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Profitability During the Financial Crisis Evidence from the Regulated Capital Market in Serbia

Author

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  • Ksenija Dencic-Mihajlov

    (University of Nis, Faculty of Economics, Serbia)

Abstract

This paper investigates how large and medium-sized companies listed on the regulated market segments of the Belgrade Stock Exchange manage their profitability during periods of recession, over the four-year period (2008-2011). The study shows that bigger and more liquid companies demonstrate higher profitability. As to growth opportunities, asset efficiency and institutional ownership, these profitability determinants are statistically significant only in the case of return on asset as a profitability measure. The analysis reveals evidence of the transitional character of the Serbian corporate environment and indicates the need for additional ways to gain profitability and improve companies' performance during crisis periods.

Suggested Citation

  • Ksenija Dencic-Mihajlov, 2014. "Profitability During the Financial Crisis Evidence from the Regulated Capital Market in Serbia," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 12(1), pages 7-33.
    • Handle: RePEc:seb:journl:v:12:y:2014:i:1:p:7-33
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    File URL: http://www.asecu.gr/Seeje/issue22/issue22-mihajlov.pdf
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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