Publication detail

Mejstrik M.,K.:Corporate Governance, Ownership Concentration and FDI in CR. In:Corporate Restructuring and Governance in transition Countries (ed.B.Dallago,I.Iwasaki),Palgrave

Author(s): prof. Ing. Michal Mejstřík CSc., Krystof Mejstrik
Type: Chapter in book
Year: 2007
Number:
ISSN / ISBN: ISBN 140399935X
Published in: Palgrave Macmillan
Publishing place: London
Keywords: corporate governance, Foreign direct investment, ownership concentration
JEL codes: G300, G380,
Suggested Citation: Mejstrik M.and K.:Corporate Governance, Ownership Concentration and FDI in CR. In:Corporate Restructuring and Governance in transition Countries (ed.B.Dallago,I.Iwasaki), Palgrave Macmillan, London, pp. 65-90, ISBN 140399935X
Grants: 402/05/2123 (2005-2007) Efficiency of Financial Markets and New Basel Capital Accord (NBCA) IES Research Framework Institutional task (2005-2011) Integration of the Czech economy into European union and its development
Abstract: Issues of corporate governance were seen as the key barriers for further enterprise development and credit policy of banks within the Czech Republic and also influenced significantly the shape of foreign investments. The Czech institutional prerequisites and a transitory “Czech-biased, bivalent form” of corporate governance generated internationally high degree of ownership concentration. Foreigners gradually invested more of foreign direct investments but less portfolio investments. Foreign-controlled companies seemed to exhibit long-term standard behavior that might have been partially eroded by the environment with prevailing incomplete contracts having used by number of controlling shareholders to consume their private benefits of control. The adopted institutional changes following EU “acquis communautaire”, huge inflow of foreign direct investments, internal firms maturization and privatization of remaining state banks resulted in standardization of the Czech corporate governance marked by rapid improvement of corporate performance and competitiveness.
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