In a private company, conflicts arise from disagreements between controlling and non-controlling shareholders. Controlling shareholders may be involved in the management and active monitoring of ...directors in order to maximize the value of the company. On the other hand, they may also use their power to benefit themselves at the expense of the company and other shareholders such as by appointing their family members or acquaintances to be on the board of directors regardless of their qualification and performance and granting them high remuneration. Controlling shareholders can also oppress non-controlling shareholders by removing the latter from management positions and refusing to distribute dividends even when the company has sufficient profits to do so. This leaves non-controlling shareholders with no financial benefits and eventually these shareholders involuntarily decide to leave the company. This article discusses how controlling shareholders dominate the company and examines how Thai laws, particularly the Civil and Commercial Code which governs private companies, prevent controlling shareholders from exploiting the benefits of the company and non-controlling shareholders and provide remedies for both the company and non-controlling shareholders. The author argues that the legal mechanisms for deterring controlling shareholders from wrongdoing and providing remedies are not effective enough.
The Korean shipping industry has developed swiftly since the 1960s, and by 2018 Korea had become one of the world’s top seven shipowning countries. From 1945 to the 1960s, the Korea Shipping ...Corporation, as a national shipping company, played a crucial role in leading the development of the shipping industry. Since the privatization of this national shipping company in 1968, Korean shipping has been led by private companies. This article analyzes the forces that drove the rapid expansion of private shipping companies between 1960 and 1981, and contends that government policy and the entrepreneurship of merchant marine officers were the main causal factors.
Today's society framework is linked to qualities that might impact corporate organizations, such as competitiveness, globalization, market economy, and even economic crises, on both national and ...international scale. In this environment, a private business must follow current trends by seeking continual quality improvement of its operations to prevent stagnation. The goal of this research is to examine the organizational culture of Romanian private-sector businesses, as this is a unique feature that, if not managed effectively, can have a detrimental impact on a company's quality and competitiveness. The tool used for this research to diagnose the dominant direction of Romania’s private companies was the Organizational Culture Assessment Instrument (OCAI). Results indicated that employees would prefera clan culture, more specifically, a place where people share the same values, and loyalty and traditions are key fora friendly work environment.
Today the corporate governance is very important the same as the governance of the state. All the company has their strategy about the corporate governance. In the same time the companies has their ...code in the field of corporate governance because the management today has became more responsible. Corporate governance in Albania is at its beginnings because Albania has a new market economy. Corporate governance today is very important, as with the government of states. Corporate governance issues have gradually become important in Albania during the last decade. The corporate governance principles are very important in maintaining, increasing and optimizing the invested funds, especially for the firms with the initial public offering. The separation of ownership from control is at the top of corporate governance system and in the same time is the core of the agency problems facing by the firms (Berle & Means 1932; Jensen & Meckling 1976). Theoretical discussions and empirical research largely conclude that the problems are strongest influence on systems of corporate governance, although many other factors affect corporate governance, including legal systems, cultural and religious traditions, political stability and economic events. It has to be underlined that capital markets are a relatively new experience for Albania. This paper provides an overview of empirical and theoretical discussions on specific corporate governance issues in the economic environment in Albania and corporate responsible governance index.
The value of an unlisted company is a contentious issue. This is because investors value marketability and liquidity, but vacillate on the appropriate percentage discount that needs to be applied for ...the valuation of a private company. As more companies find it easier to remain private, a better understanding of this discount is increasingly important. The extant discount studies are mainly derived from financial and transactional data. They provide reliable averages using large sample sizes, but present few determinants to explain the wide ranges in the observations. Our research is based on a unique, alternative data source that complements existing studies by tapping into rich contextual information. Specifically, we examine court decisions that determine the appropriate discount and relate this percentage to an important characteristic of a private company: its “open” character, i.e. its willingness to accept outside shareholders or partners in the venture. We find that open and closed companies differ in value 6.5%. Our conclusions hold after controlling for known determinants of the discount. Our results impact valuation approaches and present real-world application for the owners and managers of private companies who may consider opening ownership to third parties.
Based on the concept of sharing in the new era, following the goal orientation of ‘common progress of the people, sharing and win–win’, this article builds a networked integration model of private ...company taking part in state-owned company mixed ownership reform with industrial clusters as the core and integrating equity sharing, power sharing and benefit sharing from the three levels of capital structure, governance structure and distribution structure. Furthermore, 602 state-owned mixed company from 2007 to 2017 are taken as research samples to conduct an empirical study on the efficiency of networked integration model. The results show that the networked integration model can significantly improve the business performance of company. Equity sharing, power sharing and benefit sharing have obvious and positive effect on business performance. Compared with non-industrial clusters, the networked integration model under the condition of industrial clusters has more effect on promoting business performance. State-owned capital is the most critical factor affecting business performance in the overall sample and the non-industrial cluster sample, while private capital is the most critical factor affecting business performance in the industrial cluster sample.
This paper examines how the concept of "conservatism" evolved in historical and contemporary accounting writings using authoritative professional and academic documents. The paper reviews the ...application of conservatism in the FASB and IASB conceptual frameworks. A brief discussion of empirical research on conservatism is provided. Finally, the paper looks at the declining influence of conservatism in private company accounting principles in three selected countries: Belgium, Switzerland, and Japan. Conservatism is found to be a perennial issue in accounting practice and accounting standard setting. This concept has long been embedded in private company accounting in different countries. Its rationale, along with its conflict with neutrality have been debated for centuries.
This paper investigates empirical relations between the redemption values of minority shares and valuation methods used by dissenting parties in the judicial valuation of private firms. We examine a ...comprehensive data set of Finnish judicial appraisal cases in which the judge decides the valuation of the minority stake in a private firm after learning the valuation estimates put forward by the controlling shareholder(s) and the minority shareholder(s). Rationality in valuation will be achieved if a valuation estimate incorporates all the available information regardless of the valuation method adopted. Conversely, the measurement perspective argues that biases inherent in valuation approaches determine the information content in a valuation estimate. Our statistical analyses suggest that the choices made concerning the valuation method are statistically correlated with the appraisal outcomes. We interpret this as evidence consistent with the measurement perspective.
Access to human bioresources is essential to the understanding of human diseases and to the discovery of new biomarkers aimed at improving the diagnosis, prognosis, and the predictive response of ...patients to treatments. The use of biospecimens is strictly controlled by ethical assessment, which complies with the laws of the country. These laws regulate the partnerships between the biobanks and industrial actors. However, private–public partnerships (PPP) can be limiting for several reasons, which can hamper the discovery of new biological tests and new active molecules targeted to human diseases. The bottlenecks and roadblocks in establishing these partnerships include: poor organization of the biobank in setting up PPP, evaluation of the cost of human samples, the absence of experience on the public side in setting up contracts with industry, and the fact that public and private partners may not share the same objectives. However, it is critical, in particular for academic biobanks, to establish strong PPP to accelerate translational research for the benefits of patients, and to allow the sustainability of the biobank. The purpose of this review is to discuss the main bottlenecks and roadblocks that can hamper the establishment of PPP based on solid and trusting relationships.
PDF
