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

Nikola Nikolić; Slobodan Marin; Milan Šušić

doi:10.5937/jouproman8-29087

Nikola Nikolić Doboj Medical School, Republic of Srpska
Slobodan Marin Orthodox priest in Banja Luka, Republic of Srpska
Milan Šušić University of Business Studies Banja Luka, Faculty of Business and Financial Studies, Bosnia and Herzegovina

DOI: https://doi.org/10.5937/jouproman8-29087

Keywords: state-owned enterprises, financial performance, enterprise management, quality, reforms

Abstract

Based on the new database of financial statements of State-Owned Enterprises (SOE) in Bosnia and Herzegovina, we can conclude that they are mostly in poor financial condition. The paper assesses the overall size and composition of the sector of state-owned enterprises, and identifies individual enterprises that affect fiscal and macroeconomic performance. Financial analysis indicates that state-owned enterprises do not contribute enough to the growth and stability of the economy. The framework for the management of state-owned enterprises has also been analyzed and we come to the conclusion that governments do not perform their ownership function in accordance with WB / OECD guidelines. Governance framework reforms are needed to foster transparency and improve accountability. Better reform of the state-owned enterprise sector could lead to an increase in total GDP by 3 percent annually.

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