IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v11y1999i2p253-265.html
   My bibliography  Save this article

Corporate Governance in Bulgarian State-owned Banks, 1992-1997

Author

Listed:
  • Sonya Dilova-Kirkowa

Abstract

Among the problems faced by Bulgarian state-owned banks, one can distinguish their poor corporate governance. The latter is analysed in three dimensions, namely ownership and organisational structures, and bank involvement in enterprise restructuring. Unclear delineated property rights and postponed banking privatisation enforced political interference in institutions responsible for managing state-ownership, thus alleviating the transparency of their activities. Exogenously imposed rules of financial intermediation, including forced mergers, seemed to take some time before yielding positive results. But their negative impact was almost immediate, which reflected in deteriorating financial performance of state-owned banks. We argue that the equity structure of state-owned banks determined their investment operations, while deposits from non-financial sector were widely used for refinancing banking sector. It is questionable whether state-owned banks could be regarded as sound in 1992-97, given a lack of proper provisioning till 1996. Both profitability and efficiency ratios of studied five state-owned banks indicated the anticipated problems.

Suggested Citation

  • Sonya Dilova-Kirkowa, 1999. "Corporate Governance in Bulgarian State-owned Banks, 1992-1997," Post-Communist Economies, Taylor & Francis Journals, vol. 11(2), pages 253-265.
    • Handle: RePEc:taf:pocoec:v:11:y:1999:i:2:p:253-265
    DOI: 10.1080/14631379996011
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/14631379996011
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631379996011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Colin Mayer, 1998. "Financial Systems and Corporate Governance: A Review of the International Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 154(1), pages 144-144, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sébastien Charles & Jonathan Marie, 2016. "Hyperinflation bulgare de 1997 : transition, fragilité bancaire et change," CEPN Working Papers 2016-13, Centre d'Economie de l'Université de Paris Nord.
    2. Sébastien Charles & Jonathan Marie, 2017. "Bulgaria’s hyperinflation in 1997: transition, banking fragility and foreign exchange," Post-Communist Economies, Taylor & Francis Journals, vol. 29(3), pages 313-335, July.
    3. Nedelchev, Miroslav, 2010. "Корпоративно Управление На Финансови Групи (Спазвай И Обяснявай) [Corporate Governance of Financial Groups (Comply and Explain)]," MPRA Paper 52249, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Heinrich, Ralph P., 1999. "Complementarities in Corporate Governance - A Survey of the Literature with Special Emphasis on Japan," Kiel Working Papers 947, Kiel Institute for the World Economy (IfW Kiel).
    2. Dr. Abdullah Ahmed Aldaas & Dr. Suleiman Jamal Mohammad & Dr. Mohammad Yousef Abuhashesh, 2019. "Successful Implementation of Corporate Governance Mechanisms in Banks," Journal of Social Sciences (COES&RJ-JSS), , vol. 8(4), pages 692-710, October.
    3. John Armour & B.R. Cheffins & D.A. Skeel Jr., 2002. "Corporate Ownership Structure and the Evolution of Bankruptcy Law in the US and UK," Working Papers wp226, Centre for Business Research, University of Cambridge.
    4. Ruba Khalid Shira, 2024. "The Impact of Political Involvement on Firms’ Financial Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 14(3), pages 33-39, May.
    5. Michael Graff, 2005. "Abstract," The European Journal of Finance, Taylor & Francis Journals, vol. 11(3), pages 183-205.
    6. Jong, Eelke de & Semenov, Radislav, 2002. "Cross-country differences in stock market development : a cultural view," Research Report 02E40, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    7. Panayotis Dessyllas & Alan Hughes, 2005. "The revealed preferences of high technology acquirers: an analysis of the characteristics of their targets," Working Papers wp306, Centre for Business Research, University of Cambridge.
    8. Óscar López‐de‐Foronda & Félix J. López‐Iturriaga & Marcos Santamaría‐Mariscal, 2007. "Ownership Structure, Sharing of Control and Legal Framework: international evidence," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1130-1143, November.
    9. Marco Taliento & Christian Favino & Angelo Fiorella, 2017. "Board of Directors’ “Convexification” and Corporate Results: Recent Evidence from Italy under a Linear/PLS Approach," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(8), pages 100-100, July.
    10. A. Hassel & M. Höpner & A. Kurdelbusch & B. Rehder & R. Zugehör, 2003. "Two Dimensions of the Internationalization of Firms," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 705-723, May.
    11. Giorgio Brunello & Clara Graziano & Bruno Parigi, 1999. "Ownership or Performance: What Determines Board of Directors' Turnover in Italy?," Working Papers 1999.30, Fondazione Eni Enrico Mattei.
    12. Sea-Jin Chang, 2006. "Business groups in East Asia: Post-crisis restructuring and new growth," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 407-417, December.
    13. Enrico Perotti & Ernst-Ludwig von Thadden, 2005. "The Political Economy of Corporate Control," Tinbergen Institute Discussion Papers 05-102/2, Tinbergen Institute.
    14. Brunello, Giorgio & Graziano, Clara & Parigi, Bruno M., 2003. "CEO turnover in insider-dominated boards: The Italian case," Journal of Banking & Finance, Elsevier, vol. 27(6), pages 1027-1051, June.
    15. Boot, Arnoud W A & Macey, Jonathon, 1999. "Objectivity, Proximity and Adaptability in Corporate Governance," CEPR Discussion Papers 2257, C.E.P.R. Discussion Papers.
    16. Hölzl, Werner, 2006. "Convergence of financial systems: towards an evolutionary perspective," Journal of Institutional Economics, Cambridge University Press, vol. 2(1), pages 67-90, April.
    17. Abreu, Mariana Piaia & Grassi, Rosanna & Del-Vecchio, Renata R., 2019. "Structure of control in financial networks: An application to the Brazilian stock market," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 522(C), pages 302-314.
    18. Heinrich, Ralph P., 1999. "A Model of Corporate Governance As a System," Kiel Working Papers 931, Kiel Institute for the World Economy (IfW Kiel).
    19. Rumen Dobrinsky & Nikolay Markov, 2003. "Policy Regime Change And Corporate Credit In Bulgaria: Asymmetric Supply And Demand Responses," William Davidson Institute Working Papers Series 2003-607, William Davidson Institute at the University of Michigan.
    20. repec:dau:papers:123456789/100 is not listed on IDEAS
    21. repec:dgr:rugsom:02e40 is not listed on IDEAS
    22. Marcel Canoy & Machiel van Dijk & Jan Lemmen & Ruud de Mooij & Jürgen Weigand, 2001. "Competition and stability in banking," CPB Document 15.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:11:y:1999:i:2:p:253-265. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.