engleski

Corporate governance in an emerging economy and its impact on enterprise performance : The Case of Croatia

Accountability and transparency have become key factors not only for shareholders but also for investors, buyers, suppliers, and other stakeholders. This paper explores the adoption of modern corporate governance principles in an emerging market economy, Croatia and their impact on enterprise performance. After almost 15 years of privatization, changes in corporate governance practices and improved performance of privatised and new start-up enterprises are to be expected in Croatia. The aim of the research is to increase awareness of the importance of corporate governance in a global market, especially in enterprises of transitional economies such as Croatia where global competitiveness is difficult to attain. This paper starts by examining the implementation of sound corporate governance principles in Croatia, and identifies the degree of corporate governance development by use of indicators. From the last 15 years of privatisation in Croatia some positive changes are evident. The main question then addressed is the impact of corporate governance on enterprise performance, especially enterprise efficiency. Analysis is based on statistical data and data gathered by means of questionnaire addressed to independent members. As there are many factors that impact on enterprise performance it is difficult to express the influence of corporate governance indicators quantitatively. However, there is an indirect qualitative impact of corporate governance on enterprises’ performance. The results suggest that implementation of sound corporate governance principles in a transition country have similar results on enterprise performance to those experienced in developed countries. Enterprises which have implemented sound corporate governance principles have better performance.

corporate governance ; accountability and transparency ; enterprise performance ; indicators. Croatia

Rad je kao predavanje prezentiran na skupu International Conference on Accounting and Finance in Transition (ICAFT 2006), održanom od 10.-12.04. 2006., Adelaide, Australija, te je objavljen u Conference Proceedings ISSN 1751- 830X (Online).