Level of corporate governance in public companies founded by the Republic of Serbia

Ministry of Economy and Faculty of Economics present the results of the research titled "Level of corporate governance in public companies founded by the Republic of Serbia"  

Belgrade, October 6th 2016 – the presentation of the research findings of the study titled "Level of corporate governance in public companies founded by the Republic of Serbia" was organized at the Faculty of Economics University of Belgrade. This research was commissioned by the Ministry of Economy and undertaken by NICEF – Scientific research centre at Faculty of Economics and FREN – Foundation for the Advancement of Economics. The project itself is one of 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 as the main partner in implementation of the PERFORM pilot project, and the research team.

The audience was greeted by the Dean of the Faculty of Economics, Branislav Boričić, and Assistant Minister of Economy Ms Dubravka Drakulić who pointed out the importance of this research in the moment when the new law on Public Enterprises has been adopted and when the results of the study can help in guiding the process of implementation of the new law. Jelena Žarković Rakić, director of FREN greeted the audience and Ms Mira Prokopijević, assistant director of the Public Policy Secretariat addressed the audience stressing the importance of linking the decision makers with research community. Finally PERFORM representative expressed their satisfaction on successful process of cooperation among all partners in the process and for having available the results of the study.

Results of the analysis were presented by Professor Nebojša Janićijević, the leader of the research team, Professor Miroslav Todorović and Ana Aleksić Mirić, associate professor at the Faculty of Economics.

The aim of the research was to examine the state and the level of the development of corporate governance in public companies in Serbia in a comprehensive and comparative manner. Corporate governance assumes the set of rules by which an internal organization 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 audience was listening to the presentation with high interest and at the end there was a space for questions and answers, and dynamic discussion was developed.

This study showed the 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 weaknesses noticed, provides good grounds for building sustainable system of good corporate governance in public enterprises in Serbia. However, the biggest impediment for improvement of corporative governance in public enterprises in Serbia is the lack of the 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 enterprise. Generally speaking, the level of the 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.