PROFITABILITY OF AUDIT COMPANIES IN THE REPUBLIC OF SERBIA: EMPIRICAL RESEARCH IN THE PERIOD 2010-2019

Biljana  Jovković; Nemanja Karapavlović; Aleksandra  Radojević

doi:10.7251/ACE2134205J

Authors

Biljana Jovković University of Kragujevac, Faculty of Economics, Serbia https://orcid.org/0000-0003-2433-0963
Nemanja Karapavlović University of Kragujevac, Faculty of Economics*, Serbia https://orcid.org/0000-0002-3421-7828
Aleksandra Radojević University of Kragujevac, Faculty of Economics, Serbia https://orcid.org/0000-0001-8000-9248

DOI:

https://doi.org/10.7251/ACE2134205J

Keywords:

audit company, profitability, audit services, ROA, net income

Abstract

The subject of the research in the paper is profitability assessment of audit companies operating in the Republic of Serbia. The objective of the research is to provide the answer to professional and scientific public whether the profitability of audit companies is conditioned by the impact of the size of audit company, origin of its equity or the existing market participation? The research included the entire population of active audit companies in the Republic of Serbia in the period from 2010 to 2019. Data analysis was performed in the statistical program SPSS, and nonparameter tests Kruskal-Wallis H test and Mann-Whitney U test were used. The research will give the answer to the question whether the profitability of an audit company depends on the source of its equity, the size or market participation it has in provision of audit services. The results of the research have shown that there is an impact of the size of the company, the origin of its equity and market participation on the profitability of audit companies measured by net income and return on total assets.

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