 ANALYSIS OF FINANCIAL DUE DILIGENCE UNSUCCESSFUL BUSINESS COMPANIES IN SERBIAToskovic Jelena,
Popovic Slobodan and
Markovic Jasna
Annals - Economy Series, 2015, vol. Special, 234-240 Abstract: In conditions of extreme financial and corporate scandals, in order to achieve a good position in the market and thus maximize profit, modern companies and their top managers must make continual innovation and change, as an adaptation of one of the basic imperatives of modern business. This means that today's modern enterprises are facing numerous challenges, including the need to find a way to survival, growth and development. The global economic crisis that occurred in 2007 passed the downfall of many companies and put into focus the creative application of financial resources in the process of bankruptcy. Each company during its life cycle comes to a situation that is found in some form of crisis, but if it fails to overcome the crisis inevitably is to declare bankruptcy, which is a recognition that the company failed to meet its objectives. The causes of business failure are different, so the task of the financial due diligence to do the recording of enterprises, carefully, systematically and thoroughly investigate, examine and analyze them information company that filed for bankruptcy. The point of introduction of due diligence is in providing input as soon as possible, in order to take advantage of information in the right way and made the right decisions and strategies of the business. So due diligence serves as a tool or vehicle for designing business decisions, which is in the territory of the Republic of Serbia still minimal use. The reorganization process is applied rather than the liquidation process, precisely in order to use all the resources that the company has, and thus protect shareholders, creditors and suppliers. This process is strictly controlled and regularized to avoid possible abuse by management that led the company to bankruptcy. The legislation allows considerable benefits company in the reorganization process, just to fit in a healthy leg, changed unsuccessful business and financial structure of the successful and continued to operate. Levies are implemented in Serbia on the basis of a number of regulations, among which the most important are: National Payment System Act, the Law on Enforcement Proceedings, Bankruptcy Law, Negotiable Instruments Act, and regulations - decisions, guidelines and instructions of the Governor of the National Bank of Serbia. The growing competition, increased emphasis on efficiency and profitability as well as a strong need to survive in the market, leading to unethical and illegal business practices. Hence the need for the visible hand of government or international institutions in the form of stricter laws. However, the open question of who is at present competent to issue rules? Or rather, who is a judge judges? The aim of the paper is to analyze the financial due dilegence unsuccessful companies in the Republic of Serbia. The paper also deals with the process of bankruptcy of the company through its ability to reorganize and continue operations, as well as the process of liquidation of failed companies in Serbia. Keywords: Due diligence; unsuccessfully; company; Serbia (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2015:v:special:p:234-240 Access Statistics for this article More articles in Annals - Economy Series from Constantin Brancusi University, Faculty of Economics Contact information at EDIRC. |
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