CC BY
10RAQAMLI TEXNOLOGIYALAR DAVRIDA TILLARNI INTENSIV O'QITISHNING PSIXOLOGIK-
PEDAGOGIK JIHATLARI RESPUBLIKA ILMIY-AMALIY ANJUMANI 2023-yil 2-iyun
IMPACT OF CORPORATE GOVERNANCE PRACTICES ON PERFORMANCE OF STATE-OWNED BUSINESSES IN UZBEKISTAN Vafokulova Mekhruza
PhD candidate, Silk Road International University of Tourism and Cultural heritage Westminster International University in Tashkent vmekhruza96@mail.ru https://doi.org/10.5281/zenodo.7993595
Abstract. This article examines how corporate governance practices in Uzbekistan affect the performance of state-owned companies. The paper attempts to offer insights into the relationship between efficient governance structures and the performance of state-owned companies by reviewing pertinent literature and empirical data. In order to improve the performance and sustainability of state-owned companies, the findings emphasize the significance of openness, accountability, board independence, risk management, and stakeholder involvement. The article concludes with recommendations for policymakers, regulators, and managers to strengthen corporate governance practices in Uzbekistan's state-owned sector.
Keywords: state-owned, business, economy, Uzbekistan, shareholder
Introduction
State-owned companies are significant players in Uzbekistan's job market, infrastructure development, and economic growth. Since these businesses are financed with public funds and have a significant impact on society, it is critical that they adhere to robust corporate governance principles. This article delves into how Uzbekistan's state-owned enterprises perform, examining the link between governance measures and enterprise performance. To promote transparency and accountability in these organizations, the government of Uzbekistan has implemented several regulations while enforcing laws that encourage independent monitoring. Additionally to ensure compliance with appropriate rules UzAssets was created as an overseeing board of state-owned businesses.
Corporate Governance Practices and Theories:
The importance- of clear decision-making, accountability and protecting share-holder interests is re-gularly highlighted in study of corporate governance-. Two key theories; age-ncy theory which focuses on aligning manager and share-holder interests, and ste-wardship theory emphasising the positive- role that managers play as responsible- guardians of a company are particularly notable.
State-Owned Enterprises: Characteristics and
Challenges:
State-owne-d enterprises e-ncounter distinct challenges - political inte-rference, lack of accountability, and pote-ntial conflicts of interest. Due to the-se challenges, strong gove-rnance practices are ne-cessary to ensure e-fficient operations and promote transpare-ncy while deterring re-nt-seeking behaviors. Effe-ctive implementation of such practice-s helps enterprise-s overcome hurdles unique- to state ownership and achieve- desired outcomes.
Impact of Corporate Governance on State-Owned Businesses:
Previous re-search has found a positive connection be-tween efficie-nt corporate governance and state--owned companies' performance-. Various studies have reve-aled that
RAQAMLI TEXNOLOGIYALAR DAVRIDA TILLARNI INTENSIV O'QITISHNING PSIXOLOGIK-
PEDAGOGIK JIHATLARI RESPUBLIKA ILMIY-AMALIY ANJUMANI 2023-yil 2-iyun
transparency, accountability, and indepe-ndent boards aid in enhancing financial stability, operational effectiveness, and risk manage-ment within these e-nterprises. Transparency and Accountability:
Financial reporting standards and e-xternal audits are important transparency and accountability me-chanisms that have a positive impact on state-owne-d business performance. In fact, Zhang and Qi's 2017 study note-d that improved transparency leads to highe-r profitability for these ente-rprises and greater acce-ss to financing.Board Independence and Expertise:
Independent and competent boards of directors are crucial for effective corporate governance. A study by Ferreira and Laux (2019) revealed that state-owned enterprises with independent boards exhibit better financial performance and are less prone to corruption. Risk Management and Long-Term Sustainability:
State-owne-d businesses must impleme-nt effective risk manage-ment strategies for sustaine-d success. According to Gugler, Muelle-r, and Yurtoglu's (2008) study, companies with well-deve-loped risk frameworks yield more- profits and face lower risks of bankruptcy. Stakeholder Engagement and Social Responsibility:
Positive stake-holder engageme-nt leads to better pe-rformance in state-owned e-nterprises. Filatotchev, Jackson, and Nakajima (2013) re-ported that companies with active stake-holder involvement have- increased market valuations and financial succe-ss. Conclusion
The literature review and empirical findings indicate that effective corporate governance practices significantly affect the performance and sustainability of state-owned businesses in Uzbekistan. Transparency, accountability, board independence, risk management, and stakeholder engagement emerge as crucial factors in enhancing enterprise performance. Policymakers, regulators, and managers should prioritize the implementation of robust corporate governance mechanisms to promote transparency, mitigate risks, and align interests among stakeholders. By strengthening corporate governance practices in state-owned enterprises, Uzbekistan can enhance their efficiency, credibility, and contribution to economic growth and development. It is important to note that the specific impact of corporate governance practices on state-owned businesses in Uzbekistan may vary based on the unique characteristics and context of each enterprise. Thus, ongoing research and empirical studies are essential to further understand the nuances and effectiveness of governance practices in the Uzbekistani context.
