Bearing in mind the different nature and the impact of various types of foreign direct investment... more Bearing in mind the different nature and the impact of various types of foreign direct investments (FDI) on the one hand, and the specific macroeconomic environment in the post-socialist countries on the other hand, in this paper we reexamine the selected macroeconomic factors that affect the two types of FDI inflows (cross-border mergers and acquisitions and greenfield FDI) in four countries of the former Socialist Federal Republic of Yugoslavia. The study employs the balanced panel data framework and covers twelve-year period (2006–2017). Having performed the Hausman test, we use the random effect model and provide evidence that: (1) the key FDI macroeconomic determinants in stable business conditions, examined in numerous research studies, can have a different impact on FDI in times characterized by unstability and financial crisis, (2) some determinants of FDI inflows have different importance and direction in the case of cross-border M&A and greenfield FDI. Our findings are rel...
Management:Journal of Sustainable Business and Management Solutions in Emerging Economies
Research Question: This study examined the preconditions and efficiency of socially responsible i... more Research Question: This study examined the preconditions and efficiency of socially responsible investing (SRI) in the developing capital market, specifically the Belgrade Stock Exchange (BSE). Motivation: Considering the increasing trend of SRI (GSIA, 2020) and importance of information on corporate social responsibility (CSR) to investors (Miralles‐Quiros, Miralles‐Quiros, & Arraiano, 2017), especially on social issues (Giese, Nagy, & Lee, 2021), we explored the influence of applying the social criteria in asset selection on investment portfolio performance at the BSE. This study builds on the existing literature that is mostly focused on developed capital markets of Europe, the United States and Canada (Von Wallis & Klein, 2015) by analysing the issue of SRI in the developing market. The provided setup for socially driven portfolio structuring based on market trends and social performance disclosure proved to be efficient in the long-term. Idea: The core idea of this paper was to...
The study examines how the strength of the application of audit and accounting standards, as a co... more The study examines how the strength of the application of audit and accounting standards, as a component of the institutional infrastructure, affects the greenfield FDI in the four countries of the former Socialist Federal Republic of Yugoslavia over a twelve-year period (2006-2017). Using standard panel data econometric techniques, we conclude that stronger application of audit and accounting standards has a positive impact on attracting greenfield FDI, and that the strength of the application seems to be more important in stable business conditions. Our results are relevant to policy makers, as they point to the need for constant improvement in the accounting and audit system, thus encouraging better transparency and lower transaction costs for investors.
In the contemporary conditions of intense dynamics of competition, clearly articulated demands of... more In the contemporary conditions of intense dynamics of competition, clearly articulated demands of the community and booming environmental requests, corporate social responsibility (CSR) becomes an imperative strategy for responsible and ethical company management. The primary goal of the research is to identify the relevance of social performance for financial success of the most liquid Serbian companies included in the BELEXline index in the period from 2014 to 2018. The level of social performance disclosure is determined using content analysis and the formulation of the social performance disclosure index. In order to confirm the initial hypotheses, cluster analysis and the non-parametric Mann-Whitney U test are used. The empirical findings of this research indicate that the disclosure of social performance is relevant only at the level of certain financial indicators, given that the non-financial reporting of the companies from the sample is at a low level. With changing busines...
Purpose – This paper investigates mandatory and voluntary disclosure practices of non-financial l... more Purpose – This paper investigates mandatory and voluntary disclosure practices of non-financial listed companies on the Belgrade Stock Exchange. The results help in determining the level of transparency of Serbian s listed companies and in formulating recommendations for improving the quality and relevance of disclosed information. Design/methodology/approach – We focus on modeling both mandatory and voluntary disclosure indices for financial and non-financial information in order to evaluate the level of disclosure of 63 Serbian companies for reporting period 2012. Findings – We found the low level of both mandatory and voluntary disclosures. Concerning mandatary disclosure, the information that is least frequently disclosed by the sample companies are those related to the material content of the financial statements (information on changes in accounting estimates and corrections of fundamental errors in the previous period, as well as related companies). Serbian companies usually ...
