Violeta Todorović
The functioning of banks in a deregulated and competitive market environment involves taking growing and complex business risks. Inadequate risk management on the part of bank managers leads to the emergence of problem banks and banking crises. Practically speaking, banking crises stand for an integral part of the development of banking systems in the modern business environment that can be characterized as complex, dynamic, heterogeneous and unpredictable. The negative effects of the bankruptcy of individual banks on the economic system require the timely establishment of adequate regulatory frameworks and undertaking interventionist measures for the rehabilitation of banking problems. The issue of managing banking crises, which has been discussed in the professional domestic and foreign literature for years, has been brought back into focus with the emergence of the global Subprime crisis. Therefore, the paper makes an attempt at a comprehensive analysis of the causes and ways of resolving banking crises. In addition to identifying the causes and substantial differences among the analyzed banking crises, the paper will review the relevance of the applied interventionist measures and the existing regulatory policies.
Darko B. Vuković
The identification and analysis of the indicators of regional competitiveness is the most important phase of the process of measuring competitiveness. However, prior to the measurements, it is necessary to determine whether there is a high correlation between the selected indicators or not. The aim of this paper is to determine whether there is a high correlation between the most important indicators of regional competitiveness or not. The subject of this paper are the indicators of competitiveness in Serbia’s regions, whose values are measured in the 2011-2013 period. For the indicators unrelated to each other or those having no logical mutual influence, no correlation was revealed. On the basis of these results, it turns out that there is a high correlation between the GDP of the region, the number of companies in the region, the number of employees, the extent of the cluster, investments in innovation and confidence in business institutions. The Pearson correlation coefficient statistical method has been used in the estimation. These data, whose measure cannot be achieved through quantitative measurement, have been obtained in the survey.
Danijela Tadić, Aleksandar Aleksić
In the last few decades, the concept of organizational resilience has been developed, and in that manner, it represents an adequate management method for enterprises operating in the conditions of the economic crisis. In this paper, the problem of organizational resilience factors prioritization (ORF) is considered, which represents the first step in the determining of improvement strategies. The ORF ranking is set up as a task of a multi-criterion optimization inclusive of qualitative variables. Management teams at the level of every company assess the relative importance of each pair of business processes and the preference of the ORF within each business process using predefined linguistic expressions. The modeling of linguistic expressions is based on the theory of fuzzy sets. The aggregated values of the considered variables are obtained by applying the fuzzy ordered weighted averaging operator. The vector of a combined ORF priority was determined by using the fuzzy Analytic Hierarchy Process. The proposed model is illustrated by an illustrative example where the used data is obtained from the process of small and medium enterprises (SMEs) operating in central Serbia. It is shown that the developed model is very suitable for making decisions on changing business strategies in order to increase organizational resilience.
Jasmina Bogićević
Due to the internationalization of business and frequent fluctuations in exchange rates, information about the impact of changes in exchange rates on individual companies’ and multinational groups’ financial position and profitability has become increasingly important. Data on the translation effects of both foreign currency transactions and foreign subsidiaries’ financial statements, a company’s exposure to different types of foreign exchange risks and taken currency hedging measures enable many users of accounting contents to obtain a better picture of an entity’s financial position and its profitability. The key issues relate to the choice of the exchange rate to be used in accounting data translation and the financial reporting presentation of translation effects. While the effects of the foreign subsidiaries’ financial statements translation can be shown in the balance sheet and the income statement, the effects of foreign currency transactions translation are incorporated in the income statement. This paper discusses the accounting aspects of the foreign currency transactions translation, an enterprise’s transactional exposure to a currency risk, and the use of financial derivative instruments to hedge against foreign exchange risk.
Vera Gligorijević, Petar Vasić
The aim of this paper is to contribute to the discussion about the impact human resources have on the process of economic development, especially the importance that the educational structure and individual business skills have in the informal economy modernization process and its integrations towards a formal economy. The educational structure of the employed in the informal sector was defined by classifying the workforce according to their education levels, and their individual business skills were determined by analyzing the techniques individuals used in the process of improving competitiveness. The analysis was based on the results of a survey research of the structural characteristics and spatial distribution of the informal economy in the Republic of Serbia conducted on a sample of 310 home-based businesses in 2011. The results have shown that the informally employed are as competitive as the formally employed, the educational structure of the informally employed depends on the type of community and the distance from the center; individual business skills depend on the gender structure of the business owner, apart from the type of community and its distance from the center (metropolitan areas).
