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Research Results on Level of Corporate Governance in Public Companies Presented

Belgrade, 6 October 2016 – Research findings of the study "Level of Corporate Governance in Public Companies Founded by the Republic of Serbia" were presented today at the Faculty of Economics in Belgrade.


The research was commissioned by the Ministry of Economy and conducted by NICEF – Scientific research centre at the Faculty of Economics, and FREN – Foundation for the Advancement of Economics. The project itself is one of the four pilot projects on evidence-based policy making implemented by PERFORM and Public Policy Secretariat.
 
The presentation was attended by the representatives of public enterprises that participated in the research (15 out of 37), the representatives of the Ministry of Economy, Public Policy Secretariat, and the research team. 
 
The audience was greeted by the Dean of the Faculty of Economics, Branislav Boricic, and Assistant Minister of Economy Ms Dubravka Drakulic who pointed out the importance of this research in light of the newly adopted law on Public Enterprises, and that the results of the study can help in guiding the process of implementation of the new law. Jelena Zarkovic Rakic, Director of FREN greeted the audience and Ms Mira Prokopijevic, Assistant Director of the Public Policy Secretariat stressed the importance of linking the decision makers with the research community. 
 
Research results were presented by Professor Nebojša Janicijevic, Leader of the research team, Professor Miroslav Todorovic and Ana Aleksic Miric, Associate Professor at the Faculty of Economics. The aim of the research was to examine the state and the level of development of corporate governance in public companies in Serbia in a comprehensive and comparative manner. Corporate governance assumes a set of rules by which internal organisation of a public company functions, the selection of managers and members of managing entities, the supervision of the state as the owner, the system of planning and reporting, and measuring the achieved results of public companies in order to reach transparency of their work.
 
The study showed that corporate governance is in the early stage of its implementation in managing public companies in Serbia. Institutional framework for its implementation is mostly established, as well as the regulatory framework and supporting institutions, which, regardless of the weaknesses noticed, provides good grounds for building sustainable system of good corporate governance in public enterprises in Serbia. However, the biggest impediment to improvement of corporative governance in public enterprises in Serbia is the lack of awareness of its importance among the main actors, the lack of knowledge and willingness for its full implementation. As a result, corporate governance is being implemented rather formally than essentially, and in different scope in different public enterprises. 
 
The level of corporate governance in public enterprises founded by the Republic of Serbia can be significantly improved, considering the importance of the issue itself, proclaimed goals of the state and the established institutional framework. At the same time, some progress in overcoming major barriers is notable, which gives grounds for the belief that the process of implementing good practices of corporate governance in managing public enterprises in Serbia will be handled with due care. 

You can view and download the study here