scholarly journals Dairy Farm Management and Long-Term Farm Financial Performance

2002 ◽  
Vol 31 (2) ◽  
pp. 233-247 ◽  
Author(s):  
Brent A. Gloy ◽  
Jeffrey Hyde ◽  
Eddy L. LaDue
Keyword(s):  
New York ◽  
Financial Performance ◽  
Financial Management ◽  
Fixed Effects ◽  
Production Management ◽  
Positive Impact ◽  
Dairy Farm ◽  
Farm Size ◽  
Accounting System ◽  
Management Factors

The financial performance and relationships between several management factors and financial performance are examined in a panel of 107 New York dairy farms. A panel regression model with fixed effects is estimated in an effort to identify management factors that influence profitability. The model is estimated with two-stage least squares to account for endogenous farm size and debt use variables. Production management factors such as farm size, rate of milk production, and milking system had a positive impact on farm profitability. Financial management variables for the type of accounting system used and the debt use were also significantly related to profitability. Unlike the findings of many other studies, measures of human capital did not have a statistically significant impact on profitability.

scholarly journals Simultaneous Association between Quality of Corporate Environmental Performance and Financial Performance: Evidence from Select Asian Countries

2020 ◽  
Vol 4 (1) ◽  
pp. 78
Author(s):  
Santi Gopal Maji ◽  
Utpal Kumar De ◽  
Ardi Gunardi
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Fixed Effects ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Positive Influence ◽  
Equation Model ◽  
Business Practices ◽  
Asian Countries

This study empirically investigates the simultaneous association between the quality of environmental performance (EP) and financial performance of firms selected from three Asian countries—Japan, South Korea, and India. The content analysis technique based on a four-point scale was used to measure the quality of EP, whereas financial performance was measured based on the market-to-book ratio. Employing system generalized method of moments and fixed effects regression model in a system of two-equation model, the study finds that EP has a positive impact on financial performance. Similarly, the financial performance has a positive influence on the quality of EP. The findings of the study indicate that a firm can enhance its overall financial performance by improving its EP. This implies that firms not only improve their economic performance through environmentally responsible business practices, but also help in fulfilling some of the sustainable development goals of the United Nation’s 2030 development agenda.

Benchmarking upper midwest dairy farm profitability

2020 ◽  
Vol 80 (5) ◽  
pp. 733-744
Author(s):  
Christopher A. Wolf ◽  
J. Roy Black ◽  
Mark W. Stephenson
Keyword(s):  
Financial Performance ◽  
Financial Management ◽  
Dairy Farm ◽  
Herd Size ◽  
Primary Objective ◽  
Profit Margin ◽  
Upper Midwest ◽  
Content Type ◽  
Operating Profit ◽  
Farm Profitability

PurposeThe purpose of this research is to understand US Upper Midwest dairy farm profitability performance over time and across herd size. Profitability is broken down into asset efficiency and operating profit margin. The primary objective is to determine how much information is required to accurately benchmark farm performance.Design/methodology/approachFinancial ratios to measure profitability (rate of return on assets), profit margin (operating profit margin ratio), and asset efficiency (asset turnover) were collected from Michigan State University and the University of Wisconsin business analysis programs for dairy farms from 2000 through 2016. Financial ratio patterns were examined both across time and herd size. Annual distributions were divided into quartiles and the use of one to five-year averages were used to determine accuracy of quartile rank compared to true long-run farm profitability performance.FindingsFinancial performance across large herds was more uniform than across smaller herds. Small and large herd profitability performance converged in poor years but diverged in good years. Using three or more years performance greatly improved accuracy of benchmarking profitability.Originality/valueThe data utilized are very rich in the sense of the amount of variation across years and herd size. The results have important implications for farm financial management and benchmarking farm financial performance. Farm firms should benchmark multiple years of profitability before making major management changes to alleviate deficiencies.

scholarly journals EFFECT OF UNDERSTANDING FINANCIAL MANAGEMENT, REGIONAL FINANCIAL ACCOUNTING SYSTEMS, EFFECTIVENESS OF INTERNAL CONTROL, AND COMMITMENT TOWARDS FINANCIAL PERFORMANCE OF NORTH SULAWESI PROVINCE

2019 ◽  
Vol 8 (01) ◽  
pp. 51
Author(s):  
David Paul Elia Saerang ◽  
Heince R. N Wokas ◽  
Robby J. Kumaat ◽  
Christian Datu
Keyword(s):  
Organizational Commitment ◽  
Financial Performance ◽  
Internal Control ◽  
Financial Management ◽  
Financial Accounting ◽  
Accounting System ◽  
City Governments ◽  
Accounting Systems ◽  
North Sulawesi ◽  
Systems Effectiveness

