Archive | February, 2015

The role of subsidies in managing the operating risk of agricultural enterprises (Article)

19 Feb

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Agricultural Economics

Volume 55, Issue 4, 2009, Pages 169-179

The role of subsidies in managing the operating risk of agricultural enterprises (Article)

Špička, J., Boudný, J., Janotová, B.

Institute of Agricultural Economics and Information, Slezská 7, 120 56 Prague 2, Czech Republic

View references (15)

Abstract

The paper examines the relationship between the farmers’ operating risk and current subsidies. Focused at the commodity level, the analysis is based on a sample survey of costs and yields of two crops (winter wheat and rapeseed) and two livestock commodities (cow milk and fattening cattle) carried out in 2005-2007 in the Czech Republic. The risk analysis relates to the growing conditions, crop yields and the livestock productivity. The future role of the subsidies as the risk management tool in the farming business, as well as the position of this instrument against the other risk management instruments is analysed. The break even analysis and the Monte Carlo simulation are used as analytical tools. The results indicate that the current subsidies have an impact on the stability of the farmers’ income. Partially or fully decoupled payments serve as a "financial pillow" increasing the level of the farmers’ income and extending the farmers’ decision-making possibilities. Furthermore, the current subsidies reduce the variability of the farmers’ income. The current subsidies are a suitable complement to other commonly used risk management tools primarily designed to reduce the farmers’ and farm income variability.

Author keywords

Agricultural policy; Direct payments; Income stability; Monte Carlo simulation; Risk management

Indexed keywords

Species Index: Bos; Brassica napus; Triticum aestivum

ISSN: 0139570XSource Type: Journal Original language: English

Document Type: Article

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© Copyright 2009 Elsevier B.V., All rights reserved.

Flexible strategic framework for managing forces of continuity and change in value engineering processes: Study in Indian context (Article)

19 Feb

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Global Journal of Flexible Systems Management

Volume 10, Issue 4, October 2009, Pages 55-65

Flexible strategic framework for managing forces of continuity and change in value engineering processes: Study in Indian context (Article)

Gupta, V.K.

IMT, Ghaziabad, India

View references (54)

Abstract

Value engineering has been recognized as an important methodology for cost reduction in product development, process development and projects planning. In today’s dynamic world, however, Value Engineering (VE), as conventionally perceived and practiced by the design and development teams in rather an isolated manner is not adequate to address all the concerns faced by an organization. Value, or the factors both external as well as internal to an organization affecting value, does not remain constant throughout the VE process. The VE process, therefore, cannot continue to be a disconnected standalone process anymore. VE process needs to be integrated into the overall strategy of the organization. The forces of continuity and change, outlined in this paper, influence the initial goals VE projects and changes that take place throughout the process and their final outcome. This paper focuses on, identifying the key factors for forces of continuity and forces of change, to a build flexible strategic framework at organization level, and integrate the VE process with the organizational goals and strategies. The Continuity and Change (C-C) matrix proposed in this paper has been applied to four different organizations pursuing VE initiatives and come out with a flexible strategic framework for managing forces of continuity and change in VE process in an organization. © 2009, Global Institute of Flexible Systems Management.

Author keywords

Flexibility; Flexible strategic framework; Forces of change; Forces of continuity; Indian industry; Value engineering

ISSN: 09722696Source Type: Journal Original language: English

Document Type: Article

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© Copyright 2012 Elsevier B.V., All rights reserved.

The relationship between working capital management and profitability of the companies (Case study: Listed companies on TSE) (Article) (3)

19 Feb

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International Research Journal of Finance and Economics

Volume 76, November 2011, Pages 158-166

The relationship between working capital management and profitability of the companies (Case study: Listed companies on TSE) (Article)

Mojtahedzadeh, V., Tabari, S.H.A., Mosayebi, R.

Al-Zahra University, Tehran, Iran

View references (22)

Abstract

The purpose of this research is to study the relationship between working capital management and corporate profitability. The statistical population includes the listed companies on Tehran Stock Exchange (TSE) and a sample of 101 firms during the period of 2004-2008. Multivariate regression and Pearson correlation are used to test hypotheses. Findings show a negative significant relationship exists between cash conversion cycle, Number of Days of A/P, Number of Days of A/R and corporate profitability. Although, the relationship between the average period of Inventory retention and profitability was not significant, but confirmation of the three other subsidiary hypotheses which are independent of each other showed the existence of a significant relationship between corporate profitability and working capital management. Because, cash conversion cycle has been viewed as the key measure of working capital management (Mussawi, Laplaute and Kieschnick, 2006), the relationship between working capital management and corporate profitability was confirmed. Findings also show that a positive significant relationship exists between logarithm of sales and profitability, and a negative significant relationship exists between Financial Debt Ratio and profitability. Furthermore industry categories affect profitability. © EuroJournals Publishing, Inc. 2011.

Author keywords

A/P; A/R; Cash conversion cycle; Cash flow management; Period of inventory retention

ISSN: 14502887Source Type: Journal Original language: English

Document Type: Article

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© Copyright 2011 Elsevier B.V., All rights reserved.

