The idea that working capital management impacts profitability and risk of a company is generally accepted and in last 10-15 years has acquired a substantial interest. Accordingly, from the aspect of the measure of efficiency of working capital management, the objective of this paper is to evaluate working capital management impact on profitability of Croatian software companies. This impact was examined using descriptive and correlation as well as panel regression analysis for six-year period (2008-2013). The results show that after controlling for characteristics of the company and macroeconomic conditions working capital management significantly affects the profitability of Croatian software firms. Moreover, the results imply the existence of a nonlinear, concave quadratic relationship between the net working capital and return on assets. This suggest the existence of an optimal level of net working capital that balances costs and benefits and maximizes profitability of analysed companies.

The area of corporate governance (CG) determines the way in which a corporation is managed and monitored. The purpose of this article is to investigate whether there is a correlation between company performance and CG practices, while the general objective is to set up regression models of the company success measured by Tobin's Q and CG practices measured by Croatian Corporate Governance Index (CCGI ® ). Data used for processing the topic were from secondary sources, mostly books and articles, as well available annual questionnaires of CG codex for the period from 2007 to 2010. Results obtained in this research indicate that CG is an important factor in explaining the business performance of Croatian companies included in the official share index of the Zagreb Stock Exchange (ZSE) CROBEX ® (Croatian equity index).

Entrepreneurship is an important factor of potential growth and development that will determine the development dynamics of transition countries in the future

The paper develops a dynamic panel model of target adjustment in order to investigate the determinants of the cash conversion cycle of companies in manufacturing, trade, and information and communication industries in the Republic of Croatia for the period 2008-2015. The emphasis is on examining the significances and the speeds of the adjustment processes of the cash conversion cycles of companies subsamples by industry and size. Due to the adjustment costs, the results show that the observed companies gradually adjust their current cash conversion cycles to the target ones. In addition, these adjustments were slow, which can be explained by the predominance of the adjustment costs over the costs of being in disequilibrium. Moreover, the results of this study indicate that the rate of adjustment varies among companies from different industries and size categories. The differences in market power allow companies to change more easily the components of the cash conversion cycle. As a result, they enable faster convergence to their target levels. Besides the lagged cash conversion cycle, tested potential determinants that significantly affect the cash conversion cycles of Croatian companies in selected industries, although with different robustness, are company size, company growth, return on assets, fixed asset investments, financial leverage and the growth of the real gross domestic product. Finally, the paper presents a new measure for working capital management performance.

There are many global and national analyses that provide conclusive scientific support to various theses which stress the importance of entrepreneurship. In this article, based on the relevant data from Croatian counties, we specifically examine the mutual dependence and dual causality of the concepts of regional development and entrepreneurial activity. We apply correlation and dynamic panel data analysis on the set of data from Croatian counties with levels and relative changes of the selected regional growth indicators (GDP per capita, registered unemployment rate, development index) and the indicators of entrepreneurial activity (the number of entrepreneurs per 100 residents). The results of these analyses show the complexity and ambiguity of impact of level of regional development and economic growth on the growth of entrepreneurial activity Croatian counties, depending on the studied indices and the manner of observing them either through their particular levels or their relative changes in time.Results of testing the impact of level and growth of entrepreneurial activity on economic growth are however consistent and robust to different indicators reflecting economic growth. Showing that there exists a significant positive impact of entrepreneurial activity on economic growth.