PROFITABILITY DETERMINANTS OF SERBIAN AGRICULTURAL COMPANIES

Bojana Novićević Čečević; Srboljub Nikolić; Snežana Jovanović

doi:10.59267/ekoPolj2501329N

Authors

Bojana Novićević Čečević Faculty of Economics Nis, Niš, Serbia https://orcid.org/0000-0002-4269-0586
Srboljub Nikolić Military Academy University of Defense, Veljka Lukića Kurjaka 33, 11000 Belgrade, Serbia https://orcid.org/0000-0002-1941-5332
Snežana Jovanović Corn institute „Zemun Polje, Belgrade, Serbia https://orcid.org/0000-0002-2505-9979

DOI:

https://doi.org/10.59267/ekoPolj2501329N

Keywords:

Profitability, ROA, Net profit, Total Assets, Net cash flow, Liquidity, Debt, Agriculture

Abstract

The study examines the impact of specific factors on the profitability of agriculture companies measured through ROA. The research utilized multiple linear panel regression models, namely, ordinary least squares (OLS), fixed effects (FE), and random effects (RE). The investigation was conducted on companies operating in the agricultural sector within the Republic of Serbia. The time period covered by the study is from 2020 to 2023. The results indicate that ROE and net profit have a positive impact on profitability, while the impact of net cash flow, although positive, is not statistically significant. Empirical findings show that total assets, fixed assets, debt, and liquidity have a negative impact on ROA, but only the impact of debt is statistically significant.

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