A review of the rationales for corporate risk management: fashion or the need?

This paper presents the extensive literature survey based both on theoretical rationales for hedging as well as the empirical evidence that support the implications of the theory regarding the arguments for the corporate risk management relevance and its influence on the company’s value. The survey of literature presented in this paper has revealed that there are two chief classes of rationales for corporate decision to hedge - maximisation of shareholder value or maximisation of managers’ private utility. If corporate hedging decisions are capable of increasing firm values, they can do so by reducing the volatility of cash flows. The literature survey presented in this paper has revealed that, by hedging financial risks firms can decrease cash flow volatility, what leads to a lower variance of firm value. This means that not only a firm value is moving less, but that the probability of occurring low values is smaller than without hedging. Reduced volatility of cash flows results in decreased costs of financial distress and expected taxes, thereby enhancing the present value of expected future cash flows. Additionally, it reduces the costs associated with information “asymmetries” by signalling management's view of the company's prospects to investors, or it reduces agency problems. In addition, reducing cash flow volatility can improve the probability of having sufficient internal funds for planned investments eliminating the need either to cut profitable projects or bear the transaction costs of obtaining external funding. However, it needs to be emphasised that there is no consensus as to what hedging rationale is the most important in explaining risk management as a corporate policy. It can be concluded that, the total benefit of hedging is the combination of all these motives and, if the costs of using corporate risk management instruments are less than the benefits provided via the avenues mentioned in this paper, or any other benefit perceived by the market, then risk management is a shareholder-value enhancing activity.corporate risks, rationales of risk management

Slovenian case of strategic change management in the public sector: Towards the Lisbon Strategy

The paper focuses on the Slovenian case of strategic change management process with emphasis on the movement towards the implementation of Lisbon Strategy goals. The EU will be “the most competitive and dynamic knowledge-based economy in the world”, capable of sustainable economic growth with more and better jobs and greater social cohesion. These are crucial priorities of the Lisbon strategy. These changes in public sector organizations have enormous significance for regional development in Slovenia. The aim of the paper is to consider and discuss the development of Slovenian public administration priorities in the process directed towards the implementation of Lisbon Strategy goals. Paper also highlights recent achievements of Slovenian e-administration strategy. In the paper the explanatory case study research method was used (Yin, 2002), with focus on longitudinal and pre-post methodological techniques. The research findings outline, that strategic management methods applied in the case support the implementation of Lisbon Strategy goals in Slovenia

PRIKAZ MENADŽERSKIH ALATA KORIŠTENIH U MENADŽMENTU TROŠKOVA U SLOVENSKIM TVRTKAMA

Global competitive pressures have made companies focus increasingly on the cost management that has always been a basic component of any successful business strategy. Consequently, many companies are now adopting new cost management philosophies and techniques (in the paper referred to as “contemporary cost management concepts “ and abbreviated as “CCMCs “), and shifting away from traditional cost accounting techniques. The purpose of the paper is to emphasize the importance of the use of CCMCs in companies facing the rapidly changing business environment, in particular companies in transitional economies. The paper provides final results of an extensive research conducted in 264 Slovenian companies. This research aimed to answer whether there is a common understanding and using of CCMCs among Slovenian companies, whether there is relationship between size of the company and use of CCMCs, and whether the use of CCMCs affects the performance of companies.Globalni pritisci konkurencije prisiljavaju tvrtke da se sve više usredotočuju na menadžment troškova koji je oduvijek bio temeljna sastavnica uspješne poslovne strategije. Kao rezultat toga, veliki broj tvrtki primjenjuje novu filozofiju i tehnike upravljanja troškovima (u ovome se članku koristi skraćenica CCMS u značenju “suvremene koncepcije menadžmenta troškova”) i napušta tradicionalne tehnike računa troškova. Svrha ovog članka jest istaknuti značaj uporabe CCMS u tvrtkama koje su suočene s brzim promjenama poslovnog okruženja, osobito u tvrtkama u tranzicijskim gospodarstvima. Članak daje rezultate temeljene na opsežnom istraživanju provedenom u 264 slovenskih tvrtki. Ovo istraživanje imalo je za cilj utvrditi da li u slovenskim tvrtkama postoji temeljno razumijevanje i korištenje CCMS-a i postoji li veza između veličine tvrke i uporabe CCMS-a, te na koji način uporaba CCMS-a utječe na uspješnost poslovanja tvrtk

A Review of the Rationales for Corporate Risk Management: Fashion or the Need?

