A Comparative Analysis of Corporate Governance in Public Enterprises in Kosovo - the Difference Between Central and Local Public Enterprises: Case Study “Southern Hydroregion” and “Eco Region” in Prizren

Corporate Governance in Public Enterprises is the main prerequisite for their success and profitability. In Kosovo, it is a new concept and has only begun to be practiced after 2005, promoting the principles of the OECD. The purpose of this paper is to present the divergences between public enterprises at the central and local levels. Public Enterprises in Kosovo are important for the local economy since in 2016, they counted about 10,152 employees or about 3.1% of the total number of employees in the Republic of Kosovo in the same year. Public enterprises in Kosovo, according to the law, are of two types: Central and Local. In Kosovo, Public Enterprises are characterized by a positive balance of profitability, but with inherited debts, especially to ATK in the amount of millions. The lack of literature regarding this topic presents the gaps of the paper. While the methodology used in this paper is based on primary data through interviews and secondary data, through literature review. Deductive and comparative methods were used. The results of this paper show that there are major differences in the governance of central public enterprises from local ones and at the same time there is low implementation of OECD principles The analysis of the findings presents the real picture of the fundamental problems and the lack of technocrats in the field in the Boards of Directors and the Chief Executive Officer, as management bodies that give direction to the orientation of Public Enterprises and their growth or decline.