scholarly journals The impact of the fipronil crisis on the financial performance of Dutch laying hen farms

2020 ◽  
Vol 13 (1) ◽  
Author(s):  
Jaap Sok ◽  
Peter van Horne ◽  
Miranda Meuwissen
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Laying Hen ◽  
Family Farms ◽  
Independent Family ◽  
Business Outcomes ◽  
Partial Budget ◽  
Income Statement ◽  
The Impact ◽  
Operating Result

Abstract Background Illegal use of fipronil as an insecticide in 2017 has caused substantial damage to Dutch laying hen farms. We assessed how the fipronil crisis has affected the financial performance of affected farms as well as unaffected farms. While affected farms faced culling their flocks and lost revenue, unaffected farms benefitted from temporary high egg prices. Methods A three-step normative modelling approach is taken using financial statements and a partial budget. The estimations are for a 50,000 laying hen farm facing the fipronil crisis for 5 months. First, a baseline is created by generating an income statement of this laying hen farm representing a ‘normal year’. Second, incremental costs and revenue as a result of the fipronil crisis are estimated. Third, the baseline income statement is updated with the outcomes of the partial budget. This results in two additional income statements that report the net operating result of this farm being unaffected and affected by the fipronil crisis. Results While in a normal year this average-sized farm has a net operating result of around 18,000 euros, profitability was estimated to be − 369,000 euros and + 169,000 euros for the affected and unaffected farm due to the crisis respectively. For affected farms, impacts were especially high as there was no government compensation or insurance. Conclusions As Dutch farms typically operate as independent family farms, there was also no compensation from other chain actors. The affected farms therefore likely have faced financial distress and have had to increase debt or use their financial reserves for household consumption and restarting the business. Outcomes contribute to discussions around liability claims and cost-benefit assessments of measures to improve the chain food safety and rapid alert systems.

scholarly journals The impact of the fipronil crisis on the financial performance of Dutch laying hen farms

2020 ◽  
Author(s):  
Jaap Sok ◽  
Peter van Horne ◽  
Miranda Meuwissen
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Laying Hen ◽  
Family Farms ◽  
Independent Family ◽  
Business Outcomes ◽  
Partial Budget ◽  
Income Statement ◽  
The Impact ◽  
Operating Result

Abstract Background: Illegal use of fipronil as an insecticide in 2017 has caused substantial damage to Dutch laying hen farms. We assessed how the fipronil crisis has affected the financial performance of affected farms as well as unaffected farms. While affected farms faced culling their flocks and lost revenue, unaffected farms benefitted from temporary high egg prices.Methods: A three-step normative modelling approach is taken using financial statements and a partial budget. The estimations are for a 50 000 laying hen farm facing the fipronil crisis for five months. First, a baseline is created by generating an income statement of this laying hen farm representing a ‘normal year’. Second, incremental costs and revenue as a result of the fipronil crisis are estimated. Third, the baseline income statement is updated with the outcomes of the partial budget. This result in two additional income statements that report the net operating result of this farm being unaffected and affected by the fipronil crisis. Results: While in a normal year this average-sized farm has a net operating result of around 18k euro, profitability was estimated to be -369k euro and +169k euro for the affected and unaffected farm due to the crisis respectively. For affected farms, impacts were especially high as there was no government compensation or insurance. Conclusions: As Dutch farms typically operate as independent family farms, there was also no compensation from other chain actors. The affected farms therefore likely have faced financial distress and have had to increase debt or use their financial reserves for household consumption and restarting the business. Outcomes contribute to discussions around liability claims and cost-benefit assessments of measures to improve chain food safety and rapid alert systems.

scholarly journals The impact of the fipronil crisis on the financial performance of Dutch laying hen farms

2020 ◽  
Author(s):  
Jaap Sok ◽  
Peter van Horne ◽  
Miranda Meuwissen
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Cost Benefit ◽  
Laying Hen ◽  
Farm Income ◽  
Family Farms ◽  
Independent Family ◽  
Income Statement ◽  
The Impact ◽  
Liability Claims

Abstract Background: Illegal use of fipronil as an insecticide in 2017 has caused substantial damage to Dutch laying hen farms. We assessed how the Fipronil crisis has affected the financial performance of affected farms as well as unaffected farms. While affected farms faced culling of their flock and lost revenues, unaffected farms benefitted from temporary high egg prices. Methods: A three-step normative modelling approach is taken using two financial statements. First, a baseline was created by making up an income statement of a laying hen farm representing a ‘normal year’ Second, changes in farm income as a result of the fipronil crisis were estimated using a partial budget. Third, two additional income statements were created; one reports the income of an unaffected farm, the other of an affected farm. Estimations are for a 50 000 laying hen farm facing the fipronil crisis for five months.Results: While in a normal year this average-sized farm has a net operating result of around 18 kEuro, profitability was estimated to be -369 kEuro and +169 kEuro for the affected and unaffected farms due to the crisis respectively. For affected farms impacts were especially high as there was no government compensation or insurance. Conclusions: As Dutch farms typically operate as independent family farms, there was no compensation from other chain actors such as contract providers or integrators either. The affected farms therefore likely have faced financial distress and have had to increase debt or use their financial reserves for household consumption and restarting the farm. Outcomes contribute to discussions around liability claims and cost-benefit assessments of measures to improve chain food safety and rapid alert systems.

