THE IMPACT OF FINANCIAL EXPENDITURE ON THE PERFORMANCE OF TRADE IN SERBIA

Radojko Lukic ()
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Radojko Lukic: Faculty of Economics, University of Belgrade, Serbia

Management Research and Practice, 2016, vol. 8, issue 2, 38-53

Abstract: Due to the economic crisis and the risk of doing business, the issue of the efficiency of managing financial expenditure in all enterprises, including trading is raised. It especially relates to the trading enterprises in transition countries, such as Serbia. The comparative research showed that financial expenditure of trading enterprises in transition countries are incomparably higher compared to the countries with developed market economy. The aim of the research in this work is to envisage the importance of the financial expenditures in modern trade companies, with special insight into Serbia. In contrast to the countries with developed market economy, significantly higher financial expenditures in trading companies in Serbia reflected badly on their performance. Such condition is caused by following factors: high interest rate, indebtedness, high business risk, total financial instability, inadequate strategies and business politics, etc. Regarding this, it is necessary to take all relevant measures so as to increase the competitiveness and the efficiency of managing financial expenditures in trading enterprises in Serbia.

Keywords: interest; negative exchange rate difference; efficiency; cost of debt; Serbia. (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mrpase:v:8:y:2016:i:2:p:38-53

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