Addressing the issue of corporate raiding in Ukraine
-
Author(s)Bogdan DerevyankoLink to ORCID Index: https://orcid.org/0000-0001-7408-8285
,
Vitaliy M. PashkovLink to ORCID Index: https://orcid.org/0000-0001-9489-7768
,
Olha A. TurkotLink to ORCID Index: https://orcid.org/0000-0003-4505-3096
,
Nadiia V. ZahrishevaLink to ORCID Index: https://orcid.org/0000-0002-3605-8912
,
Olena S. BisiukLink to ORCID Index: https://orcid.org/0000-0002-1570-2721
-
DOIhttp://dx.doi.org/10.21511/ppm.18(1).2020.15
-
Article InfoVolume 18 2020, Issue #1, pp. 171-180
- Cited by
- 698 Views
-
147 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The phenomenon of “raiding,” i.e., the unlawful establishment of control over the property or governing boards of an enterprise, as well as the seizure of its shares, has been reported in all countries of the world for many decades. This phenomenon has the most dangerous forms in the states with the underdeveloped economy and legal system, particularly in Ukraine. The paper aims to determine the areas for counteracting and overcoming corporate raiding in Ukraine and to provide proposals for improving the legislative framework for reliable protection against attacks on the enterprises’ property.
The information in the paper, including the geography of raider attacks, indicates a greater vulnerability of enterprises in the most economically developed regions, with extensive transport infrastructure and the prospects for various industries and sectors of the economy development. The state should take some steps to increase the level of enterprises protection against raider attacks. Thus, to improve the quality of preventing and combating corporate raiding, this paper argues the need to develop and adopt the Corporate Property Protection Code of Ukraine. The introduction of the raider attacks register will be an effective measure to warn potential investors and counterparties about the dangers of cooperation with certain companies. The state register should be bilingual (Ukrainian and English) and contain information on the attempts and cases of raider attacks on property and corporate business rights. Also for further innovations in starting a business, Ukraine must pay attention to New Zealand’s and Finland’s experience.
- Keywords
-
JEL Classification (Paper profile tab)G34, K22, K25
-
References30
-
Tables2
-
Figures0
-
- Table 1. Number of raider attacks in regions and areas of Ukraine from 2013 to 2018
- Table 2. Place and index of Ukraine in 2015–2019 IPRI rating
-
- Andrushkiv, B. M., & Maliuta, L. Ya. (2016). Ekonomichna ta maynova bezpeka biznesu [Economic and property security of business]. Ternopil: FOP Palianytsia V. A. (In Ukrainian).
- Åslund, A. (2014). The Maidan and Beyond: Oligarchs, Corruption, and European Integration. Journal of Democracy, 25(3), 64-73.
- Demers, C., Giroux, N., & Chreim, S. (2003). Merger and acquisition announcements as corporate wedding narratives. Journal of Organizational Change Management, 16(2), 223-242.
- Deutsch, Y., Keil, T., & Laamanen, T. (2007). Decision Making in Acquisitions: The Effect of Outside Directors’ Compensation on Acquisition Patterns. Journal of Management, 33(1), 30-56.
- Kander, A., Taalbi, J., Oksanen, J., Sjöö, K., & Rilla, N. (2019). Innovation trends and industrial renewal in Finland and Sweden 1970–2013. Scandinavian Economic History Review, 67(1), 47-70.
- Köke, J. (2002). Determinants of acquisition and failure: evidence from corporate Germany. Structural Change and Economic Dynamics, 13(4), 457-484.
- Kuchuk, M. (2018, June 2). Skilky reiderskykh zakhoplen zdiisnyly v Ukraini z 2013-ho roku [How many raider seizures have been carried out in Ukraine since 2013]. The Village. (In Ukrainian).
- Legislation of Ukraine. (2018, October 18). The Bankruptcy Code of Ukraine (No. 2597-VIII).
- Legislation of Ukraine. (2019, October 23). The Law of Ukraine “On Amendments to Some Legislative Acts of Ukraine on Protection of Property Rights” (No. 202).
- Lin, C., Officer, M. S., & Zou, H. (2011). Directors’ and officers’ liability insurance and acquisition outcomes. Journal of Financial Economics, 102(3), 507-525.
