Economic assets and financial performance of Italian wine companies

2019 ◽  
Vol 32 (3) ◽  
pp. 325-352
Author(s):  
Guido Migliaccio ◽  
Luigi Tucci
Keyword(s):  
Financial Analysis ◽  
Average Rate ◽  
Balance Sheet ◽  
Well Being ◽  
Financial Economic ◽  
Third Party ◽  
Content Type ◽  
Balance Sheets ◽  
Italian Wine ◽  
Economic Assets

Purpose This study aims to investigate, by means of a balance sheet analysis, the equilibrium and capital, financial, economic and income dynamics of Italian wine producers, during and after the international economic crisis (2008-2017). Therefore, three research questions arise: What was the evolution of the main financial indicators and margins? Did the companies that survived the crisis increased their profitability? Have these companies changed their financial and economic balance sheets? Design/methodology/approach It was analyzed the balance sheets of a medium–large companies sample. The study describes the evolution of three income indices (return on equity compared to the average interest rate on government bonds, return on investment compared to the average rate on loans, return on sales), three asset margins (structural margin, net working capital and treasury margin) and four financial ratios (acid ratio, current ratio, leverage and index of financial dependence). The results were graphically represented, also with the use of interpolation curves. Findings After the crisis, the sector shows increasing profitability. However, from the balance sheet analysis and the trend of the financial indices, there is a strong imbalance and excessive levels of stocks. Furthermore, the debt situation is excessive: the predominant presence of third-party financing would require enormous recapitalizations and probably an increase in self-financing, which is possible thanks to the constantly growing profitability. Research limitations/implications The study takes into consideration only the companies that survived the crisis, therefore, presumably the stronger ones. Moreover, more ratios should be considered to have a more complete picture. It is a uniquely quantitative study based exclusively on the balance sheets data that neglect other important economic factors. Practical implications Public policies could use this study for better intervention decisions in support of agricultural and agro-industrial activities. Credit policy above all should consider the results of this research, requesting urgent consideration of possible capitalization warranting the access to regulated financial markets. Besides, internal management may compare company outcomes with average sector outcomes to identify improvement prospects. These kinds of studies are advisable for education and training. Social implications The careful economic and financial analysis of the sector favors the relaunching strategies of the Italian wineries in which many employees work. Supporting companies favors employment, constant incomes for workers’ families along the entire supply chain, from the production of grapes to consumption. A solid sector guarantees development and social and economic well-being. Originality/value The study contributes to the literature by providing a quantitative method of analysis of the sector, through the comparative information taken from the balance sheets. Therefore, it expands managerial and accounting knowledge on an important sector for the Italian and world economy.

What influences bank lending in Saudi Arabia?

2020 ◽  
Vol 27 (2) ◽  
pp. 125-155
Author(s):  
Ken Miyajima
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Balance Sheet ◽  
Oil Prices ◽  
Bank Lending ◽  
Policy Implications ◽  
Content Type ◽  
Balance Sheets ◽  
Level Data ◽  
Bank Balance Sheets

PurposeDeterminants of credit growth in Saudi Arabia are investigated.Design/methodology/approachA panel approach is applied to macroeconomic and bank-level data spanning 2000 ‐15.FindingsBank lending is supported by strong bank balance sheet conditions (high capital ratio, and growth of NPL provisioning and deposits), and higher growth of both oil prices and non-oil private sector GDP. Lower bank concentration also helps, likely through greater competition, so does stronger institution. Consistent with the literature, lending by Islamic banks may be more responsive to economic activity. Lending remained robust in 2015 despite oil prices having declined, helped by strong bank balance sheets and as banks reduced their holdings of “excess liquidity”. To support bank lending in the period ahead, bank balance sheets need to remain strong. Fiscal adjustment and a reduced reliance on banks to finance the budget deficit would support credit provision to the private sector.Originality/valueThe paper is first to analyze in detail determinants of bank lending in Saudi Arabia applying a panel approach to bank level data, and draws critical policy implications.

