Nikola Stefanović

This paper addresses the limited evidence on duration dependence in corporate financial distress in emerging economies by examining sectoral heterogeneity and exit dynamics among Serbian medium and large enterprises. Using discrete-time hazard models on 609 distress episodes (2013-2023), the analysis finds that the estimated exit probability falls from 37.8% in the first year to 10.4% by year six, with strong negative duration dependence that is robust across alternative specifications. Regulated sectors exhibit a median distress duration of four years compared with two years in market-oriented sectors. Sectoral effects persist after controlling for firm characteristics and entry conditions, consistent with institutional features shaping distress persistence beyond firm-level determinants. These findings indicate that prolonged distress reduces firms' likelihood of recovery, with implications for the timing of restructuring interventions. Passive adjustment appears insufficient, and delayed action may contribute to resource misallocation, particularly in regulated sectors where institutional barriers compound firm-level constraints.

This paper examines the financial resilience of medium and large enterprises in Serbia during and after the COVID-19 pandemic. Using economic data from 3,020 firms over six years (2018-2023) obtained from financial statements submitted to the Serbian Business Registers Agency, and following standard data-cleaning procedures, the study employs fixed-effects regression with robust standard errors. The results reveal that firm size and state ownership mediate resilience in ways that challenge established models. Large enterprises increased their operating revenues by 19.4% during the pandemic and by 33.7% in the post-COVID period, compared to medium-sized firms. Profit margins diverged sharply: large private firms improved operating margins, while state-owned firms experienced significant declines despite having larger asset bases. Foreign ownership did not confer significant advantages. These findings indicate that resilience models developed for advanced economies may not fully translate to transitional contexts such as Serbia. The results underscore the need for tailored policy measures to support medium-sized enterprises and for a reassessment of how short-term stabilisation efforts influence long-term efficiency and market structure.

This paper presents an analysis of the repercussions of economic crises on pharmaceutical companies located in Serbia and neighboring countries. The focal point of this research is to delineate the influence that economic crises, spanning the period from 2007 to 2021, have exerted on the operations of pharmaceutical companies. The primary objective of this study is to underscore the significance of economic crises in shaping the financial performance indicators of pharmaceutical companies. The fundamental hypothesis, validated in this paper, posits that economic crises have affected pharmaceutical companies, although in diverse manners and with varying degrees of intensity. Throughout the research, two pivotal questions guided the investigation. First, the study explored whether there is a correlation between the macroeconomic indicators of the countries in which the observed companies operate and their financial indicators. The second question addressed whether all observed financial indicators of pharmaceutical companies decline during periods of economic crisis. This research focuses on three distinct periods: the initial phase of the global economic crisis, the second period encompassing the year 2011, and the third period marked by the onset of the COVID-19 pandemic and the crisis it induced. The principal contribution of this paper lies in emphasizing that economic crises influence the operational dynamics of pharmaceutical companies; however, the origin of a crisis cannot serve as a reliable predictor of its potential impact on a company's operations.

The study builds on the findings of Jonović et al. (2024) and aims to: 1) determine whether the implementation of Integrated Management Systems (IMS) based on the Committee of Sponsoring Organizations (COSO) Enterprise Risk Management (ERM) model enhances sustainable operational risk management (ORM) and financial performance in a Scientific research organization; and 2) develop a method for improving (ORM) and financial outcomes. Primary research of Strengths, Weaknesses, Opportunities, and Threats (SWOT) analyses conducted from 2021 to 2024, with an average response rate of over 71%, confirms a sustainable business context. Following the Plan-Do-Check-Act (PDCA) cycle, it strives to enhance the response of scientific research organizations to strategic goals and operational risks. The analysis of financial indicators and Pearson's correlation supports the impact of IMS on the organization's financial and operational stability, as outlined in the COSO ERM model. It emphasizes the importance of effective ORM for achieving better financial performance. However, it suggests that implementing IMS is not sufficient for upgrading ORM within the organization. Future research will compare the Institutes of National Importance in the Republic of Serbia to refine risk management and enhance financial performance.

This study aimed to explore the cross-section of digitalization and sustainability in banking and its effect on bank performance. The sample consisted of all of the banks (n = 25) operating in the Republic of Serbia from 2011 to 2020. The research results show that the banks focusing on digitalization and sustainability are profitable, even in the face of coronavirus disease 2019 (COVID-19). Furthermore, using the Pearson’s correlation, the study shows that the level of investment in digital transformation has a strong relationship with the net result. We advocate that digitainability in banking is an important factor in uncertain times and should be fostered and included in bank strategies in the post-COVID 19 world. To the best of our knowledge, this is the first study that provides insight into digitainability and bank performance.

The problem of sustainable business excellence has been investigated according to different aspects in different fields. For a more detailed analysis, it is necessary to develop an integrative sustainable business excellence model, respecting the baseline model of business excellence according to the European Foundation of Quality Management, with the possibility of defining the relationships and levels of significance of different variables. The primary goal of this paper is to present a developed integrative model to simulate the effects of information and communication technologies, and quality and effects of leadership improvement, as independent variables, on sustainable business excellence in higher education institutions, as a dependent variable. The model was developed by applying dynamic system techniques and evaluated by using statistical methods. In the sample of 17 Serbian and 21 Russian universities, the authors analyzed the information and communication support, leadership and quality, and their impact on sustainable business excellence. According to the simulation analysis, it was concluded that the EFQM model of self-assessment could help produce a more customer-oriented culture in HEIs, through ICT support, leadership and quality criteria enhancements.

Purpose: This study aims to explore the factors moderating possibly indirect relationships between gender diversity and its effect on bank performance. The causality of this relationship remains unclear. Design/methodology/approach: The sample consists of all banks (n = 27) operating in Serbia. Findings: The gender diversity-performance relationship is indirect. The gender diversity of executive boards positively impacts bank performance, over a threshold level. This is observed only in banks where gender diversity is extended to more than one level of executive authority. Research limitations/implications: Gender diversity should be fostered, particularly in small and competitive markets. The gender diversity-performance link is based on gender-related social interactions, which are interdependent and should not be taken into account as isolated factors. Originality/value: To the knowledge, this is the first study to provide insight into indirect, gender related, moderatory interactions effecting gender diversity – performance link, in banking.