Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2020, No. 1, Article 5, Year of publication: 11, March, 2020

Value relevant analytical indicators analysis − Evidence from selected Western Balkans countries


Dušan Saković*

*PhD Associate Professor, University of Novi Sad, The Faculty of Economics Subotica, Department for Finance and Accountning



This paper investigates the value relevant analytical indicators for 406 unlisted companies operating within selected Western Balkan countries. Value relevant analytical indicators are viewed through indicators of growth, risk and profitability of the companies. These indicators are considered to be key determinants of value of the all generally accepted methods of valuing a business. The aim of the research is to determine changes in the value relevant analytical indicators in order to draw conclusions on the trend of changes in market values of the observed enterprises. The results of the research indicate that in the period 2017−2018, the observed enterprises recorded a negative shift when it comes to indicators of company’s growth. During the same period, the debt ratio as an indicator of company’s fianancial risk shows a negative trend, which is also the case with profitability indicators. The previous results suggest that in the observed period, the market values of unlisted companies were mainly declining as a result of negative tendencies in the value determinants taken from their financial statements.

Keywords: value relevance, growth, risk, profitability

DOI: 10.7251/FIN2001065S

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