Accounting “gets real” in dealing with virtual manufacturing

2005 ◽  
Vol 6 (3) ◽  
pp. 322-338 ◽  
Author(s):  
Mike Tayles ◽  
Margaret Webster ◽  
David Sugden ◽  
Andrew Bramley
Keyword(s):  
Financial Reporting ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Virtual Manufacturing ◽  
Managerial Accounting ◽  
Content Type ◽  
Market Values ◽  
Virtual Organisation

PurposeOf relatively recent origin is the virtual organisation where companies are able to marshal the necessary competencies from a range of independent external agents through the strategic use of outsourcing mechanisms. The paper discusses the challenge of accounting for intellectual capital (IC) and intangible assets and presents a financial analysis and background of companies exhibiting different levels of virtuality, from traditional manufacturing to virtual manufacturing.Design/methodology/approachThis paper is based on the interaction of the researchers with three companies examining their positions on the continuum from traditional to virtual manufacturing. Case studies of the companies and some key financial results for a period of years are presented in order to explore implications and inform strategic decisions.FindingsIt concludes that conventional financial reporting for IC and intangibles has limited scope. This is elaborated through contrasts in a number of conventional accounting measures and some others, less conventional, to highlight the implications of the intellectual capital employed. The results are reported and implications of these discussed in the context of the companies whose background and activities are briefly outlined.Practical implicationsThe measurement and management of the intangible assets and intellectual capital of organisations has been the focus of recent research in accounting and finance. This has applied to the corporate reporting of financial results involving its impact on the balance sheet, managerial accounting concerned with decisions and the internal use of various financial and non‐financial performance measures and finance where market values of companies have been shown to differ significantly from their book values as shown in published accounts.Originality/valueThe content will be of interest to academics studying issues surrounding the reporting and decision making concerning intellectual capital and intangibles. Additionally, managers and consultants whose companies are engaged in outsourcing and or virtual/semi‐virtual manufacturing should find the results informative.

scholarly journals Cash flow disaggregation and prediction of cash flow

2017 ◽  
Vol 18 (4) ◽  
pp. 464-479 ◽  
Author(s):  
Ehsan Khansalar ◽  
Mohammad Namazi
Keyword(s):  
Cash Flow ◽  
Balance Sheet ◽  
Cash Flows ◽  
Prediction Errors ◽  
Content Type ◽  
Balance Sheets ◽  
Income Statement ◽  
Aggregated Model ◽  
Flow Components ◽  
Future Cash Flows

Purpose The purpose of this paper is to investigate the incremental information content of estimates of cash flow components in predicting future cash flows. Design/methodology/approach The authors examine whether the models incorporating components of operating cash flow from income statements and balance sheets using the direct method are associated with smaller prediction errors than the models incorporating core and non-core cash flow. Findings Using data from US and UK firms and multiple regression analysis, the authors find that around 60 per cent of a current year’s cash flow will persist into the next period’s cash flows, and that income statement and balance sheet variables persist similarly. The explanatory power and predictive ability of disaggregated cash flow models are superior to that of an aggregated model, and further disaggregating previously applied core and non-core cash flows provides incremental information about income statement and balance sheet items that enhances prediction of future cash flows. Disaggregated models and their components produce lower out-of-sample prediction errors than an aggregated model. Research limitations/implications This study improves our appreciation of the behaviour of cash flow components and confirms the need for detailed cash flow information in accordance with the articulation of financial statements. Practical implications The findings are relevant to investors and analysts in predicting future cash flows and to regulators with respect to disclosure requirements and recommendations. Social implications The findings are also relevant to financial statement users interested in better predicting a firm’s future cash flows and thereby, its firm’s value. Originality/value This paper contributes to the existing literature by further disaggregating cash flow items into their underlying items from income statements and balance sheets.

