Convergence of corporate governance models in the context of globalization

Abstract

The article examines the impact of globalization on the development of corporate governance. The basic concepts of globalization and the factors influencing the development of the modern world economy are analyzed. The process of liberalization of the business environment, development of technological progress and the development of global financial markets have a decisive influence on the activities of transnational corporations, turning them into global companies. These companies operate worldwide and the scope of their operations exceeds the size of the national income of many countries. Global business structure and international nature of the operations determine the need to develop harmonized standards for the implementation of the activities of large companies. Special attention in the paper is paid to the problems of corporate governance, which mostly determines the important corporate decisions and therefore the effectiveness of business development. The article presents the analysis of the main stages in the development of international regulation in this area and trends of improvement in this area. The study examines the basic models of corporate governance, explains the process of convergence under the influence of contemporary processes of globalization, highlights the main factors of harmonization of corporate governance systems. Special attention is paid to the Russian corporate sector and areas of improvement of corporate governance in Russian companies taking into account the contemporary processes of convergence of the models. There is an active process of harmonization of corporate governance systems worldwide. Large corporations in order to be competitive and efficient are to improve the system and practices of corporate governance taking into account current trends. There is a constant search for new forms of governance, management and leadership in big business, and the Russian public companies have to take into account the best practices of leading corporations and harmonised standards of international organizations in the field of corporate governance in order to maintain and improve competitiveness on the national and international markets.