SVIBOR - Project code: 5-02-015


Strossmayerov trg 4, HR - 10000 ZAGREB
tel.: +385 1 459 44 44, fax: +385 1 459 44 69


SVIBOR - Collecting Data on Projects in Croatia

Project code: 5-02-015


Main researcher: TEODOROVIĆ, IVAN (49313)

Type of research: developmental
Duration from: 01/01/91. to 12/31/94.

Papers on project (total): 48
Institution name: Ekonomski institut, Zagreb (2)
Department/Institute: The Center for the Research of Economics, Organization and Management in the Firm
Address: Trg J. F. Kennedy 7, 41000 Zagreb
City: 10000 - Zagreb, Croatia
Phone: 385 (0)41-235-700
Fax: 385 (0)41-210-467

Summary: The market orientation of Croatian economy requires in its implementation the redefinitioning of the business and develop- ment behaviour of firms in which the field of financing is sensitive and important particularlly. The starting analysis of the exsisting system of business and development financing is the base only for investigation and determination of the model for business and development financing o firms in Croatia by using the comparative analysis and tested solutions prevailing in the developed market economies as the orientation. The theoretical and methodological key stones and organizational aspects of the capital market in the developed market economies are to be investigated and analized. Models of business and development financing of firms in Croatia are to be worked out especially. In the scope of this model the market valuation of assets and the cost of capital is to be investigated particularly. The research is to be resulted with the selection of the crucial determinants which should facilitate short-term and long-term financial decisions. The special emphasis is put on the capital budgeting problems of firms both from theoretical and practical views. In regard with requirements that the research should comprise as many as possible issues related to financing, the accounting system of Croatia and data base are to be investigated and analized. The internationalized and standardized procedures of financial analysis and planning are to be applied in the re- search. Results of the research are to be tested in the simula- tion models and soft-wares for the investment project planning are to be programmed.

Keywords: long-term financing, short-term financing, cost of capital, cash-flow, capital butgeting, working capital, capital structure, risk, financial planning, financial ratios, stock-exchange

Research goals: The development of the market structures was limited by the socio-political system in the past. However, the market rules have been breaking the institutional limitations and the qasy- markets have been appearing as the differences between the normative system and the behaviour. The fact is that the market of goods has been developed but the markets of factors, i.e. the labour market and the capital market remained undeveloped. With the exeption of small firms, the influences of the market adapta- tion on the behaviour of the most number of firms were negligi- ble. The socialization of the business and development risk and the voluntarity of the decision making lead to the structural discrepancies. The formation and allocation of capital in the capital market were under political and government full control and the results were suboptimal allocation and structural dis- crepancies mentioned. Instead of the indicative - market oriented decision making of the capital allocation the directive - planned oriented decision making of the capital allocation was implement- ed. The microeconomic business and edvelopment decisions were results of the macroeconomic decisions only. The goal of the research in this project is the determina- tion of reasons conditions and ways how to build the model related to the financing of operation and dvelopment of firms in Croatia, which should be consistent with the market economy based on the majority of private ownership. The changed function of the firm, i.e. the enlarging value of firm and wealth of the owners is to be analised. Since securities have been overtaking larger parts on the formation and allocation sides, related conditions and ways of changing behaviour of firms are to be investigated. In this project new forms of short-term and long-term financing of operation and development of firms are to be investigated particilarlly. The changed methodological and analytical proce- dures in the financial planning are to be introduced. In that, the importance of the working out of the methodology for invest- ment project planning is emphasized. The whole research is based on the known international standards. The necessary adaptations may not influence the compatibility related to implementational solutinos especially.


  1. Name of institution: Hrvatska kreditna banka za obnovu
    Type of institution: Other
    City: 10000 - Zagreb, Croatia

  2. Name of institution: Syracuse University School of Management
    Type of institution: Economical/Production
    City: Syracuse, USA

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Last update: 03/02/94