scholarly journals The Impact of CSR and Financial Distress on Financial Performance—Evidence from Chinese Listed Companies of the Manufacturing Industry

2020 ◽  
Vol 12 (17) ◽  
pp. 6799 ◽  
Author(s):  
Liu Wu ◽  
Zhen Shao ◽  
Changhui Yang ◽  
Tao Ding ◽  
Wan Zhang
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Manufacturing Industry ◽  
Positive Impact ◽  
Listed Companies ◽  
Research Database ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
Corporate Social ◽  
The Impact

This paper explores the impact of corporate social responsibility (CSR) and financial distress on corporate financial performance (CFP) in Chinese listed companies of the manufacturing industry. Covering a total of 1445 manufacturing observations from 2013 to 2018 by matching the China Stock Market & Accounting Research Database (CSMAR) and Ranking CSR Ratings (RKS) database and regression models, we find that CSR has a significant positive impact on CFP, and the relationship is more pronounced for firms that are more stable. Further, the win-win relationship of CSR and CFP is also stronger in state-owned enterprises (SOEs). These empirical results suggest that enterprises should actively embrace CSR in response to the call of the country. At the same time, corporate stability should be increased to enhance the role of CSR in promoting CFP. We provide a quantitative analysis of the CSR, CFP, and financial distress of listed firms, and help to alleviate managers’ concern of CSR fulfillment and risk control.

scholarly journals Impak Struktur Modal, Struktur Kepemilikkan dan Karakteristik Perusahaan Terhadap Financial Distress dan Financial Health Perusahaan

2021 ◽  
Vol 23 (1) ◽  
pp. 135-149
Author(s):  
Ratnawati Raflis ◽  
Enny Arita
Keyword(s):  
Logistic Regression ◽  
Capital Structure ◽  
Financial Performance ◽  
Ownership Structure ◽  
Financial Distress ◽  
Stock Exchange ◽  
Financial Health ◽  
Z Score ◽  
Score Model ◽  
The Impact

Corona Virus Pandemic affected the world economy, including Indonesia. Many companies are out of business due to this pandemic.With the background of the conditions mentioned above, the researchers are interested in examining more deeply the variables that determine the level of financial distress and at the same time the financial health of the company. Furthermore, the variables that are used as independent variables and are thought to affect the company's financial performance are capital structure, ownership structure and company characteristics. In assessing financial performance, the Altman Z Score model is used and then to see the impact of the variables that are thought to affect the company's financial performance.The research model used is the Logistic Regression equation.Population and sample are taken from financial data of companies listed on the Indonesia Stock Exchange. Data is taken manually on the website: www.idx.co.id. And the period in this study was taken from 2015-2019. The test results prove that the Capital Structure and Ownership Structure are factors that have a significant influence on the Company's Financial Distress and Financial Health. ABSTRAK Pandemi Virus Corona berimbas pada perekonomian dunia tidak terkecuali pada perekonomian di Indonesia. Banyak perusahaan yang gulung tikar akibat pandemik ini. Dengan berlatar belakang kondisi tersebut diatas maka peneliti tertarik untuk mengkaji lebih dalam menentukkan variabel yang sangat menentukan tingkat Financial Distress dan sekaligus financial health (Kinerja Keuangan) perusahaan. Selanjutnya variabel yang di jadikan variabel independen dan di duga berpengaruh terhadap kinerja keuangan perusahaan adalah struktur modal, struktur kepemilikkan dan Kharakteristik Perusahaan. Dalam menilai kinerja keuangan maka digunakan model Altman Z Score dan selanjutnya untuk melihat dampak variabel yang di duga berpengaruh terhadap kinerja keuangan perusahaan. Model penelitian yang di pakai adalah persamaan Logistic Regression. Model ini kemudian akan di lakukan uji T , Uji F dan Uji Asumsi Klasik sebelum di gunakan dalam melihat signifikasi variabel independen terhadap variabel dependen. Populasi dan sampel diambil dari data keuangan perusahaan yang terdaftar di Bursa Efek Indonesia. Data diambil secara manual di website: www.idx.co.id. Periode pada penelitian ini diambilkan data dari tahun 2015-2019. Hasil Pengujian membuktikan bahwa Struktur Modal dan Struktur Kepemilikkan adalah faktor yang sangat berpengaruh signifikan terhadap Financial Distress dan Financial Health Perusahaan.