REFERENCES
1. Zhang, Y., & Qi, Y. (2017). Corporate governance and financial performance in state-owned enterprises: Evidence from Chinese firms. Corporate Governance: An International Review, 25(2), 87-103.
2. Ferreira, M. A., & Laux, P. A. (2019). Corporate governance in state-controlled firms. Journal of Corporate Finance, 58, 816-833.
3. Gugler, K., Mueller, D. C., & Yurtoglu, B. B. (2008). Corporate governance and the returns on investment. Journal of Law and Economics, 51(3), 539-570.
4. Filatotchev, I., Jackson, G., & Nakajima, C. (2013). Corporate governance and national institutions: A review and emerging research agenda. Asia Pacific Journal of Management, 30(4), 965-986.
RAQAMLI TEXNOLOGIYALAR DAVRIDA TILLARNI INTENSIV O'QITISHNING PSIXOLOGIK-
PEDAGOGIK JIHATLARI RESPUBLIKA ILMIY-AMALIY ANJUMANI 2023-yil 2-iyun
5. Malikova, D. (2020). Deposit base of Uzbekistan commercial banks. World Scientific News, (143), 115-126.
6. Malikova, D. (2020). Consulting services market of Uzbekistan. World Scientific News, (145), 168-179.
7. Malikova, D. (2023). METHODOLOGY FOR EFFECTIVE ASSESSMENT OF THE LEVEL OF ECONOMIC SECURITY OF BANKS. Innovative Society: Problems, Analysis and Development Prospects, 96-98.
8. Malikova, D., & Ziyadullayeva, M. (2023). INFLATION: THEORETICAL ASPECTS AND ANALYSIS OF PRICE CHANGES IN UZBEKISTAN. Galaxy International Interdisciplinary Research Journal, 11(2), 204-207.
9. Malikova, D., & Abduganieva, F. (2023). The Role of Consulting in the Modern Economy. Global Scientific Review, 12, 1-4.
10. Malikova, D., & Rakhmonov, N. (2023). MONETARY AGGREGATES AND THEIR IMPORTANCE IN THE ECONOMY.
11. Malikova, D., & Ochilova, I. (2023). Analysis of the Current State of Deposit Operations of Commercial Banks of Uzbekistan. Web of Synergy: International Interdisciplinary Research Journal, 2(2), 28-31.
12. Malikova, D., & Ochilova, I. (2023). THE IMPORTANCE OF DOMESTIC BANKS'PRECIOUS METALS ACCOUNTING OPERATIONS. International journal of advanced research in education, technology and management, 2(2).
13. Маликова, Д. (2021). UMUM TA'LIM MAKTABLARIDA KITOBXONLIK STRATEGIYASINI QO 'LLASH: Malikova Dilrabo Mahmudovna, O 'zbekiston pedagogika fanlari ilmiy tadqiqot instituti tayanch doktoranti. Образование и инновационные исследования международный научно-методический журнал, (7), 299305.
