The role and importance of large companies in the economy of the Republic of Serbia
Abstract
In contemporary business conditions, advanced market economies are characterized by the increasing contribution of the SMEs sector to the economic development. Having that in mind, a large number of papers have been aimed at analyzing business doing in this sector in the last couple of years. In this way, the focus has been shifted from large business entities and their importance to the economic growth to the SMEs sector. In this regard, the aim of this paper is to examine the financial situation, the place and the role of large companies in the overall economy of the Republic of Serbia, where, having in mind the fact that it is a transition economy, large enterprises, both private and public, significantly contribute to the growth of the economic activity and employment. Before all, the degree of the liquidity, efficiency, indebtedness and profitability of these companies in the period 2014-2017 was determined by using the ratio analysis. After that, on the basis of the selected ratios, a comparative financial performance analysis of large business entities in relation to those small, medium-sized and micro- was carried out by applying the Entropy and the PROMETHEE II methods. The obtained results pointed out that large business entities had a favorable business economy in relation to the other groups of business entities by size, and their performances had improved to a certain extent in the observed period.
References
Accounting law, 2013. https://www.paragraf.rs/propisi/zakon_o_racunovodstvu.html
Andreopoulou, Z., Koliouska, C., Galariotis, E., & Zopounidis, C. (2018). Renewable energy sources: Using PROMETHEE II for ranking websites to support market opportunities. Technological Forecasting & Social Change, 131, 31–37.
Anđelković, A. (2017). Guerrilla Marketing – A Technique of Increasing Competitiveness of Small and Medium Enterprises. Annals of the Faculty of Economics in Subotica, 37, 101-115.
Aničić, J., Aničić, D, & Vasić N. (2017). Entrepreneurship development and financial performances in SMEs sector in Serbia. Economy, 63 (4), 29-39.
Araz, C., & Ozkarahan, I. (2007). Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. International Journal of Production Economics, Elsevier, 106 (2), 585-606.
Brans, J.P. & Mareschal, B. (2005). Promethee methods. Chapter 5 in: Multiple Criteria Decision Analysis: State of the Art Surveys, Springer Science and Business Media, Boston, p. 170.
Brans, J.P. Mareschal, & B. Vincke, Ph. (1984). PROMETHEE: A new family of outranking methods in multi-criteria analysis, in Brans, J.P. (Ed.), Operational Research '84, North-Holland, Amsterdam, pp. 447–490
Brans, J.P., & Vincke, B. (1985). A preference ranking organisation method: The PROMETHEE method for MCDM. Management Science, 3 (6), 647-656.
Březinovă, M., & Průšovă J. (2014). Small and mediu-sized enterprises in terms of their goals. Megatrend Magazine, 11 (3), 145-154.
Chen, T.Y. & Li, C.H. (2011). Objective Weights with Intuitionistic Fuzzy Entropy Measures and Computational Experiment Analysis. Applied Soft Computing, 11 (8), 5411–5423.
Chuansheng, X., Dapeng, D., Shengping, H., Xin, X., & Yingjie, C. (2012). Safety Evaluation of Smart Grid based on AHP-Entropy Method. Systems Engineering Procedia, 4, 203-209.
Đalić, I., Terzić, S., & Novarlić, B. (2017). The role of venture capital in the development of the SME sector. The European Journal of Applied Economics, 14 (2), 58-692.
Ermatita, Hartati, S., Wardoyo, R., & Harjoko, A. (2012). ELECTRE-Entropy method in Group Decision Support System Modelto Gene Mutation Detection. International Journal of Advanced Research in Artificial Intelligence, 1 (1), 58-63.
Filipović, M., & Mirjanić, B. (2016) Financial analysis and credit slovency evaluation of a selected enterprise case study of a company „Ačeva Novi Kneževac“. Economics: Theory and Practice, 9 (3), 16-31.
Fura, B., Wojnar, J., & Kasprzyk, B. (2017). Ranking and classification of EU countries regarding their levels of implementation of the Europe 2020 strategy. Journal of Cleaner Production, 165, 968-979.
He, J., & Shang, P. (2017). Comparison of transfer entropy methods for financial time series. Physica A: Statistical Mechanics and Its Applications, 482, 772-785.
Hellwig, Z. (1974). A method for the selection of a “compact” set of variables. Reports and papers in social sciences. Social Indicators: Problems of Definition and of Selection, 30, 11-20.
Hwang, C.L., & Lin, M.J. (1987). Group Decision Making under Multiple Criteria: Methods and Applications. Berlin, DE: Springer Verlag.
