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Description:
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Under today’s conditions of exogenous and endogenous challenges for economic agents,
the problem of ensuring value creation for stakeholders on a long-term horizon is becoming more acute. The lack of adequately formed institutions within Ukraine’s market infrastructure
adds additional complexity to the task. The aim of this paper is to identify the features of an
effective fi nancial strategy institute in Ukraine. This paper examines issue of forming and
further functioning of fi nancial strategy institute at company, industry, and state level. The
problems of Ukrainian corporate sector genesis in the context of the formation of market
institutions are described. The effect of information asymmetry and principal-agent confl ict
on the process and results of value creation for stakeholders is highlighted. Ways to reduce
the infl uence of the principal-agent confl ict through institutionalization are proposed. Paper
also considers fi nancial strategy’s institutionalization as a factor infl uencing investors’ interest
in the company is considered. It is noted that the existing incentive tools for the company’s
managers are aimed at the short-term horizon. It is emphasized that the fi nancial strategy’s
institutionalization would contribute to overcoming excessive fi xation on the company’s
short-term results, instead, an adequate balance would be formed regarding short- and
long-term priorities at the company level. Financial strategy institute’s placement in the
company’s management architecture is defi ned. The conducted research may be useful for
researchers in the fi eld of corporate governance and corporate fi nance, private and state owned companies, industry associations, and state authorities. Prospects for future research
are an in-depth analysis of the fi nancial strategy institute’s infrastructure, in particular, in
terms of its quantitative analysis and evaluation. |