What is the Real State of Financial Management in Companies in the Republic of Serbia?
Journal Title: Management: Journal of Sustainable Business and Management Solutions in Emerging Economies - Year 2019, Vol 24, Issue 2
Abstract
Abstract: Research Question:This paper focuses on the basic financial decision making practices of domestic companies and their knowledge of the operational risk management concept. Motivation:Chief Financial Officers (CFOs) play a significant role in the company’s development and achieving the company’s objectives (Van Horne & Wachowicz, 2007). Different authors carry out research based on one of the fields of finances-related decision making, such as Graham & Harvey, 2001. The goal of this research is to show that the difference in the decision making process concerning companies’ finances and risk management depends on the company’s ownership structure. Idea:The paper is aimed at the recognition of differences found in corporate decision making, relating both to capital budgeting and capital structure, dividend pay-out policy and risk management concept, depending on the ownership structure. Data:During the first half of 2016, a research consisting of 392-companies sample operating in the Republic of Serbia was conducted, including all four listed fields concerning their economic operations. Nevertheless, only a total of 54 CFOs completed and handed back the distributed questionnaires. Tools:Some basic descriptive statistics techniques, one-way analysis of variance (ANOVA) andKruskal-Wallis test were applied throughout the entire data analysis, while data processing involved the use of standardstatistical package IBM SPSS 20.0. Findings:As shown by research findings, there is a notable difference in decision making, both as regards dividend payout and as regards risk management concept, depending on the types of ownership, with companies operating in our domestic market. The future research will concentrate on practice of companies merging both domestic and foreign entities, in order to determine whether a similar pattern might be found. Contribution:Furthermore,the research is intended to be complemented by the data contained in the official financial reports of those companies,with a view to ascertaining whether the statements made by their CFOs are actually applied in the corporate practice
Authors and Affiliations
Goran Petkovic, Snezana Konjikusic, Lidija Barjaktarović, Renata Pindzo
Keywords
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