New possibilities of supporting Polish SMEs within the JEREMIE initiative managed by BGK (Article)

19 Feb

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Mediterranean Journal of Social Sciences

Volume 4, Issue 9, October 2013, Pages 759-765

New possibilities of supporting Polish SMEs within the JEREMIE initiative managed by BGK (Article)

Walczak, D.a, Voss, G.b

a Nicolas Copernicus University, Torun, Poland
b Torun School of Banking, Poland

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Abstract

In developed countries small and medium-sized enterprises constitute a dominating group of entities, if considered by number, and are seen as the driving force of the economy. In 2011 in Poland 1,748,000 enterprises conducted business activity and out of that number 99.8% were businesses representing the SMEs sector (1,781,000). These enterprises employed over 6.3 million people out of the total labour force amounting to 9 million and annually they generate approximately 50% of GDP. Due to the role played by the SMEs sector, it is important to protect that sector in the time of the economic slowdown. For that reason in 2012 Bank Gospodarstwa Krajowego (BGK), which is controlled by the Treasury, launched programmes aimed at supporting major social investments as well as some other programmes concerning collateral loan and credit programmes for SMEs. The programmes are intended to sustain employment in the sector. The objective of the paper is to present the areas of financial support for entities from the SMEs sector provided by means of the BGK budget funds.

Author keywords

Bank gospodarstwa krajowego; JEREMIE; SME sector; State aid

ISSN: 20399340Source Type: Journal Original language: English

DOI: 10.5901/mjss.2013.v4n9p759Document Type: Article

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© Copyright 2014 Elsevier B.V., All rights reserved.

Firm value and optimal cash level: Evidence from Pakistan (Article) (2)

19 Feb

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International Journal of Emerging Markets

Volume 9, Issue 4, 1 September 2014, Pages 488-504

Firm value and optimal cash level: Evidence from Pakistan (Article)

Azmat, Q.-U.-A.

National University of Sciences and Technology (NUST), NUST Business SchoolIslamabad, Pakistan

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Abstract

Findings: Results showed that a concave relationship exists between firm value and cash holdings, which confirmed that there is an optimal cash level that maximizes firm value. It was also found that deviations from the optimal level affect firm value negatively.

Purpose: The purpose of this paper is to investigate the relationship between firm value and cash holdings for the period 2003-2008. This study seeks to find if there are costs and benefits associated with holding too much or too little cash, then an optimal cash level exists where marginal benefits are offset by their costs. If this optimal point exists, then firm value will be maximized at that point and deviation from it will affect the firm value negatively.

Design/methodology/approach: Optimal cash level between firm value and cash holding is determined by investigating the concave relationship. If concave relationship exists then a residual term is included in the equation to see how deviations from the optimal level affect firm value. A two-step generalized method of moments (GMM) estimator is used in estimating all results. GMM controls for unobserved firm heterogeneity and endogeneity problems.

Practical implications: The paper provides the existence of an optimal point of cash between costs and benefits wherein firm value is maximized. It has implications for firms’ investment and financing decisions when there is limited access to external finance. At higher level of cash the study has implications for agency theory and governance practices.

Originality/value: The study establishes a conclusive relationship between firm value and cash holdings within the context of the Pakistani market.

Author keywords

Cash holdings; Firm value; GMM; Optimal cash level; Panel data

ISSN: 17468809Source Type: Journal Original language: English

DOI: 10.1108/IJoEM-11-2011-0104Document Type: Article

Publisher: Emerald Group Publishing Ltd.

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© Copyright 2015 Elsevier B.V., All rights reserved.

The determinants of bankruptcy for chinese firms (Article)

19 Feb

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Review of Pacific Basin Financial Markets and Policies

Volume 17, Issue 2, June 2014, Article number 1450012

The determinants of bankruptcy for chinese firms (Article)

Ni, J.a, Kwak, W.b, Cheng, X.b, Gong, G.c

a Department of Economics, University of Nebraska at Omaha, Omaha, NE 68182, United States
b Department of Accounting, College of Business Administration, University of Nebraska at Omaha, Omaha, NE 68182, United States
c School of Economics, Shanghai University of Finance and Economics, Shanghai, China

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Abstract

The global financial crisis in 2008 increased the number of business failures in the U.S. as well as in China. The Chinese economy has also been affected by the recent global financial crisis given the fact that the Chinese economy depends heavily on international trade. Our study tries to find the determinants of bankruptcy in Chinese firms. Both logit and survival model analyses provide consistent results on the determinants in predicting distressed firms in China. Our results suggest that firms with liquidity problems and firms experiencing a decline in profits are more likely to file for bankruptcy. In addition, we find that, compared to state-owned enterprises (SOEs), collectively-owned enterprises, private-owned enterprises, and foreign-owned businesses are more likely to file for bankruptcy. This conclusion is robust after controlling for regional differences. The findings of this study show that the financial variables developed by Altman [Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance, 23(3), 589-609] and Ohlson [Financial ratios and probabilistic prediction of bankruptcy. Journal of Accounting Research, 18(1), 109-131] perform reasonably well in determining business failures of Chinese firms even though SOEs and shadow financing exist in China. © 2014 World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research.

Author keywords

bankruptcy; China; logit analysis; survival model

Indexed keywords

GEOBASE Subject Index: banking; economic conditions; financial crisis; international trade; logit analysis; prediction; state owned enterprise

Regional Index: China; United States

ISSN: 02190915Source Type: Journal Original language: English

DOI: 10.1142/S021909151450012XDocument Type: Article

Publisher: World Scientific Publishing Co. Pte Ltd

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Alert Scholar – finansowa płynność michalski

17 Feb

Dyskusja nad wartością małego przedsiębiorstwa i możliwościami wykorzystania ubezpieczeń w procesie jej tworzenia

A Bera, K Prędkiewicz – Zeszyty Naukowe Uniwersytetu Szczecińskiego. …, 2014
Cwynar A., Cwynar W., Kreowanie wartości spółki poprzez długoterminowe decyzje
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