engleski

The impact of shareholder perception of capital on ownership structure in the context of shareholder democracy - Case of the Croatian capital market

The problem of share ownership structure in the Republic of Croatia is closely connected to the development of the financial market itself, as well as to the privatisation of companies that were state-owned in the previous economic regime. In general, we can say that higher limitations related to the range of privatisation in terms of income and shares sold appear in countries with inefficient legislation, where shareholders are less protected, banks are strong and capital markets less developed. Therefore, in the development typology context within the frame of mapping out institutional cooperation and changes necessary for development, it is necessary to observe the Croatian capital market in relation to the chronological development stage of capital market and shareholding, volume of shareholders, shareholder structure and volume as well as value of shares. This paper provides an analysis of data on share ownership structure in relation to the nominal and market value of shares traded on the Croatian capital market from 2006 to 2018. Analyses conducted through SOM and ANFIS indicate that the essence of the problem of share ownership/ value structure is the concentration of legal entities and that the share in the structure of legal entities affects nominal value, while the market value can be connected to the share of natural persons and others. Shareholder democracy in the Croatian capital market has given way to the concentration of ownership with the tendency of over-the-counter and non-transparent increase in ownership, while a strong corporate control of few is replacing corporate democracy and the corporate management code. These circumstances of ownership transformation are encouraging social exclusion and enhancing the impact of connected ownership and interest groups (crony capitalism) instead of developing a modern shareholder democracy, as well as social and market inclusion.

shareholder perception of capital, ownership structure, shareholder democracy

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