The subject of the research is capital budgeting practices in Serbian agribusiness companies. The research aim is to determine whether there are differences in decision-making regarding capital budgeting depending on the ownership structure in those industries. The research was conducted in the first half of 2019, on a sample of 76 companies (from 122 targeted/i.e. 62.33% respondent rate) operating in the Republic of Serbia. Descriptive statistics and the Kruskal Wallis test were used in the data analysis. IBM SPSS 20.0 statistical package was used for data processing. Research results confirmed that capital budgeting practices in the Serbian agribusiness companies can be considered as developed. Furthermore, there is a difference in the capital budgeting practices in the Republic of Serbia depending on the ownership of the analyzed sampled companies.


Download data is not yet available.


1. Allen, B, Bass-Deffosez, & Weigelt, J. (2018). Feeding Europe: Agriculture and sustainable food systems, Institute European Environmental Policy & Think Thank Sustainability
2. Andor, G., Mohanty, S., & Toth, T. (2011). Capital budgeting practices: a survey of Central and Eastern European firms. The World Bank, January, 1 - 45.
3. Barjaktarović, L., & Vićentijević, K. (2017). Analysis of the risk management practice in the Serbian companies, The book of proceedings FINIZ 2017: Challenges in modern corporate governance, Singidunum University Belgrade, 12/01/17, 1-7. DOI: 10.15308/fniz-2017-1-7
4. Barjaktarović, L., Djulić, K.,Pindžo, R.,& Vjetrov, A. (2016). Analysis of the Capital Budgeting Practices: Serbian Case Management 79/2016, 47-54. DOI:10.7595/management.fon.2016.0009
5. Jelenković, Z., & Barjaktarović, L. (2016). The Risk Management Functions in the Conditions of Globalization: Case Study of the Republic of Serbia, Management 79/2016, 37 – 45. DOI: 10.7595/management.fon.2016.0010
6. Barjaktarović, L., Pindžo, R., & Hanić, A. (2016a). Critical analysis of reliability of the model of investment credit approval in agriculture and food processing industry; The Balkan Scientifc Association of Agrarian Economists, Belgrade, Institute of Agricultural Economics, Belgrade, Academy of Economic Studies, BucharestEconomics of Agriculture Vol LXIII, No3 (741-1112), 2016, Belgrade,751-766, UDC 330.322.2:631
7. Barjaktarović, L., Pindžo, R., Djulić, K., & Vjetrov, A. (2015). The Analysis of Capital Budgeting Techniques Implemented by Small and Medium-Sized Enterprises in Serbia, The book of proceedings FINIZ 2015 – Contemporary Financial Management, 4-8. DOI: 10.15308/fniz-2015-4-8
8. Batra, R., & Verma S. (2017). Capital budgeting practices in Indian companies, IIMB Management Review, 29/1, 29-44. DOI:
9. Bodie, Z., Kane, A., & Marcus, A. (2008). Investments (10th Edition, ISBN 0077861671), McGraw-Hill/Irwin Series in Finance, Insurance and Real Estate, New York, USA
10. Brealey, S., Mayers, S., & Marcus, A. (2007). Principles of Corporate Finance (5th edition, ISBN 9780071105927). McGraw-Hill Company, New York, USA
11. Brounen, D., De Jong, A. & Koedijk, K. (2004). Corporate Finance in Europe: Confronting Theory with Practice. Financial Management, 33, 71-101.
12. Chmieliński, P., & Soliwoda, M. (2016). Models for competitive and sustainable and rural development in central eastern European countries, Rural areas and development, Vol.13
13. Correia, C. (2012). Capital budgeting practices in South Africa: A review, South African Journal of Business Management 43(2), 11-29. DOI:10.4102/SAJBM.V43I2.180
14. Dedi, L.,& Orsag, S. (2007).Capital Budgeting Practices: A Survey of Croatian Firms. South East European Journal of Economics and Business, 2(1), 59-67. DOI: 10.2478/v10033-007-0016-y
15. Daunfeldt, S. & Hartwig, F. (2011). What Determines the Use of Capital Budgeting Methods? Evidence from Swedish Listed Companies. Social Science Research Network, 1-37. DOI: 10.12691/jfe-2-4-1
16. Deloitte (2020) European CFO survey – a perspective on COVID -19
17. Dragota, I., Dragota, V., Tatu, L., Pele, D., & Semenescu, A. (2011). Capital Budgeting: The Romanian credit analysists’ points of view. The Review of Finance and Banking, 3(1), 39-45.
