Business innovations and structure of corporate ownership in Ukraine

Alexander Kostyuk (Candidate in Sciences (Finance) and Assistant Professor in Corporate Governance, Department of Management and Foreign Economic Relations, Ukrainian Academy of Banking, National Bank of Ukraine, Sumy, Ukraine.)

Corporate Governance

ISSN: 1472-0701

Publication date: 1 December 2005



The purpose of this paper is to test a link between the type of corporate ownership and business innovation activities, with application to Ukrainian joint stock companies.


The objective of the paper is achieved through conducting a series of observations of 42 of the largest companies of metallurgy and machine‐building industries for the years 1998‐2001. The theoretical scope of the paper is to identify the motives of owners in Ukraine which affect their views on innovation policy in companies which they own.


The research found that approaches of various groups of owners to the innovation policy differ and depend on the motives of their behavior at the market for corporate control. Thus, executives who owe companies, try to keep the control in their hands in order to set an abnormally high remuneration. This leads to the lack of funds to finance innovation projects because of cash flows reduction and absence of intentions to issue equity.


The value of this paper is that it explains an impact of ownership structure on market opportunities of companies via an impact on the business innovation parameters.



Kostyuk, A. (2005), "Business innovations and structure of corporate ownership in Ukraine", Corporate Governance, Vol. 5 No. 5, pp. 19-29.

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Copyright © 2005, Emerald Group Publishing Limited

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