This paper presents the extensive literature survey based both on theoretical rationales for hedging as well as the empirical evidence that support the implications of the theory regarding the arguments for the corporate risk management relevance and its influence on the company’s value. The survey of literature presented in this paper has revealed that there are two chief classes of rationales for corporate decision to hedge - maximisation of shareholder value or maximisation of managers’ private utility. The paper concludes that, the total benefit of hedging is the combination of all these motives and, if the costs of using corporate risk management instruments are less than the benefits provided via the avenues mentioned in this paper, or any other benefit perceived by the market, then risk management is a shareholder-value enhancing activity

Pomen obvladovanja stroškov v javnem sektorju

Vprašanja obvladovanja stroškov in nadziranja poslovanja so vse aktualnejša tudi v slovenskih organizacijah javnega sektorja. Organizacije, ki so najbolj napredovale na tem področju, uvajajo v svoje poslovanje menedžerska orodja, ki prispevajo k obvladovanju stroškov in ki so se najprej uveljavila v proizvodnem sektorju. Prispevek se ukvarja z vprašanji obvladovanja stroškov v javnem sektorju. Namen prispevka je predstaviti obvladovanje stroškov in njegov pomen za uspešno delovanje vseh podjetij in drugih organizacij, s posebnim poudarkom na organizacijah javnega sektorja, v katerih se vse bolj uveljavljajo načela in pristopi, ki so sicer značilni za podjetja v zasebnem sektorju. Poleg tega v prispevku predstavljamo uporabo sodobnih menedžerskih orodij, ki prispevajo k obvladovanju stroškov v slovenskih podjetjih, ter na podlagi rezultatov empirične raziskave analiziramo vpliv njihove uporabe na uspešnost podjetij

Organiziranost Mestne občine Ljubljana v luči novega javnega menedžmenta

Ljubljana je glavno mesto Republike Slovenije, v sistemu slovenske lokalne samouprave pa je največja občina. Njeno organiziranost in delovanje pogojujejo naslednja dejstva in okoliščine: velikost, način nastanka, (pre)počasna teritorialna členitev na četrtne skupnosti ter specifične rešitve v zvezi z delovanjem gospodarskih javnih služb, s stanovanjskim gospodarstvom, z razvojnimi nalogami in nalogami na področju turizma in malega gospodarstva. Mestna občina Ljubljana je razvejan sistem, sestavljen iz mnogih vertikalno in horizontalno povezanih in soodvisnih podsistemov. Eden najpomembnejših je Mestna uprava, ki se sooča z zahtevo po svoji večji učinkovitosti in delovanju v skladu z načeli novega javnega menedžmenta. V ta namen so bile v letu 2007 sprejete določene organizacijske spremembe, ki odpravljajo pomanjkljivosti do sedaj uveljavljenih rešitev, a hkrati ohranjajo določene dileme, ki bodo terjale dodaten premislek in morebitne drugačne rešitve

Slovenski slučaj strateških promjena upravljanja u javnom sektoru: Prema Lisabonskoj strategiji

