Drawing on a representative sample of firms, this paper presents some microeconomic evidence on the productivity growth process in Croatia since the onset of recession (2008-12). Four types of ...results are highlighted. First, there is a persistent (and increasing) heterogeneity in the performance of Croatian firms along outcome measures. Second, Croatia lags behind regional peers in entrepreneurship measures, which suggests a comparatively lower economic dynamism. Third, the lack of dynamism displayed by the Croatian economy is confirmed when looking at the firm entry and exit process: the analytical results point to reduced firm dynamism compared with Croatia's peers in Europe and Central Asia. Fourth, the contribution of net entry to overall productivity growth in Croatia is surprisingly negative. This is contrary to what would be expected based on the literature and suggests that the process of "destructive creation" in Croatia has not been efficient, as the market might be eliminating firms that are potentially productive. Policies that foster market contestability should be pursued, especially policies aiming at better product market regulation (such as liberalization of entry into the service sector, particularly retail and infrastructure). Measures to help finance entrepreneurship (in promising sectors) should be used to support enhancements in firm productivity. In addition, appropriate bankruptcy rules play a key role by easing the exit process and allowing low-productive units to leave the market and free resources that can be better used by other, more efficient, firms.
Performance evaluation of the stock market has been in investors' focus for many decades. There exist a lot of models, methods and theories that try to provide answers to investors' questions about ...securities, portfolio and risk management, etc. When making decisions on these topics, investors take into account different micro and macro aspects, which contribute to the stock market movements. Croatian capital market has undergone different phases of its development in the past decade. The financial crisis affected the Zagreb Stock Exchange as well as it did other markets. Since then, investors are even more careful when handling and employing their resources. There has been a lack of domestic papers that deal with different aspects of performance measurement on the Croatian stock market. Thus, the aim of this paper is to perform measures of stock market development, liquidity, MPT (Modem Portfolio Theory) performance measurements and volatility in order to quantify the stock market performance in the period before and after the financial crisis. In this way conclusions can be made based on the results in order to identify opportunities and threats on the Zagreb Stock Exchange.
Performance evaluation of the stock market has been in investors’ focus for many decades. There exist a lot of models, methods and theories that try to provide answers to investors’ questions about ...securities, portfolio and risk management, etc. When making decisions
on these topics, investors take into account different micro and macro aspects, which contribute to the stock market movements. Croatian capital market has undergone different phases of its development in the past decade. The fi nancial crisis affected the Zagreb Stock
Exchange as well as it did other markets. Since then, investors are even more careful when handling and employing their resources. There has been a lack of domestic papers that deal with different aspects of performance measurement on the Croatian stock market. Thus,
the aim of this paper is to perform measures of stock market development, liquidity, MPT (Modern Portfolio Theory) performance measurements and volatility in order to quantify the stock market performance in the period before and after the fi nancial crisis. In this way conclusions can be made based on the results in order to identify opportunities and threats on the Zagreb Stock Exchange.
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