DOING BUSINESS WITH THE STATE AND FIRMS' GROWTH. GRASPING INVISIBLE RELATIONAL CAPITAL

This study investigates relationships between reported assets growth, human capital effectiveness, ability to do business with state and firms' growth. Longitudinal data were extracted from annual financial reports. Sample includes 80 companies in construction industry of Bosnia and Herzegovina from 2008-2013. Generalized estimating equations (GEE) approach is used for investigation of previously mentioned associations. We found that working with the state in Bosnian construction sector is dominant factor for outstanding increase in net reported income, while the human capital efficiency is negatively associated to its change. These findings support the theory of markets with asymmetric information, suggesting that the relational and social capital of the firm in the imperfect markets, where the state is dominant customer, drives the growth and that precedes firm’s investments into development of intellectual capital.JEL Codes - M4

PROMJENA NIVOA STRANIH DIREKTNIH ULAGANJA I STRUKTURE KAPITALA ULAGAČA

Za Bosnu i Hercegovinu (BiH) kao i sve zemlje u razvoju i tranziciji ostvarivanjesvih vlastitih razvojnih potencijala veoma je važno. S tim u vezi, strana direktnaulaganja (SDU) su među značajnim faktorima za održivi ekonomski rast, a obezbjeđenjeadekvatnog okruženja za privlačenje SDU postaje jedan od bitnih ciljeva ekonomskepolitike. Ukupnoj investicionoj klimi, između ostalog, doprinose straniulagači koji posluju u BiH. Istraživanja pokazuju da su finansijski izvještajipreduzeća stranih ulagača prisutnih u zemlji jedan od kriterija na osnovukojeg potencijalni strani ulagači odlučuju o svom ulaganju. Cilj ovog radaje istražiti odnos između promjena u vezivanju kapitala i agregatnih prilivaSDU. Rezultati istraživanja ukazuju na postojanje pozitivne korelacije izmeđurasta SDU u jednoj godini (2010) i stanja zaliha u prethodnoj (2009).Također, uočeno je da se u vrijeme recesije veza između varijabli koje supredmet istraživanja gubi

Doing Business with the State and Firms’ Growth. Grasping Invisible Relational Capital

This study investigates relationships between reported assets growth, human capital effectiveness, ability to do business with state and firms' growth. Longitudinal data were extracted from annual financial reports. Sample includes 80 companies in construction industry of Bosnia and Herzegovina from 2008-2013. Generalized estimating equations (GEE) approach is used for investigation of previously mentioned associations. We found that working with the state in Bosnian construction sector is dominant factor for outstanding increase in net reported income, while the human capital efficiency is negatively associated to its change. These findings support the theory of markets with asymmetric information, suggesting that the relational and social capital of the firm in the imperfect markets, where the state is dominant customer, drives the growth and that precedes firm’s investments into development of intellectual capital