PERFORMANCE APPRAISAL AND SUPERVISION OF STATE-OWNED ENTERPRISES IN BOSNIA AND HERZEGOVINA

• Main Authors: Nikola Nikolić, Slobodan Marin, Milan Šušić
• Format: Article
• Language: English
• Published: KD Mapro 2020-10-01
• Series: Journal of Process Management. New Technologies
• Subjects: state-owned enterprises; financial performance; enterprise management; quality; reforms
• Online Access: http://www.japmnt.com/images/Volume8/issue-4/7.%20PERFORMANCE%20APPRAISAL%20AND%20SUPERVISION%20OF%20STATE-OWNED%20ENTERPRISES%20IN%20BOSNIA%20AND%20HERZEGOVINA29.10.2020.pdf
• ISSN: 2334-735X; 2334-7449

Bosnia and Herzegovina has opted for a market economy, which implies the liberalization of prices and trade, as well as the existence of an applicable legal system, including real rights. In order for a market economy to function, it is necessary to ensure macroeconomic stability and consensus on economic policy. A developed financial sector and the absence of significant barriers to entry and exit strengthen the efficiency of the economy. By analyzing the database of financial statements of state-owned companies in Bosnia and Herzegovina, we conclude that they are mostly in poor financial condition. This paper analyzes the structure of the state-owned enterprise sector, and identifies individual enterprises that affect fiscal and macroeconomic performance. State-owned companies do not contribute enough to the growth and stability of the economy, the financial analysis showed. The framework for the management of state-owned enterprises has also been analyzed and we come to the conclusion that the entity and cantonal governments do not perform their ownership function in accordance with the WB / OECD guidelines. Quality governance reforms in state-owned enterprises are needed to encourage transparency and increase the quality of accountability. Achieving a higher level of quality in the state-owned enterprise sector can achieve an increase in total GDP of 3 percent annually.