STRATEGIC APPROACH TO ASSESSING THE EFFICIENCY OF AGRICULTURAL AND TOURISM BUSINESS IN THE ECONOMY OF SERBIA

Milja  Orlandić; Milan Novović; Dragana  Petrović

doi:10.59267/ekoPolj25041141O

Authors

Milja Orlandić Faculty of Applied Management, Economics and Finance (MEF), Jevrejska 24/1, 11000 Belgrade, Serbia
Milan Novović Academy of Hospitality, Tourism and Wellness
Dragana Petrović Faculty of Applied Management, Economics and Finance (MEF), Jevrejska 24/1, 11000 Belgrade, Serbia

DOI:

https://doi.org/10.59267/ekoPolj25041141O

Keywords:

agriculture, tourism, financial ratio, Altman Z-score model, economy

Abstract

The authors will present a strategic approach to assessing the performance of agriculture and tourism in the Republic of Serbia. The purpose of the analysis is to determine which of the given economic activities has better economic performance and, accordingly, has a greater impact on the economic growth and development of the Republic of Serbia. The research covered the financial statements of large and medium-sized enterprises in the areas being analyzed. The results of the ratio analysis indicate that both activities jointly contribute to the economic growth and development of the Republic of Serbia. When it comes to determining bankruptcy, the Altman Z` score model has been adapted for developing economies. According to this model, agriculture and tourism, at the level of calculated average values, operate in a zone of moderate risk, which is a golden mean and a good indicator of their business performance.

Downloads

Download data is not yet available.

References

Agencija za privredne registre [in English: Business Registers Agency]. Retrieved from https://www.apr.gov.rs (January, 10, 2025)

Ali, M. R., Rahman, M. M., & Mahmud, M. S. (2016). Financial soudness of textile industry: Altman Z-score measurement. Journal of Science and Techology, 25(3), 8-17. Retrieved from https://www.researchgate.net/publication/324065119 (January, 17, 2025)

Altman, E. I. (2017). The Evolution of the Altman Z-Score Models & Their Applications to Financial Markets. London: NYU Stern School of Business.

Altman, I. E., Danovi, A., & Falini, A. (2013). Z-score model`s application to Italian companies subject to extraordinary administration. Journal of Applied Finance, 23(1), 1-10.

Apoorva, D. V., Sneha P. C., & Namratha, M. (2019). Application of Altman Z Score Model on Selected Indian Companies to Predict Bankruptcy. International Journal of Business and Management Invention (IJBMI), 8(1), 77-82.

Asiani, N. T., & Rahayu, N. P. W. (2024). Analysis of Liquidity Ratios and Profitability Ratios to Assess Financial Performance. International Journal of Accounting Management Economics and Social Sciences (IJAMESC), 2(4), 1385- 1401. https://doi.org/10.61990/ijamesc.v2i4.312 DOI: https://doi.org/10.61990/ijamesc.v2i4.312

Chakraborty, A., Das A. R., & Bhavya, P. (2024). Financial Ratios and Performance of PSU Banks in India - An Analysis. Retrieved from https://www.researchgate.net/publication/386382682 (January, 17, 2025)

Fabris, N. (2023). Comparative financial analysis od agriculture and industry in Montenegro. Ekonomika poljoprivrede, 70(2), 395-409. DOI: https://doi.org/10.59267/ekoPolj2302395F

Filipović, M. L, & Mirjanić, B. B. (2016). Finansijska analiza i ocena kreditnog boniteta privrednog društva - studija slučaja “Aleva ad Novi Kneževac”. Ekonomija: teorija i praksa, 9(3), 16-31. [in English: Filipović, M. L, & Mirjanić, B. B. (2016). Financial Analysis and Assessment of the Creditworthiness of the Company – Case Study “Aleva ad Novi Kneževac”. Economics: Theory and Practice, 9(3), 16-31]. DOI: https://doi.org/10.5937/etp1603016F

Gligorijević, Ž., Novović, M., & Gligorijević, A. (2020). Turizam – razvojni društveno-ekonomski fenomen. Niš: Društvo ekonomista „Ekonomika“ [in English: Gligorijević, Ž., Novović, M., & Gligorijević, A. (2020). Tourism - a Developing Socio-economic Phenomenon. Niš: Society of Economists “Ekonomika”].

