Corporate Governance Development in a Rapidly Changing Economy: Trends and Challenges in Estonia
Implications of the Estonian privatization and the two-tier board model on corporate governance development are discussed. Despite implementing OECD corporate governance guidelines the stock market has still limited role in Estonian economy. The chapter reflects empirical research conducted at the Estonian Business School in the field of corporate governance at different stages of Estonian integration to the European Union and in the change management context. Technology-based new ventures create situations, where entrepreneurs are choosing new owners able to offer smart capital. These examples cannot be fully explained by applying the traditional principal-agent logic. Cases presented by participants of training workshops highlight conflicts between owners with different future vision and difficulties of entrepreneurs to differentiate the role of corporate governance from the daily management of business operations.
KeywordsCorporate Governance Supervisory Board Small Open Economy Management Board Limited Liability Company
- Alas, R., & Tafel, K. (2008). Corporate governance in Estonia. Corporate Ownership and Control, 5(1), 296–302.Google Scholar
- Cvelbar, L. K. (2007). The relationship between supervisory board structure and CEO turnover: The empirical evidence of Slovenia’. Nase Gospodarstvo, 5(6), 53–62.Google Scholar
- Eurostat. (2013). Real GDP growth rate. http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tec00115. Accessed 20 Mar 2013.
- Financial Supervision Authority. (2005). Corporate governance recommendations. http://www.nasdaqomxbaltic.com/files/tallinn/bors/press/HYT_eng.pdf. Accessed 20 Feb 2013.
- Foo, J., & Witkowska, D. (2011). The role of corporate governance in transition countries. International Journal of Latest Trends in Finance, Economic Sciences, 1(2), 43–53.Google Scholar
- Gerndorf, K., Elenurm, T., & Terk, E. (1999). Corporate governance in Estonia, OECD (homepage). www.oecd.org/dataoecd/60/36/1931752.pdf, Accessed 6 June 2013.
- Hannula, H. (2006). Identifying patterns in ownership changes and their implications for enterprise: Restructuring in the Estonian manufacturing sector. EBS Review, 1(21), 76–93.Google Scholar
- Jones, D. C., Kalmi, P., & Mygind, N. (2003). Choice of ownership structure and firm performance: Evidence from Estonia (Vol. 7). Helsinki: Bank of Finland, Institute for Economics in Transition.Google Scholar
- Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make competition irrelevant. Cambridge, MA: Harvard Business School Press.Google Scholar
- Maly, M. (2006). Board structure and competencies after mass privatization – The case of the Czech Republic. EBS Review, 1(21), 117–125.Google Scholar
- OECD. (2011). Corporate governance in Estonia 2011. Corporate Governance, OECD Publishing. doi.org/10.1787/9789264119079-en
- Raadik, A. (2008). Investors’ and issuers’ awareness of the corporate governance recommendations. Master’s Thesis, Estonian Business School.Google Scholar
- Rozman, R. (2006). Some organizational corporate governance issues in Slovenian enterprises. EBS Review, 1(21), 104–116.Google Scholar
- Senge, P. (1990). The fifth discipline, the art and practice of the learning organization. London: Random House.Google Scholar
- Steger, T., Tafel, K., & Alas, R. (2006). Good corporate governance in transition countries – A comparison of experts’ perceptions in East Germany, Estonia and Hungary. Berlin: IFSAM VIIIth World Congress. http://www.ctw-congress.de/ifsam/download/track_8/pap00719.pdf. Accessed 6 June 2013.
- Tafel, K., Terk, E., & Purju, A. (2006). Corporate governance in post-socialist countries – Theoretical dilemmas, peculiarities, research opportunities. EBS Review, 1(21), 7–26.Google Scholar
- Tafel-Viia, K., & Alas, R. (2009). Differences and conflicts between owners and top managers in the context of social responsibility. Engineering Economics, 4(64), 86–94.Google Scholar
- Terk, E. (2000). Privatisation in Estonia: Ideas, process, results. Tallinn: ETI Publishing.Google Scholar
- Terk, E., & Elenurm, T. (1996). Employee ownership in Estonia. Conclusions from case studies. In N. Mygind & P. N. Pedersen (Eds.), Privatization and financial participation in the Baltic countries. Case studies (pp. 1–15). Copenhagen: Copenhagen Business School.Google Scholar
- Ulmer, R. R., Sellnow, T. L., & Seeger, M. W. (2007). Effective crisis communication: Moving from crisis to opportunity. Thousand Oaks: Sage.Google Scholar