- Milyavskyi, M. U., & Korobka, I. S. (2016). Development of methodological support of internal control how technology to protect corporate enterprises from raiding and other types of hostile takeover. In S. I. Drobyazko (Ed.), Economics, management, law: problems of establishing and transformation (pp. 256-259). Dubai: Al Ghurair Printing and Publishing LLC. (In Russian).
- Mokiy, A., Fleychuk, M., & Datsko, O. (2016). Resursy rozvytku pidpryiemstv v Ukraini: instytutsiini ryzyky [Enterprise Development Resources in Ukraine: Institutional Risks]. Naukovi zapysky Lvivskoho universytetu biznesu ta prava – Scientific notes of Lviv University of Business and Law, 16, 37-43. (In Ukrainian)
- Novak, A. M., & Zatvarskyi, Ya. (2017). Zapobihannya ryzykam nedruzhnoho pohlynannia v systemi ekonomichnoi bezpeky pidpryiemstva [Prevention of risks of unfavorable absorption in the economic security of the enterprise]. In VІ International Scientific-Practical Conference “Strategic Monitoring and Anti-Corruption Audit in the System of Financial and Economic Security of State, Region, Business Entities” (pp. 77-79). (In Ukrainian).
- Osipian, A. (2018). The Political Economy of Corporate Raiding in Russia (174 p.). London: Routledge.
- Osipian, A. L. (2012). Predatory Raiding in Russia: Institutions and Property Rights After the Crisis. Journal of Economic Issues, 46(2), 469-480.
- Owen, R., & Mason, C. (2019). Emerging trends in government venture capital policies in smaller peripheral economies: Lessons from Finland, New Zealand, and Estonia. Strategic Change, 28(1), 83-93.
- Parnes, D. (2009). The Corporate Acquisition Policy of Financially Distressed Firms. The Financial Review, 44(4), 603-623.
- Paul, D. L. (2007). Board Composition and Corrective Action: Evidence from Corporate Responses to Bad Acquisition Bids. Journal of Financial and Quantitative Analysis, 42(3), 759-783.
- Property Rights Alliance. (2018). International Property Rights Index 2018.
- Property Rights Alliance. (2019). International Property Rights Index 2019.
- Rochlitz, M. (2014). Corporate raiding and the role of the state in Russia. Post-Soviet Affairs, 30(2-3), 89-114.
- Rochlitz, M. (2017). Violent Pressure on Business and the Size of the Informal Economy: Evidence from Russian Regions. In A. Polese, C. Williams, I. Horodnic, & P. Bejakovic (Eds.), The Informal Economy in Global Perspective (pp. 173-193). Cham: Palgrave Macmillan.
- Rojansky, M. A. (2014). Corporate Raiding in Ukraine: Prevention, Defense, and Policy Reform. Review of Central and East European Law, 39(3-4). 245-289.
- Shevchuk, I. V. (2017). Sutnist ta osnovni zakhody protydii reiderstvu v korporatyvnomu sektori Ukrainy [The essence and main measures to counteract raiding in the corporate sector of Ukraine]. In III International Scientific-Practical Conference “Stratehichni napriamy sotsialno-ekonomichnoho rozvytku derzhavy v umovakh hlobalizatsii” [“Strategic directions for socio-economic development of the state in conditions of globalization”] (pp. 276-279). (In Ukrainian).
- Sorokivska, O. A. (2014). Doslidzhennia vyiaviv ekonomichnoho reiderstva v Ukraini ta poshuk shliakhiv yoho podolannia [Investigation of economic raiding in Ukraine and finding ways to overcome it]. Ekonomika, menedzhment, pidpryiemnytstvo – Economy, Management, Entrepreneurship, 26(ІІ), 163-170. (In Ukrainian).
- Vashkiv, O. P. (2016). Reiderstvo yak instytutsiina pastka: mekhanizm utvorennia ta poshyrennia [Raiding as an institutional trap: the mechanism of formation and dissemination]. Naukovyi Visnyk Khersonskoho Derzhavnoho Universytetu – Scientific Herald of Kherson State University, 19(1), 9-11. (In Ukrainian).
