Transformation of State-Owned Enterprises in Ukraine: Challenges of Implementing European Corporate Management Standards

Abstract

The transformation of the organizational and legal forms of public sector enterprises is an important direction of institutional reforms in the context of Ukraine's European integration. The transition from the traditional model of state-owned enterprises to corporate structures operating in accordance with European Union standards requires a comprehensive scientific understanding of the managerial challenges of this process. The harmonization of national corporate management practices with European standards highlights the need to identify and systematize the obstacles that arise during the implementation of new management mechanisms in enterprises with state participation.

The purpose of the study is to analyze the management complications and systemic constraints accompanying the process of transforming state-owned enterprises into corporate structures, as well as to substantiate practical approaches to improving the efficiency of state-owned enterprises in the context of European integration.

Methods. The methodological basis of the study is a combination of systematic and comparative analysis, an institutional approach, generalization of management practices, and the study of applied situations that arise during the reform of management bodies. The work uses regulatory and legal acts, analytical reports, expert assessments, and practical management experience. This contributed to the implementation of a comprehensive approach in the study.

Results. It has been established that the introduction of corporate governance mechanisms contributes to improving the quality of management decisions, strengthening the role of strategic control bodies, and forming a clear system of responsibility. It has been determined that the effectiveness of transformation depends on the level of transparency of the procedures for forming the authorized capital, the proper organization of the work of management bodies, the professional composition of supervisory structures, and the implementation of internal control systems. It has been substantiated that the institutionalization of corporate mechanisms has a positive impact on the investment attractiveness and financial discipline of enterprises. Specific challenges have been identified for all stakeholders: governing bodies, management, labor collectives, business partners, and local self-government bodies.

Conclusions. The systematic implementation of corporate governance in the public sector is a prerequisite for improving efficiency, ensuring transparency, and building trust among stakeholders. The practical results of the study can be used in the development of management decisions and the improvement of regulatory approaches in the process of reforming enterprises with state participation. The significance of the work lies in the formation of scientifically based recommendations for improving the quality of corporate governance in the context of European integration transformations and overcoming institutional constraints that hinder the effective functioning of public sector enterprises.