engleski

Corporate Governance of Croatian Construction Companies

Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. It also offers the legal, regulatory and institutional framework that helps build an environment of trust, transparency and accountability necessary for fostering long-term investment, financial stability and business integrity. The construction sector and construction companies always had a strong impact on the economic growth of every country ; especially big corporations with their revenues, profits and the employees they hire. In Croatia there are only six construction companies that could be defined as corporations, yet they are undertaking major domestic and international projects, their stocks are publicly traded and, despite the recession, they are achieving high revenues and have pervasive influence on many stakeholders. Therefore, the aim of this paper is to provide analysis and insight into the corporate governance principles and practices of these Croatian construction corporations. The findings show that all the referenced companies have implemented the minimum of corporate governance outlines defined by the Croatian Companies Act. However, voluntary actions directed towards building more transparent, developed and progressive corporate governance policies are regularly absent. In addition to reviewing the current state, this paper also provides general guidelines for improving the quality of corporate governance, which can consequently contribute to achieving a competitive advantage and create a lucrative reputation capital.

auditability and transparency, corporate governance, Croatian construction companies, regulated market

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