Venture Capitalists' Perspectives on Corporate Governance in Transition Economies: A Comparative Analysis of Hungary, Poland, the Czech Republic, Slovakia, and Russia

摘要

This article examines the perceived corporate governance problems within the context of venture capital investing in the countries of Central and Eastern Europe (CEE), including Hungary, Poland, the Czech Republic, Slovakia and Russia. Two conclusions are derived from the study. First, the evidence provided demonstrates that the twenty corporate governance concerns outlined in the study are useful in defining the corporate governance environment in the CEE region. The key corporate governance concerns for local venture capitalists include entrepreneurs' personal use of company assets, poor financial disclosure and reporting, and lack of regulatory compliance. Second, the study confirms that venture capitalists address corporate governance concerns according to themes (pre-investment considerations, operating controls, and value realization activities) rather than on a stand-alone basis.