18. European Commission (2016). Strategic Plan 2016-2020, Directorate-General for Agriculture and Rural Development
19. Gitman, L.J. & Forrester Jr. (1977). A survey of capital budgeting techniques used by major US frms. Financial Management, 6(3), 66-71. DOI: doi. org/10.2307/3665258
20. Graham J. & Harvey C. (2001). The theory and practice of corporate finance: evidence from the field. Journal of Financial Economics, 60,187-243. DOI:10.2139/ssrn.220251
21. Haas R., & Peeters M. (2006). The dynamic adjustment towards target capital structures of firms in transition economies. Economics of Transition. 14 (1), 133– 169. DOI:
22. Hall, J., & Millard, S. (2011). Capital budgeting practices used by selected listed South African frms, South African Journal of Economic and Management, 13(1), DOI: 10.4102/sajems. v13i1.200
23. Hermes, N.P. & Smid, L.Y. (2007). Capital Budgeting Practices: a Comparative Study of the Netherlands and China. International Business Review, 16, 630-654. DOI:10.1016/J.IBUSREV.2007.05.002
24. Jeremić, Z., Milojević, & M., Terzić, I. (2016). Business performance of 15 largest exporters in food-processing industry in the period 2008-2014, The Balkan Scientific Association of Agrarian Economists, Belgrade, Institute of Agricultural Economics, Belgrade, Academy of Economic Studies, Bucharest- Economics of Agriculture Vol LXIII, No3 (741-1112), 2016, Belgrade, 943-957, UDC: 338.439.02
25. Kester, G., Chang, R., Echanis, E., Haikal, S., Isa, M., Skully, M., Kai-Chong, T. & Chi-Jeng, W. (1999). Capital Budgeting Practices in the Asia-Pacific Region: Australia, Hong Kong, Indonesia, Malaysia, Philippines, and Singapore. Financial Practice and Education, 9, 25-33.
26. Mrówczyńska-Kamińska, A., & Baer-Nawrocka, A. (2016). The Significance of Agribusiness in the National Economy in the EU Countries, chapter in the monography: Chmieliński, P., Soliwoda, M. (2016) Models for competitive and sustainable and rural development in central eastern European countries, Rural areas and development, Vol.13
27. Orsag, S., & Mitar, J. (2014). Application of cost of capital for capital structuring in Croatian frms. UTMS Journal of Economics. 5(2), 151-158.
28. Palepu, K., Healy, P., & Bernard, V. (2007). Business Analysis & Valuation Using Financial Statements (2nd edition), Tomson South-Western, New York, USA
29. Petković, G., Konjikušić, S., Barjaktarović, L., Pindžo, R. (2019). What is the Real State of Financial Management in Companies in the Republic of Serbia? Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, 24 (2), 23-34, DOI: 10.7595/management.fon.2018.0002
30. Sandahl, G., & Sjögren, S. (2003). Capital Budgeting Methods among Sweden’s Largest Groups of Companies. The State of the Art and Comparison with Earlier Studies. International Journal of Production Economics, 84, 51-69. DOI: 10.1016/S0925-5273(02)00379-1
31. Schliebs, H. (2018). CFO Priorities: Experts Predict Top Trends, Digitalist Magazine
32. Statistical Office of the Republic of Serbia (2020). Announcement indices of industrial production, June 2020, Press release
33. Stoimenova, E. (2019). The use of capital budgeting practices in Macedonian companies, master thesis, The faculty of economics, University Ljubljana
34. Truong, G., Partington, G. & Peat, M. (2008). Cost-of-Capital Estimation and Capital-Budgeting Practice in Australia. Australian Journal of Management, 33, 95-121. DOI:
35. Van Horne, J.,& Wachowicz, J.M. (2007). Osnovi finansijskog menadžmenta. Data status: Beograd
36. Vijay, J., & Ashwani, K. (1995). Capital Budgeting Practices in Corporate Canada. Financial Practice and Education, 5(2), 37-43.
37. United Nations Global Compact /UNGC/ – Accenture Strategy (2019). The decade to deliver a call to business action, CEO study on sustainability 2019
38. Wnuk-Pel, T. (2014). The practice and factors determining the selection of capital budgeting methods – evidence from the field, 19th International Scientific Conference; Economics and Management 2014, ICEM 2014, 23-25 April 2014, Riga, Latvia, 612-616. DOI: 10.1016/j.sbspro.2014.11.250.
How to Cite
BARJAKTAROVIC, Lidija Dragoljub; PINDZO, Renata; KONJIKUŠIĆ, Snezana. HOW THE TYPE OF OWNERSHIP AFFECTS CAPITAL BUDGETING PRACTICE IN THE SERBIAN AGRIBUSINESS INDUSTRY?. Economics of Agriculture, [S.l.], v. 67, n. 4, p. 1141-1154, dec. 2020. ISSN 2334-8453. Available at: <>. Date accessed: 16 apr. 2021. doi:
Original scientific papers