CORPORATE GOVERNANCE AS A FACTOR OF ECONOMIC DEVELOPMENT

Abstract

The necessary to transform the institutional environment in the corporate management arises from the new realities associated with changes in regulations and social challenges caused by the coronary crisis. The growing role of corporations in shaping the country’s competitive advantages and making them responsible for sustainable development determine the topic relevance, which has become especially acute in the context of the corona crisis. The purpose of this work is to substantiate the role of the institutional environment in the corporate management development as a necessary condition for economic growth. This article reveals the genesis of corporate governance as an institution, the institutional significance of corporate relations and their organizational characteristics. The main changes in the institutional environment of the corporate management in modern conditions and trends in its development are characterized. The relationship between the institutional environment, corporate management, investment climate and economic growth is substantiated. It is proved that to ensure economic development it is necessary to use the latest tools and implement foreign experience in the practice of corporate relations. The tendency of corporate management modification in the digital society is revealed. The state and prospects of corporate management development in Ukraine are analyzed. The conceptual scheme of corporate governance from the system point of view is offered. The article concludes that without an effective institutional environment it is impossible to form good corporate management practices. Since corporate governance is the result of the formation of market institutions, on the one hand, and is an important institution of the national economy – on the other, an effective institutional environment of market relations is the key to economic growth. It is proved that understanding the role of corporate management in economic growth and the importance of the institutional environment as a set of institutions that form the mechanism of corporate management determines the main directions of consistent improvement of the institutional environment from institutions to economic growth.