Zora Arsovski
The implementation of Information and Communication Technologies (ICT) in enterprises organized as part of a cluster has its own specifications according to the level and type of relations between enterprises in the cluster. The purpose of this paper is to define determinants for the quality of the ICT implementation in clusters, the research goal being to define and validate the quality models of the implementation of ICT in clusters. Based on the theoretical research of clusters, the quality model for the ICT implementation has been developed and tested to the influences of the determinants of the implementation of ICT, which refer to the level of investments in ICT, quality management, the quality of processes and the level of the implementation of the ICT strategy at the level of the quality of the ICT implementation, with the confirmation of the significance of the stated hypothesis. The results of the research indicate the fact that the level of the quality of the ICT implementation could be predicted with a high accuracy, as well as the influence of the performances of enterprises and the cluster as a whole.
Violeta Domanović
The effective performance measurement systems are inevitably becoming the condition of companies’ existence in terms of thecontemporary dynamic and very turbulent environment.The effective performance measurement system enables a company to measure and control its performance in accordance with the defined strategy. In thedesigning of the performance measurement system in the contemporary environment, both financial and non-financial indicators reflecting the effects of the key activitiesadding the value of any company should be respected. The introduction of the diversified strategically aligned performance indicators should improve the organizational outcomes by increasing the quantity of the information relevant for making adecision, which is at the manager’s disposal, which makes easierstrategically consistent decisionmaking. The effectiveness of the performance measurement system is influenced by numerous factors, some of which are the subject of the paper research. The aim of the paper is to highlight the significance of the use of multidimensional measures as well as of the specific organizational factors in the process of thecontemporary performance measurement systems implementation.
Aleksandra Praščević
The paper deals with the extent to which the economic policy in Serbia has managed to respond to the economic problems imposed by the global economic crisis and how the restrictions in the form of political instability and political influence, also present before the crisis, influenced the economic policy formulated to combat the crisis. Globally, the economic crisis has resulted in the fact that, instead of the rules in economic policy making, with the key objective of maintaining price stability, now discretion and fiscal policies are being promoted, with the aim of overcoming the problem of unemployment. The significant use of discretion in the economic policy generally imposes the problem of the competence and possible political motives of economic policy makers. It is the limitations of underdeveloped institutions and a wrong model of growth that have contributed to the fact that the results of the economic policy in Serbia have not been significant. Serbia is facing the negative consequences of the measures implemented in the form of high budget deficits, public debt and inflation, while the effects on the economic activity and employment have failed, causing the present choice between rules and discretion.
Jacek Barburski
One of the modes of the measurement of banks’ and their branches’ economic efficiency is constituted by an econometric approach based on stochastic frontier functions. In this approach, the following three basic goal functions can be considered: the cost, revenue and profit functions. This paper aims to present alternative (relative to the standard formula) concepts of the measurement of revenue and profit efficiency constituting an important assessment criterion of banks’ operations. The paper also presents the results of the empirical studies of revenue and profit efficiency, as exemplified by the selected commercial bank. The theoretical part of the paper proceeds from an introduction to present the premises of an alternative efficiency assessment, then the formulas of the frontier functions of revenue and a profit. These are formulas that can exclusively be used under the conditions of imperfect competition between banks. The empirical part focuses on the application of the above models to assess the efficiency of a Polish bank’s branches. The calculations returned the indicators of revenue and profit efficiency and the rankings of the studied sample of branches in three different quarters. Due to the use of an excessively simple assessment method (Corrected Least Squares Method), the efficiency indicators obtained are understated and not accurate enough to lend themselves to further analysis. On the other hand, the rankings prepared on its basis are reliable and can be used for further assessments and comparisons, which should be considered as a meaningful research benefit.
Nataša Milenković
The main driver of growth in virtually all economies that have achieved rapid growth in recent decades, especially Asian economies, were investment and exports. There is a general agreement that export expansion represents the most eff ective way for Serbia’s economic recovery. The experience of Asian countries, those with rapid growth, can provide guidelines on how the precarious condition of the Serbian economy can be improved to a certain extent. The exchange rate is an instrument of the economic policy that simultaneously aff ects both the investment and exports of a country, and is the one easier to run than many other factors of growth and development. Several indicators indicate the importance of the exchange rate as an instrument of the economic policy in increasing exports and investments in Serbia. These are, fi rst, the extremely positive experiences of Eastern Asia economies, whose exchange rate policies are the opposite to that of Serbia, the weakness of the domestic market, indicating the necessity of an increase in exports, and thirdly, the extremely low competitiveness of the Serbian enterprises and its economy.