Welcome to site of Scientific Works of NDFI (demo).
Login | Register
THE ACADEMY
OF FINANCIAL
MANAGEMENT
.

№ 3/2017

№ 3/2017

Nauk. pr. NDFI 2017 (3): 36–52
https://doi.org/10.33763/npndfi2017.03.036

FINANCIAL AND ECONOMIC REGULATION

KORNIEIEVA Iuliia 1

1SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0002-1823-7618


Admission for capital participation of foreign investors in soe’s equity


The article is devoted to studying the problems of access of foreign investors to participation in the capital of public companies. The main directions for regulation of foreign investments in the privatization process in developed countries are outlined. World best practice of using the public regulation tools for foreign investor participation in the privatization is analyzed. The features of access regulation for foreign capital in the areas of strategic national interest are identified. It is emphasized that a systematic approach to the participation of private capital in SOEs across countries is very different. Regulation rules for investment property are established. Limited majority foreign ownership in at least one area is set. It is emphasized that the strategy of attracting foreign investors to participation in the capital of the state enterprises should be based on principles of upholding national interests; but at the same time it should combine the elements of investor protection to increase the investment attractiveness of investment objects. At the same time, it is noted that creation of special incentives and providing certain privileges to foreign investors are not appropriate, because it could violate the competitive conditions between foreign and national capital.

Keywords:state-owned enterprise, foreign investor, foreign direct investment, privatization, share

JEL: F21, R42


Kornieieva I. . Admission for capital participation of foreign investors in soe’s equity / I. Kornieieva // Наукові праці НДФІ. - 2017. - № 3. - C. 36-52.

Article original in Ukrainian (pp. 36 - 52) DownloadDownloads :580
1. Sharpe, W. F., Alexander, G. J., & Baily, J. V. (2001). Investments. Moscow: Infra-M [in Russian].

2. Coase, R. H. (1988). The Firm, the Market and the Law. Chicago, London.
doi.org/10.7208/chicago/9780226051208.001.0001

3. Krugman, P. (1979). A model of innovation, technology transfer, and the world distribution of income. Journal of political economy, 87.2, 253-266.
doi.org/10.1086/260755

4. Obstfeld, M. (1992). Risk-taking, global diversification, and growth. National bureau of economic research, WP, w4093.
doi.org/10.3386/w4093

5. Obstfeld, M., Taylor, A. M. (2004). Global capital markets: integration, crisis, and growth. Cambridge University Press.
doi.org/10.1017/CBO9780511616525

6. Buckley, P. et al. (2007). The determinants of Chinese outward foreign direct investment. Journal of international business studies, 38.4, 499-518.

7. Buckley, P. J. (2009). Internalisation Thinking: From the Multinational Enterprise to the Global Factory. International Business Review, 18, 224-235.
doi.org/10.1016/j.ibusrev.2009.01.006

8. Dunning, J. H. (1998). Location and the multinational enterprise: a neglected factor? Journal of international business studies, 29, 1, 45-66.
doi.org/10.1057/palgrave.jibs.8490024

9. Heyec', V. M. (1999). Prerequisites and opportunities for activating investment activity in Ukraine. Banking, 6, 3-10 [in Ukrainian].

10. Iefymenko, T. I. (2015). Public-private partnership in state relations with international organizations and multinational companies. Ky'yiv: NAN Ukrayiny', Derzhavna ustanova "Insty'tut ekonomiky' ta prohnozuvannya NAN Ukrayiny'" [in Ukrainian].

11. Filipenko, A. (1997). Features of the development of foreign investment in the economy of Ukraine. Finance of Ukraine, 2, 79-82 [in Ukrainian].

12. Rohach, O. I. (2013). Characteristic features of the development of international production of TNCs in the post-crisis period. Actual problems of international relations, 112, 2, 81-85 [in Ukrainian].

13. Makohon, Yu. V., Ivankova, D. R. (2014). Theoretical aspects of global investment. Economic bulletin of National technical university of Ukraine "Kyiv polytechnical institute", 11, 481-486 [in Ukrainian].

14. Lucy'shy'n, Z., Lucy'shy'n, O. (2008). Modern trends in the world financial market. Financial market of Ukraine, 9, 3-9 [in Ukrainian].

15. Cy'hanov, S. A., Cy'hanova, N. V. (2012). Attracting foreign investment as an important factor in the development of the business environment in Ukraine. Actual problems of international relations, 105, 2, 167-172 [in Ukrainian].

16. Mal'sky'j, M. Z., Bilenko, Yu. I. (2016). Investment policy in the European Union and the prospects for Ukraine. Foreign policy and diplomacy: traditions, trends, experience, 23, 3, 114-121 [in Ukrainian].

