Lidija Barjaktarović

Measuring the Concentration of Insurance sector – the Case of Southeastern European Countries

Abstract Background and purpose: The goal of the paper is to determine the level of concentration in the insurance sector in the following eight countries of South and Eastern Europe: Serbia, Croatia, Bosnia and Herzegovina, Montenegro, Former Yugoslav Republic of Macedonia, Romania, Bulgaria and Albania in the period from 2007 to 2012. Design/Methodology/Approach: In this context, the analysed indicators of concentration were the market share of the four leading financial institutions (CR4), the Herfindahl-Hirschman Index (HHI), the coefficient of entropy (E), the coefficient of relative entropy (RE) and Gini coefficient (G). Results: The study showed that the insurance sectors in the analysed countries are highly concentrated on average (according to CR4 indicator), medium concentrated (according to HHI) with high levels of inequality of distribution of market shares between individual participants (in terms of G coefficient), and in the zone of relative uniformity and equality of business entities (according to RE coefficient). The research results point out that the existence of different levels of correlation between the analysed indicators of concentration in the insurance sector, which confirms the conclusion that, in order to obtain relevant and quality conclusions about the level of concentration, it is necessary to review and analyse several indicators of concentration integrally. Conclusion: In all observed indicators of concentration in relation with the density level GDP pc move in the zone of very low value, which on the one hand points to the fact that the analysed countries at a relatively similar level of development have significantly different levels of concentration, but also on the fact that some countries although at different levels of development, have similar levels of concentration.

Analysis of the capital structure decisions: A survey of the Serbian companies

Cilj istraživanja je ispitivanje mogućnosti implementacije teorijskog koncepta ‘pecking order theory’ kao i analiza internih i eksternih faktora koji utiču na politiku zaduživanja na primeru 65 kompanija u Srbiji tokom 2015. godine. Odgovore na pitanja je dalo 65 finansijskih direktora. Odgovori ukazuju na činjenicu da većina kompanija preferira interne izvore finansiranja u odnosu na eksterne. Ako se dalje analiziraju eksterni izvori, kompanije u Srbiji najčešće koriste bankarske pozajmice (59%), usluge lizinga (26%), dužničke hartije od vrednosti (8%) i na kraju obične akcije (4%). Rezultati su pokazali da najdominantniji interni faktori koji utiču na politiku zaduživanja kompanija jesu kreditni rejting kompanija, kao i višak novca, odnosno gotovine. Takođe, rezultati ukazuju da restriktivna i skupa kreditna politika banaka najviše utiče na pristup kompanija eksternim sredstvima.

Project financingin the case of residential construction in Belgrade

Project financing is a method of funding in which the creditor primarily takes into account revenues generated by individual project, as the source of repayment and security for the risk exposure. Risk assessment is a critical phase for investor and creditor in project financing as it bears responsibility for the assessment of projects ability to repay debts (loans), cover costs as well as for the payment of dividends to shareholders. Designed and expected cash flow generated by the project is strongly influenced by risk. If the risks are not adequately assessed and anticipated, there should be a decrease in cash flow or the deficit. If cash flow is not sufficient for servicing commitments toward lenders, the project is unsuccessful and needs to end. On the basis of the analysis of principles and product offers of the project financing banks which are operating in the Republic of Serbia (Banca Intesa, Erste Bank, Sberbank and UniCredit Bank) it is practically shown which are the principles of the project financing of residential branches in Zarkovo (part of Belgrade) and what are the advantages for the investor (concerning assets, cash flow projections in the function of repayment of loans, the basis for the approval of project financing - future revenues generated by the project, the legal status of borrowers and risk distribution).

Assesment of the Interest Rates in the Serbian Banking Sector

Abstract Lending interest rates (IR) in the Serbian market are generally viewed as high. In accordance with the official NBS (National bank of Serbia) data for 2010: lending (IR) was 10.4% p.a., deposit IR was 4.2% p.a., and spread was 6.3% p.a. At the same time, IR on cross-border loans was 3.7% p.a. It means that the use of cross-border loans was a better solution for companies which were in position to take them. The indicator of IR spread in Serbia got worse and came down to 106th position (it used to be ranked 90th in 2009; WEF). If we analyse the structure of IR spread, we can notice that there is room for decreasing the level of active IR in the area of country risk premium and funding spread. Pearson Correlation shows that IR has strong relation with return on assets and volume of collected deposits i.e. profit margin per product.

KEY ASPECTS OF CASH MANAGEMENT IN THE COMPANY’S BUSINESS

Cash management is essential part of efficient company’s business and it can be used as criteria for ranking success of Chief Financial Officers. In multinational companies, it is expected that financial manager perform wide range of activities, and to know local and international accounting regulation. Accordingly, domestic competent public is interested in way how cash management can improve performances of one company. Moreover, it is important to know available investment alternatives, planned investments and maintenance, regulation in company’s basic industry and other industries applicable on own business, and tax treatment of various basis of payment. Optimal financial result can be achieved thanks to good allocation of available funds, thanks to determine the priorities in payments and achieving tax deduction. It is very important to consider accounting aspect of particular financial decision, before the decision of cash disbursement is made. In this research, authors will present way of cash management in Grand Casino Belgrade in period of 2009 to 2013, on the basis of available official financial and auditor reports on the company’s site.