Shared perceptions of supervisor conflict management style

2016 ◽  
Vol 27 (1) ◽  
pp. 25-49 ◽  
Author(s):  
Kirsten A. Way ◽  
Nerina L Jimmieson ◽  
Prashant Bordia
Keyword(s):  
Conflict Management ◽  
Positive Association ◽  
Well Being ◽  
Management Style ◽  
Third Party ◽  
Relationship Conflict ◽  
Content Type ◽  
Stress Buffering ◽  
Conflict Management Style ◽  
Anxiety Depression

Purpose – This study aims to investigate the extent to which employee outcomes (anxiety/depression, bullying and workers’ compensation claims thoughts) are affected by shared perceptions of supervisor conflict management style (CMS). Further, this study aims to assess cross-level moderating effects of supervisor CMS climate on the positive association between relationship conflict and these outcomes. Design/methodology/approach – Multilevel modeling was conducted using a sample of 401 employees nested in 69 workgroups. Findings – High collaborating, low yielding and low forcing climates (positive supervisor climates) were associated with lower anxiety/depression, bullying and claim thoughts. Unexpectedly, the direction of moderation showed that the positive association between relationship conflict and anxiety/depression and bullying was stronger for positive supervisor CMS climates than for negative supervisor CMS climates (low collaborating, high yielding and high forcing). Nevertheless, these interactions revealed that positive supervisor climates were the most effective at reducing anxiety/depression and bullying when relationship conflict was low. For claim thoughts, positive supervisor CMS climates had the predicted stress-buffering effects. Research limitations/implications – Employees benefit from supervisors creating positive CMS climates when dealing with conflict as a third party, and intervening when conflict is low, when their intervention is more likely to minimize anxiety/depression and bullying. Originality/value – By considering the unique perspective of employees’ shared perceptions of supervisor CMS, important implications for the span of influence of supervisor behavior on employee well-being have been indicated.

Following beginning farm income and wealth over time

2017 ◽  
Vol 77 (1) ◽  
pp. 22-36 ◽  
Author(s):  
James M. Williamson
Keyword(s):  
Balance Sheet ◽  
Rapid Expansion ◽  
Farm Income ◽  
Cash Income ◽  
Content Type ◽  
Balance Sheets ◽  
Age Cohorts ◽  
Income Statement ◽  
Beginning Farmers ◽  
Over Time

Purpose The paper examines the evolution of beginning farms’ income statement and balance sheet items over a 15-year period. The purpose of this paper is to gain insight into the diversity of beginning farms from a financial point of view. Design/methodology/approach Using the USDA’s Agricultural Resource Management Survey (ARMS), the author constructs a synthetic panel of data consisting of age cohorts of beginning farmers and follow them over time. Baseline financial information for the farm income statement and balance sheet is examined in 1999 and again in 2014 for each cohort. Findings Overall, there is a marked contrast in the evolution in the income statement between beginning farmers who are under 45 years old and those over 45. The gross cash income of the youngest cohorts grows tremendously, as do their expenses, indicating rapid expansion in production on the part of the youngest cohorts. The change in the balance sheets of the cohorts also provides a glimpse into the changing roles of beginning famers over time. The youngest cohort of beginning farmers increase the current and non-current assets on their balance sheets by a substantial amount, more than doubling both. Furthermore, the youngest cohort is the only group to take on more current liabilities, indicating increased financing of the production expenses. Practical implications Differences in the evolution of financial profiles of beginning farms may predict differences in future output, and it could be a predictor of the farm’s operational goals or intentions, as well as predictor of future financial needs and challenges. Originality/value Knowing and understanding likely trajectories of beginning farmers may provide an opportunity to better tailor farm programs, outreach, and support to beginning farmers.

scholarly journals Detecting fraud in Chinese listed company balance sheets

2017 ◽  
Vol 29 (3) ◽  
pp. 356-379 ◽  
Author(s):  
Yi Wei ◽  
Jianguo Chen ◽  
Carolyn Wirth
Keyword(s):  
Listed Company ◽  
Balance Sheet ◽  
Financial Statements ◽  
Common Source ◽  
Content Type ◽  
Balance Sheets ◽  
Cast Doubt ◽  
Chinese Auditors ◽  
Fraud Prediction ◽  
Fraudulent Financial Statements

Purpose This paper aims to investigate the links between accounting values in Chinese listed companies’ balance sheets and the exposure of their fraudulent activities. Design/methodology/approach Every balance sheet account is proposed to be a potential vehicle to manipulate financial statements. Findings Other receivables, inventories, prepaid expenses, employee benefits payables and long-term payables are important indicators of fraudulent financial statements. These results confirm that asset account manipulation is frequently carried out and cast doubt on earlier conclusions by researchers that inflation of liabilities is the most common source of financial statement manipulation. Originality/value Previous practices of solely scaling balance sheet values by assets are revealed to produce spurious relationships, while scaling by both assets and sales effectively detects fraudulent financial statements and provides a useful fraud prediction tool for Chinese auditors, regulators and investors.

