DETERMINANTS OF PROFITABILITY OF FOOD ENTERPRISES FROM THE TERRITORY OF THE REPUBLIC OF SERBIA

Stevan  Tomašević; Mirela Momčilović; Nada Milenković; Dragana Milić

doi:10.59267/ekoPolj2402519T

Authors

Stevan Tomašević Novi Sad School of Business, Novi Sad, Republic of Serbia https://orcid.org/0000-0003-3819-9150
Mirela Momčilović Novi Sad School of Business, Novi Sad, Republic of Serbia https://orcid.org/0000-0001-5752-6992
Nada Milenković University of Novi Sad, Faculty of Economics in Subotica, Subotica, Republic of Serbia https://orcid.org/0000-0001-9810-3021
Dragana Milić Novi Sad School of Business, Novi Sad, Republic of Serbia https://orcid.org/0000-0001-8250-0479

DOI:

https://doi.org/10.59267/ekoPolj2402519T

Keywords:

profitability, determinants of profitability, food industry, Republic of Serbia, panel data

Abstract

This paper aims to identify, evaluate, and analyze determinants of the profitability of food enterprises from the Republic of Serbia. The paper determines the nature of the relationship between defined determinants and profitability by applying a panel regression model on a sample of 189 small, medium, and large food enterprises from Serbia in the period from 2011 to 2021. The analysis results showed that the profitability of food enterprises is positively influenced by liquidity and sales growth rate. On the other hand, the indebtedness, size, and materiality of assets have a negative impact on the profitability of food enterprises. Of all analyzed variables, only liquidity does not affect profitability at a statistically significant level. The results of the analysis should be added to the fact that smaller food enterprises, with a lower degree of indebtedness and a smaller share of fixed in total assets, achieve a higher degree of profitability.

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