Hwang, C.L., & Yoon, K. (1981). Multiple Attribute Decision Making-Methods and Applications. A State-of-the-Art Survey. New York, US: Springer Verlag.
Ishizaka, A., & Nemery, P. (2013). Multi-Criteria Decision Analysis: Methods and Software. New Jersey, US:John Wiley Sons, Ltd. Hoboken
Jakopin, E. (2015). Regional drivers of economic growth. Business Economy, 63 (1-2), 99-113.
Kastratović, (2016). The Influence of Foreign Direct Investments on Economic and Social Development of Serbia. Bankarstvo, 45 (4), 70-93.
Liu, Q., Wang, S., Zhang, W., Li, J., Zhao, Y., & Li, W. (2017). China's municipal public infrastructure: Estimating construction levels and investment efficiency using the entropy method and a DEA model. Habitat International, 64, 59-70.
Lopes, A.P.F., Muñoz, M.M., & Alarcón-Urbistondo, P., (2018). Regional tourism competitiveness using the PROMETHEE approach. Annals of Tourism Research, 73, 1-13.
Marasovic, B., & Babic, Z., (2011). Two-step multi-criteria model for selecting optimal portfolio. International Journal of Production Economics, 134 (1), 58–66.
Meng, Q.S. (1989). Information Theory [M]. Xi’An, CN: Xi’An Jiaotong University Press,19–36.
Ministry of economy in Republic of Serbia, http://www.priv.rs/Ministry-of-Economy/211/Privatization.shtml accessed on December 20, 2018.
Nikolić, R., & Fedajev, A. (2016) Business economy. Vrnjačka Banja, Civil library Europe (In Serbian)
Paunović, G. (2017). The role of small and medium enterprises and entrepreneurship in the development of national economies. Economics: Theory and Practice, 10 (1), 44-63.
Qiu W.H., (2002). Management Decision and Applied Entropy Theory, Beijing, CN: China Machine Press, Beijing.
Shannon, C. E. (1984). A Mathematical Theory of Communication. The Bell System Technical Journal, 27 (3), 379–423
Stojanović, D. (2018). Foreign direct investments, export and economic growth in the Serbia. Business Economics, 12 (1), 54–72.
Tomić-Plazibat, N., Aljinović, Z., & Pivac, S. (2010). Risk Assessment of transitional Economies by multivariate and Multicriteria Approaches. Panoeconomicus, 57 (3), 283-302.
VP Solutions, Visual PROMETHEE, http://www.promethee-gaia.net/files/ VPManual.pdf accessed on December 29, 2018.
Zeleny, M. (1982). Multiple Criteria Decision Making. New York. US: McGraw-Hill.
Zou, Z., Yun, Y., & Sun, J. (2006). Entropy Method for Determination of Weight of Evaluating Indicators in Fuzzy Synthetic Evaluation for Water Quality Assessment. Journal of Environmental Sciences, 18 (5), 1020–1023.
The Author wishes to submit the Work to SJM for publication. To enable SJM to publish the Work and to give effect to the parties’ intention set forth herein, they have agreed to cede the first right to publication and republication in the SJM Journal.
Cession
The Author hereby cedes to SJM, who accepts the cession, to the copyright in and to the paper.
The purpose of the cession is to enable SJM to publish the Work, as first publisher world-wide, and for republication in the SJM Journal, and to grant the right to others to publish the Work world-wide, for so long as such copyright subsists;
SJM shall be entitled to edit the work before publication, as it deems fit, subject to the Authors approval
The Author warrants to SJM that:
- the Author is the owner of the copyright in the Work, whether as author or as reassigned from the Author’s employee and that the Author is entitled to cede the copyright to SJM;
- the paper (or any of its part) is not submitted or accepted for publication in any other Journal;
- the Work is an original work created by the Author;
- the Author has not transferred, ceded, or assigned the copyright, or any part thereof, to any third party; or granted any third party a licence or other right to the copyright, which may affect or detract from the rights granted to SJM in terms of this agreement.
The Author hereby indemnifies the SJM as a body and its individual members, to the fullest extent permitted in law, against all or any claims which may arise consequent to the warranties set forth.
No monetary consideration shall be payable by SJM to the Author for the cession, but SJM shall clearly identify the Author as having produced the Work and ensure that due recognition is given to the Author in any publication of the Work.
Should SJM, in its sole discretion, elect not to publish the Work within 1 year after the date of this agreement, the cession shall lapse and be of no further effect. In such event the copyright shall revert to the Author and SJM shall not publish the Work, or any part thereof, without the Author’s prior written consent.