Predictive Ability Of The Business Excellence Model: The Case Of Foreign Investors In Serbia From 2008 To 2012
Predictive Ability Of The Business Excellence Model: The Case Of Foreign Investors In Serbia From 2008 To 2012

Summary/Abstract: This paper tests the predictive ability of the Business Excellence Model developed by Croatian researchers Ţeljana Aljinović Barać and Vinko Belak in 2007. The model was tested on Croatian publicly listed companies from 2000 to 2006 and it showed 90% validity. Due to the similarities between Croatian and Serbian economies, we decided to test the predictive ability of this model, taking into consideration Serbian foreign investors, specifically those that used the Greenfield strategy or the M&A strategy when entering the Serbian market. We tested the model on the sample companies and their financial statements published in the period from 2008 to 2012. We tested the predictive value of the model through statistical measurement of its relationship with profitability expressed as return on assets (ROA), return on equity (ROE), and net income.

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