Organizations and Markets in Emerging Economies, 2021
North Macedonia and Greece resolved the 27-year country name dispute and removed the main hurdle ... more North Macedonia and Greece resolved the 27-year country name dispute and removed the main hurdle for North Macedonia to start the accession processes towards the EU and NATO. The paper analyzes the stock market movements around several events related to the name issue resolution to uncover whether Macedonian companies experienced stock price adjustments according to the long-term benefits/costs of joining the EU/NATO. The dynamics of the market reactions suggest that the investors reacted systematically to the short-term political uncertainty created around the referendum rather than to the long-term perspectives of the EU/NATO integration. We integrate the knowledge from the literature which explores stock market reactions to EU enlargement/exit and political elections and provide contributions for researchers and policymakers.
Facta Universitatis, Series: Economics and Organization, 2021
The paper examines the corporate social responsibility (CSR) reporting practice at the frontier m... more The paper examines the corporate social responsibility (CSR) reporting practice at the frontier markets by using a comparative review of sustainability reporting practice according to the GRI framework. The research covers 31 companies included in the BELEXline and MBI10 indices in the period 2014-2018. The values of Social, Environmental, Economic and aggregate Sustainability Index, calculated using content analysis, indicate a low level of sustainability reporting practice. This is a consequence of a passive ownership and modest stakeholder pressures to the companies at two frontier markets and the lack of normative pressure on sustainability reporting. The grouping of the companies into clusters in accordance with the disclosure of sustainability indicators indicates significant inter- and intra-countries variations in practice. The reporting on sustainability issues differs among the companies according to their size, ownership structure, exchange market and industrial sector af...
Modern consumer society uses an increasing number of products to meet its needs, which become was... more Modern consumer society uses an increasing number of products to meet its needs, which become waste after use, thus posing a serious problem that threatens sustainable development. Investment in waste recycling, due to a high level of non-financial benefits, is considered sustainable, especially in the End-of-life Vehicles (ELV) and Waste Electrical and Electronic Equipment (WEEE) recycling areas. The research objective of this paper is to test the sensitivity of the model for sustainable management of recycling projects by applying a cost-benefit analysis (CBA) to investment projects of car and refrigerator recycling in the Republic of Serbia. By testing the key risk factors of the above investment projects within the sensitivity analysis, the main aim is to determine the critical value of these variables in terms of the financial and social acceptability of these investment alternatives. The results obtained indicate that state subsidies have the greatest influence on defining the...
Facta Universitatis, Series: Economics and Organization, 2018
Rapidly changing and complex business environment requires from enterprises to cautiously develop... more Rapidly changing and complex business environment requires from enterprises to cautiously develop their business strategies in order to achieve and maintain competitive advantage over the long term. With the awareness of importance of environmental consequences and sustainability, market value is no longer determined by single financial performance indicators. The sustainability framework which encompasses economic, environmental and social performances has rather received an international attention of both corporate and financial sector. Even though it is generally accepted that the adoption of sustainability ratios is a most adequate and effective way for sustainability performances’ assessment, both the creation/selection of sustainability ratios and their implementation and analysis have been still examined at national and corporate levels. Most companies have adopted the internationally recognized performance evaluation systems (such as Global Reporting Initiative or United Nat...
A cost-effectiveness of a specific waste treatment technique is very important factor when making... more A cost-effectiveness of a specific waste treatment technique is very important factor when making the decision to invest in a waste treatment facility. Waste treatment can bring economic benefit through the value of product: recycled materials, the compost, the generated electricity, or heat. However, the expected economic benefits depend on many factors: the investment costs and operating costs of the waste treatment facility, revenues, the market price of the product obtained by waste treatment etc. The investment and operating costs and the revenue also depend on the amount of treated waste. This paper presents a mathematical model for evaluation of cost-effectiveness in the waste treatment technique with energy recovery depending on the amount of waste, i. e. evaluation the minimum amount of waste to be treated for a cost-effective waste treatment technique with energy recovery. To develop the mathematical model, a socio-economic analysis was used. The model is applied to calcul...