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 Intellectual Capital and Capital Structure Effect on Firms’ Financial Performances

2020 ◽  
Vol 3 (2) ◽  
pp. 127-138
Author(s):  
Ani Wilujeng Suryani ◽  
Alfin Nadhiroh
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Financial Distress ◽  
Least Square ◽  
Manufacturing Companies ◽  
Negative Effect ◽  
Asean Economic Community ◽  
Fierce Competition ◽  
The Impact

Objective – This study aims to determine the influence of intellectual capital and capital structure on financial performance in manufacturing companies in Indonesia. Design/methodology – The data were collected from all 140 manufacturing companies from 2015 to 2019. While most studies of intellectual capital were conducted by using multiple regression analysis, we investigate the impact of intellectual capital and capital structure on the financial performance by using weighted least square regression.Results – The results showed that intellectual capital has a significant positive effect on firms’ financial performances, but the capital structure has a negative effect. The results of this study are beneficial for managers to consider increasing intellectual capital to create a competitive advantage in the midst of fierce competition of the ASEAN Economic Community era. In addition, managers need to consider the optimum capital structure to fulfill funding needs, hence financial distress can be minimized.Limitation/Suggestion - This study is a quantitative study limited to the availability of the data. Also, a number of outliers were found in the data and treated prior to the analysis.

The Matrix Format Income Statement: A Case Study about Earnings Management and Reporting Financial Performance

2007 ◽  
Vol 22 (4) ◽  
pp. 607-623
Author(s):  
Ann Tarca ◽  
Philip R. Brown ◽  
Phil Hancock ◽  
David R. Woodliff ◽  
Michael E. Bradbury ◽  
...  
Keyword(s):  
Earnings Management ◽  
Financial Performance ◽  
Fair Value ◽  
Financial Information ◽  
Income Statement ◽  
The Matrix ◽  
Value Changes ◽  
The Impact ◽  
Measurement Approach

The Matrix Format Income Statement case study allows you to explore the issue of earnings management and its impact on the transparency and understandability of reported financial results. Part A of the case demonstrates the impact of a commonly used accounting treatment for available-for-sale investments (presentation in the statement of changes in equity and recycling of fair value changes) on users' ability to extract decision-useful information. Part B investigates the effect on transparency and understandability of the same financial information when a different presentation and measurement approach, known as the matrix format income statement, is used.

scholarly journals The Effect of Enterprise Risk Management on Financial Distress

2020 ◽  
Vol 3 (2) ◽  
pp. 30
Author(s):  
Nur Khalizah Luthfiyanti ◽  
Lely Dahlia
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Distress ◽  
Stock Exchange ◽  
Binary Logistic Regression ◽  
Enterprise Risk Management ◽  
Retail Industry ◽  
Enterprise Risk ◽  
Performance Problem ◽  
The Impact

Lately,  the retail industry has been suffering financial performance problem caused by some factors, such as the trade competition with online trading. Companies in the retail industry sector had to handle this risk to minimize further financial performance problem. The aim of this study is to determined the impact of the implementation of enterprise risk management in avoiding financial distress. This study used binary logistic regression for tool analysis. The sample of this study involved 21 retail companies listed on the Indonesia Stock Exchange from 2013 to 2017. The sample has been selected using a purposive random sampling method. Variable control, namely, liquidity, profitability, leverage, and company size, are included. The result of the study indicates that enterprise risk management implementation was found affecting financial distress

ANALISIS LAPORAN KEUANGAN UNTUK MENILAI KINERJA KEUANGAN PT. ASTRA AGRO LESTARI Tbk

2019 ◽  
Vol 5 (2) ◽  
pp. 75-88
Author(s):  
M. Shobihin ◽  
Sayekti Suindyah Dwiningwarni ◽  
Supriadi Supriadi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Balance Sheet ◽  
Financial Statements ◽  
Ratio Analysis ◽  
Business Decisions ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Income Statement ◽  
Quantitative Descriptive

The financial statements serve as a benchmark in assessing the financial performance of the company as the basis for making business decisions. The motivation in conducting this research is to support previous research to see the development condition of one of the oil palm plantation companies. The purpose of this study is to assess the financial performance by using financial ratio analysis and horizontal analysis. The method used in this research is Quantitative Descriptive with analysis design using Term series Analysis. The result of the research based on financial ratio analysis shows the liquidity ratio and solvency ratio in good condition, while the activity ratio and profitability ratio are not good because it is below the industry average of similar companies. Based on horizontal analysis, financial performance fluctuated and influenced internal and external factors such as operational performance and the average price of world palm oil. The limitations of this study are using only two analytical tools and financial statements analyzed only the balance sheet and income statement.

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