This study aims to determine, the effect of understanding financial management, regional financial accounting system, effectiveness of internal control and organizational commitment towards financial performance of region and city governments in the province of North Sulawesi. The type of this research is quantitative. The population are all Regional Work Unit (SKPD) government financial managers of North Sulawesi, the respondents are 125 respondents as financial managers namely PPK-SKPD, Head of Finance and Financial Staffs. The Data method is using questionnaires and the analysis is using multiple regression analysis. The result shows that the understanding of financial management and effectiveness of internal control have a significant effect to the financial performance, while the regional financial accounting system and organizational commitment are not significant.Keywords : Understanding Regional Financial Management, Regional Financial Accounting Systems, Effectiveness of Internal control, Organizational Commitment, Local Government Financial Performance

scholarly journals The Impact of Non-Agricultural Diversification on Financial Performance: Evidence from Family Farms in Italy

2020 ◽  
Vol 12 (2) ◽  
pp. 486 ◽  
Author(s):  
Cristina Salvioni ◽  
Roberto Henke ◽  
Francesco Vanni
Keyword(s):  
Financial Performance ◽  
Fixed Effects ◽  
Positive Impact ◽  
Outcome Expectations ◽  
Growth Strategy ◽  
Family Farms ◽  
Diversification Strategy ◽  
Agricultural Diversification ◽  
On Farm ◽  
The Impact

Diversification has been increasingly recognized as a rewarding farm strategy through which farmers produce on-farm non-agricultural goods and services. In doing so, farmers employ farm inputs (capital, labor, and land) in products other than agricultural goods, with the aim to sell them in the market and increase their income. While a significant body of literature has explored the drivers affecting the adoption of diversification activities, so far little attention has been given to the impact of such adoption on the technical and financial performance of farms. This article intends to provide empirical evidence on the impact of on-farm non-agricultural diversification on the financial performance of family farms in Italy, by using a nation-wide sample of agricultural holdings based on the Farm Accountancy Data Network (FADN) data. We estimated a fixed effects-instrumental variable panel model to deal with two potential sources of bias: self-selection in the diversification strategy and simultaneity, due to the fact that farmers often decide to diversify with outcome expectations in mind. Our findings show that in Italy the diversification strategy has a positive impact on the financial performance of family farms, which is second in magnitude only to that of land growth strategy. Our results also confirm the positive impact of efficiency and clarify that education has a positive return to investment when it is specialized in agriculture.

scholarly journals What Makes an Organic Dairy Farm Profitable in the United States? Evidence from 10 Years of Farm Level Data in Vermont

Agriculture ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 17
Author(s):  
Jonathan Walsh ◽  
Robert Parsons ◽  
Qingbin Wang ◽  
David Conner
Keyword(s):  
Fixed Effects ◽  
Dairy Farm ◽  
Dairy Farms ◽  
The United States ◽  
Farm Size ◽  
Key Factors ◽  
Organic Farm ◽  
Organic Dairy ◽  
Farm Profitability ◽  
Organic Dairy Farms

Many U.S. dairy farms, especially small farms, are struggling to stay in business due to difficult economic conditions. While switching to organic milk production has been identified as one way to improve farm profitability, there are very limited economic data available on organic dairy profitability and the key factors contributing to its variation among organic dairy farms. This study analyzes a 10-year longitudinal dataset of Vermont organic dairy farms (2006–2016), collected by the University of Vermont Extension, to identify key factors influencing farm profitability and quantify their impact on farm return on assets (ROA) through a multivariate fixed-effects regression model. Results suggest that significant factors for organic farm profitability measured by ROA include feeding management, farm management, farm size, milk price and input costs. Such findings may help many organic dairy farms identify potential areas for improving their profitability and conventional farms evaluate the potential financial benefits of switching to organic operation.

Influencia de la Normativa Contable en la Gestión Financiera Pública descentralizada ecuatoriana

2021 ◽  
Vol 4 (2) ◽  
pp. 009
Author(s):  
Mary Beatriz Maldonado Román ◽  
◽  
Teresa Barrueto
Keyword(s):  
Financial Management ◽  
Positive Impact ◽  
Accounting System ◽  
Staff Members ◽  
Correlational Design ◽  
Public Financial Management ◽  
Average Impact ◽  
Southern Ecuador ◽  
Effective Instrument ◽  
Total Average

Public Financial Management identifies the level of efficacy, efficiency, effectiveness and economy in the management of public finances with a view to obtaining levels of improvement. The objective of this work is to determine, through the analysis of case studies, whether the regulations governing the accounting system are an effective instrument in the financial management of public entities in southern Ecuador. The methodology used is descriptive, analytical-synthetic with a qualitative-quantitative correlational design that allowed interpreting the data in the Servperf matrix, where the information obtained was evaluated in five indicators or factors identification, efficiency, efficacy, effectiveness and development. The results show that compliance with regulations has a 4.67/5 impact on efficiency, since it allows for the fulfillment of institutional objectives. The 3.39/5 reflects that the functions of the institutions are in line with the regulations, since all staff members are aware of them and apply them. The effectiveness of the regulations reaches a 3.44/5, however, there are deficiencies that imply the low perception of the officials. The total average impact of the regulations on the effectiveness of these institutions is 3.30/5, which is significant. In conclusion, accounting regulations constitute an effective instrument in the financial management of public sector entities in southern Ecuador. Reform actions have a positive impact on administrative transparency.

