Determinants of effective corporate governance in publicly owned enterprises: an empirical study among central POEs in Kosovo

Publicly owned enterprises (POEs) are owned by the state but governed by a board of directors who oversee top management to protect owners' interests. The concept of corporate governance provides the relationship among these parties to ensure successful direction and performance of enterprises. The objective of this study is to analyse the development of corporate governance framework among central POEs in Kosovo and examine factors that influence corporate governance practices among these enterprises. The study uses a structured questionnaire survey to collect data. To sample respondents, non-probability-purposive and judgment sampling methods are employed. In total, 137 questionnaires are analysed, and institutional theory is adopted to interpret results. The study finds that corporate governance framework among POEs in the country is at an underdeveloped stage, influenced by frequent political interferences and existence of unprofessional boards. The findings suggest that to improve corporate governance practices, besides cautiously implementing the legal provisions, socio-cultural factors should also be considered.