Corporate conflicts are an integral part of the corporate sector and can not be completely avoided, however on condition of building effective mechanisms for resolving corporate conflicts, scale of losses and the negative effects they cause can be significantly reduced. Purpose of this article is to study the prerequisites and mechanisms for resolving corporate conflicts in the English-American and German (continental) model of corporate governance to justify the practice areas of improvement of the national regulation of corporate conflicts. Research of foreign experience allowed to distinguish such factors that influence on appearance and resolving of certain forms of corporate conflicts: concentration and structure of corporate property, position of key participants of corporate relations, role of the state, performance of the stock market. Certainly, that in English-American model the dominant corporate conflicts are conflicts of category “ principal-agent “ between shareholders and managers and principal reasons that assist appearance of corporate conflicts in a model are: the dispersed ownership, limit nature of influence of investors on a management and control of guidance, unlimited authorities of board of directors of corporation. It is marked that models inherent frequent and scale corporate conflicts. It is noted that the resolution of corporate conflicts in this model has following features: the active role of shareholders, proper judicial protection of investors, the rapid changes in legislation towards prevention of conflicts. Research of European experience allowed to distinguish the next features of corporate relations in a continental model: the concentrated ownership structure, two-tier control system, active role of trade unions. It is marked that frequency and scale of corporate conflicts in the European countries, than in the USA is lower. It is shown that in European model of corporate conflicts the more frequent are ownership conflicts that arise up through overuse of majority investors. It is noted that the resolution of corporate conflicts in the model inherents the following features: proper control of management and the powerful influence of employees.
corporate relations, model of corporate governance, corporate conflict
Among the problems of the banking sector in Ukraine corporate conflicts in banks occupy an important place, because corporate conflicts are an integral part of banking activity and can not be completely avoided.
The aim of the paper is to study trends in the occurrence of corporate disputes in the banking sector of Ukraine.
The research of such aspects helped theoretically to identify two forms of corporate conflicts: conflicts between the owners of the bank and conflicts between resource owners and persons who dispose it (conflict “principal-agent”).
Empirical research of trends of occurrence of corporate conflicts in Ukraine’s banking sector has shown that key corporate conflicts in banks of Ukraine are conflicts category “principal-agent” between the bank and customers that arise in the implementation of all basic banking transactions: credit, deposit and settlement and payment.
The analysis shows different prerequisites of conflicts appearance with clients. At the core of most corporate conflicts that occur during the credit operations is misrepresentation and fraud. Conflicts that arise with deposit operations usually occur due to unprofessional or deliberate actions of managers and employees of banks. A typical manifestation of opportunistic behavior in this case is evasion and theft. A distinctive feature of conflict- settlement and settlement services is that they arise from the actions of bank employees or third parties, and are in the form of theft.
Empirical studies allowed to identify these underlying causes that contribute to the emergence of corporate conflicts in banks of Ukraine: not limited legislation monopoly of major shareholders; absence in many banks of due diligence of existing and potential customers and their business projects for which funding is available; imperfect control system for the owner of deposit accounts; insufficient level of financial literacy monitoring and individual clients; insufficient attention to the bank’s recruitment.
It is concluded that to prevent the emergence of corporate conflicts is possible by conducting the following: formulation of procedures regulating transactions with related parties intended to limit the monopoly holder in management decisions; establish clear requirements for uniform standards and procedures documentation loans from banks; strengthening the regulatory functions of regulators to protect the rights of bank customers, which is manifested in the formation of banking supervision and regulation; forming the regulatory procedure of workers violations.
bank, corporate relations, members of corporate relations, corporate conflict
Citations
Denys, O. B. (2015). Sfery proyavu korporatyvnoyi sotsial'noyi vidpovidal'nosti biznesu: zarubizhnyy dosvid i vitchyznyana praktyka [Spheres of manifestation of corporate social responsibility of business: foreign experience and domestic practice]. Visnyk Universytetu bankivs'koyi spravy Natsional'noho Banku Ukrayiny – Bulletin of the University of Banking of the National Bank of Ukraine, 2(8), 36-38. [in Ukrainian]. {re2024.01.112.011}