<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>Adequate enterprise financial risk management (EFRM) represents a leading competitive advantage of enterprises that determines market survival and business success in an uncertain global environment. Over time, EFRM has become a constituent part of integral business dealings of enterprises and one of the strategic functions of enterprise management. The main purpose of the paper is to explore the effects of the EFRM function/system on the financial performance of enterprises in Bosnia and Herzegovina (BiH). The basic source of data in the research was collected by means of a structured questionnaire. The target population in the research consists of large enterprises that have continuously operated in the territory of BiH (2013-2017). The selection of enterprises was made applying a random sampling method and contains 72 enterprises. Appropriate descriptive and inferential statistical methods were used in the data analysis and panel data analysis was used to assess effects of EFRM function on financial performance. The scientific contribution of the paper is reflected in the fact that the research is pioneering for Bosnia and Herzegovina with the analysis of effects of the EFRM function on enterprise financial performance (EFP). The results show that there are no systematic, statistically significant differences between large enterprises that engage in risk management (‘hedgers’) and enterprises that do not engage in risk management (‘non-hedgers’) in BiH.</p>
</abstract>

Adequate enterprise financial risk management (EFRM) represents a leading competitive advantage of enterprises that determines market survival and business success in an uncertain global environment. Over time, EFRM has become a constituent part of integral business dealings of enterprises and one of the strategic functions of enterprise management. The main purpose of the paper is to explore the effects of the EFRM function/system on the financial performance of enterprises in Bosnia and Herzegovina (BiH). The basic source of data in the research was collected by means of a structured questionnaire. The target population in the research consists of large enterprises that have continuously operated in the territory of BiH (2013-2017). The selection of enterprises was made applying a random sampling method and contains 72 enterprises. Appropriate descriptive and inferential statistical methods were used in the data analysis and panel data analysis was used to assess effects of EFRM function on financial performance. The scientific contribution of the paper is reflected in the fact that the research is pioneering for Bosnia and Herzegovina with the analysis of effects of the EFRM function on enterprise financial performance (EFP). The results show that there are no systematic, statistically significant differences between large enterprises that engage in risk management (‘hedgers’) and enterprises that do not engage in risk management (‘non-hedgers’) in BiH.

The impact of the enterprise financial risk management function on financial performance in Bosnia and Herzegovina

School of Economics and Business. University of Sarajevo

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Adequate enterprise financial risk management (EFRM) represents a leading competitive advantage of enterprises that determines market survival and business...

The impact of the enterprise financial risk management function on financial performance in Bosnia and Herzegovina

Published Online: Mar 19, 2024

Page range: 64 - 80

Received: Sep 01, 2023

Accepted: Feb 19, 2024

DOI: https://doi.org/10.2478/fiqf-2024-0006

Keywords
Enterprise Financial Risk Management, (Non)hedgers, Financial Performance, Panel Data Analysis, Bosnia and Herzegovina

© 2024 Adem Abdić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The impact of the enterprise financial risk management function on financial performance in Bosnia and Herzegovina

Published Online: Mar 19, 2024

Page range: 64 - 80

Received: Sep 01, 2023

Accepted: Feb 19, 2024

DOI: https://doi.org/10.2478/fiqf-2024-0006

KeywordsEnterprise Financial Risk Management, (Non)hedgers, Financial Performance, Panel Data Analysis, Bosnia and Herzegovina

© 2024 Adem Abdić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Enterprise Financial Risk Management, (Non)hedgers, Financial Performance, Panel Data Analysis, Bosnia and Herzegovina