This paper aims to provide an analysis of the profitability of audit firms in the Republic of Serbia during the period 2016-2018. The analysis is based on the data collected from the financial statements from all audit firms registered in the Republic of Serbia. The profitability analysis includes two goals. This paper will primarily provide a descriptive statistical analysis of the profitability of audit firms measured by return on assets and net income per employee. The following part of the research will answer the question of which factors have a significant impact on the profitability of audit firms. Profitability as a dependent variable is defined as return on assets and net income per employee, while independent variables include market share, current ratio, leverage, size, affiliation to the international network, etc. To answer this question, a regression statistics analysis will be conducted. The research result will indicate which factor can improve the performances of audit firms.
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This paper aims to investigate factors of profitability in the manufacturing sector in the Republic of Serbia. The research is based on the sample of 220 observations of financial statements of listed companies on the Belgrade stock exchange from sector C – manufacturing during 2017-2020. Profitability was measured as a return on assets (ROA) and return on equity (ROE) being the two most common ratios. Primarily, the descriptive statistics of ROA and ROE were conducted. The results showed that manufacturing companies achieve a positive rate of profitability but at a low level (ROA is 0,0263 and ROE is 0,0595). Furthermore, two regression models were conducted to investigate which internal factors significantly affected ROA and ROE as dependent variables. The independent variables were set: fixed assets ratio, size, current ratio, leverage, and growth. Results of the first model showed that size, current ratio, and growth have a significant positive impact on ROA, while leverage significantly negatively impacts ROA. Results of the second model show that size and growth have a significant positive impact on ROE, while leverage negatively impacts it.
The aim of this paper is to investigate the state of performance of audit firms registered in the Republic of Serbia, as well as the factors that manage performance. The research is based on the entire population of audit firms, based on financial reports for the period 2019-2020. that are publicly available. The performance of audit firms will be investigated from the aspect of profitability performance, where the indicators of return on assets nad return on equity is most often used. Performance analysis will be presented through descriptive statistical analysis. Performance management will be analyzed in terms of the impact of independent factors on ROA and ROE. The following will be defined as independent factors: the size of the audit firm, liquidity, indebtedness, belonging to the big four, growth and the like. The research of the influence of independent factors on the dependent variables of the performance of audit firms will be conducted on the basis of regression analysis. The results of descriptive analysis should indicate the state and trend of performance of audit firms, while the results of regression analysis should indicate the nature of the factors that drive the performance of audit firms.
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