Abstract

In the period 1997-1999 in Bulgaria is imposed a tendency towards concentration of the capital in the public companies. The mentioned factors and carried out analysis give a reason for conclusion that this tendency is provoked by the insufficient protection of the people’s rights and the institutions which provide the firms’ resources. The normative system and the practical law execution in the studied period cannot give sufficient certainty that the resources provided to the firms by their shareholders and creditors are used effectively, in long-term interest of the firms and all shareholders. All this, as well as the passive role of the state, allows the creation of an environment that motivates the personal benefits of the managers or part of the shareholders on account of the firms and the other shareholders. The mentioned weaknesses lead to limitation of the economic growth, trouble the development of the financial markets and the financial mediation, destimulize the insurance institutions and the savings.