Corporate governance and the behavior of corporations

Issues of corporate governance are seen as the key barriers for further enterprise development within the Czech Republic. The theoretical notions and assumptions of corporate governance are compared in this paper with Czech institutional prerequisites and a "Czech-biased, bivalent form" of corporate governance. This influenced the banking corporate governance failure. Foreign-controlled companies seem to represent long-term standard behavior that might be partially eroded by the environment with prevailing incomplete contracts used by number of participants for their individual benefit. Institutional changes following "acqui communitaire", support of foreign investments and privatization of remaining state banks are seen as a consensual policy point of departure.