Forthcoming, Corporate Ownership and Control journal, 2007 CORPORATE GOVERNANCE IN UKRAINE: THE ROLE OF OWNERSHIP STRUCTURES

The article explores the structure of corporate ownership in Ukraine during an after-privatization period of time from 1998 to 2001. It was concluded that the share of insiders1 in the structure of corporate ownership in Ukraine remarkably increased. The share of outsiders almost did not change. Thus, "industrial " privatization has led to transferring the corporate ownership from the State to insiders. Development of the process of concentration of corporate ownership structure in Ukraine is controlled by two groups of investors. These are management (executives) of the companies and institutional investors. Major objective of purchasing shares by management is obtaining a total control over the compensation policy. Role of minority shareholders is very weak and there rights are not protected enough to let them participate actively in corporate governance