Multicrtieria evaluation of supervisory boards effectiveness

Abstract

Corporate governance system in Bosnia and Herzegovina is based on two- Tier model. Supervisory board presents the key corporate body. It is worth to find out what type of the supervisory board is associated with the companies having best financial results. Thus the paper evaluates results by different selected criteria and ranks companies using multicriteria ranking method. Earnings before interest, return on assets and return on equity were selected as key criteria to measure performances of companies. Multicriteria ranking was performed using complex VIKOR method. Results are indicative for conclusion on preferable constitution of Supervisory board.