MANAGEMENT AS A FUNCTION OF SUSTAINABLE FINANCIAL STABILITY OF PUBLIC ENTERPRISES AND INSTITUTIONS

Abstract

Modern public companies and institutions can create and developing their comparative advantages only
through adequate application of the management system. Considering the importance and role of companies and
corporations, as the most important institutional forms of organizing enterprises, it is clear that they need both good
management and a well-established system of corporate management. With the development of the market
economy, which conditions a new way of doing business for public companies and institutions, and thus an
important role in the approach to financial management, there have been changes in the basic economic settings and
criteria for successful management and business, especially financial flows. Domicile public companies need to
adapt to new changes, because the market economy favors financially stable companies. Only financial stability
represents the final term of the ability of a company in transition to function in a turbulent market environment.
Based on this fact, the paper deals with the practical treatment of this problem and the key analytical indicators of
the financial position, as well as the property and income position of Mine and thermal power station Ugljevik a.d.
Ugljevik. The goal of the research is to indicate to what extent management is a function of sustainable financial
stability and liquidity, as well as to evaluate the quality and ability of management to effectively manage the
finances of this company.