Market concentration and profitability: the empirical evidence from Serbian manufacturing industry

Kastratović, Radovan; Lončar, Dragan; Milošević, Siniša

doi:10.18045/zbefri.2019.1.213

Cited by 3 publications

(4 citation statements)

References 28 publications

(65 reference statements)

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“…Concentration reduces the cost of collusion, and market power allows anti‐competitive behavior. Prices are not favorable to the consumer but provide higher profitability to firms (Kastratović et al., 2019). In the same vein, the Relative Market Power hypothesis advocates a positive relationship between concentration and profitability.…”

Section: Introductionmentioning

confidence: 99%

“…Industry capital intensity is generally considered a driver of profitability because firms in the most capital‐intensive industries must invest at a high level to keep their business up and running. Technological advances allow improved productivity and, therefore, profitability is positively affected (Kastratović et al., 2019). Capital intensity could also act as an entry barrier due to two main reasons.…”

Section: Introductionmentioning

confidence: 99%

“…However, some studies point out that there may be a negative relationship between capital intensity and profitability. This may be due to excessive use of capital in the mature phase of the industry or because the use of capital may not yet be profitable because the products are in the early stages of their life cycle (Kastratović et al., 2019; Pervan et al., 2019).…”

Section: Introductionmentioning

confidence: 99%

“…For a literature review see, for example, Banerjee and Savitha (2021),Kastratović et al (2019), andKeil (2017).…”

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confidence: 99%

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What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Ríos

2023

Ann Public Coop Econ

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This study focuses on the analysis of the determinants of Spanish cooperatives’ profitability. We inspect several variables, whose influence on firms’ profitability has been verified by prior literature, and we assess whether these results are confirmed in cooperatives. The data span 13 years (2008–20). We approach the analysis including: (i) firm‐specific factors, (ii) industry‐specific factors, and (iii) location factors. There is a main research question: Are there significant differences in cooperatives’ profitability depending on firm‐specific, industry‐specific and/or location factors? The results emphasize that firm‐specific effects are the most important for cooperatives’ profitability. Summarizing our findings, cooperatives’ profitability is positively affected by size, liquidity, indebtedness, regional specialization in cooperatives, location economies, and lagging profitability, and negatively affected by age and presence in international markets.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…For a literature review see, for example, Banerjee and Savitha (2021),Kastratović et al (2019), andKeil (2017).…”

mentioning

confidence: 99%

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What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Ríos

2023

Ann Public Coop Econ

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Concentration of supply on the chosen markets of Serbian electronic communications sector

Kostić¹,

Živković²

2021

EurJ Appl Econ

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The electronic communications sector is very important sector of a national economy. It provides an opportunity for facilitating business activities and it is a good area for investment. A small number of operators and a large number of users operate in most markets of the electronic communications sector. The conditions under which electronic communications services are available to users in different countries diverge, among other things, due to the degree of liberalization of individual markets in these countries. The Republic of Serbia has significantly liberalized this sector of economic activity by adjusting it according to the regulations of the European Union. However, certain entry barriers have remained, primarily related to the licenses that operators need to obtain to operate in the Serbian market. The paper aims to investigate the level of concentration in selected markets of the electronic communications sector, namely: mobile telecommunication networks and services, broadband Internet services and media content distribution. The research showed a high level of concentration measured by the Herfindahl-Hirschman index in all three markets. A further increase in concentration is expected in all analyzed markets in the short term. These research results require more attention from regulatory bodies because they increase the possibility of some form of non-competitive behaviour by undertakings.

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How does market share affect the increase in the value of investment unit of voluntary pension funds?

Stojanović¹,

Radukić²,

Kostić³

et al. 2020

Ekonomika preduzeća

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The importance of this research stems from highly concentrated markets of voluntary pension funds, on the one hand, and intensive competition pressure among market participants, on the other. The main purpose of this paper is to evaluate the static and dynamic relationship between a pension fund's market share and value of its investment unit. The research was designed to monitor the changes in the size of market share and investment units in the period from 2008 to 2017 in the funds in the Republic of Serbia. The main findings suggest that the size of market share of individual voluntary pension funds has no influence on the growth of investment unit value. Contrary to the static approach, the dynamic approach argues that the changes of market share affect the performance of voluntary pension funds. The obtained results indicate that the performances of individual pension funds do not depend on their size, but rather on their ability to occupy a larger portion of the market and increase their market share. This paper provides a systematic review of the relevant empirical literature on internal and external determinants of a pension fund's performance. It represents a significant contribution to the understanding of market factors, such as market share and value of investment units.

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Market concentration and profitability: the empirical evidence from Serbian manufacturing industry

Cited by 3 publications

References 28 publications

What are the determinants affecting cooperatives’ profitability? Evidence from Spain

What are the determinants affecting cooperatives’ profitability? Evidence from Spain

Concentration of supply on the chosen markets of Serbian electronic communications sector

How does market share affect the increase in the value of investment unit of voluntary pension funds?

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