Hrvatsko društvo ekonomista

ARTICLES ::: AUTHORS ::: ARTICLES SEARCH

December 2019. ::: Vol.70 No. 06

Branko Krnić
Ivona Beljan

DYNAMICS OF CHANGES IN THE FINANCIAL POSITION AND FINANCIAL RESULTS OF COMPANIES AND BANKS IN CROATIA https://doi.org/10.32910/ep.70.6.4 Pregledni rad The purpose of this research is to expand the present understanding of the interdependence between the functioning of the financial sector and the real sector in the Croatian economy. To that effect, the dynamics of changes in the financial position and the financial performance of their key components, i.e. companies and banks, are explored. Compared with previous research, the aspects and the time horizon of the analysis are broadened, the recession period of the Croatian economy is considered more closely and the scope of financial indicators is redefined. Comparisons are made on the basis of the growth ratio index, as well as the relationship between the basic components of the linear regression model and the selected sectoral financial indicators. Differences were found in the movement of a part of the performance and financial position categories of enterprises and banks during the period of recession and it was shown that the quality of placement and, to a certain degree, the banks’ profitability have been deteriorating in conditions of deterioration of liquidity and solvency indicators of the company. The findings of this research may contribute to a better understanding of the interdependence of the financial and real sector of the economy and the recognition of the need for the greater use of comparative sectoral analysis of aggregated data and indicators from financial statements, along with macroeconomic indicators, for a timely recognition and elimination of cross-sectoral disparities. financial position; business performance; companies; banks Puni tekst: hrvatski, pdf (1 MB)

DYNAMICS OF CHANGES IN THE FINANCIAL POSITION AND FINANCIAL RESULTS OF COMPANIES AND BANKS IN CROATIA

https://doi.org/10.32910/ep.70.6.4

Pregledni rad

The purpose of this research is to expand the present understanding of the interdependence between the functioning of the financial sector and the real sector in the Croatian economy. To that effect, the dynamics of changes in the financial position and the financial performance of their key components, i.e. companies and banks, are explored. Compared with previous research, the aspects and the time horizon of the analysis are broadened, the recession period of the Croatian economy is considered more closely and the scope of financial indicators is redefined. Comparisons are made on the basis of the growth ratio index, as well as the relationship between the basic components of the linear regression model and the selected sectoral financial indicators. Differences were found in the movement of a part of the performance and financial position categories of enterprises and banks during the period of recession and it was shown that the quality of placement and, to a certain degree, the banks’ profitability have been deteriorating in conditions of deterioration of liquidity and solvency indicators of the company. The findings of this research may contribute to a better understanding of the interdependence of the financial and real sector of the economy and the recognition of the need for the greater use of comparative sectoral analysis of aggregated data and indicators from financial statements, along with macroeconomic indicators, for a timely recognition and elimination of cross-sectoral disparities.

financial position; business performance; companies; banks

Puni tekst: hrvatski, pdf (1 MB)