Corporate governance principles and entrepreneurship firms

1. Corporate governance principles and entrepreneurship firms V.Darškuvienė VytautasMagnus University Kaunas

2. Conceptual issues • Academic and policy debates • On principal-agent relationship • On information asymmetry • Greater effectiveness of the system, lowering transaction costs if agency relationships are regulated • Corporate governance as a goal itself • vs • Corporate governance as a tool to improve firm performance, concentrate on growth, innovation, sustainability, survival

3. Good corporate governance • Max SHV • Constructing theframework • Clear & credible principles • Aligning shareholder interests • Based on • Independent boards – goal & strategic direction setting • Transparent financial reporting - accountability

4. Corporate governance development Major contribution to growth & employment

5. Applicability of CG principles • Listed vs unlisted companies? • Large vsSMEs companies? • Are there connections between corporate governance and entrepreneurship? • What might be the implications of adoption of corporate governance principles to entrepreneurship firms?

6. Conceptual issues • Conditions for value creation • Entrepreneurship culture • Developing organizational framework • Incentives for different stakeholders (incl. employees) • Protection of innovative initiatives

7. The necessity of good corporate governance for SMEs • Need to access to financial resources for growth • Need for effective strategies and their implementation • Introduction of professional management • Proper remuneration and retaining key employees

8. Keyobjectivesof CGcodes/ principles

9. Developmenttowards- Principles for unlisted companies, phase 1

10. Are major concerns addressed? • Long-term vs short term interests of stakeholders? • Transferability of shares / succession planning? • Conflict resolution procedures? • Transparency? • Encouraging creativity and innovation?

11. Corporate governance regulation impact