Bearing in mind the different nature and the impact of various types of foreign direct investment... more Bearing in mind the different nature and the impact of various types of foreign direct investments (FDI) on the one hand, and the specific macroeconomic environment in the post-socialist countries on the other hand, in this paper we reexamine the selected macroeconomic factors that affect the two types of FDI inflows (cross-border mergers and acquisitions and greenfield FDI) in four countries of the former Socialist Federal Republic of Yugoslavia. The study employs the balanced panel data framework and covers twelve-year period (2006–2017). Having performed the Hausman test, we use the random effect model and provide evidence that: (1) the key FDI macroeconomic determinants in stable business conditions, examined in numerous research studies, can have a different impact on FDI in times characterized by unstability and financial crisis, (2) some determinants of FDI inflows have different importance and direction in the case of cross-border M&A and greenfield FDI. Our findings are rel...
Management:Journal of Sustainable Business and Management Solutions in Emerging Economies
Research Question: This study examined the preconditions and efficiency of socially responsible i... more Research Question: This study examined the preconditions and efficiency of socially responsible investing (SRI) in the developing capital market, specifically the Belgrade Stock Exchange (BSE). Motivation: Considering the increasing trend of SRI (GSIA, 2020) and importance of information on corporate social responsibility (CSR) to investors (Miralles‐Quiros, Miralles‐Quiros, & Arraiano, 2017), especially on social issues (Giese, Nagy, & Lee, 2021), we explored the influence of applying the social criteria in asset selection on investment portfolio performance at the BSE. This study builds on the existing literature that is mostly focused on developed capital markets of Europe, the United States and Canada (Von Wallis & Klein, 2015) by analysing the issue of SRI in the developing market. The provided setup for socially driven portfolio structuring based on market trends and social performance disclosure proved to be efficient in the long-term. Idea: The core idea of this paper was to...
The study examines how the strength of the application of audit and accounting standards, as a co... more The study examines how the strength of the application of audit and accounting standards, as a component of the institutional infrastructure, affects the greenfield FDI in the four countries of the former Socialist Federal Republic of Yugoslavia over a twelve-year period (2006-2017). Using standard panel data econometric techniques, we conclude that stronger application of audit and accounting standards has a positive impact on attracting greenfield FDI, and that the strength of the application seems to be more important in stable business conditions. Our results are relevant to policy makers, as they point to the need for constant improvement in the accounting and audit system, thus encouraging better transparency and lower transaction costs for investors.
In the contemporary conditions of intense dynamics of competition, clearly articulated demands of... more In the contemporary conditions of intense dynamics of competition, clearly articulated demands of the community and booming environmental requests, corporate social responsibility (CSR) becomes an imperative strategy for responsible and ethical company management. The primary goal of the research is to identify the relevance of social performance for financial success of the most liquid Serbian companies included in the BELEXline index in the period from 2014 to 2018. The level of social performance disclosure is determined using content analysis and the formulation of the social performance disclosure index. In order to confirm the initial hypotheses, cluster analysis and the non-parametric Mann-Whitney U test are used. The empirical findings of this research indicate that the disclosure of social performance is relevant only at the level of certain financial indicators, given that the non-financial reporting of the companies from the sample is at a low level. With changing busines...
Purpose – This paper investigates mandatory and voluntary disclosure practices of non-financial l... more Purpose – This paper investigates mandatory and voluntary disclosure practices of non-financial listed companies on the Belgrade Stock Exchange. The results help in determining the level of transparency of Serbian s listed companies and in formulating recommendations for improving the quality and relevance of disclosed information. Design/methodology/approach – We focus on modeling both mandatory and voluntary disclosure indices for financial and non-financial information in order to evaluate the level of disclosure of 63 Serbian companies for reporting period 2012. Findings – We found the low level of both mandatory and voluntary disclosures. Concerning mandatary disclosure, the information that is least frequently disclosed by the sample companies are those related to the material content of the financial statements (information on changes in accounting estimates and corrections of fundamental errors in the previous period, as well as related companies). Serbian companies usually ...
