Value-based management and corporate governance: A study of Serbian corporations

Stancic, Predrag; Todorovic, Miroslav; Čupić, Milan

doi:10.2298/eka1293093s

Cited by 5 publications

(7 citation statements)

References 25 publications

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“…However, controlling shareholder has the power to expropriate minority shareholder rights, which results in frequent conflicts between controlling shareholder (La Porta et al, 2002;Young et al, 2008). In this article we investigate possible influence of ownership structure on bank profitability in the specific context of SEE transition economies characterised by underdeveloped stock market, high ownership concentration, high foreign ownership and weak investor protection (Radzic & Yuce, 2008;Suljkanovic, 2007;Stančić, Todorović, & Čupić, 2012a).…”

Section: Ownership Structure and Bank Performancementioning

confidence: 99%

“…Institutions that are important external governance mechanisms in developed economies, such as capital market, securities regulators, institutional investors, judiciary, are weak in transition economies. High quality of disclosure and strong boards of directors are, therefore, potentially important internal governance mechanisms in these economies (Stančić et al, 2012a). Dahya, Dimitrov, and McConnell (2008) argue that the board is the most important part of a firm corporate governance structure.…”

Section: Board Structure and Bank Performancementioning

confidence: 99%

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Influence of board and ownership structure on bank profitability: evidence from South East Europe

Stancic¹,

Čupić²,

Obradović³

2014

Economic Research-Ekonomska Istraživanja

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We investigate the impact of board and ownership structure on profitability of 74 commercial banks from four transition economies of South East Europe over the 2005-2010 period. We analyse this relation using Ordinary Least Squares regression analysis on an unbalanced panel data-set of 377 observations. We find negative and significant relationship between board size and bank profitability, while the proportion of independent directors on the board is negatively, but insignificantly related to bank profitability. Impact of ownership concentration on bank profitability is negative, but weak. We also find that privately held domestic banks outperform state-owned and foreign banks. Important factors influencing bank profitability in South East Europe are also bank size and bank capitalisation.

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Section: Ownership Structure and Bank Performancementioning

confidence: 99%

Section: Board Structure and Bank Performancementioning

confidence: 99%

Influence of board and ownership structure on bank profitability: evidence from South East Europe

Stancic¹,

Čupić²,

Obradović³

2014

Economic Research-Ekonomska Istraživanja

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“…EVA was being used more frequently than the BSC. Seemingly the relatively poorly used EVA was (Stančić, Todorović & Čupić, 2012;Domanovic, 2013), this was an obvious forward. The conclusion that the VBM starts to be not only rhetoric but also supported by a sound methodology can be drawn.…”

Section: Corporate Performance Metricsmentioning

confidence: 99%

“…Naizgled relativno slabo korišćena EVA ipak je u stalnoj ili skoro stalnoj upotrebi u 1/4 od ukupnog broja preduzeća. U odnosu na ono što je otkriveno u ranijim studijama prakse u preduzećima u RS (Stančić, Todorović & Čupić, 2012;Domanovic, 2013), ovo predstavlja očigledni korak napred. Možemo zaključiti da VBM počinje da biva prisutan ne samo deklarativno, već i da je on podržan upotrebom dokazane metodologije.…”

Section: Merila Performansi Preduzeća -Cpmunclassified

Practices of performance measurement in companies in the Republic of Serbia

Todorovic¹,

Kalicanin²,

Nojkovic³

2015

Ekon horizonti

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Return), ROE (Return On Equity), ROA (Return On Assets) etc. are in use nowadays. In practice, managers cannot and do not want to apply all of these metrics and managers' choice does not necessarily rely on what theory emphasizes as their advantages and disadvantages. We surveyed 64 CFOs in order to explore the corporate practice in the Republic of Serbia. The DCF-based capital budgeting metrics are dominant compared to the traditional metrics, and the one that is used the most is the profi tability index, only to be followed by the IRR and the NPV. The Payback Period is yet frequently used. The earnings-based corporate performance metrics are still the most important. However, the presence of EVA and balanced scorecard is not negligible. Large companies use them signifi cantly more than small companies. The orientation towards EVA and balanced scorecard increases with the internationalization of a fi rm as well. Finally, companies using sophisticated capital budgeting metrics are prone to using sophisticated corporate performance metrics.

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“…Although Serbia initiated economic reforms at the end of the 1980s, the widespread economic reforms were conducted only after political, institutional and legal changes in the early 2000s. In addition, Serbia has a code-law legal system and offers strong legal (law) but weak effective (institutional) protection of investors, particularly minority shareholders (Stancic et al. , 2012; Nikolic and Babic, 2019).…”

Section: Introductionmentioning

confidence: 99%

Value relevance of accounting earnings and cash flows in a transition economy: the case of Serbia

Čupić

Todorović

Benković

2022

JAEE

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PurposeThe purpose of the study is to investigate the association of earnings and cash flows with stock prices and returns, and the impact of regulatory changes on the value relevance of accounting numbers.Design/methodology/approachThe authors examine a sample of non-financial firms listed on the Belgrade Stock Exchange from 2005 to 2018 and use three regression models – price, return and differenced.FindingsThe authors find evidence that accounting earnings are more value relevant than cash flows. The authors also find negative relation of earnings changes with stock returns and argue that this is due to the lower persistence of negative earnings levels and changes. Finally, the authors find that the value relevance of accounting information in Serbia increases after the improvements in capital market regulation.Research limitations/implicationsGiven the empirical focus on a transition economy, the widespread applicability of the study is limited. The findings, however, call for more research on transition economies to better understand the functioning of capital markets and the way information from financial statements is incorporated into stock prices.Practical implicationsThe results imply that policymakers in transition economies should improve the accounting and capital market regulation to provide better investor protection and to improve the capital market conditions.Originality/valueThe authors add to knowledge about the value relevance of accounting information in emerging and transition economies. The results could be of interest to standard setters in their efforts to better understand and improve the quality of accounting information in emerging and transition economies.

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Value-based management and corporate governance: A study of Serbian corporations

Cited by 5 publications

References 25 publications

Influence of board and ownership structure on bank profitability: evidence from South East Europe

Influence of board and ownership structure on bank profitability: evidence from South East Europe

Practices of performance measurement in companies in the Republic of Serbia

Value relevance of accounting earnings and cash flows in a transition economy: the case of Serbia

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