Irodakhon komilova

Comparison of Good Corporate Governance in Indonesia and Uzbekistan

Comparison of Good Corporate Governance in Indonesia and Uzbekistan


IRODAKHON KOMILOVA

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Corresponding author: Irodakhon Komilova,
Faculty of Management, Unversity Wahid Hasyim, Indonesia.
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Irodakhon Komilova
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ABSTRACT

Empirical studies on corporate governance and corporate competitiveness often focus on specific facets of these two types of business environments. Conflicting and murky study findings have been made regarding their relationships. My findings provide persuasive evidence that, first, the majority of multinational corporations follow good corporate governance standards; second, the more a firm adheres to such practices, the more competitive the firm is; third, the relationship between corporate

governance and corporate competitiveness is substantially stronger when corporate governance is evaluated on a holistic basis rather than on an individual dimension or attribute; and, finally, the majority of multinational firms follow good corporate governance standards.


Keywords: corporate governance, Corporate Governance Framework privatized companies, joint-stock companies, ownership structure.


INTRODUCTION


Since emerging economies lack a robust infrastructure of financial institutions with a lengthy history of dealing with corporate governance problems, these challenges are particularly crucial in these economies. In recent years, the subject of corporate governance has gained importance in developing economies. The advantages of having a sound corporate governance structure are beginning to dawn on directors, owners, and corporate managers. Share prices can rise and capital acquisition is made simpler with good corporate governance. When a company does not adhere to the best practices in corporate governance, foreign investors are reluctant to lend money to them or purchase their shares. Particularly crucial factors include independence from the board of directors, transparency, and a separate audit committee.


If a company lacks these things, some foreign investors won't even consider investing in it seriously.


The adoption and application of excellent corporate governance concepts has been aided by the emergence of numerous organizations in recent years. Governments and businesses in Eastern Europe have been urged to adopt and put into practice corporate codes of conduct and good corporate governance principles by the Organisation for Economic Co-operation and Development (OECD), the World Bank, the International Finance Corporation, the U.S. Commerce and State Departments, and a large number of other organizations.


When it comes to corporate governance, every country, developed or developing, faces the same problems. Due to their corporate boards' lack of institutional memory and expertise compared to those of developed market economies, transition economies are, nonetheless, faced with extra challenges. Additionally, they face unique difficulties not as great in more advanced economies. The removal of pyramid ownership structures that enable insiders to manage and, occasionally, siphon off assets from publicly owned enterprises based on very little direct equity ownership and hence minimal consequences is one of these additional issues. Others include establishing a rule-based (as opposed to a relationship-based) system of governance, fighting vested interests, and dismantling vested interest.severing linkages like cross-shareholdings between banks and businesses; establishing property rights systems that clearly and easily identify true owners even when the state is the owner (when the state is an owner, it is necessary to disclose which state branch or department enjoys ownership and the accompanying rights and obligations); depoliticizing decision-making and establishing firewalls between the government and management in corporatized companies when there are instances of management acting without consulting with the government.


When it comes to Indonesia and Uzbekistan , they are totally different , there is no similiarities. There is given following Information about Corporate Governance of Indonesia and Uzbekistan, Specifics of Corporate Governance in Indonesia and A review of Corporate Governance in Uzbekistan, respectively.