ABSTRACT

The aim of this research is to determine the impact of the quality of financial reports on decision-making, specifically decisions regarding the initiation of preventive restructuring procedures in medium and large enterprises in Bosnia and Herzegovina. The study employed methods of description, systematization and classification, analysis, synthesis, induction and deduction, statistical methods, and the method of proof. For the empirical part of the research, primary data were collected using the survey method, and appropriate software support was used for processing and analyzing the collected data. According to data from the Agency for Statistics of Bosnia and Herzegovina, in 2022, the total number of medium and large enterprises, based on the number of employees, was 1,646, of which 1,358 were medium-sized enterprises and 288 were large enterprises. According to their proportion in the total number of companies, responses from companies were collected through questionnaires using a quota sampling method, with a minimum selection fraction of research units of 5% in relation to the population, i.e., 83 companies. Based on the results of the conducted company survey, we found that as many as 67.92% of the surveyed companies believe that the quality of financial reporting helps company management to make timely decisions, specifically decisions regarding the preventive restructuring of the company. Based on the results of the primary research, we can conclude that the quality of financial reports affects the decision-making process, specifically decisions on initiating preventive company restructuring.

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