Misrepresentation of financial statements

2014 ◽  
Vol 21 (2) ◽  
pp. 215-225 ◽  
Author(s):  
Cenap Ilter
Keyword(s):  
Design Methodology ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Statement ◽  
Accounting Fraud ◽  
Financial Statement Fraud ◽  
Content Type ◽  
The Public ◽  
Fraud Theory

Purpose – The purpose of this paper is to show the public, in general, and auditors, in particular, that in the absence of control there is always a risk of fraud. Fraud can be done in various forms. Larceny may be the most obvious case of fraud, but fraud may be done in many other ways too. Balance sheet fraud or financial statements fraud is a broader issue; it is far-fetched than a few hundred dollars of a larceny case. In financial statement fraud, the deep down effect may be millions or billions of dollars. Design/methodology/approach – The paper has been designed based on a fraud theory. The author has observed the implications of a possible fraud in a real audit case. The fraud theory has been tested through financial analysis and audit tests. The theory has then been revised and the existence of a financial statement fraud has been proven. Findings – The paper explores that banks and group companies controlled by unreliable owners can lead to misuse of public's funds in accordance with the directives of the owner. Public's money can be transferred to other group companies in an illegal manner – in excessive amounts – and never returned to the bank by means of applying different accounting fraud techniques. Research limitations/implications – Auditors, who may audit group companies that include a bank or banks with deposit receiving and lending rights, should pay attention to the transactions between the group's bank and the other group companies. The lending may be excessive in amount and/or never paid back and the financial statements would be misrepresented covering various fraud schemes. Originality/value – The case that the paper deals with reflects the author's own audit experiences. The names of the companies have been changed but not the essence of the events. From this perspective, it sheds light onto the path of an auditor who happens to be in a similar situation.

scholarly journals Kundalini yoga as mutual recovery: a feasibility study including children in care and their carers

2016 ◽  
Vol 11 (4) ◽  
pp. 261-282 ◽  
Author(s):  
Elvira Perez Vallejos ◽  
Mark John Ball ◽  
Poppy Brown ◽  
David Crepaz-Keay ◽  
Emily Haslam-Jones ◽  
...  
Keyword(s):  
Feasibility Study ◽  
Average Rate ◽  
Well Being ◽  
Self Report ◽  
Retention Rates ◽  
Residential Home ◽  
Research Approach ◽  
Content Type ◽  
Kundalini Yoga ◽  
Children In Care

Purpose The purpose of this paper is to test whether incorporating a 20-week Kundalini yoga programme into a residential home for children improves well-being outcomes. Design/methodology/approach This is a mixed methods feasibility study. Feasibility was assessed through recruitment and retention rates as well as participants’ self-report perceptions on social inclusion, mental health and well-being and through semi-structured interviews on the benefits of the study. Mutual recovery entailed that children in care (CIC), youth practitioners and management participated together in the Kundalini yoga sessions. Findings The study initially enrolled 100 per cent of CIC and 97 per cent (29/30) of eligible staff. Attendance was low with an average rate of four sessions per participant (SD=3.7, range 0-13). All the participants reported that the study was personally meaningful and experienced both individual (e.g. feeling more relaxed) and social benefits (e.g. feeling more open and positive). Pre- and post-yoga questionnaires did not show any significant effects. Low attendance was associated with the challenges faced by the children’s workforce (e.g. high levels of stress, low status, profile and pay) and insufficient consultation and early involvement of stakeholders on the study implementation process. Research limitations/implications Because of the chosen research approach (i.e. feasibility study) and low attendance rate, the research results may lack generalisability. Therefore, further research with larger samples including a control or comparison group to pilot similar research questions is mandatory. Practical implications This study has generated a number of valuable guiding principles and recommendations that might underpin the development of any future intervention for CIC and staff working in children’s homes. Social implications The concept of togetherness and mutuality within residential spaces is discussed in the paper. Originality/value The effects of Kundalini yoga have not been reported before in any peer-review publications. This paper fulfils an identified need (i.e. poor outcomes among CIC and residential staff) and shows how movement and creative practices can support the concept of mutual recovery.

