THE NECESSITY OF BUSINESS RESTRUCTURING OF STATE-OWNED AND PUBLIC ENTERPRISES IN BOSNIA AND HERZEGOVINA
DOI:
https://doi.org/10.7251/ZREFIS1918029SKeywords:
corporate governance, state-owned enterprises, public enterprises, business restructuringAbstract
The restructuring of state-owned and public enterprises has attracted the attention of numerous researchers in the transition and post-transition period. The goal of restructuring as a business philosophy is to change and establish a new business philosophy, a new way of thinking. The correct interpretation of this term goes beyond its narrow and misleading translation, which equates to restructuring with a measure of change in structure. This paper examines the situation with the state-owned enterprises in Bosnia and Herzegovina. Although Bosnia and Herzegovina is characterized by the presence of two completely separate systems of corporate governance (corporate governance is regulated at an entity level without any common grounds at the level of Bosnia and Herzegovina), the symptoms of the situation are identical in both entities: state enterprises are commercially inefficient in both entities, and the reasons for their inefficiency are identical. The paper attempts to identify the symptoms and causes of such a state with a set of recommendations for the restructuring of state-owned enterprises, with clear definitions that, considering the trend of expansion of state-owned enterprises in highly developed countries, state-owned enterprises are needed here. It turns out that the privatized companies do not take into account the state interest. Following the logic of the OECD Guideline No. 2 (Ownership of State), first, it is considered how the state should manage the state-owned companies, and then by following the logic of the OECD Guideline no. 6 (Responsibilities of Committee) the complete corporation of state-owned enterprises is advocated in the way that state-owned enterprises have all the prerogatives of corruption, and are sufficiently distanced from political parties in power. Such an approach will significantly contribute to the improvement of corporate governance rating in Bosnia and Herzegovina that shows the atrophy of the system.References
Babić, Manojlo. 2014. ''Šesnaest godina ekonomije bazirane na obezvređivanju i uništavanju javnih preduzeća''. Oslobođenje May 14
Babić Manojlo, Milić Simić, Aziz Šunje, and Mirko Puljić. 2008. Korporativno upravljanje – principi i mehanizmi. Sarajevo: Revicon
Bradowski, James F. 1991. ''Restructuring is a continuis process'' Long Range Planning 24 (1): 10-14
Coopeland, Thomas E, and Lee, Won Heum. 1996. ''Exchange Offers and Stock Swaps – New Evidence'' Finansial Management 20 (3)
OECD. 2005. Corporate Governance of State-Owned Enterprises – A survey of OECD countries. Paris:OECD
Crum, Roy. L., and Itzhak Goldberg. 1998. Restructuring and managing the enterprise in transition, Washington: World Bank
Franks, Julian, and Collin Mayer. 2001. "Ownership and Control of German Corporations", Review of Financial Studies 14(4): 943–977
Kreitner, Robert, Barry L Reece, and James O’Grady. 1990. :Business, Boston: Houghton Mifflin Company
Schumpeter, Joseph. 2014. ''Leviathan as capitalist'' The Economist June 21
Matić, Branko, and Nikola Papac. 2014. ''Measuring the quality of corporate governance in the banking sector of Bosnia and Herzegovina''. Economic Research-Ekonomska Istraživanja 27(1): 784-798
Monks, Robert A. G., and Nell Minow. 2004. Corporate Governance. Oxford: Blackwell Publishing
Mustajbašić, Ema, Nikola Papac, and Dženan Kulović. 2018. ''Funkcionalna konvergencija nivoa korporativnog upravljanja: prilog razvoju prakse ocjenjivanja kvaliteta korporativog upravljanja u Bosni i Hercegovini'' Paper presented at VIII Međunarodna naučno-stručna konferencija Razvoj poslovanja: Ekonomski izazovi zemalja u tranziciji November 14-15
Nadler, David A., and Michael L. Tushman. 1997. Competing by Design: The Power of Organizational Architecture. New York: Oxford University Press
OECD. 2015. Guideline on Corporate Governance of State-Owned Enterprises. Paris: OECD
Omerbegovic Arapovic Adisa and Adis Arapovic 2013. ''Ekonomska doktrina politickih partija u Bosni i Hercegovini'' Sue Generis 1(1): 75-93
Omerbegovic Arapovic Adisa, and Adis Arapovic. 2017. ''Transitional and Structural Reforms for the New Generation of Bosnia and Herzegovina: Reform and Beyond, inside 'Bosnia and Herzegovina and Its' European Future: Vision 2020''' Center for Transatlantic Relations, The Paul H. Nitze School of Advanced International Studies, Johns Hopkins University, Washington D.C. 1:153-177.
