English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

Public enterprises have considerable economic and political importance in many countries around the world. The state is largely involved in infrastructure sectors of strategic importance for the development of the national economy. State-owned enterprises often significantly contribute to GDP and total employment. Also, we should not overlook their effect on the operating and financial performance of companies that do not belong to the public sector. However, a number of research studies have shown that the state does not perform its ownership function in an effective manner and that state-owned enterprises are usually less successful than private companies. The same holds true for Serbian public enterprises. Inadequate management, lack of transparency in their operations and absence of an efficient monitoring system lead to irrational use of resources and huge losses. Serbian public enterprises have become one of the generators of public debt, mainly due to the policy of government guaranties for their loans. Substantial subsidies coming directly from the budget or indirectly through unpaid obligations to other public enterprises, coverage of their losses and write-offs of their debt place a heavy burden on the state budget. Therefore, reform of public enterprises is not a matter of choice, but an urgent need. The financial problems of public enterprises in Serbia are so deeply embedded that their ignorance could undermine the reform processes and implementation of the strategy for economic development of Serbia or its results might fall below expectations. In this paper we put special emphasis on the quantification of inherited risks. In the first and second part we point out particular characteristics of public enterprises and their importance in some national economies. In the third part of the paper we deal with dimensioning of operating and financial risks with the aim of shedding some light on the scope of the problem, not only from the perspective of public enterprises, but also considering a negative impact of these risks on the performance of the overall economy. In the fourth part the focus is on the problems of poor quality of corporate governance, need for fundamental changes in the state's attitude toward public enterprises, and means of enhancing corporate governance. Finally, in the last part of the paper we draw attention to potential manipulations in financial statements and their consequences as well as to a lack of the government's commitment to raising the quality of financial reporting in general.

The relevance of positional risks in creating development strategy: The case of public enterprises