Purpose. The purpose of this paper is to determine and analyze the determinants of the capital structure of joint-stock companies in Bosnia and Herzegovina that are listed on the Banja Luka Stock ...Exchange. This study will answer the question as to which factors determine the capital structure of BiH companies and whether existing financial theories of the capital structure hold true in that context. The main research objective is to estimate the effects of a firm’s level determinants on its capital structure measures in different ownership structures. Those findings will certainly advance our understanding of listed companies financing behavior. Methodology. For the research, we took into account firm-specific characteristics and divided joint-stock companies into private and state-owned. The results of the research show that the capital structure of these two groups of enterprises is differently affected by individual determinants. Findings and implications. While state-owned enterprises rely more on borrowed resources to finance both short-term and long-term assets, private enterprises even finance part of their short-term assets with their own capital. However, the most important determinant in both groups of enterprises is the share of inventories in short-term assets, which confirms that short-term liabilities, i.e. free sources of financing in the form of liabilities to suppliers are the determinant that most positively affect the indebtedness of all enterprises. Unlike previous research that observed enterprises according to their size or affiliation to individual industries, the focus of our research is enterprises of different ownership structures. The empirical statistical results provide basis for logical conclusion and appropriate policy implications. The study points to the specifics of the capital structure in private and publicly listed joint-stock companies. The stated opposite influence of certain ratios on the indebtedness of the enterprises is explained by a number of factors. Limitations. This study focuses only on the presentation of the recent indicators of capital structure of listed companies - listed on the Banja Luka Stock Exchange, which is one of its major limitations. The limitation of this search is the sample size which can be considered low. Further research may be conducted by using other capital markets to explore more information regarding the effect of the variables affecting the capital structure. In addition, further research may also be conducted by using other proxies or by adding more variables, sample size, and research period to get a better result. Originality. The study is an original research paper. It has not been published in any other peer-reviewed journal not under consideration for publication by any other journal. The paper adds to the existing literature on Bosnia and Hezegovina by giving an overview of recent developments in the flexi purity concept, pointing out the areas that require policy response.
In the modern world, the availability of transparent and reliable information about the performance of public sector entities is becoming increasingly important. Besides the accounting systems that ...provide this information, the role of Supreme Audit Institutions is growing. As previous research in Europe has focused on EU or Nordic countries, the intention of our paper was to analyze the development of performance audits in selected south-east European countries. The results show that performance audits are still less of a priority for auditors and parliaments, and the impacts of performance audits are realized through follow-up processes.
Purpose: In this paper, the authors try to develop a model for predicting the insolvency of trading companies from the Republic of Srpska. The research seeks to determine the statistically most ...significant financial indicator in predicting the insolvency of trading companies in the Republic of Srpska.
Methodology: The research data sample in this paper consists of yearly data from 2017 to 2020 for two hundred trading companies from the Republic of Srpska. Binary logistic regression was used to develop the model.
Results: As a result of the research, a model was created that successfully classifies 82.9% of solvent and 80% of insolvent companies, with a general efficiency rate of 81.4%.
Conclusion: Based on the empirical research results, we can conclude that the hypothesis has been confirmed that the LR model can be formed on the basis of selected financial indicators as a tool for predicting the insolvency of trading companies in the Republic of Srpska.
This paper analyses local government practitioners' perceptions of the usefulness of accounting information for decision-making in jurisdictions with dual reporting (cash and accruals). The authors ...show that, in general, neither educational background (in economics or in other disciplines) nor the experience (length of time in the job) of public sector managers in Croatia and in the Republic of Srpska (Bosnia and Herzegovina) affected their perceptions of the usefulness of accounting information. The research provides new insights into the usefulness of mandatory reports and the availability of information for decision-making in dual reporting systems.
Purpose: One of the ways to enhance transparency and usefulness of audit reports is to include information on key audit matters (KAMs). In this paper, based on the presented KAMs, we investigate ...transparency of audit reports of listed companies in Bosnia and Herzegovina and in Croatia.
Methodology: For the purposes of this research, we collected and systematised data from published audit reports and then analysed them by means of descriptive statistical methods.
Results: The research results show that in Croatia only a few audit reports lack a section on KAMs and there is no difference between the audit reports issued by the Big Four and the reports of other audit firms. In Bosnia and Herzegovina, most audit reports do not include a section on KAMs, but, unlike the Big Four, who disclose at least one KAM, other audit firms generally do not present any. Additionally, the research results show differences in the number of communicated KAMs between the audit reports prepared by the Big Four in Croatia and their reports for Bosnia and Herzegovina. There are also differences in the type of KAMs used in the two observed countries.
Conclusion: Having analysed the situation in the two developing countries, we obtained different results. The discrepancies mainly stem from the varying degrees of transparency of the audit profession in each country.
The paper investigates how financially insecure public companies in the Republic of Srpska are using the Altman EM score model and the RAPO model developed on business entities in the Republic of ...Srpska. Public companies are classified as low, medium and high risk companies in terms of the probability of going bankrupt. The results show that in the observed period from 2013 to 2018, half of public companies are constantly in the problem zone, while about 40% are in the safe zone. That is, companies that have been identified as problematic have been in that group for many years, while those with low business risk have been consistently successful. The paper also presents the state's participation in the capital of public companies, as well as expenditures in the form of subsidies and recapitalizations that are allocated from the budget every year.
Purpose
The purpose of this research is to show the impact of the pandemic on the budget of Bosnia and Herzegovina (BiH) as a developing country. It also aims to give an answer as to how BiH ...politicians used budgetary measures to respond to the pandemic and what key economic factors influenced the design of those measures.
Design/methodology/approach
The study conducted detailed analyses of budgets at level of central government, as well as other publicly available documents of relevant governments bodies, international statistics and media reports up to the end of June 2020.
Findings
Decline of economic activity and a number of budgetary measures adopted by central BiH authorities under the influence of characteristics of BiH economy, characteristics of public finance and available source of funding, resulted in less government revenues and sizable government expenditures to assist the economy and public health system. The fiscal stability achieved over the past years and low level of debt allowed BiH authorities to build a deficit into the rebalanced budget. Most of the deficit was covered with the International Monetary Fund (IMF) assistance and in part also through internal borrowing and with surpluses/ deferral revenues from the previous year.
Research limitations/implications
At this point, it is impossible to predict what kind of impact the pandemic-related crisis will have on BiH public finances and whether further economic interventions will be needed.
Originality/value
This paper shows the measures that developing country governments dependent on external funding sources can take in times of crisis and what their impact is on the budget.
Missing data appear in all areas of research, and the client is in the field of social sciences. As such, they can reduce the statistical power of research and produce biased estimates, which can ...result in inadequate conclusions. This paper provides an overview of the patterns and mechanisms by which missing data may be missing in research. In addition to the above, the paper presents traditional and modern methods that can be used to eliminate missing data and points out the advantages and disadvantages of both groups of methods. It is recommended to use modern methods – such as multiple imputation methods, due to the high bias in the assessment of parameters caused by traditional methods of missing data treatment, such as methods of deleting missing data in whole or in pairs or single imputation methods.With that in mind, this paper gives an example of conducting multiple imputation in the SPSS program.
PDF
