scholarly journals Liquidity or Capital?: The Impacts of Easing Credit Constraints in Rural Mexico

2021 ◽  
Author(s):  
Gabriela Aparicio ◽  
Vida Bobić ◽  
Fernando De Olloqui ◽  
María Carmen Fernández Diez ◽  
María Paula Gerardino ◽  
...  
Keyword(s):  
Credit Constraints ◽  
Working Capital ◽  
Multiple Treatment ◽  
Annual Crops ◽  
Labor Quality ◽  
Input Use ◽  
Fixed Assets ◽  
Rural Mexico ◽  
Production Value ◽  
Rural Producers

This paper evaluates the effectiveness of easing credit constraints for rural producers in Mexico through loans provided by a national public development finance institution. In contrast to most of the existing literature, the study focuses on the effect of medium-sized loans over a two- to four-year time horizon. This paper looks at the effects of such loans on production and investment decisions, input use, and yields. Using a multiple treatment methodology, it explores the differential impacts of providing liquidity for working capital versus providing credit for investments in fixed assets. It finds that loans increased the likelihood that producers grow and sell certain key annual crops, in particular among recipients of working capital loans. It also finds significant effects on production value and sales (per hectare), with similar impacts for recipients of both types of loans, with gains in yields driven by changes in labor quality and more intensive use of key inputs. There is no evidence of significant effects on the purchase of large machinery, but there are impacts on the acquisition of cattle. Overall, the results reported in this paper suggest that lack of liquidity is at least as important as lack of funding for new investment in capital for rural producers in Mexico. Producers benefit from easing their credit constraints, regardless of the type of loan used for that purpose.

scholarly journals Impact of working capital management on profitability: Evidence from Pakistan oil sector

2015 ◽  
Vol 1 (1) ◽  
pp. 286
Author(s):  
M.Yousaf Raza ◽  
Muhammad Bashir ◽  
Khalid Latif ◽  
Touqeer Sultan Shah ◽  
Mushtaq Ahmed
Keyword(s):  
Financial Management ◽  
Capital Budgeting ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Operating Profit ◽  
Work In Process ◽  
Fixed Assets ◽  
Oil Sector ◽  
The Impact

This study explores the impact of working capital management on the profitability of the firms in the oil sector of Pakistan. For the purpose of testing this relationship data from the annual reports of the sample companies is used from the period 2006 to 2010. Cash conversion cycles (CCC), average receivable, Average inventory, average payable, and current ratio are used as a measure of working capital management, while gross operating profit is used as a measure of profitability of the firm. There are three major issues in financial management that are capital budgeting, capital structure, and working capital management. So working capital management is one of the three major issues in financial management. A commercial firm consists of two types of assets, which are fixed assets and current assets. Current assets of a firm consist of cash, bank balance, account receivable, raw material, work in process, and finished goods. While fixed assets of the business require capital expenditure and these are used in increasing the production of the business, the Current assets are used in utilizing the fixed assets in day to day transactions.  Hence Current assets are regarded as lifeblood for any business firm, the play vital role in the daily operations of the business. Current assets and current liabilities regarded as are very important component of total assets and they need to be carefully managed for the long term success of the business. In this paper working capital management provide us profit by using average payable and gross operating profit but other variables in hypothesis shows negative relationships with each other.

Valutazioni di convenienza e di sostenibilitŕ per le imprese del comparto del Prosciutto di Parma Dop: un'analisi attraverso l'applicazione di indici economici e finanziari

2012 ◽  
pp. 61-98
Author(s):  
Giuseppe Bonazzi ◽  
Mattia Iotti ◽  
Fabio Paduano
Keyword(s):  
Economic Analysis ◽  
Financial Analysis ◽  
Capital Requirements ◽  
Financial Ratios ◽  
Financial Sustainability ◽  
Working Capital ◽  
Significant Difference ◽  
Fixed Assets ◽  
Firm Management ◽  
High Absorption

Parma Pdo Ham sector is characterized by the great presence of small and medium sized enterprises (SMEs) and by high absorption of capital to finance investments in fixed assets and working capital. The aging of pork leg causes in fact a high capital requirements for a period of at least 12 months and even 18/24 months. In that case, economic analysis and financial analysis may show different results, since situations of non-financial sustainability even in case of positive profitability. The paper covers the methodology for the analysis of the profitability and sustainability of firm management and suggests specific indices to analyze the firms of the sector. The analysis show that there is a statistically significant difference between economic and financial results in the sector and the application of financial ratios proposed in the paper can better assess the sustainability of management. These ratios can find applications even in other sectors characterized by high capital absorption, particularly net working capital.

scholarly journals Determinants of Manufacturing Firms’ Financial Performance in Pakistan

2021 ◽  
Vol 3 (2) ◽  
pp. 1-10
Author(s):  
DR. SAID SHAH ◽  
S.M. AMIR SHAH
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Secondary Data ◽  
Large Firms ◽  
Working Capital ◽  
Management Efficiency ◽  
Fixed Assets ◽  
Investment In Fixed Assets ◽  
The Impact ◽  
Medium Firms

Investment in working capital by and large shows better returns than investment in fixed assets. As such proper management of working capital rightfully attracts a lot of attention. The objective of this research is to examine the impact of size and working capital management efficiency on firms’ financial performance using 10 years (2004- 2013) secondary data of 153 firms listed on Pakistan Stock Exchange and employing regression and ratio analyses. Results show that performance-wise large firms are better whereas WCME-wise small and medium firms are better. These findings indicate that better performance of large firms is not because of efficient utilization of working capital - rather it may be due to some other factors and these firms can further improve their performance if working capital is managed more efficiently.

