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The Role of Consulting in the Development of Financial Market in Serbia

Author

Listed:
  • Mihailovic, Branko
  • Cvijanovic, Drago
  • Mihailovic, Natasa

Abstract

Organizations that provide consulting services relating to the performance and activity in the financial markets lead to a corresponding positive chain reaction. Namely, the domestic and foreign companies wishing to invest in providing information regarding the selection of investments, as well as information about the performance of companies in which it invests. Such business information leads to a reduction in risk, which is immanent to the business activity, especially one that is realized through the financial markets. The risk increases with uncertainty, respectively, when there is poor access to the necessary business informations. Reducing the risk increases the attractiveness of the investment, which is a stimulant for domestic and foreign investors to evaluate various combinations of risk / return. Increasing levels of investment in local companies develop the capital market as an integral part of the domestic financial market, with the inflow of funds realized through investments in new businesses, the recapitalization of existing companies, the consolidation of the financial system.

Suggested Citation

  • Mihailovic, Branko & Cvijanovic, Drago & Mihailovic, Natasa, 2012. "The Role of Consulting in the Development of Financial Market in Serbia," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 58(3), September.
    • Handle: RePEc:ags:sereko:289117
    DOI: 10.22004/ag.econ.289117
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    Keywords

    Risk and Uncertainty;

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