Corporate Governance (CG) is an often discussed theme, especially in Western Europe and in the U.S. after the financial crisis 2007-2010. However, in Latvia, which suffered the most in the European Union (EU) from the economic crisis, this is seemingly not a subject of debates. This poses the question whether Latvia is an emerging market in the sense of the development of CG. Therefore I chose to look at this issue more closely. The U.S. CG system influences the most important national CG systems in the world and as there is a lot of research done on the CG in the U.S., it seems to be interesting to compare the development of the CG in the U.S. with that in Latvia.
The fact that CG is getting a more and more important issue in Latvia is shown e.g. in the foundation of the Baltic Institute of Corporate Governance in 2009. The Institute’s aim is to promote development of responsible CG in the Baltic States. As it is a new organisation, it does not yet have any publications on CG in the Baltic States released. In addition, there is actually no up to date research on CG in Latvia. In 2002, the World Bank conducted the Corporate Governance Assessment based on the OECD principles of CG. There is the recently (in 2009) published book Corporate Governance in Transition Economies edited by R.W. McGee. It contains also an article on CG in Latvia, which, in fact is a summary of the CG assessment by the World Bank in 2002.
Regarding all the aspects mentioned above, the analysis of CG in Latvia provides a very interesting research area as it has been insufficiently researched until now. Moreover, a comparison with a well-established CG system like that in the U.S., could be a source of useful information and recommendations for Latvia’s companies.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Corporate Governance: Theoretical Considerations
- The Framework for Development of CG in Latvia
- Short Historical Overview
- General Political Context
- General Economic Context
- Structure of Enterprises
- The Regulatory Framework
- The CG Agents
- Shareholders' Meeting
- Shareholders' Rights
- Voting Rights
- Shareholder Protection
- Board of Directors
- Composition and Election of the Board
- Obligations and Responsibilities of the Board
- Disclosure of Information
- Council
- Composition and Election of the Council
- Obligations and Responsibilities of the Council
- Structure of the Ten Largest Latvia's Companies
- Case study - AS Diena
- Shareholders' Meeting
- Corporate Governance in the U.S.
- The Main CG Agents
- Foundations of Corporate Law
- Foundations of Securities Regulation
- Evaluation of CG in Latvia
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study investigates the development of Corporate Governance (CG) in Latvia, specifically comparing it to the American CG model. It seeks to answer the question of whether Latvia's CG system is converging towards the American model. The paper explores the theoretical foundations of CG, provides a historical overview of the CG environment in Latvia, and analyzes the legal framework and key actors in CG in both Latvia and the U.S.
- Development of Corporate Governance in Latvia
- Comparison with the American Model of Corporate Governance
- Influence of the American CG system on other national systems
- Role of historical context and legal framework in CG development
- Analysis of key CG agents: shareholders, board of directors, and supervisory council
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the context for the study by highlighting the significance of CG, particularly in the aftermath of the financial crisis, and the unique challenges faced by Latvia in establishing a robust CG system. The theoretical framework chapter provides definitions of CG and discusses the Anglo-Saxon and Continental European models. The subsequent chapters delve into the specific context of CG development in Latvia, analyzing its historical background, political and economic environment, and the legal framework governing corporate governance. The paper also examines the structure of the ten largest companies in Latvia, providing a case study of AS Diena. The chapter on U.S. CG explores the key agents, legal foundations, and regulatory framework of the American system.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this paper encompass corporate governance (CG), Latvia, the United States, Anglo-Saxon and Continental European models, historical context, legal framework, shareholders, board of directors, supervisory council, case study, and the comparison between the Latvian and American CG systems.
- Quote paper
- Ausra Liepinyte (Author), 2010, Corporate Governance in Latvia – Does It Follow the Pattern of the U.S.?, Munich, GRIN Verlag, https://www.grin.com/document/159937
