Electronic Library of Scientific Literature
Volume 44 / No. 5 / 1996
The hitherto transformation course of the enterprise sphere may be appraised
as being contradictory and joined with many problems. A lot of these are
closely related to the initial stage of the transformation process characterized
by devaluation, price liberalization, liberalization of foreign trade,
and, primarily, the dismantling of foreign markets. These phenomena are
related to the growing number of non-probitable enterprices especially
in the machine industry and electro-engineering industry. Nor did the state
economic policy help to resolve the problems either. The deepening of the
differenciation processes in the sphere of business and their cumulation
led to the so-called pre-privatization agony of the business sphere followed
by the privatization stress. Generally, privatization has been the most
complicated and the most contraversial phenomenon characterizing the whole
hitherto course of the transformation process. In the first place, it was
the often change of the conception that has influenced the course of privatization
more in a retarding and destructive than the accelerating and constructive
In the privatization process an important role was played by the amendment of the privatization law which defined the role of the National Property Fond within the process of privatization much more explicitly. At the same time, however, the investment companies and fonds were excluded from the second privatization wave.
A certain revival of the Slovak economy has begun in 1994 already and has continued in the year of 1995. By this time the transformation of the enterprise sphere advanced significantly which demonstrated itself in the growth of the relation of private enterprices in the total number of organizations as well as in the improvement of economic results reached by industrial enterprises.
The paper analyzes several mutually interconnected problems linked to
corporate management issue. In 7 parts (except an introductory and a concluding
one) the following problems are analyzed. In the part 2 the focus is given
on management restruc-turing and the part presents a review of studies
written by author containing some results of his research. The part also
presents a table named swap of top management of joint-stock companies
in 1990-1994, where data obtained from questionnaire research of the author
(based on the sample of 52 middle- and large-size enterprises) are presented.
It is evident, that the highest intensity of management swaps was in 1990
and 1992. Based on the other research (research of the managers of investment
companies and investment funds (ICs and IFs) were obtained the views relating
to the question, to what extent the fund representatives perceive their
power dominance in company. As much as 65 % of respondents (a sample of
20 managers of ICs and IFs) answered that management alone is not able
to make qualified decisions.
Brief parts 3 ("Managerial experiences with owners") and 4 ("Exercising the property rights by investment funds") present other results of both surveys. In the fifth part "Models of statutory bodies" are analyzed problems linked with factors influencing a structure of board of directors in the United States and are presented two models of statutory bodies existing in the Slovak Republic (model of strong board of directors and a model of strong supervisory board). Part 6 "Representatives of IFs in boards of directors and supervisory boards" describes the situation of IFs representatives' shifts from the boards of directors to the supervisory boards. A table in the part given describes what was the average ownership share of ICs/IFs on company in the period of nomination of ICs/IFs' representatives on boards of directors and supervisory boards, respectively. The seventh part is devoted to associations of voucher holders as a specific form of organization for enforcing the minority shareholders' general interests. Only 7.7 % out of 52 joint-stock companies confirmed presence of such associations in their companies. Another problem analyzed in this part is the cooperation among various interest groups in exercising property rights. Final analytical part is oriented on management motivation in exercising their functions and in form of a table a review of an analysis of joint-stock companies from corporate management's point of view is presented comparing economic results and other indicators in the framework of the two enterprise group twins: (1) companies without participation of IF's representatives in statutory bodies of the enterprises and companies with the participation of IFs in these bodies, and (2) companies with participation of IF's representatives in board of directors, and companies with the participation of IF's representatives in supervisory boards. The only statistically significant result was the fact that the companies in which a strong supervisory body exists (i.e. where IF's representatives are working in supervisory bodies) export more.
Conclusion is made in a form of a brief evaluation of the study and deduces that it is difficult to predict an explicit development of the Slovak model of the corporation management comparing it to one of the two standard models (Anglo-Saxon or German).
It seems to be generally proclaimed that the countries persuing the
process of the transformation of their economies require direct foreign
investments (DFI) as a form of participation of multinational corporations
The author presents the most significant questions concerning the MNC entry and comes to the conclusion that - from the point of view of making it more attractive - the existing fiscal possibilities and regulation tools are not yet applied sufficiently.
The author concentrates upon the questions of the MNC registration used in foreign countries:
- the procedure of entry and registration of the corporation
- rights due to the establishment and registration
- export of gains
- investment taxation
- property of land
- privatization of state enterprises
- protection of the so-called mental property
- the level of introduction of international accounting system
- rate of exchange and the currency convertibility.
The paper shows the actual situation of the small-size business sector
in the Slovak Republic, as seen from the view-point of the results of an
Small and middle-size businessmen are facing not only the problems symptomatic to the very entrepreneurial form of the market economy but also the problems specific to the transition economy. To form an active political conception of support of the small and middle-size business activities it is, therefore, necessary to listen to the voice of the domestic small-size business sector to know its own reflection of the situation, their problems and needs.
Theoretical appreciation of the attitudes of small and middle-size entrepreneurs towards the actual economic problems facing the small-scale enterprise sector, their motives and entrepreneurial barriers and their expectations concerning the support rendered by public institutions are the essence of the article presented.
Theoretical and practical analysis of the small-size enterprise activities
identify three relevant problem fields: uncertain and ambivalent legislation,
financial heavy load, high bank rating, unsuitable credit policy.
Suggestions for decisive sphere are as follows:
a) The situation requires modification, that would include establishing the so-called De-regulation Departments in all Ministries, which would permanently consider every law, declaration or amendment as to its purpose, effect and duplicity; present proposals and logical and systematic measures.
b) Decrease of tax burden, insurance fees and bank rating by about 5 % minimum.
One of the important tasks of the transformation process of the Slovak
economy into a market economy has been the creation of new organizational
structures in the entrepreneurial sphere; from the point of view of the
business classification it means to create a strong group of small and
In the paper the process of transformation of the Slovak economy in presented in the sense of rise of new business subjects, their legal form and the type of property. The topic is divided into two parts. In the first part the process ongoing in the entrepreneurial organizations registered in the organization register of Statistical Office of the Slovak Republic is analyzed, the stress being put to the organizations aimed at profit making; within the scope of the second part of the paper the private businessmen not registered in the companies register and plying the trade following the trade law are discussed and appraised.
The paper comprises the structure of private individuals in the Slovak Republic shown by the sections of the economic activities given in the average of the years 1992-1994, showing the percentage of the private individuals making an active business of the total number of the individuals registered by the trade offices.