Hiadlovský, V., Rybovičová, I., & Vinczeová, M. (2016). Importance of Liquidity Analysis in the Process of Financial Management of Companies Operating in the Tourism Sector in Slovakia: An Empirical Study. International Journal for Quality Research, 10(4), 799-812. DOI: 10.18421/IJQR10.04-10

Horne, V. C. J., & Wachowicz, M. J. (2007). Osnovi finansijskog menadžmenta. Beograd: Data Status [in English: Horne, V. C. J., & Wachowicz, M. J. (2007). ].

Innocent, E. C., Mary, O. I., & Matthew, O. M. (2013). Financial Ratio Analysis as a Determinant of Profitability in Nigerian Pharmaceutical Industry. International Journal of Business and Management, 8(8), 107-117. DOI: https://doi.org/10.5539/ijbm.v8n8p107

Ivanišević, M. (2008). Poslovne finansije. Beograd: Ekonomski fakultet [in English: Ivanišević, M. (2008).Business finance. Belgrade: Faculty of Economics and Business].

Jovanović Škarić, K. (2018). Finansijsko računovodstvo. Beograd: Ekonomski fakultet [in English: Jovanović Škarić, K. (2018). Financial accounting. Belgrade: Faculty of Economics and Business].

Kartikaningrum, S. (2024). Analysis of Liquidity Ratio and Solvability Ratio on the Financial Performance of Sepakat Sejahtera Syariah Cooperative. Jurnal Visionary: Penelitian dan Pengembangan dibidang Administrasi Pendidikan, 12(2), 122-127. DOI: https://doi.org/10.33394/vis.v12i2.13046

Koshti, J. R. (2019). An Application of Altman Z-Score and Beneish M-Score Model on Selected Textiles Companies. International Journal of Engineering Science and Computing (IJESC), 9(11), 24097-24101.

Malinić, D. (2007). Politika dobiti korporativnog preduzeća. Beograd: Ekonomski fakultet [in English: Malinić, D. (2007). Corporate Enterprise Profit Policy. Belgrade: Faculty of Economics and Business].

Malinić, D., Milićević, V., & Stevanović, N. (2023). Upravljačko računovodstvo. Beograd: Ekonomski fakultet [in English: Malinić, D., Milićević, V., & Stevanović, N. (2023). Management accounting. Belgrade: Faculty of Economics and Business].

Masrom, R. N., Daut, T. A. B., Rasi, Z. R., & Keong, W. L. (2022). Innovation as Mediating Factor Between Total Quality Management and Competitive Advantage Among Manufacturers. International Journal for Quality Research, 16(1), 243-260. doi: 10.24874/IJQR16.01-17 DOI: https://doi.org/10.24874/IJQR16.01-17

Milić, D., Tica, N., Zekić, V., Popov, M., Šepa, A., Mihajlov, Z., Tekić, D., & Novaković, T. (2021). The Assessment of Bankruptcy Risk of Companies From the Sector of Drying and Storage of Crops and Plants. Journal on Processing and Energy in Agriculture, 25(3), 86-90. DOI: https://doi.org/10.5937/jpea25-32138

Milošević, M., & Milić, M. (2024). Uloga poljoprivrede u privrednom razvoju Republike Srbije. Glasnik za društvene nauke, 16(1), 97-117. [in English: Milošević, M., & Milić, M. (2024). The role of agriculture in the economic development of the Republic of Serbia. Journal of Social Sciences, 16(1), 97-117]. DOI: 10.46793/GlasnikDN16.1.097M DOI: https://doi.org/10.46793/GlasnikDN16.1.097M

Mirković, V. (2013). Altmanov Z-scoring model za predviđanje bankrota preduzeća na primeru kompanije „Telefonija“ ad Beograd. U: (ur. M. Martić et al.) XL Simpozijum o operacionim istraživanjima - SIM-OP-IS 2013, (9-12. Septembar 2013, Zlatibor), zbornik radova, 117-122. Beograd: Fakultet organizacionih nauka [in English: Mirković, V. (2013). Altman’s Z-scoring model for predicting company bankruptcy on the example of the company “Telefonija” ad Belgrade. In: (ed. M. Martić et al.) XL Symposium on operational research - SIM-OP-IS 2013, (September 9-12, 2013, Zlatibor), Proceedings, 117-122. Belgrade: Faculty of Organizational Sciences].

