Modern models for predicting bankruptcy to detect early signals of business failure: Evidence from Montenegro.

This paper explores predicting early signals of business failure using modern models for bankruptcy prediction. It reviews how continuous operations enhance market value, strengthening competitiveness and reputation among stakeholders. The study involves medium and large companies in the Montenegrin market from 2015 to 2020, comprising 30 bankrupt and 70 financially stable firms. Logistic regression is also employed to create a logit model for early detection of bankruptcy signals in companies. This research establishes the empirical validity of modern models in predicting business failure in the Montenegrin market, particularly through logistic regression. Significant indicators, such as the Degree of Indebtedness (DI) and turnover ratio of business assets (TR), exhibit strong predictive power with a p-value less than 0.001 according to Likelihood ratio tests. The paper underscores the potential benefits of bankruptcy prediction for both internal and external stakeholders, especially investors, in enhancing the competitiveness of Montenegro's large and medium-sized companies. Notably, the research contributes by bridging the gap between theory and practice in Montenegro, as bankruptcy prediction models have not been extensively applied in the market. The authors suggest the possible applicability of the created logit model to neighboring countries with similar economic development levels. In that sense, the concept of predicting bankruptcy is positioned as integral to corporate strategy, impacting the overall reduction of bankruptcies. The paper concludes by highlighting its role as a foundation for future research, addressing the literature gap in the application of bankruptcy prediction models in Montenegro. The created logit model, tailored to the specific needs of Montenegrin companies, is presented as an original contribution, emphasizing its potential to strengthen the competitiveness of companies in the market.

The Analysis of Marketing Factors Influencing Consumers' Preferences and Acceptance of Organic Food Products-Recommendations for the Optimization of the Offer in a Developing Market.

Considering the benefits of the organic production system, it is recognized as one of the main drivers of future economic development. However, the imbalance between demand and supply at the local market level represents one of the serious obstacles that prevents its future growth. Therefore, this article examines the key factors related to the main elements of the offer that have the strongest impact on consumer preferences and acceptance of organic food products. In that sense, organic product, price, distribution channel, and promotion are considered the main elements of the offer and are analyzed in this paper from the consumer preferences perspective. Further, this article provides insight into some of the sensory properties of the offer that are important to consumers. Finally, it gives recommendations for optimization of the offer on the organic food market based on the analysis of the influence of each of those elements (product, price, distribution, and promotion) on consumer acceptance of organic products and making purchasing decisions. The data were collected using a questionnaire, and analyzed using the structural equation model (SEM). The results revealed that price and promotion have the strongest impact on consumer acceptance and buying decisions. Further analysis revealed that attitudes towards organic food products, price/quality ratio, distribution barriers, and modern media as a promotion instrument are the factors that have the most significant impact on consumer perception and attitudes towards the available market offer. These findings can help producers and other decision makers to better understand what creates added value of the organic food products in consumers' mind and therefore make an offer that is in line with their expectations and preferences, which is recognized as one of the main prerequisites for the acceptance and purchase of organic food products.