York.

Australian Stock Exchange Corporate Governance Council (2003): Principles of Good Corporate Governance and Best Practice Recommendations

Austrian Working Group for Corporate Governance (2005): Questionnaire for the Voluntary External Evaluation of Compliance with the Austrian Code of Corporate Governance

Austrian Working Group for Corporate Governance (2010): Austrian Code of Corporate Governance

Baber W. and Liang L. (2008): Associations Between Internal and External Corporate Governance Characteristics and the Consequences of Regulating Governance Practices, SSRN

Barca F. and Becht M. (2001): The Control of Corporate Europe, Oxford University Press, Oxford, 20010

Bebchuk, L. (2003): Why firms adopt antitakeover arrangements; University of Pennsylvania Law Review 152

Becht M. (2003): Current Issues in European Corporate Governance; Background Note prepared for the Euro 50 Group Meeting on Corporate Governance, European Investment Bank, Luxembourg, 10 July, 2003

Beeks W. and Brown P. (2005): Do Better Governed Australian Firms Make More Informative Disclosures.?; Working paper, Lancaster University

Bendeković J. (2000): Privatisation in Croatia; Ekonomski pregled 51

Předběžná náplň práce

The thesis reveals a lot about corporate governance development in both Czech and Croatian market in last two decades, which is also necessary to understand the firm-level corporate governance, here measured for the most liquid companies – Prague Stock Exchange companies whose stocks take part in the PX Index, and Zagreb Stock Exchange companies included in the CROBEX10 Index. The analysis is based on the unique Corporate Governance Index, containing variables that refer principally to the OECD best practice recommendations. The accent is therefore on making distinction between companies that simply follow regulatory requirements, and those that truly strive to catch up with modern corporate governance trends and adopt most up-to-date recommendations. The main contribution of this thesis is the index itself, representing the composite indicator whose structure is developed by a mathematical aggregation of four indicators based on 40 variables and condensed into manageable information sets, which are then further condensed into an index. These indicators (sub-indices) reflect the quality of governance in the four main domains: board structure and functioning, conflict of interest, shareholders’ rights, and transparency and disclosure.
The true value of this index is that it precisely points out the main drawbacks in both samples’ governance, and therefore it can serve as an indicator for policy-oriented measures addressed in order to diminish or eliminate the problematic areas and make companies more competitive.

Předběžná náplň práce v anglickém jazyce

The thesis reveals a lot about corporate governance development in both Czech and Croatian market in last two decades, which is also necessary to understand the firm-level corporate governance, here measured for the most liquid companies – Prague Stock Exchange companies whose stocks take part in the PX Index, and Zagreb Stock Exchange companies included in the CROBEX10 Index. The analysis is based on the unique Corporate Governance Index, containing variables that refer principally to the OECD best practice recommendations. The accent is therefore on making distinction between companies that simply follow regulatory requirements, and those that truly strive to catch up with modern corporate governance trends and adopt most up-to-date recommendations. The main contribution of this thesis is the index itself, representing the composite indicator whose structure is developed by a mathematical aggregation of four indicators based on 40 variables and condensed into manageable information sets, which are then further condensed into an index. These indicators (sub-indices) reflect the quality of governance in the four main domains: board structure and functioning, conflict of interest, shareholders’ rights, and transparency and disclosure.
The true value of this index is that it precisely points out the main drawbacks in both samples’ governance, and therefore it can serve as an indicator for policy-oriented measures addressed in order to diminish or eliminate the problematic areas and make companies more competitive.