TESTING THE KRALICEK DF INDICATOR APPLICATION ON THE BELGRADE STOCK EXCHANGE

Summary: Measuring business success primarily means having available precisely defined measure of success. By measurement, i.e. through success measures it is determined how much success an enterprise achieved in the employment of its resources. It is wrong to equate success, ie. efficiency and effectiveness, and efficiency of operations. An enterprise may be successful in using its resources, but may not be effective if its set objectives are not achieved, because the effectiveness is the ability of the enterprise to achieve its projected objectives. In order to receive necessary information many procedures and data from financial reports are required. In addition, the constraints of information received must be taken into consideration regarding data history. This paper investigates options for application of the Kralicek DF indicator on certain companies (issuers’ shares) divided into two sets as follows: the first ten companies having the higher percentage of share in the index basket, and companies with a negative financial result in 2011, which are present in the BELEXline stock exchange index.