The Analysis of Corporative Reporting Designed to Enhance Corporate Governance: Evidence from the Banking Sector in Croatia

Abstract

Abstract:The main objective of this research paper is to examine whether the practice of corporate governance (CG) measured by the CGI-Crobank® index is signifi cant for the explanation of variations in the performance of Croatian banks measured by the return on assets, return on equity, interest margin, margin of non-interest income, operating expenses margin, and by Tobin's Q for the observed period from 2011 to 2015. The research is made on Croatian banks that form the CGI-Crobank® index using the data and information from annual questionnaires of CG codex, primarily to ensure objectivity, standardization and comparability. The goal of the literature analysis was to show present fi ndings in the areas of corporate reporting and its impact on CG. Results obtained in the research indicate that a well implemented practice of corporate governance measured by the CGI-Crobank® index have infl uence on the variations in the performance of Croatian banks measured by Tobin's Q and fi nancial indicators.

The Impact of Corporate Governance on Company Performance: A Study among Medium and Large Enterprises in Kosovo

“…In the case of Central and Eastern Europe, such evidence is provided by the Bistrova and Lace (2012), who based on a model that included 21 features of corporate governance, concluded that 25% of the companies with the best characteristics of corporate governance significantly exceed performance of 25% of companies at the bottom of the list in terms of attractiveness, investment access and risk management. Similarly, in the case of Croatia, Kokotec, Čalopa and Detelj (2017), in a sample that included a number of companies listed on the Croatian Stock Exchange found a relevance of the best ranking for companies in terms of the corporate governance index for successful business performance.…”