- Vasylenko, M. (2017). Osoblyvosti reiderstva v konteksti novykh zmin do chynnoho zakonodavstva Ukrainy [Features of raiding in the context of new changes to the current legislation of Ukraine]. Yurydychnyi visnyk – Herald of Law, 1, 58-64. (In Ukrainian).
- Vasyliev, O. V., & Nimkovych, A. I. (2016). Infrastrukturne zabezpechennia nematerialnykh prav aktsioneriv [Infrastructure provision of intangible rights of shareholders]. Ekonomika i suspilstvo – Economy and Society, 7, 716-721. (In Ukrainian).
- Yastrubetska, L. S. (2017). Osoblyvosti orhanizatsii reiderskykh zakhoplen pidpryiemstv v Ukraini [Features of organization of raider seizures of enterprises in Ukraine]. Ekonomika i suspilstvo – Economy and Society, 9, 1107-1112. (In Ukrainian).
- Yasynchuk, L. (2016). Rai dlia biznesu: Nova Zelandiia stala sensatsieiu u svitovomu ekonomichnomu prostori [A paradise for business: New Zealand has become a sensation in the world’s economic space]. (In Ukrainian).
-
Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 2956 Downloads: 1004 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
-
Travel and tourism: growth potentials and contribution to the GDP of Saudi Arabia
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.16(1).2018.39
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 417-427 Views: 2332 Downloads: 395 TO CITE АНОТАЦІЯSaudi Arabia is well known in the world for the holy places Makkah and Madinah. Hajjis and visitors come to perform hajj and Umrah every year in Makkah and Madinah from all around the world. Hajj and Umrah visits play a vital role in the inbound tourism of Saudi Arabia. The tourism revenue of Kingdom of Saudi Arabia is increasing absolutely but losing its contribution to the GDP proportionately. So, this paper tries to find out the economic activities of all components of tourism sector which are responsible for the negative trend. It also explains the relationships and variability of tourism revenues and expenditures with GDP and offers suggestions to enhance revenue of tourism sector. This study is based upon secondary data obtained from the website of SAMA (Saudi Arabian Monetary Authority) and General Authority for Statistics of Saudi Arabia. In tourism sector of Saudi Arabia, the increasing trend of expenditures of some economic activities is more than its revenue. The increasing trend of expenditures comparatively its revenues lowering contribution of tourism towards GDP. To improve the level of tourism revenue, government has to provide world class facilities and develop new tourist spots and allow the visitors to visit such places according to the Shariah and Kingdom rules. Government has to focus on developing passenger rail transport and other means of transport to connect all the tourist spots to provide easy conveyance, and on improving and developing tourism sector by helping the government and private organizations that are engaged directly or indirectly in providing services to the domestic and inbound tourists to assure more contribution to GDP.
-
The effect of a new wave of COVID-19 on the stock market performance: Evidence from the twenty JSE listed companies in South Africa
Gbenga Wilfred Akinola ,
Keji Sunday Anderu ,
Josue Mbonigaba
doi: http://dx.doi.org/10.21511/imfi.18(4).2021.07
Investment Management and Financial Innovations Volume 18, 2021 Issue #4 pp. 67-79 Views: 1587 Downloads: 486 TO CITE АНОТАЦІЯThe lockdown shocks resulting from the global pandemic of COVID-19 in March 2020 brought untold economic imbalance to the financial sector in South Africa. The government’s proactive alternative measure of control to the new wave of COVID-19 must be investigated to offer policy suggestions for future economic and financial planning. Consequently, this study investigated the impact of the new wave of COVID-19 on the financial market with a special interest in the twenty JSE listed companies in South Africa. To enhance the quality in the frequency of study, daily panel data from November 2020 to January 2021 were sourced from S&P Capital IQ and Google online. The impact of COVID-19 was investigated alongside other variables that can influence the return of the stock markets on twenty JSE listed companies. The variables under investigation are daily exchange rate (dollar terms), dividend-adjusted share pricing, daily COVID-19 infection rate. Both robust descriptive and fixed effects time-variant analyses were adopted as the estimating techniques. The study provided empirical evidence that there is a direct but slow link between the daily incidence of infectious COVID-19 and returns on the stock market as key variables. This positive relationship indicates that both COVID-19 and financial activities could co-habit together to enhance greater return on the stock in South Africa. Hence, lockdown may not be most appropriate to the national economy of South Africa.