scholarly journals Exploring the Role of Managerial Ability in Influencing Dairy Farm Efficiency

2010 ◽  
Vol 39 (3) ◽  
pp. 505-516 ◽  
Author(s):  
Justin P. Byma ◽  
Loren W. Tauer
Keyword(s):  
New York ◽  
Dairy Farm ◽  
Management Program ◽  
Farm Management ◽  
Farm Size ◽  
Farm Income ◽  
Managerial Ability ◽  
Measured Efficiency ◽  
Farm Efficiency

This paper explores the role of managerial ability in determining efficiency in New York dairy farms. Using an unbalanced panel of farm data from 1993 through 2004, we estimate outputoriented technical efficiencies using stochastic distance frontier functions. We find that both lagged net farm income and farmers’ own estimates of the value of their labor and management as proxies for managerial ability impact measured efficiency. Efficiency increases with operator education, farm size, and extended participation in a farm management program, but decreases with operator age.

Dairy farm financial performance: firm, year, and size effects

2016 ◽  
Vol 76 (4) ◽  
pp. 532-543 ◽  
Author(s):  
Christopher A. Wolf ◽  
Mark W. Stephenson ◽  
Wayne A. Knoblauch ◽  
Andrew M. Novakovic
Keyword(s):  
Credit Risk ◽  
Financial Performance ◽  
Financial Management ◽  
Financial Risk ◽  
Dairy Farm ◽  
Herd Size ◽  
Financial Ratios ◽  
Management Tools ◽  
Content Type ◽  
Over Time

Purpose The purpose of this paper is to evaluate dairy farm financial performance over time utilizing farm financial ratios from three university business analysis programs. The evaluation includes measures of profitability, solvency, and liquidity by herd size. Design/methodology/approach Financial ratios to reflect profitability (rate of return on assets), solvency (debt to asset ratio), and liquidity (current ratio) were collected from Cornell University, Michigan State University, and the University of Wisconsin for dairy farms from 2000 to 2012. The distribution of farm financial performance using these ratios was examined over time and by herd size. Variance component methods are used to examine the percent of variation due to individual firm and industry aspects. A simple credit risk score is calculated to examine relative farm risk. Findings Dairy farm profitability performance is similar across herd sizes in poor years but larger herds realized significantly more profitability in good years. Findings were similar with respect to liquidity. Large herds consistently carried relatively more debt. Large herds’ financial performance was more uniform than across smaller herds. Larger herds had more financial risk as measured by credit risk scoring but recovered quickly to industry averages in profitable years. Originality/value The variation of dairy farm financial performance in an era of volatile milk and feed price is assessed. The results have important implications for farm financial management and benchmarking farm financial performance. In addition to helping to evaluate the efficacy of various price and income risk management tools, these results have important implications for understanding the benefits of the new federal Margin Protection Program for Dairy that is available to all US dairy farmers.

Media reputation: a source of banks' financial performance

2020 ◽  
Vol 38 (6) ◽  
pp. 1399-1419 ◽  
Author(s):  
Ngoc Thang Doan ◽  
Dung Phuong Hoang ◽  
Anh Hoang Thi Pham
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Fixed Effects ◽  
Positive Impact ◽  
Institutional Setting ◽  
Content Type ◽  
Institutional Settings ◽  
Research Findings ◽  
The Media ◽  
Media Reputation

PurposeBased on the resource-based view (RBV) and the signaling theory, this paper examines the effect of media reputation on financial performance as well as the moderating role of bank characteristics (risk management and financial capacities) in this relationship, using Vietnamese commercial bank data for the period 2007–2018.Design/methodology/approachWe rely on the agenda-setting theory to measure the media reputation of banks. Return on average equity (ROE) is used as a proxy of financial performance. We regress financial performance on media reputation with fixed effects to control unobserved variables. In addition, the instrumental variable (IV) method is applied to deal with the endogeneity problem. We use the change in bank logo as an IV for media reputation.FindingsWe find that media reputation has a positive effect on financial performance. This effect becomes prominent for large banks, listed banks or banks that demonstrate good risk management capacities, and is particularly strong when we control for endogeneity bias. The effect of media reputation on financial performance is transmitted through the non-performing loan (NPL) channel.Research limitations/implicationsThe research findings further endorse the positive impact of media reputation on financial performance in the low-quality institutional settings. Moreover, these findings expand the existing knowledge regarding the relationship between media reputation and financial performance by affirming two strategies which could be used to leverage the contribution of media reputation including improving banks' risk management capacities and raising financial capital.Originality/valueThis is the first known paper to examine the effect of media reputation on financial performance in commercial banks in an underdeveloped institutional setting while exploring the moderators in this relationship. This study, therefore, provides insightful implications for different bank segments in managing NPL and taking advantage of media reputation as a potential resource of financial performance.

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