ANALYSIS OF THE FINANCIAL POSITION OF ENTERPRISES IN PRIVATIZATION IN THE AGRICULTURAL SECTOR IN SERBIA
DOI:
https://doi.org/10.5937/ekoPolj1803955VKeywords:
agriculture, privatization, financial position, analysis, cash flowAbstract
Privatization as a phase of the transitional process also included agriculture. The most attractive enterprises in agriculture, primarily in the food industry, were privatized in the first wave, while the process of privatization of other less attractive companies was slowed down and implemented mainly by the auction model. The remaining companies waiting for the privatization process are not attractive and there are problems that are expressed through poor financial position and relatively low potential. An exception is made by PKB Corporation, which has a potential and relatively stable market, making this company an acceptable option for investors. The financial position of the companies that are ready for privatization at this moment and which is one of the factors of negative influence on the decision of the investor was analyzed using the Altman Z-score model, the Kralicek Quick test and the balanced growth model. All tests have shown that the analyzed companies are in a bad financial position and that the future investor will have to invest significant funds in financial consolidation, balancing cash flows and investment in order to ensure adequate development and efficient business.
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References
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2. Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The journal of finance, 23(4), 589-609.
3. Altman, E.I. (1983) Corporate Financial Distress (ISBN: 0-471-08707-6), Wiley Inter Science, New York.
4. Altman, E. I. (2005). An emerging market credit scoring system for corporate bonds. Emerging markets review, 6(4), 311-323.
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7. Didenko, K., Meziels, J., and Voronova, I. (2012). Assessment of enterprises insolvency: challenges and opportunities. Economics and Management, 17(1), 69-76.
8. Jakovčević, K., i Andrašević, J. (2011). Indicators of difficulties in the functioning of an industrial enterprise. Industry, 39(3), 175-192. [in Serbian: Indikatori poteškoća u funkcionisanju industrijskog preduzeća. Industrija, 39(3), 175-192].
9. Kozjak, S. K., Sestanj-Peric, T., and Besvir, B. (2014, January). Assessment of bankruptcy prediction modelsapplicability in Croatia, in An enterprise Odyssey leadership, innovation and development for responsible economy, 7th International Conference. International Conference Proceedings, June 4-7, Zadar Croatia, University of Zagreb, Faculty of Economics and Business, 543-554.
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11. Kuc, V. (2015). The analysis of financial structure in the largest enterprises in Serbia. Economics of the company, 63(7-8), 399-412. [in Serbian: Kuč, V. (2015). Analiza strukture fnansiranja najvećih preduzeća u Srbiji. Ekonomika preduzeća, 63(7-8), 399-412].
12. Lončarević, S. (2015). Comparison to Kralicek DF Indicators and Altman Z-Score Model for Serbian Metal Industry. International Journal of Industrial Engineering and Management (IJIEM), 6(4), 199-204.
13. Muminović, S., Pavlović, V., and Cvijanović, J. M. (2011). Predictive ability of various bankruptcy prediction Z-score models for Serbian publicly listed companies. Industry, 39(3), 1-12.
14. Zdravković, A., Nikolić, D., Bradić-Martinović, A., (2010) Analysis of the privatization model in Serbia. In: The end of privatization, the consequences for economic development and unemployment in Serbia. Institute of Economic Sciences; Belgrade Banking Academy; Association of Independent Trade Unions of Serbia, Belgrade, pp. 278-287. Available at: http://ebooks.ien.bg.ac.rs/250/1/az_2010_01.pdf
15. Pejanović, R., Tica, N., (2005) Agrarian Problem in the Process of Transition of the Republic of Serbia, Yearbook of Scientific Works, Faculty of Agriculture, Novi Sad, 29 (1), 210–221. Retrieved from https://scindeks-clanci.ceon.rs/data/pdf/0546-8264/2005/0546-82640501210P.pdf (06.05.2018)
16. Mihailovic, B., Cvijanovic, D., and Parausic, V. (2013). Analysis of the performance of primary agricultural production and food industry of Serbia. Agro-knowledge Journal, University of Banja Luka, Faculty of Agriculture 14(1), 77-85. [in Serbian: Mihailović, B., Cvijanović, D., i Paraušić, V. (2013). Analiza performansi primarne poljoprivredne proizvodnje i prehrambene industrije Srbije. Агрознање, 14(1), 77-85].
17. Jelic, S., and Jovanovic, T. (2010). Sensitive points of transition of agriculture. Sociological Review, XLIV (4), pp. 595-616. [in Serbian: Jelić, S., i Jovanović, T. (2010). Osetljive tačke tranzicije poljoprivrede. Sociološki pregled, Socijološko društvo Srbije, Beograd XLIV( 4), pp. 595-616].
18. Pejanovic, R. (2009). Development problems of agriculture of the Republic of Serbia. Agrieconomica 41-42(41-42), 5-23. [in Serbian: Pejanović, R. (2009). Razvojni problemi poljoprivrede Republike Srbije. Agroekonomika-. 41-42(41-42), 5-23].
19. Vehapi, S., and Sabotic, Z. (2015). The state and problems of Serbian agriculture. Economics of Agriculture, 62(1), 245.
20. Kapor, P. (2009). Foreign Direct Investment in Agriculture. Economics of Agriculture, 56 (2), 231-243. [in Serbian: Kapor, P. (2009). Strane direktne investicije u poljoprivredi. Ekonomika poljoprivrede 56(2), 231-243].
21. Anicic, J., Vukotic, S., and Krstic, S. (2016). The strategic aspects and results of agriculture development in Serbia in the transition period. Economics of Agriculture, 63(1), 175-187.
22. Pejanovic, R., Milanovic, M., and Cvijanovic, D. (2006). Transition (field) of the economy of the Republic of Serbia: domains, effects and limitations. Economics of Agriculture, 53 (4), 937-946. [in Serbian: Pejanović, R., Milanović, M., i Cvijanović, D. (2006). Tranzicija (poljo) privrede Republike Srbije: dometi, efekti i ograničenja. Ekonomika Poljoprivrede, 53(4), 937-946].
23. Đuričin, S., Beraha, I. (2014). Improving the financial performance of the agro-industry sector of the Republic of Serbia based on incentive development measures. Retrieved from http://ebooks.ien.bg.ac.rs/68/1/sdj_2014_01.pdf (05.05.2018).
24. Petrovic, P., Antevski, M., and Milanovic, M. (2006). Economic effects of the process of accession of the European Union to the export perspectives of agriculture in Serbia. Economics of Agriculture, 53 (2), 153-164. [in Serbian: Petrović, P., Antevski, M., i Milanović, M. (2006). Ekonomski efekti procesa pridruživanja Evropskoj Uniji na izvozne perspektive poljoprivrede Srbije. Ekonomika Poljoprivrede, 53(2), 153-164].
25. Walsh, C. (2003). Key management ratios: master the management metrics that drive and control your business (ISBN: 0 273 66345 3). Financial Times/Prentice Hall. London.
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Published
2018-09-23
How to Cite
Vukadinović, P., Vujović, S., & Vojnović, B. (2018). ANALYSIS OF THE FINANCIAL POSITION OF ENTERPRISES IN PRIVATIZATION IN THE AGRICULTURAL SECTOR IN SERBIA. Ekonomika Poljoprivrede, 65(3), 955–970. https://doi.org/10.5937/ekoPolj1803955V
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Original scientific papers
