<abstract xmlns="http://www.w3.org/1999/xhtml"><p> For Serbia the efforts to attract investments from abroad came to the fore with the beginning of transition process. The process of ownership transformation in Serbia most often implied foreign direct investment inflows, because it included participation of foreign investors in purchase of domestic companies that had been the subject of privatisation. The subject of research in the paper is Serbian experience in attracting foreign capital into local export companies with special emphasis on their profitability. Aim of the paper is to estimate the profitability of leading Serbian exporters financed by foreign direct investments, i.e. to determine whether and to what extent foreign direct investments contributed to the increase of return on assets (ROA) and return on equity (ROE), as basic profitability measures. The results show that, in the case of Serbian exporters, the profitability varies, both per companies and per individual years. There is no general conclusion that foreign direct investments contributed to the ROA increase. On the contrary, ROA values significantly varied during this period. Either enormous increase or enormous decrease could be observed. The same goes for ROE values.</p></abstract>

For Serbia the efforts to attract investments from abroad came to the fore with the beginning of transition process. The process of ownership transformation in Serbia most often implied foreign direct investment inflows, because it included participation of foreign investors in purchase of domestic companies that had been the subject of privatisation. The subject of research in the paper is Serbian experience in attracting foreign capital into local export companies with special emphasis on their profitability. Aim of the paper is to estimate the profitability of leading Serbian exporters financed by foreign direct investments, i.e. to determine whether and to what extent foreign direct investments contributed to the increase of return on assets (ROA) and return on equity (ROE), as basic profitability measures. The results show that, in the case of Serbian exporters, the profitability varies, both per companies and per individual years. There is no general conclusion that foreign direct investments contributed to the ROA increase. On the contrary, ROA values significantly varied during this period. Either enormous increase or enormous decrease could be observed. The same goes for ROE values.

Effects of Foreign Direct Investments on Serbian Exporters′ Profitability

University of Kragujevac, Faculty of Economics,

University of Belgrade, Faculty of Economics,

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Effects of Foreign Direct Investments on Serbian Exporters\u2032 Profitability"}

For Serbia the efforts to attract investments from abroad came to the fore with the beginning of transition process. The process of ownership transformation in...

Effects of Foreign Direct Investments on Serbian Exporters′ Profitability

Published Online: Apr 26, 2017

Page range: 1 - 23

Received: Jul 15, 2016

Accepted: Mar 17, 2017

DOI: https://doi.org/10.1515/ethemes-2017-0001

Keywords
exporters, foreign direct investments, profitability, return on assets, return on equity, Serbia

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Effects of Foreign Direct Investments on Serbian Exporters′ Profitability

Published Online: Apr 26, 2017

Page range: 1 - 23

Received: Jul 15, 2016

Accepted: Mar 17, 2017

DOI: https://doi.org/10.1515/ethemes-2017-0001

Keywordsexporters, foreign direct investments, profitability, return on assets, return on equity, Serbia

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
exporters, foreign direct investments, profitability, return on assets, return on equity, Serbia