RAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY

The author considers features of the economic nature of activity of the shareholder in corporate governance and in the control over management. The author offers the standard of the diligent shareholder and the standard of the diligent management as necessary condition for rapprochement of long-term...

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Autor principal: S. I. Lutsenko
Formato: article
Lenguaje:RU
Publicado: Real Economics Publishing House 2020
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Acceso en línea:https://doaj.org/article/5cf38c28d8e1498890c16fa675f831f5
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spelling oai:doaj.org-article:5cf38c28d8e1498890c16fa675f831f52021-11-19T10:42:00ZRAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY2618-947X2618-998410.17747/2618-947X-2019-4-352-359https://doaj.org/article/5cf38c28d8e1498890c16fa675f831f52020-03-01T00:00:00Zhttps://www.jsdrm.ru/jour/article/view/875https://doaj.org/toc/2618-947Xhttps://doaj.org/toc/2618-9984The author considers features of the economic nature of activity of the shareholder in corporate governance and in the control over management. The author offers the standard of the diligent shareholder and the standard of the diligent management as necessary condition for rapprochement of long-term financial interests. Reasonable and diligent realization of the corporate rights, display of interest to company activity will allow the shareholder to receive the information on the concluded transactions. The information on transactions will allow to protect the broken rights in the terms established by the law. The reasonable management within the limits of standard administrative practice should make the maximum efforts for achievement of firm wealth maximization and also consider factors which to a greater or lesser extent influence firm wealth maximization and can be considered as the independent purposes at a certain stage of activity of the company. The company it is necessary to implement the motivation program for rapprochement of long-term financial interests of the shareholder and the management. The motivation program means reception of property benefit from increase in a stock value (share) of the company which possibility of reception is the circumstance stimulating management to act in interests of the company. According to the best practice of corporate governance level of the compensation paid to management, should be sufficient for attraction, motivation and deduction of the persons possessing necessary for company professional skills and qualification, and the compensation system should provide rapprochement of financial interests of directors with long-term financial interests of shareholders. The clause is interdisciplinary, covering elements of corporate governance which are a part of the corporate finance as sciences, and also, the corporate right.S. I. LutsenkoReal Economics Publishing House articlecorporate governancelong-term financial interestslong-term stimulationshareholder activismmodel of diligent behaviormanagerial decisionRisk in industry. Risk managementHD61RU Strategičeskie Rešeniâ i Risk-Menedžment, Vol 10, Iss 4, Pp 352-359 (2020)
institution DOAJ
collection DOAJ
language RU
topic corporate governance
long-term financial interests
long-term stimulation
shareholder activism
model of diligent behavior
managerial decision
Risk in industry. Risk management
HD61
spellingShingle corporate governance
long-term financial interests
long-term stimulation
shareholder activism
model of diligent behavior
managerial decision
Risk in industry. Risk management
HD61
S. I. Lutsenko
RAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY
description The author considers features of the economic nature of activity of the shareholder in corporate governance and in the control over management. The author offers the standard of the diligent shareholder and the standard of the diligent management as necessary condition for rapprochement of long-term financial interests. Reasonable and diligent realization of the corporate rights, display of interest to company activity will allow the shareholder to receive the information on the concluded transactions. The information on transactions will allow to protect the broken rights in the terms established by the law. The reasonable management within the limits of standard administrative practice should make the maximum efforts for achievement of firm wealth maximization and also consider factors which to a greater or lesser extent influence firm wealth maximization and can be considered as the independent purposes at a certain stage of activity of the company. The company it is necessary to implement the motivation program for rapprochement of long-term financial interests of the shareholder and the management. The motivation program means reception of property benefit from increase in a stock value (share) of the company which possibility of reception is the circumstance stimulating management to act in interests of the company. According to the best practice of corporate governance level of the compensation paid to management, should be sufficient for attraction, motivation and deduction of the persons possessing necessary for company professional skills and qualification, and the compensation system should provide rapprochement of financial interests of directors with long-term financial interests of shareholders. The clause is interdisciplinary, covering elements of corporate governance which are a part of the corporate finance as sciences, and also, the corporate right.
format article
author S. I. Lutsenko
author_facet S. I. Lutsenko
author_sort S. I. Lutsenko
title RAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY
title_short RAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY
title_full RAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY
title_fullStr RAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY
title_full_unstemmed RAPPROCHEMENT OF LONG-TERM FINANCIAL INTERESTS OF THE SHAREHOLDER AND THE MANAGEMENT OF THE COMPANY
title_sort rapprochement of long-term financial interests of the shareholder and the management of the company
publisher Real Economics Publishing House
publishDate 2020
url https://doaj.org/article/5cf38c28d8e1498890c16fa675f831f5
work_keys_str_mv AT silutsenko rapprochementoflongtermfinancialinterestsoftheshareholderandthemanagementofthecompany
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