Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina
The term ‘corporate governance’ stands for a set of relations between management, large and small shareholders and other interest groups. A good corporate governance system is the basic postulate of sustainable economic growth, increase in economic system efficiency and a guarantee for easier acce...
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Faculty of Economics in Osijek
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doaj-7e4328b82dd34463b32064751d86af352020-11-25T01:21:32Zeng Faculty of Economics in OsijekEkonomski Vjesnik0353-359X1847-22062010-07-01XXIII1Characteristics of the Corporate Bank Governance System in Bosnia and HerzegovinaBranko Matić0Nikola Papac1Faculty of Economics in OsijekFaculty of Economics MostarThe term ‘corporate governance’ stands for a set of relations between management, large and small shareholders and other interest groups. A good corporate governance system is the basic postulate of sustainable economic growth, increase in economic system efficiency and a guarantee for easier access to sources of foreign capital. Ownership concentration is a significant internal mechanism of corporate governance because it greatly defines the relationship between owner and manager. There are two types of ownership concentration: highly dispersed ownership, that is, low ownership concentration, and very high ownership concentration. These concentration differences affect the corporate governance system itself, so there is a difference between a closed corporate governance system in the situation of high ownership concentration and an open corporate governance system where the situation is the reverse. The form of the system affects how the governing body is formed and structured, as well as how it operates and conducts its business policies. Within the financial system of Bosnia and Herzegovina, the banking system is dominant. An analysis of the corporate governance system has shown a relationship between ownership concentration and the form of the corporate governance system itself. The banking sector is predominantly owned by foreign companies and is characterized by a high ownership concentration. The fact that the corporate governance system is closed affects the election of members to the governing body and their work in enforcing business policies.http://hrcak.srce.hr/file/87592corporate governancestakeholderscorporate governance systemthe banking sector of Bosnia and Herzegovina |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Branko Matić Nikola Papac |
spellingShingle |
Branko Matić Nikola Papac Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina Ekonomski Vjesnik corporate governance stakeholders corporate governance system the banking sector of Bosnia and Herzegovina |
author_facet |
Branko Matić Nikola Papac |
author_sort |
Branko Matić |
title |
Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina |
title_short |
Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina |
title_full |
Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina |
title_fullStr |
Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina |
title_full_unstemmed |
Characteristics of the Corporate Bank Governance System in Bosnia and Herzegovina |
title_sort |
characteristics of the corporate bank governance system in bosnia and herzegovina |
publisher |
Faculty of Economics in Osijek |
series |
Ekonomski Vjesnik |
issn |
0353-359X 1847-2206 |
publishDate |
2010-07-01 |
description |
The term ‘corporate governance’ stands for a set of relations between management, large and small shareholders
and other interest groups. A good corporate governance system is the basic postulate of sustainable
economic growth, increase in economic system efficiency and a guarantee for easier access to sources of
foreign capital.
Ownership concentration is a significant internal mechanism of corporate governance because it greatly defines
the relationship between owner and manager. There are two types of ownership concentration: highly
dispersed ownership, that is, low ownership concentration, and very high ownership concentration. These
concentration differences affect the corporate governance system itself, so there is a difference between a
closed corporate governance system in the situation of high ownership concentration and an open corporate
governance system where the situation is the reverse. The form of the system affects how the governing body
is formed and structured, as well as how it operates and conducts its business policies.
Within the financial system of Bosnia and Herzegovina, the banking system is dominant. An analysis of the
corporate governance system has shown a relationship between ownership concentration and the form of
the corporate governance system itself. The banking sector is predominantly owned by foreign companies
and is characterized by a high ownership concentration. The fact that the corporate governance system is
closed affects the election of members to the governing body and their work in enforcing business policies. |
topic |
corporate governance stakeholders corporate governance system the banking sector of Bosnia and Herzegovina |
url |
http://hrcak.srce.hr/file/87592 |
work_keys_str_mv |
AT brankomatic characteristicsofthecorporatebankgovernancesysteminbosniaandherzegovina AT nikolapapac characteristicsofthecorporatebankgovernancesysteminbosniaandherzegovina |
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