Abstract:

  Paper is focused on the relationship between the Corporate Governance and voluntary reporting in small and medium commercial companies in the Czech Republic. Corporate Governance is a worldwide problem. The commercial companies in the Czech Republic unwillingly accept good governance models and it often means their reduced performance and competitiveness on the market compared to foreign companies. Corporate Governance is understood as a key element for achieving performance, growth and allowing increase of investor's confidence. The financial crisis also revealed shortcomings of the CG, and on its basis the OCED has issued a number of recommendations, one of these recommendations is to improve monitoring and enforcement of existing national codes in the field of management and control of companies, i.e. reporting. The target of this report was to examine how the CG really approaches the voluntary reporting and what information interest the involved parties. Empirical research was conducted in 86 commercial companies which characterized the essence of the management and control of companies and it further closer investigated the importance of CG for the voluntary reporting, assessment of the types and forms of voluntary reports, and also transparent disclosure of information about the company. As a conclusion of the research it can be stated that most of small and medium-sized commercial companies in the Czech Republic took the path of smallest resistance and put into practice only minimal CG requirements demanded by the law, voluntary reporting is supported by CG only in minimal extent. The level of CG and transparency in each commercial company will to certain level depend on how the company will monitor and communicate with interested groups and how transparent will be its reporting system.