Mohammed, S . (2016). Bankruptcy prediction by using the altman Z score model in Oman: A Case Study of Raysut Cement Company SAOG and its subsidiaries. Australian accounting, business and finance journal, 10(4), 70-80. DOI: https://doi.org/10.14453/aabfj.v10i4.6

Paramitha, D., & Sucipto (2024). Determination of Return on Assets: Analysis of Solvency Ratio and Liquidity Ratio. Jurnal Aksi (Akuntansi dan Sistem Informasi), 9(2), 39-48. DOI: https://doi.org/10.32486/aksi.v9i2.762

Plavšić, A., & Paunović, M. (2011). Strategijski pristup menadžmentu operacija. U: Operacioni menadžment u funkciji održivog privrednog rasta i razvoja Srbije 2011-2020, VIII Skup privrednika i naučnika SPIN’11, zbornik radova, 207-213. Beograd: Fakultet organizacionih nauka [in English: Plavšić, A., & Paunović, M. (2011). A Strategic Approach to Operations Management. In: Operational Management in the Function of Sustainable Economic Growth and Development of Serbia 2011-2020, VIII Meeting of Businessmen and Scientists SPIN’11, Proceedings, 207-213. Belgrade: Faculty of Organizational Sciences]. DOI: https://doi.org/10.1080/14697017.2010.501022

Robinson, T., Henry, E., Pirie, W., & Broihahn, M. (2015). International Financial Statements Analysis. New Jersey: CFA Institute Investment Series, John Wiley & Sons.

Rochmah, N. W., Zen, F., Istanti, L. N., & Agustina, Y. (2024). Financial Ratio and Price Earning Ratio: Analysis of Technology Companies Listed on the IDX. In: Proceedings of the BISTIC Business Innovation Sustainability and Technology International Conference (BISTIC 2024), 230-241. DOI: 10.2991/978-94-6463-576-8_20 DOI: https://doi.org/10.2991/978-94-6463-576-8_20

Rodić, J., Andrić, M., Vukelić, G., & Vuković, B. (2017). Analiza finansijskih izveštaja. Subotica: Ekonomski fakultet [in English: Rodić, J., Andrić, M., Vukelić, G., & Vuković, B. (2017). Analysis of financial statements. Subotica: Faculty of Economics].

Simić, V. (2014). Privredni i ekonomski razvoj Srbije - dugoročan i spor proces. Ekonomika,60(2), 161-168. [in English: Simić, V. (2014). The Economic Development of Serbia - a Long-term and Slow Process. Ekonomika, 60(2), 161-168].

Srebro, B., Mavrenski, B., Bogojević Arsić, V., Knežević, S., Milašinović, M., & Travica, J. (2021). Bankruptcy Risk Prediction in Ensuring the Sustainable Operation of Agriculture Companies. Sustainability, 13(14), 7712. https://doi.org/10.3390/su13147712 DOI: https://doi.org/10.3390/su13147712

Stančić, P. (2006). Savremeno upravljanje finansijama preduzeća. Kragujevac: Ekonomski fakultet [in English: Stančić, P. (2006). Modern Financial Management of Companies. Kragujevac: Faculty of Economics].

Todorović, M., & Ivanišević, M. (2012). Poslovne finansije. Beograd: Ekonomski fakultet [in English: Todorović, M., & Ivanišević, M. (2012). Business finance. Belgrade: Faculty of Economics and Business].

Vuković, B., Tica, T., & Jakšić, D. (2024). Firm value determinants: panel evidence from European listed companies. Strategic Management, 29(1), 55-71. DOI: https://doi.org/10.5937/StraMan2300052V