Dragana Vujičić Stefanović, Dragan Milovanović
Year the article was released:
Edition in this Year:
STRATEGIC RESTRUCTURING AND BUSINESS FREEDOMS AND THEIR IMPACT ON THE FINANCIAL PERFORMANCE OF THE ECONOMY OF BOSNIA AND HERZEGOVINA
Abstract:Political events in 2022, the consequences of the COVID-19 coronavirus, bad management, inadequate restructuring, are just some of the causes of the crisis and poor business performance of many companies. The research results show that companies in the EU mostly use internal restructuring strategy (39.60%) and business expansion strategy (38.25%). Assessments of the area of application of restructuring strategies according to (EBRD) (The European Bank for Reconstruction and Development) show that Bosnia and Herzegovina has stagnated in terms of restructuring activities (Grades -2, up to 2) in the last 20 years. In addition to the partial approach of each company, we developed and modeled an integral approach and focused the work on measuring the impact of restructuring activities on the state and development of the economy of Bosnia and Herzegovina, where positive impact results were obtained (0.701081731). The aim of the paper is to point out the influence of strategic restructuring and economic freedoms on the development of the economy of Bosnia and Herzegovina. In the paper, based on statistical analysis, we tested the impact and evaluations of restructuring strategies of companies in Bosnia and Herzegovina compared to companies in the European Union. The results showed a statistically significant difference compared to companies from Western Europe, Central Europe and Eastern Europe.
Keywords: Strategic restructuring, business freedom, financial performance