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University of Kragujevac, Faculty of Economics , Kragujevac , Serbia
University of Kragujevac, Faculty of Economics , Kragujevac , Serbia
The objective of this paper is to examine whether the financial position and profitability of enterprises which have outstanding obligations recorded in the past five years (enterprises with blocking accounts) differ from the financial position and profitability of enterprises which have no outstanding obligations recorded also in the past five years (enterprises with no blocking accounts). Sampled enterprises are divided into two groups: (1) enterprises in the process of enforced collection and (2) enterprises which have no outstanding obligations recorded in the past five years. We have used Mann-Whitney U test for data processing, because we compared enterprises from two groups. Results of the research show that there are statistically significant differences between Serbian enterprises with blocking accounts and enterprises with no blocking accounts in terms of current ratio, quick ratio, total debt ratio, long-term debt ratio and return on assets. Obtained results could be basis for making the relation between values of some financial ratios and real position of liquidity, debt and profitability. Future research should include more enterprises from both groups. Segmentation of the (expanded) sample according to the used basis for the preparation of general purpose financial statements can be a recommendation for future research. To authors’ best knowledge, this is the first paper that compares financial position and profitability of Serbian enterprises with blocking accounts and enterprises with no blocking accounts.
enforced collection, liquidity, debt, profitability, Serbian small and medium-sized enterprises
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