Analysis of capital budgeting techniques and investment financing by the Serbian companies

Predmet doktorske disertacije je analiza primene savremenih finansijskih koncepata u poslovanju kompanija u Srbiji. U doktorskoj disertaciji izučavaće se pojmovi poput budžetiranja kapitala i tehnika budžetiranja kapitala, određivanja troška kapitala, politike zaduživanja i strukture kapitala kompanija u Srbiji. Njihova primena ispitaće se u empirijskom delu rada, analizom uzorka od 65 kompanija, u periodu od 2013. do 2017. godine. Empirijski deo istraživanja će obuhvatati dva dela: 1) analizu odgovora finansijskih direktora (CFO) na upitnik poslat u periodu od 2015. do 2017. godine putem maila i 2) analizu indikatora zaduženosti i profitabilnosti kompanija iz uzorka, koja obuhvata relevantne dokumente poput BS, BU, Napomene uz finansijske izveštaje i Godišnje izveštaje o poslovanju u periodu od 2013. do 2017. godine. Analiziraće se faktori poput veličine kompanije, poreklo kapitala, starost finansijskog direktora itd. i njihov uticaj na donošenje investicionih i finansijskih odluka. Dodatan značaj ovog rada je što se dobijeni rezultati porede sa međunarodnim istraživanjima slične tematike

RESULTS OF APPLIED COLLECTION MANAGEMENT MODEL – SERBIAN CASE

The main aim of establishing collection management model (CMM) is to minimize non-performing loans (NPL) in credit portfolio. Furthermore, efficiently organized collection management has direct impact on profit of the bank, via the level of provisions. The subjects of the analysis are the results of applied CMM on corporate credit portfolio of Erste bank and Banca Intesa Serbia in the second quarter of 2010. Consequently, the focus of this paper will be the period within 2011 and 2013. Elements of implemented CMM in both banks are the same, i.e. Aim, Architecture and Instruments in both models are similar. However, Organization, Control and Monitoring within the model are different due to the different risk management policies and organization in accordance with business needs. The authors focus on the following indicators: NPL, CAR (Capital Adequacy Ratio), ROE (Return on Equity) and quality of corporate credit portfolio. Finally, these results will be compared with the performance of the whole group to which Serbian banks belong, i.e. Italy and Austria

Implementation of the ERM concept in Serbia: Comparative analysis: Real sector and financial sector

The paper analyzes the level of development regarding risk management, with a special focus on ERM (Enterprise Risk Management) implementation in the Serbian companies. The aim is to raise the awareness regarding the successful risk management implementation in the companies in Serbia, using the bank sector as the benchmark and the example of good practice. The research was conveyed in 2015 and it confirmed the general trend that the companies in Serbia were more inclined to use traditional methods regarding risk management, that the ownership structure influenced the level of ERM awareness in the companies and finally that the Serbian companies lacked the supporting organizational structures and adequate systems of internal controls which would contribute to the successful ERM implementation

Analysis of the Capital Budgeting Practices: Serbian Case

This paper addresses two major research questions: which techniques firms in Serbia use for project evaluation, and how the Serbian companies calculate their cost of capital. The authors have created the questionnaire and the sample consisting of 65 companies that responded to the enquiry (out of 392) during the year 2015. The results showed that payback criterion is the most dominant capital budgeting technique used by firms in Serbia. Further, the results revealed that large firms as well as multinational firms are more inclined to use discounted cash flow capital budgeting techniques and other sophisticated techniques. Finally, the authors have concluded that the CAPM is not the dominant method for calculating cost of capital by the companies from the sample analyzing the overall sample. Consequently, skilled human capital, the adequate knowledge and developed procedures may contribute to accepting capital budgeting techniques such as discounted cash flow analysis and other sophisticated techniques by larger portion of the companies in Serbia. Finally, existence of perfect financial market is a necessary precondition for implementing all these contemporary financial concepts and its development has to be posed as one of the priorities in the years to come