Corporate bonds as a way of financing companies in the Republic of Serbia

Rajnović, Ljiljana and Subić, Jonel (2021) Corporate bonds as a way of financing companies in the Republic of Serbia. Ekonomika, 67 (4). pp. 91-102. ISSN 2334-9190

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Abstract

The security of sources of financing is of undoubted importance for the continuous and sustainable operation of economic entities, which is a long-term interest of persons interested in the operation of economic entities. In the structure of possible sources of financing of economic entities, corporate bonds are of great importance everywhere in the world, and their application in the Republic of Serbia could bring a great contribution to the domestic economy. Corporate bonds are debt obligations issued by corporation to debt refinansing, improvements, expansions or acquisitions. The bondholders are the issuer’s creditors and for the money invested in the company, they expect earnings. The main goal of this paper is to consider the conditions and importance of issuing corporate bonds by medium and large companies in Serbia and the advantage over other sources of financing. Based on the obtained research results, it can be concluded that the issuance of bonds is a good alternative to other sources of financing the company’s operations, but the corporate bond market in Serbia is in the development phase. Bond issuers with listing on the regulated market of the Belgrade Stock Exchange include, in addition to the state, only certain commercial banks and international financial organizations.

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