Omerbegovic Arapovic, Adisa. 2015. ''New capitalist model for Bosnia and Herzegovina: Reform Agenda and Model of Social Cohesion as Instruments'', political analysis paper series 2/2015, Friedrich Ebert Stiftung and Foreign Policy Initiative, November 2015
Papac, Nikola. Zdenko Klepić, and Branko Matić. 2016. ''Mjerenje kvalitete korporativnog upravljanja u Bosni i Hercegovini'' Paper presented at VI Interkatedarski skup katedri za menadžment zemalja jugoistočne Evrope
Porter, Michael, and Mak R. Kramer. 1999. ''Philantropys New Agenda: Creating Value'', Harvard Business Review,Nov-Dec
Porter, Michael, and Mark R. Kramer. 2002. ''The Competitive Advantage of corporate philantrophy'', Harvard Business Review, Novmeber
La Porta, Rafael, Florencio Lopez-de-Salinez, and Andrei Schleifer. 1998. “Corporate Ownership Around the World.” Journal of Finance 54 (2): 471-517
Vlada FBiH. 2015. Reformska agenda za Bosnu i Hercegovinu za period 2015-2018. Sarajevo
Dropulić Ružić, Marinela. 2011. ''Korporativno upravljanje u hotelskm preduzećima'' Ekonomska misao i posao 1:171-201
Samaras, Harris A. 2004. Corporate Restructuring – An Oweriview, New York: Pytheas
The Economist. 2014. ''State capitalism in the dock'' The Economist Nov. 22
Šunje Aziz. 2018. ''Kako reformirati i revatilizirati javni sektor naše privrede?'' Oslobođenje March 13
Šunje Aziz. 2017. ''Korporatizacija državnih preduzeća – način unapređenja upravljanja javnim preduzećima'' Vijeće ekonomskih savjetnika Vlade FbiH, Vijeće stranih investitora, Udruženje poslodavaca FBiH (Plava knjiga). Sarajevo
Šunje Aziz, Ermin Cero, and Edib Ahmetspahić. 2014. ''Struktura iskorištenja potencijala – korporatizacija državnih preduzeća kao jedan od načina za djelotvornije iskorištenje (naših) potencijala'' Paper presented at XIV međunarodni ekonomski forum: Korporativno upravljanje u BiH December 6-7
Šunje, Aziz. 2002. Top-menadžer: vizionar i strateg. Sarajevo: Tirada
Tipurić, Darko. 2014. Iluzija strategije: Razotkrivanje socijalno konstruirane zbilje poduzeća. Zagreb: Sinergija
Todorović, Jovo. 2003. Strategijski i operativni menadžment. Beograd: CONZIT
Walker, Lewis. 1990. Strategic Restructuring: A Critical Reqirement in the Search for Corporate Potemtial, New York: McGrav-Hill
Wruck, Karen Hooper. 1990. Finansial Distress, Reorganization and Organization Efficiency, Journal of Finansial Economics 27(1): 419-444
Tron. 2018. Accessed: November 21 http://www.tron.ba
Vlada FBiH. 2016. Zakon o privrednim društvima F BiH. Sarajevo
Vlada FBiH. 2016. Zakon o upravljanju državnim kapitalom u privrednim društvima u F BiH (prijedlog) Sarajevo
Vlada FBiH. 2016. Zakon o ministarskim, vladinim i drugim imenovanjima F BiH. Sarajevo
Vlada FBiH. 2016. Uredba od vršenju ovlaštenja u privrednim društvima sa učešće državanog kapitala iz nadležnosti F BiH. Sarajevo
Downloads
Published
Issue
Section
License
Copyright (c) 2019 Zbornik radova Ekonomskog fakulteta u Istočnom Sarajevu
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
