INVESTMENT POLICY AND COMPANIES GROWTH PERFORMANCE IN THE FEDERATION OF BOSNIA AND HERZEGOVINA

There are various reasons which initiate continual and dynamic scientific research efforts in the area of capital investments on the future company performances. From the theoretical perspective, investing is inevitable process toward companies' development and long-term successful survival. The investment capital cost estimation plays a major role in addressing crucial risk-related issues but its potential provides incomplete framework to capture all challenges of the uncertain future outcomes. Despite consistent theoretical background, comprehensive research base related to this field often provides contradictory and provocative findings. Our purpose is to investigate all-encompassing database of companies operating in the Federation of Bosnia and Herzegovina during 2008-2016. Our aim is to provide deep insight into investments implications on the representative growth performances over the relevant and extremely turbulent period. We expect to bring unshakable scientific views as the research should be exempted of the sample errors or biases. In addition, we believe that findings shall, beside scientific views enrichment, contribute in at least two other similarly important directions. First, policy makers may benefit by using them to reshape and improve investment incentives legislation and framework. Second, the implications of this research might be very useful guideline for market players in setting up investment policies in specific branches. We use Stata 13 software tool to regress investments on growth performance and apply polled cross-section data base of all companies in the Federation with unbroken operations in the research period.