<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The analysis of the factors of corporate governance is divided into four thematic sections. In the first part corporate governance is defined as part of the broader economic context. The second part deals with the principles of corporate governance. In the third part, the relation between the index of corporate governance and individual indicators (an indicator of commitment, transparency, and disclosure, caring for partners, and control and audit) regarding ownership is defined. An analysis was undertaken for the countries of Central and Eastern Europe. A higher level of foreign ownership had a positive correlation with the corporate governance index. On the other hand, the correlation between state ownership and corporate governance index was not clear. The prevention of poor banking practices does not only lie in controlling functions, but also in the general corporate and risk-taking cultures, and the social perception of managerial roles, regardless of ownership structure.</p></abstract>

The analysis of the factors of corporate governance is divided into four thematic sections. In the first part corporate governance is defined as part of the broader economic context. The second part deals with the principles of corporate governance. In the third part, the relation between the index of corporate governance and individual indicators (an indicator of commitment, transparency, and disclosure, caring for partners, and control and audit) regarding ownership is defined. An analysis was undertaken for the countries of Central and Eastern Europe. A higher level of foreign ownership had a positive correlation with the corporate governance index. On the other hand, the correlation between state ownership and corporate governance index was not clear. The prevention of poor banking practices does not only lie in controlling functions, but also in the general corporate and risk-taking cultures, and the social perception of managerial roles, regardless of ownership structure.

The Importance of Corporate Governance of Banks Concerning the Ownership in the International Environment

Naše gospodarstvo/Our economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The analysis of the factors of corporate governance is divided into four thematic sections. In the first part corporate governance is defined as part of the...

The Importance of Corporate Governance of Banks Concerning the Ownership in the International Environment

Published Online: Dec 31, 2020

Page range: 11 - 27

Received: Nov 01, 2019

Accepted: Dec 01, 2020

DOI: https://doi.org/10.2478/ngoe-2020-0020

Keywords
corporate governance index, state ownership, ownership structure, corporate governance principles, board independence

© 2020 Mejra Festić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Importance of Corporate Governance of Banks Concerning the Ownership in the International Environment

Published Online: Dec 31, 2020

Page range: 11 - 27

Received: Nov 01, 2019

Accepted: Dec 01, 2020

DOI: https://doi.org/10.2478/ngoe-2020-0020

Keywordscorporate governance index, state ownership, ownership structure, corporate governance principles, board independence

© 2020 Mejra Festić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
corporate governance index, state ownership, ownership structure, corporate governance principles, board independence