Corporate governance of slovenian and german telecommunications companiesNatalija Pauman
, 2019, master's thesis
Abstract: In the master’s thesis we researched corporate governance and the quality of corporate governance. Corporate governance and management of organizations stem from the need and the desire for the existence and development of an organization. It is necessary to establish certain kind of monitoring and controlling in organizations, which we define with the term “corporate governance”. Corporate governance is the system of regulating and controlling corporate conduct and of balancing interests of all shareholders and other stakeholders to which company has influence. The interests of directors and shareholders may be in contrast. The purpose of corporate governance is to find a way to satisfy the interest of both, the board of directors and the shareholders, and at the same time to create long-team and sustainable growth for the company. Corporate governance is extremely important for individual organizations and, consequently, for their business. Compering different organizations, their corporate governance is done in different ways. Corporate governance in developed countries and leading economies is certainly different than in smaller and less developed countries. In this case, arises a question what kind of corporate governance can be labelled as “good” or “first-class” corporate governance. In order to improve corporate governance practices, various legal regulations and other forms of binding and less binding rules, recommendations, codes and standards have been developed. Quality is extremely important for organizations, therefore several methods, methodologies and indexes for measuring the quality of corporate governance have been developed. The purpose of methods is to evaluate and compare the quality of corporate governance between individual companies and between different countries. The results can serve for developing measures to improve corporate governance practices. At the same time, findings can serve to modify and supplement existing legislation and recommendations. The corporate governance index, as a measure of the quality of corporate governance processes, can also be one of the important indicators of the company's potential in order to access to new sources of capital and to reduce the capital´s costs in comparison with other companies. The main purpose of the master's thesis is to study corporate governance and its impact on the business of Slovenian and German telecommunication companies. We make comparison between following companies: Telekom Slovenije, d.d., A1 Slovenija, d.d., Deutsche Telekom AG and Telefónica Deutschland Holding AG. The quality of corporate governance in selected companies was measured with the SEECGAN methodology and index. The methodology was designed to measure the quality of corporate governance. It ensures transparency and provides a structured overview of the main areas of corporate governance between different companies. In empirical part of master’s thesis, we found out that Telekom Slovenije, d.d. has "first-class" quality of corporate governance, A1 Slovenia, d.d. has a "good" quality of corporate governance, Deutsche Telekom AG has a "first-class" quality of corporate governance and Telefónica Deutschland Holding AG has a "good" quality of corporate governance. We found out that both countries have companies with “first-class” and “good” corporate governance. The quality of corporate governance is not related to the national origin or country of operation of the company. One of the main finding of the analysis is that there are no significant differences between the quality of corporate governance in specific areas of SEECGAN index in Slovenian and German companies.
Keywords: corporate governance, quality of corporate governance, telecommunication companies, public stock companies, SEECGAN index and methodology, measuring the quality of corporate governance
Published: 24.10.2019; Views: 281; Downloads: 41
Full text (3,15 MB)