17. UNCTAD. (2016). Investor Nationality: Policy Challenges. World investmnent report. Author.

18. World Bank. (2010). Investing Across Borders 2010 (IAB). Retrieved from iab.worldbank.org/~/media/FPDKM/IAB/Documents/Overview-IAB.pdf.

19. Dubrovs'ky'j, V., Paskhaver, O., Verkhovodova, L. & Blashhy'k, B. (2007). Analytical report and recommendations for the State Privatization Program: conditions for the completion of privatization in Ukraine. Warsaw, Ky'yiv: CASE. Retrieved from c-e-d.info/img/pdf/111_Russian_Full_With_Cover.pdf [in Ukrainian].

20. CASE. (2007). Participation of foreign investors in privatization. Ky'yiv: Author. Retrieved from www.case-ukraine.com.ua/u/db/b4f61c2f4cc72cb9022f98b8ada132e2.pdf [in Ukrainian].

21. Akulova, M. (2016). World experience of privatization of public sector enterprises. BEROC Policy Paper Series, 35. Retrieved from www.beroc.by/webroot/delivery/files/Akulova__PP35_mirovoj_opyt_privatizacija.pdf [in Russian].

22. OECD. (2016). Broadening the Ownership of State-Owned Enterprises: A Comparison of Governance Practices. Paris: OECD Publishing.
doi.org/10.1787/9789264244603-en

23. Dewenter, K. D., Malatesta, P. H. (1996). Public Offerings of State-Owned and Privately-Owned Enterprises: An International Comparison. University of Washington: School of Business. Retrieved from www.afajof.org/SpringboardWebApp/userfiles/afa/file/Supplements%20and%20Data%20Sets/Appendicies%20for%20Public-Offerings%20of%20State-Owned%20and%20Privately-Owned%20Enterprises%20An%20Inter.

24. Wang, X., Xu, L. C. & Zhu, T. (2003). State-Owned Enterprises Going Public: The Case of China. Retrieved from pdfs.semanticscholar.org/deaf/81af5c141277ad59f477c6246366c812d96f.pdf.

25. Aivazian, V., Ge, Y. & Qiu, J. (2005). Can Corporatization Improve the Performance of State-Owned Enterprises Even without Privatization. Journal of Corporate Finance, 11, 791-808.
doi.org/10.1016/j.jcorpfin.2004.11.001

26. Fasbender, K. (2004). Selected Principles, Elements and Experiences of Privatisation in Germany. HWWA-Report, 245. Retrieved from ageconsearch.umn.edu/bitstream/26102/1/re040245.pdf.

27. FRASERS International Lawyers. (2011, August). Equitisation of state owned enterprises in Vietnam changes in the regulatory framework. Retrieved from www.frasersvn.com/wp-content/uploads/2013/03/Overview-of-the-Equitisation-Process-EN.pdf.

28. State Department's Office of Investment Affairs' Investment Climate Statemen. (2017, January 17). Germany - Competition from State-Owned Enterprises. Retrieved from www.export.gov/article?id=Germany-Competition-from-State-Owned-Enterprises.

29. Kallevig, M. M. (2005). Ownership function of the Norwegian state. Retrieved from www.oecd.org/daf/ca/35175246.pdf.

30. The President of Ukraine. (2016). The issue of the National Investment Council (Decree No. 365/2016, August 29). Retrieved from zakon0.rada.gov.ua/laws/show/365/2016 [in Ukrainian].

31. Verkhovna Rada of Ukraine. (1996). About the regime of foreign investment (Act No. 93/96-BP, March 19). Retrieved from zakon5.rada.gov.ua/laws/show/93/96-%D0%B2%D1%80 [in Ukrainian].

32. Verkhovna Rada of Ukraine. (2000). About the state program of privatization (Act No. 1723-III, May 18). Retrieved from zakon2.rada.gov.ua/laws/show/1723-14 [in Ukrainian].

33. Verkhovna Rada of Ukraine. (2012). About the state program of privatization (Act No. 4335-VI, January 13). Retrieved from zakon3.rada.gov.ua/laws/show/4335-17 [in Ukrainian].

34. Verkhovna Rada of Ukraine. (2003). Economic Code of Ukraine (Act No. 436-IV, January 16). Retrieved from zakon3.rada.gov.ua/laws/show/436-15 [in Ukrainian].

35. Verkhovna Rada of Ukraine. (2003). On the fundamentals of national security of Ukraine (Act No. 964-IV, June 19). Retrieved from zakon2.rada.gov.ua/laws/show/964-15 [in Ukrainian].