This study reflects the relationship between ownership change, ownership concentration, management turnover, and productivity of Montenegrin privatized companies covering a period 2004 - 2007. Results show that ownership concentration and the presence of domestic and foreign private owners are positively related to firms’ productivity. Companies that have replaced a Chairman of the management board also improved their productivity. The study further discusses the results in terms of the specific characteristics of the Montenegrin economy and in general terms characteristics significant for transition economies.
In the article we analyse the privatization and corporate governance in Slovenia and Montenegro. Establishment of the economy on private property marks both economies over the past two decades. Because of social ownership and self-government in the Yugoslav socialist system, have both countries built privatization on a soft approach with the important role of internal employee ownership. Models of privatization and governmental key policies were built upon this. At the initial period (1991-2000), government policies in Slovenia were encouraging export orientation of firms to Western Markets. In Montenegro government policies were primarily aimed at resolving relationships in the former Yugoslavia. As a result, managers in Slovenia were mainly focused toward increasing the value of a business, while in Montenegro assets stripping was recognized as an important way of increasing wealth of managers. Later on, (from 2000 onward) in both countries further privatization and liberalization were adopted as a key government directions. Faster privatization was based on the belief that it should bring changes in corporate governance and efficiency of companies. However, an overheated economy in the period before the crisis, induced due to additional capital inflows, has among others caused an overindebteness of companies. Today, in Slovenia, a significant part of ownership is still in the hands of the state. In contrast, Montenegro, first with the mass voucher privatization (MVP), and then with tender privatization, privatized most of the economy. However in both countries local capital markets generally play the role of redistribution of equity (property) and virtually have no possibilities to supply companies with new equity.
The paper identifies the existing methodological and data challenges used to measure intangible capital, focusing on innovation activity, and proposes a methodology for capturing R&D and the innovation activity in developing countries. It includes a full description of the proposed and used questionnaire which is founded on a cascade type of questions, a novelty approach in the analysis of intangible assets, which was shown to be more suitable for this kind of research in developing countries. The paper furthermore describes the preliminary results on the sample of 61firms from the Slovenian manufacturing service and sets goals for further research.