Adequateness of applying the Zmijewski model on Serbian companies

The aim of the paper is to determine the accuracy of the prediction of Zmijewski model in Serbia on the eligible sample. At the same time, the paper identifies model's strengths, weaknesses and limitations of its possible application. Bearing in mind that the economic environment in Serbia is not similar to the United States at the time the model was developed, Zmijewski model is surprisingly accurate in the case of Serbian companies. The accuracy was slightly weaker than the model results in the U.S. in its original form, but much better than the results model gave in the U.S. in the period 1988-1991, and 1992-1999. Model gave also better results in Serbia comparing those in Croatia, even in Croatia model was adjusted.