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Corporate control in the public enterprises in Bulgaria

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  • Plamen Tchipev

Abstract

Two important problems are investigated - how is the information for corporate control revealed and what is its model in the Bulgarian public enterprises. Analyzed are the introduction and implementation of the EU Directive of revealing of information, as well as statistical investigation of the corporate control in 104 public enterprises, traded on the Sofia Stock Exchange by means of their shareholder structure. Among the most important conclusions of the investigation are: First, the adoption of the strict requirements of the European Directive 88/627 is an indisputable success for the further development of the legal base governing public companies and the trading of their stock. In the same time its practical implementation is not sufficiently consistent, which is not in the interest of investors, mainly the minority and individual investors. Second, the property of the public companies at present is strictly concentrated in the hands of a small number of shareholders. They hold over 50% of voting shares, which enables them to benefit more from managing the companies than to rely on the classical investment aims for capital return and dividends.

Suggested Citation

  • Plamen Tchipev, 2002. "Corporate control in the public enterprises in Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 48-68.
    • Handle: RePEc:bas:econth:y:2002:i:6:p:48-68
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    References listed on IDEAS

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    1. Plamen D. Tchipev, 1998. "Bulgarian Mass Privatisation: Implications on Corporate Governance," ERI-BAS Chapters, in: Plamen D. Tchipev & Jurgen Backhaus & Frank Stephen (ed.), Mass privatisation schemes in Central and East European Countries. Implications on corporate governance, edition 1, chapter 2, pages 77-116 Bulgarian Academy of Sciences - Economic Research Institute.
    2. Becht, M.C. & Chapelle, A. & Renneboog, L.D.R., 1999. "Shareholding Cascades : The Separation of Ownership and Control in Belgium," Other publications TiSEM 7a15c5ff-a909-44ed-abb6-9, Tilburg University, School of Economics and Management.
    3. Stefan Petranov, 2001. "Concentration of Capital in the Public Joint-stock Companies, Protection for the Investors and the Capital Market: 1997-1999," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 133-148.
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    Cited by:

    1. Miroslav Nedelchev, 2017. "Corporate Governance and ‘Principal-Principal’ Conflicts: the Case of the Banking System in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 117-135.
    2. Plamen D. Tchipev, 2008. "Corporate Governance in Bulgaria's Accession to the EU: Corporate Boards Perspective," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 152-181.
    3. Nedelchev, Miroslav, 2014. "Corporate governance of banking group: international recommendations, european policies and national practices," MPRA Paper 64586, University Library of Munich, Germany.
    4. Raina Tsaneva, 2011. "Institutional Investment in Bulgaria – Trends, Problems and Directions," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 66-89.
    5. Georgeta Vintila & tefan Cristian Gherghina, 2015. "Does Ownership Structure Influence Firm Value? An Empirical Research towards the Bucharest Stock Exchange Listed Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 501-514.

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    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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