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THE OWNERSHIP STRUCTURE AS A CORPORATE GOVERNANCE MECHANISM IN SERBIAN HOTELS

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Author(s): Pero Petrovic | Slobodan Cerovic

Journal: UTMS Journal of Economics
ISSN 1857-6974

Volume: 1;
Issue: 1;
Start page: 93;
Date: 2010;
Original page

Keywords: ownership | structure | performance | hotel companies | Serbia

ABSTRACT
This article analyses the development in Serbien tourism sector during the last decade. The article is focused on the ownership structure and company performance in the light of corporate governance theory and the actuel privatisation process. Previous research has proven that Serbien state is a poor and pasive owner,whereas private owners and amployees are more active and more interested in their company’s economic performance. This article shows that the transition to private ownership in the Serbian hotels sector has not been finished. Consequently, state-owned and investment funds remain important owners of Serbien hotels. The financial performance of hotel companies is below average in the economy and can be correlated with the current ownership structure. Since the current ownership structure has a negative impact on the hotel sector competitiveness, an ownership change is needed to boost the sector’s competitivensess and the competitivensess of Serbia as tourist destination.
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