CORPORATE GOVERNANCE АN ОVERVIEW : SOME ESSENTIALS

Abstract

Today in Ukraine most of the private sector of the economy are enterprises that have acquired the form of joint stock companies as a result of privatization. Joint-stock companies are gradually undergoing the first period of adaptation to new economic conditions, determining the main directions of their development, forming able-bodied teams and intensifying the search for financial resources to implement their strategic plans. Some economic difficulties of the modern period, such as the crisis of defaults, budget deficits, inflation, only increase interest in a cheaper, compared to bank loans, equity market. At the same time, the introduction of an effective system of corporate governance is generally crucial for the development of the industrial and financial sectors of Ukraine's economy. Because conflicts between corporate parties are common, it is important to know clearly the rights and responsibilities of all stakeholders. Even if there is no conflict, awareness of corporate governance will not only not hurt, but will probably be very useful. Corporate governance creates a legal framework for determining the rights and responsibilities of various parties to the corporation. Understanding corporate governance allows each party to plan and implement its strategy and evaluate the behavior of other parties. This paper reviews in generally the concept of Corporate governance For a shorter And easier definition and explanation to Corporate Governance for business students, teachers, managers, by analyses some of  the most important of academic studies, review the environmental, ethical disasters and financial crises, to determine what matters most in how corporate governance can support management to development, and what is needed to get the job done to implementing good practices. The literature have showed generally that good governance  that good  corporate governance benefit firms and support management through greater access to financing, lower cost of capital, better firm performance, and more favorable treatment of all stakeholders. also, Numerous studies agree that evidence is available on the direct relation  between Failure in governance or the weakness of governance practices and financial crises, social outcomes including poverty and environmental performance.