Montenegro is a small and open economy that was following and applying neo-liberal premises on its economic development path. It is an interesting case since it took different development path. So far none of the previous studies made an overall evaluation and analysis of the effects of the privatization in Montenegro on restructuring and corporate governance. In this study we analyse post-privatization restructuring of Montenegro firms in the framework that followed the original contribution of Roland (1996 & 2000) and was applied also in the study of restructuring of Slovenian firms (Domadenik et al., 2008). Roland (1996 & 2000) divided restructuring process of transition firm into two stages: defensive (cost-related) and strategic (revenue-focused) restructuring. We also investigate the effects of privatization on the corporate governance. Our results are based on the sample of 60 firms that went through mass voucher privatization (public joint-stock companies) to the 60 de-novo firms (private limited liability companies) in Montenegro in period from 2002 to 2007. The book is structured in 5 parts. Methodology and data are presented in part one, corporate governance system, legal framework and institutions, ownership structure and control as well as relation between ownership and performance are presented in part two. In part three we focus on defensive and strategic restructuring. Final observations are summarised in part four, while conclusion and limitations are presented in part fife. Contributions to the literature: 1) first comprehensive study of effects of privatisation on restructuring Montenegro, 2) first comprehensive study of corporate governance in Montenegro, 3) comperative analysis of countries in teh region (Slovenia, Macedonia; Republic of Srbska; Albania), 4) data and results have very important policy implications. Key findings: 1) the observed period (2002-2007) can be characterized as the period of marginal and non-sustainable growth, 2) growth took place in the conditions of rent seeking behaviour, 3) Montenegro has insider corporate governance system, 4) process of strategic restructuring in public joint-stock companies was based mainly on investment in physical capital, while there is almost no investment (with few exceptions) in soft capital, 5) private companies are on average performing better as public one.
COBISS.SI-ID: 256377088
Albania has made significant progress since the beginning of its transition. If economic growth has been, until now, achieved primarily through restructuring and export orientation of cost competitive low value added industries, its future growth strategy, still export oriented, will have to shift towards higher value added production (including promoting own branded products) in order to further excel GDP growth and the transition of the country towards middle income countries. Intangible capital is a major source of productivity growth and increased value added. Although the majority of research is being done for developed economies, developing economies also benefit from intangible capital, although the awareness of its importance and actual investment in companies are generally lower (Prašnikar (ed.), 2010, Prašnikar and Kneževič Cvelbar, eds., 2012, Prašnikar, 2012). The research of intangible capital in Albania is the first of its kind in the country, but it is a part of the research on intangible capital in the Western Balkan region. The methodology applied across the region was developed with a focus on the characteristics and role of intangible capital in developing countries. Consequently, the study in many aspects contributes to the theoretical, methodological and empirical literature.
COBISS.SI-ID: 262919680
Paper reflects the relationship between ownership change, ownership concentration, management turnover, and productivity of Montenegrin privatized companies covering a period 2004 - 2007. Results show that ownership concentration and the presence of domestic and foreign private owners are positively related to firms’ productivity. Companies that have replaced a Chairman of the management board also improved their productivity. The study further discusses the results in terms of the specific characteristics of the Montenegrin economy and in general terms characteristics significant for transition economies.
COBISS.SI-ID: 20091622
The comparative analysis of firms’ responses to capital and labor market frictions was conducted based on a comprehensive firm-level database from 17 countries classified into three groups: Western Balkans, Mediterranean countries and core European countries. The firm distribution of investments as well as functioning and the size of the financial accelerator and the extent, to which it affects aggregate growth, generate country specific effects on the debt process, which were higher in the Mediterranean and Western Balkan countries, especially Slovenia, Montenegro and Croatia. The total financial accelerator might be bigger in the case of core investments than financial investments because of, on average, the stronger and more uniformly distributed dynamics of the core investments. Also labour market adjustments differed, primarily in the short and long-term elasticities with respect to total revenues and labor costs. The labor elasticities with respect to total revenues are usually bigger in boom period than in boost period, which indicates that it is easier for companies to adjust their number of employees when revenues are increasing than when they are decreasing. On the contrary, the labor elasticities with respect to labor costs are not significantly different in the boom and bust period. In addition, the analysis found that due to different institutional labor market characteristics. In Slovenia the burden of adjustment was carried through the huge pool of temporary employees. The analysis shows that European countries have opened up at least one new area: now there are significant differences between temporary and permanent contracts and this labor market duality has been increasingly pressuring the social and economic sustainability of this model.
COBISS.SI-ID: 264116224
In the last 20 years, development of the Republic of Srpska has been turbulent. Due to political crisis in the early 1990s, ex-Yugoslavia started to fall apart. The crisis culminated with a war that caused huge material damage, human loss, and the break-up of international relations for the Republic of Srpska. The Dayton-Paris peace agreement ended the 1992-95 war and paved the way to peace and stability in the Republic Srpska. From 1995 to 2000 the nation faced slow recovery, followed by robust growth from 2000 to 2008. This period was characterised by high GDP growth and implementation of structural reforms involving price liberalization, trade and foreign exchange reforms, small and large scale privatization, competition policy, banking reform, infrastructure reform, and non-bank financial reform. The aim of this book is to question is Republic of Srpska able to build its future growth on intangible assets. The book comprises nine chapters. Following this introduction, the second chapter deals with the macroeconomic development. In the third chapter data and methodology are presented. Chapter four analyzes social capital and corporate governance, and chapter five discusses HRM and organization. Chapter six provides analysis of branding, chapter seven deals with IT and relational capital. The analysis of research and development in chapter eight provides additional insight on the topic, last the characteristics of financial activities are analyzed in chapter nine. Contributions to the literature: (1) development of methodological framework for the study of the intangible capital in developing countries, (2) first comprehensive study of the characteristics and behaviour of firms in Republic of Srpska, (3) data and results have very important policy implications. Key findings: (1) Republic of Srpska made significant economic progress since the end of the war, (2) at the moment, investment in intangible capital (very) low, (3) companies that are more investing in the development of intangible assets are export-oriented companies, (4) companies that are more investing in the development of intangible assets are less productive, (5) companies that are not investing in intangible capital and are oriented toward the domestic market are more successful because of rent seeking behaviour.
COBISS.SI-ID: 262242816