KVALITETA KORPORATIVNOG UPRAVLJANJA I LIKVIDNOST POSLOVANJA
QUALITY OF CORPORATE GOVERNANCE AND BUSINESS LIQUDITY

Summary/Abstract: An efficient corporate governance system is a basic prerequisite for sustainable economic growth, increase of economic system efficiency and a guarantee for easier approach to external sources of capital. The quality level of corporate governance can be defined as level of fullfilment of corporate governance set standards defined at international and national institutional level. Based on existing theoretical and empirical findings, Bosnia and Herzegovina has characteristics of a closed corporate governance system in its both entities. Therefore models for measuring corporate governance in countries with typically closed corporate governance systems are selected as basis for development of models for measuring level of corporative governance. Corporate governance meaurement gives clear picture of strenghts and weaknesses of corporate governance system in corporations in Bosnia and Herzegovina. It also represents basis for long-term sustainable and socially responsible growth and development of entire economic system in Bosnia and Herzegovina. A significant number of researches show that corporations with higher standards and better practice in corporate governance have also better financial results and therefore higher value in the capital market. This means that corporations with higher level of corporate governance have also better financial results, eaasier approach to financial capital and higher value in the capital market. The main purpose of this research is to determine the impact level of quality of corporate governance on business liquidity, that is, since it is about historical data, to determine whether corporations with good corporate governance have higher business liquidity and vice versa. The main objective of the research is to determine relations and between quality of corporate governance and business liquidity indicators.

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