The paper focuses on the Slovenian case of strategic change management process with emphasis on the movement towards the implementation of Lisbon Strategy goals. The EU will be “the most competitive and dynamic knowledge-based economy in the world”, capable of sustainable economic growth with more and better jobs and greater social cohesion. These are crucial priorities of the Lisbon strategy. These changes in public sector organizations have enormous significance for regional development in Slovenia. The aim of the paper is to consider and discuss the development of Slovenian public administration priorities in the process directed towards the implementation of Lisbon Strategy goals. Paper also highlights recent achievements of Slovenian e-administration strategy. In the paper the explanatory case study research method was used (Yin, 2002), with focus on longitudinal and pre-post methodological techniques. The research findings outline, that strategic management methods applied in the case support the implementation of Lisbon Strategy goals in Slovenia.Ovaj rad usmjeren je na slučaj Slovenije a vezano za strateške promjene u procesima upravljanja s naglaskom na skretanje prema implementaciji ciljeva Lisabonske strategije. EU će biti “najkonkurentnija i na znanju temeljena dinamična ekonomija u svijetu”, sposobna za razvoj održive ekonomije s više boljih radnih mjesta i većom društvenom kohezijom. To su najvažniji prioriteti Lisabonske strategije. Te promjene u organizacijama javnog sektora imaju veliki značaj za regionalni razvoj Slovenije. Cilj ovog rada je razmotriti i razjasniti razvoj i prioritete slovenske javne administracije u procesu usmjeravanja prema primjeni ciljeva Lisabonske strategije. U radu se također ističu suvremena dostignuća slovenske strategije e-administracije. U radu se koristi znanstvena metoda istraživanja na temelju slučaja, s naglaskom na longitudinalnu i pre-post tehniku metodološkom pristupu. Rezultati istraživanja pokazuju da metode strateškog upravljanja primijenjene na slučaju podupiru implementaciju ciljeva Lisabonske strategije u Sloveniji

Vpliv vzajemnega delovanja managerskih sistemov nadzora in strategije na obvladovanje uspešnosti poslovanja

We study the interaction between management control systems and strategy its impact on organisational performance considering the way in which multiple aspects of control systems and dimensions of context combine in a variety of ways to enhance performance. Our purpose is to investigate the relationship among management control systems, strategy and organisational performance in a particular company. The contribution of this study is that it upgrades the existing theory in that it does not only establish a relationship between strategy and management control systems, but also considers how this relationships impacts on organisational performance. The study shows that the combination of performance-driven behaviour and regular use of management control systems leads to improved results. The second contribution of the study is that it incorporates a wider range of controls, including informal controls as being equally important as formal controls, to provide a more comprehensive analysis, as opposed to the majority of prior studies focusing on a more limited range of controls. In this way, this paper contributes to the literature in terms of examination of the broader components of management control systems than was previously done.V prispevku proučujemo medsebojno delovanje managerskih sistemov nadzora in strategije ter njegov vpliv na uspešnost poslovanja. Naš namen je raziskati odnos med managerskimi sistemi nadzora, strategijo in uspešnostjo poslovanja v izbranem slovenskem podjetju. Prispevek pričujoče raziskave je v tem, da nadgrajuje obstoječo teorijo, ker se ne osredotoča le na proučevanje odnosa med staretgijo in managerskimi sistemi nadzora pač pa upošteva tudi vpliv tega odnosa na uspešnost poslovanja podjetja. Ugotovili smo, da kombinacija ciljno usmerjenega vedenja ter redne uporabe managerskih sistemov nadzora vodi do boljših poslovnih rezultatov. Drugi prispevek raziskave je v tem, da vključuje širok nabor kontrolnih mehanizmov, saj upošteva tudi neformalne oblike nadzora kot enakovredne formalnim. S tem omogoča celovitejšo analizo kot prejšnje raziskave s tega področja, ki so se osredotočile na bolj omejen nabor kontrolnih mehanizmov (predvsem formalnih). Na ta način članek nadgrajuje obstoječo literaturo s področja proučevanja managerskih sistemov nadzora

Impact of Corporate Investment on Business Performance: The Case of Slovenian Firms for the Period 2000–2017

This paper, which is derived from comprehensive research based on the microeconomic theory of investment and the theoretical approach to measuring the financial performance of firms, presents a conceptual model to define, assess, and measure the impact of corporate investment on business performance. In terms of investment, the focus falls only on tangible fixed assets, whereas business performance is defined solely as performance measured by the relevant financial indicators. Several research hypotheses are tested on an extensive sample of Slovenian firms. A statistically significant correlation between investment and financial performance indicators is found for the period 2000–2017. This correlation is particularly strong with net sales revenues, added value, and operating cash flow (EBITDA). Since the global financial crisis occurring at the break of the last decade is also included in the designated period, the creditless growth of investment together with the simultaneous deleveraging that took place after the financial crisis is explored and compared with the growth of selected financial performance indicators