Summary This study investigates earnings management and its determinants in the agricultural and manufacturing sectors, with the aim of promoting the quality of financial reporting. The sample includes 1,381 actively operating companies in AP Vojvodina, Republic of Serbia, in the period from 2019 to 2021. Earnings management activities are identified using discretionary accruals computed with modified Jones model. Panel data analysis reveals that profitability and company size exert a positive and statistically significant influence on earnings management practices. Conversely, sales growth demonstrates a negative and statistically significant impact on earnings management. Furthermore, the analysis across the studied years indicates statistically significant differences in the prevalence of earnings management practices. However, the study found no significant differences in earnings management practices between the agriculture and manufacturing sectors. The significance of this study lies in its potential to provide valuable insights for investors, regulators, and financial analysts, helping them in making informed decisions. Moreover, it contributes to refinement of financial reporting standards and enforcement mechanisms, and enables a more accurate assessment of the financial health and performance of companies in both industries. The research also endeavors to identify sector-specific factors influencing earnings management dynamics, with the aim of enhancing transparency and optimizing decision-making processes in the financial environment.

The aim of this paper is to investigate the quality of financial statements during the period of crisis. The crisis has a negative effect on the business performance of a company. It is necessary to measure and analyze various aspects of performance and take timely corrective actions in order to achieve business stability. Quality of financial statements can be expressed as one of the business performances. High-quality financial statements are created in an accurate, timely and reliable manner in accordance with all requirements of regulation. Professional accounting regulation determines a large number of obligatory disclosures which have a direct impact on the quality of financial statements. This paper will analyze the quality of financial statements from the aspect of disclosures according to the International Accounting Standard 2 – Inventory (IAS 2). Inventory represents significant assets for production and trade companies. Therefore, the quality of disclosures according to IAS 2 can be significant for adequate business decisions. The research is based on a sample of agricultural and manufacturing companies registered in the AP Vojvodina during the period 2020-2021. The research is based on a descriptive analysis of the quality of disclosures according to the IAS 2 and financial reporting quality index. The results indicate that 41% of the obligatory disclosures are presented in companies reports. Accounting policy for inventories and carrying amount according to inventory classification are identified as disclosures of high quality. On the other hand, disclosure of the write-down of inventories, recognized as an expense for the period is identified at the lower quality level. The research can be of interest for managers, owners, and creators of financial statements in order to improve the quality of financial reporting as a result of disruption during the period of crisis.

This paper aims to investigate factors of profitability in the manufacturing sector in the Republic of Serbia. The research is based on the sample of 220 observations of financial statements of listed companies on the Belgrade stock exchange from sector C – manufacturing during 2017-2020. Profitability was measured as a return on assets (ROA) and return on equity (ROE) being the two most common ratios. Primarily, the descriptive statistics of ROA and ROE were conducted. The results showed that manufacturing companies achieve a positive rate of profitability but at a low level (ROA is 0,0263 and ROE is 0,0595). Furthermore, two regression models were conducted to investigate which internal factors significantly affected ROA and ROE as dependent variables. The independent variables were set: fixed assets ratio, size, current ratio, leverage, and growth. Results of the first model showed that size, current ratio, and growth have a significant positive impact on ROA, while leverage significantly negatively impacts ROA. Results of the second model show that size and growth have a significant positive impact on ROE, while leverage negatively impacts it.

The aim of this paper is to investigate the state of performance of audit firms registered in the Republic of Serbia, as well as the factors that manage performance. The research is based on the entire population of audit firms, based on financial reports for the period 2019-2020. that are publicly available. The performance of audit firms will be investigated from the aspect of profitability performance, where the indicators of return on assets nad return on equity is most often used. Performance analysis will be presented through descriptive statistical analysis. Performance management will be analyzed in terms of the impact of independent factors on ROA and ROE. The following will be defined as independent factors: the size of the audit firm, liquidity, indebtedness, belonging to the big four, growth and the like. The research of the influence of independent factors on the dependent variables of the performance of audit firms will be conducted on the basis of regression analysis. The results of descriptive analysis should indicate the state and trend of performance of audit firms, while the results of regression analysis should indicate the nature of the factors that drive the performance of audit firms.

This paper aims to provide an analysis of the profitability of audit firms in the Republic of Serbia during the period 2016-2018. The analysis is based on the data collected from the financial statements from all audit firms registered in the Republic of Serbia. The profitability analysis includes two goals. This paper will primarily provide a descriptive statistical analysis of the profitability of audit firms measured by return on assets and net income per employee. The following part of the research will answer the question of which factors have a significant impact on the profitability of audit firms. Profitability as a dependent variable is defined as return on assets and net income per employee, while independent variables include market share, current ratio, leverage, size, affiliation to the international network, etc. To answer this question, a regression statistics analysis will be conducted. The research result will indicate which factor can improve the performances of audit firms. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.