scholarly journals The Impact Of The COVID-19 Pandemic On One Of The Biggest Technology Giant Shares: A Financial Analysis On Microsoft Corporation

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Romina Barrantes ◽  
Thomas Leach
Keyword(s):  
Global Economy ◽  
Swot Analysis ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Health Crisis ◽  
Balance Sheets ◽  
Statement Of Cash Flows ◽  
The Impact

Big technology stocks have been on a roll since April 2020, escaping the consequences of the coronavirus outbreak. The coronavirus pandemic created a vast tailwind for technology giants, especially Microsoft by inciting shifts in the corporations’ behavior which are currently outliving the health crisis. The financial analysis on this firm aimed to develop a thorough analysis centered on its corporate history, market summary, financial statements (income statements, balance sheets, cash flows statements), normalized financial statements (normalized income statement, normalized balance sheet, and normalized statement of cash flows), stock valuation, SWOT analysis, and major competitors’ performance. The aim of the evaluation is to get enough information to construct a thorough evaluation concerning the company’s performance and analyze the effects of the coronavirus pandemic on the company. The evaluation indicated this giant technology company is booming during the pandemic even when the global economy is in a recessionary gap. The financial analysis may suggest further research into.

ACCOUNTING FOR EXPLORATION COMPANIES — A FRESH APPROACH

1992 ◽  
Vol 32 (1) ◽  
pp. 445
Author(s):  
Mark Epper ◽  
John Charters
Keyword(s):  
Financial Reporting ◽  
Oil And Gas ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Equivalent Amount ◽  
Balance Sheets ◽  
Annual Reporting ◽  
Australian Economy ◽  
Productive Asset ◽  
High Degree

This paper is directed at presenting new initiatives to tackle the accounting and financial reporting dilemmas which confront companies involved in petroleum exploration.Accounting for exploration expenditure has always been a sensitive issue for explorers. The single, most contentious, accounting issue for petroleum explorers is the extent to which pre-production expenditures should be capitalised (as an asset in the balance sheet) or expensed (in the profit and loss account). The accounting practices recommended in other major countries are less rigorous than those that are already applied in Australia, at a time when the Australian accounting practices are being criticised for their weakness.Existing Australian accounting standards dealing with the capitalisation of exploration and evaluation expenditure fail the basic tests for quality financial reporting information. The high degree of subjectivity inherent in the application of available accounting methods contributes to the poor investor (and potential investor) perception of the reported financial position of petroleum explorers; the integrity of financial analysis is severely impaired. Ultimately, as the Australian economy emerges from recession, and as both investor confidence and speculative interest return to Australian capital markets, a fresh approach to financial reporting by petroleum explorers will support future capital raising needs.A fresh approach is required because the accounting implications for all companies, including explorers and producers, have changed. All industry participants will need to re-evaluate the amounts included on their balance sheets in relation to exploration interests. In particular, companies and their directors must now consider the 'recoverable amount' of their exploration interests. However, the level of commercial uncertainty in this sector reduces the reliability of any determination of recoverable amount. The response of many companies has been, and will be, to write-off exploration expenditure, or set aside provisions of equivalent amount, so as to reduce the book value of their deferred expenditure, and so reduce their exposure to allegations of asset overstatement.The first part of our fresh approach is to follow the trend towards limited capitalisation of exploration expenditure by recommending that as expenditure is incurred on exploration, a provision be set aside of equivalent amount. In the event that exploration is successful, the provision would be reversed, thereby reinstating the expenditure as a productive asset. Whilst undoubtedly conservative and controversial, implementation of this recommendation will encourage exploration companies to provide more comprehensive supporting information as to drilling and exploration progress.The second part of that fresh approach is to enhance the quality of financial reporting by setting a higher standard of disclosure of oil and gas reserves, with particular emphasis on the consistent disclosure of proved and probable reserves. Current practice does not represent either consistent or high quality disclosure.The final part of our new approach is to require petroleum explorers to provide a prospective (or budgeted) statement of expected sources and applications of funds for the following year, as an integral part of their annual reporting package.

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