Organizations and Markets in Emerging Economies, 2021
North Macedonia and Greece resolved the 27-year country name dispute and removed the main hurdle ... more North Macedonia and Greece resolved the 27-year country name dispute and removed the main hurdle for North Macedonia to start the accession processes towards the EU and NATO. The paper analyzes the stock market movements around several events related to the name issue resolution to uncover whether Macedonian companies experienced stock price adjustments according to the long-term benefits/costs of joining the EU/NATO. The dynamics of the market reactions suggest that the investors reacted systematically to the short-term political uncertainty created around the referendum rather than to the long-term perspectives of the EU/NATO integration. We integrate the knowledge from the literature which explores stock market reactions to EU enlargement/exit and political elections and provide contributions for researchers and policymakers.
Facta Universitatis, Series: Economics and Organization, 2021
The paper examines the corporate social responsibility (CSR) reporting practice at the frontier m... more The paper examines the corporate social responsibility (CSR) reporting practice at the frontier markets by using a comparative review of sustainability reporting practice according to the GRI framework. The research covers 31 companies included in the BELEXline and MBI10 indices in the period 2014-2018. The values of Social, Environmental, Economic and aggregate Sustainability Index, calculated using content analysis, indicate a low level of sustainability reporting practice. This is a consequence of a passive ownership and modest stakeholder pressures to the companies at two frontier markets and the lack of normative pressure on sustainability reporting. The grouping of the companies into clusters in accordance with the disclosure of sustainability indicators indicates significant inter- and intra-countries variations in practice. The reporting on sustainability issues differs among the companies according to their size, ownership structure, exchange market and industrial sector af...
Modern consumer society uses an increasing number of products to meet its needs, which become was... more Modern consumer society uses an increasing number of products to meet its needs, which become waste after use, thus posing a serious problem that threatens sustainable development. Investment in waste recycling, due to a high level of non-financial benefits, is considered sustainable, especially in the End-of-life Vehicles (ELV) and Waste Electrical and Electronic Equipment (WEEE) recycling areas. The research objective of this paper is to test the sensitivity of the model for sustainable management of recycling projects by applying a cost-benefit analysis (CBA) to investment projects of car and refrigerator recycling in the Republic of Serbia. By testing the key risk factors of the above investment projects within the sensitivity analysis, the main aim is to determine the critical value of these variables in terms of the financial and social acceptability of these investment alternatives. The results obtained indicate that state subsidies have the greatest influence on defining the...
Facta Universitatis, Series: Economics and Organization, 2018
Rapidly changing and complex business environment requires from enterprises to cautiously develop... more Rapidly changing and complex business environment requires from enterprises to cautiously develop their business strategies in order to achieve and maintain competitive advantage over the long term. With the awareness of importance of environmental consequences and sustainability, market value is no longer determined by single financial performance indicators. The sustainability framework which encompasses economic, environmental and social performances has rather received an international attention of both corporate and financial sector. Even though it is generally accepted that the adoption of sustainability ratios is a most adequate and effective way for sustainability performances’ assessment, both the creation/selection of sustainability ratios and their implementation and analysis have been still examined at national and corporate levels. Most companies have adopted the internationally recognized performance evaluation systems (such as Global Reporting Initiative or United Nat...
A cost-effectiveness of a specific waste treatment technique is very important factor when making... more A cost-effectiveness of a specific waste treatment technique is very important factor when making the decision to invest in a waste treatment facility. Waste treatment can bring economic benefit through the value of product: recycled materials, the compost, the generated electricity, or heat. However, the expected economic benefits depend on many factors: the investment costs and operating costs of the waste treatment facility, revenues, the market price of the product obtained by waste treatment etc. The investment and operating costs and the revenue also depend on the amount of treated waste. This paper presents a mathematical model for evaluation of cost-effectiveness in the waste treatment technique with energy recovery depending on the amount of waste, i. e. evaluation the minimum amount of waste to be treated for a cost-effective waste treatment technique with energy recovery. To develop the mathematical model, a socio-economic analysis was used. The model is applied to calcul...
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Papers by Ksenija Dencic-Mihajlov