Analytical Accounting of Innovation Activities in the Agricultural Industry

2020 ◽  
Vol 144 ◽  
pp. 118-124
Author(s):  
Il'ya I. Marushchak ◽  
◽  
Irina V. Pavlenko ◽  
Elena V. Zelenkina ◽  
◽  
...  
Keyword(s):  
Cash Flow ◽  
Fixed Capital ◽  
Working Capital ◽  
Agricultural Industry ◽  
Innovation Activities ◽  
Fixed Assets ◽  
Separate Object ◽  
State Programs ◽  
Technical And Economic Indicators

The authors have analyzed the legal acts regulating accountancy in the Russian Federation and concluded that they contain no definitions, classification or descriptions of innovations, which makes it problematic to put the corresponding provisions of State programs into practice. The authors suggest singling out “expenditure on innovation” as a separate object of accounting and define it as expenditure for the purpose of improving the quality of production, works and service as well as improving the organizational and management system. This new level of quality can be measured by means of the following indicators: physical properties, chemical composition, technical and economic indicators. In view of the fact that investments in innovation can be referred to as both fixed capital (intangible assets, constant assets) and working capital (elite seeds, young animals, innovative biological additives etc.), the authors suggest adding to entry 08 “Investments in fixed assets” sub-entry 9 “Creating or purchasing innovations as part of fixed capital” and sub-entry 10 “Creating or purchasing innovations as part of working capital”. In view of the fact that Cash flow statement reveals some important analytical information about investing, it would be advisable to add to “Cash flow from investing activities” line 4215 “Cash inflows from selling innovations” and line 4225 “Expenditures on purchasing, creating innovations”

Analisis Efektivitas dan Efisiensi Penggunaan Dana Serta Dampak Terhadap Kinerja Keuangan (Studi Kasus Rumah Sakit Stroke Nasional Bukittinggi)

2020 ◽  
Vol 5 (3) ◽  
pp. 193-202
Author(s):  
Yulistia Yulistia
Keyword(s):  
Financial Performance ◽  
Sampling Technique ◽  
Strong Relationship ◽  
Working Capital ◽  
Fixed Assets ◽  
Correlation Interval ◽  
Capital Efficiency ◽  
Relationship Of ◽  
The Relationship ◽  
Interval Value

The purpose of this study: 1) to find out the level of effectiveness and efficiency of working capital 2) To find out financial performance 3) To determine the relationship of working capital effectiveness with financial performance. 4) To find out the relationship between working capital efficiency and financial performance. This study uses the RS Bukittinggi National Stroke as object research, with a population of financial statements observed from 2012 - 2018 and the sample used is the Total Sampling technique. The analytical method used in this study uses the analysis of Ratio, Reward Ratio for Fixed Assets and Correlation Analysis. The results showed : 1. that working capital management at Bukittinggi National Stroke Hospital had not been carried out effectively and efficiently. This can be seen that there has been a decline in financial performance in the past six years. 2. In addition there is a positive and strong relationship between the effectiveness of working capital with financial performance with a correlation interval value of 0.7114 and there is a positive and very strong relationship between working capital efficiency with financial performance with a correlation interval value of 0.871. The working capital at Bukittinggi National Stroke Hospital is used more to make payments for activities with less liquidity

scholarly journals The Relation of Working Capital and Fixed Assets: a Study

2012 ◽  
Vol 11 (1) ◽  
pp. 47-60
Author(s):  
Mahdi Salehi
Keyword(s):  
Significant Relationship ◽  
Stock Exchange ◽  
Pearson Correlation ◽  
Research Community ◽  
Working Capital ◽  
Asset Return ◽  
Independent Variables ◽  
Fixed Assets ◽  
Regression Test ◽  
The Relationship

Abstract The present study aims to investigate the relationship between working capital changes and fixed assets with asset return of 120 manufacturing listed companies in Tehran Stock Exchange during 2006-2010. Pearson correlation and Regression test are employed to determine the kind of relationship between dependent and independent variables, hypotheses test and evaluating normality of data respectively. The outcomes of the study suggest that there is a significant relationship between working capital changes and fixed assets with assets return in the research community.

scholarly journals PENGARUH INVESTASI TERHADAP PROFITABILITAS ANGGOTA HOLDING PT PUPUK INDONESIA (PERSERO)

2019 ◽  
Vol 11 (02) ◽  
pp. 01-14
Author(s):  
Rahmat Setiawan ◽  
Koko Sudiro
Keyword(s):  
Capital Investment ◽  
Financial Statements ◽  
Investment Policy ◽  
Quantitative Approach ◽  
Significant Positive Effect ◽  
Working Capital ◽  
Fixed Asset ◽  
Fixed Assets ◽  
Negative Effect ◽  
Positive Effect

In anticipation of future competition,, the Ministry of SOE since 2011 has set an aggressive strategy in holding management on PT Pupuk Indonesia (Persero). PT Pupuk Indonesia holding members are directed to be more expansive in improving their performance both by increasing their working capital and fixed assets. This expansion is expected to be able to increase the company's profitability.This research was conducted using a quantitative approach to assess the effect of working capital investment variables and fixed asset investment on the company's profitability variable. Data is obtained from the quarterly financial statements of the holding member of PT Pupuk Indonesia (Persero) during the period after the establishment of a strategic holding in 2011-2016.The results showed that the investment policy on working capital, as measured by the ratio of Current Assets / Total Assets, had a significant positive effect on ROA and ROE. While the investment policy on fixed assets, as measured by the ratio of Fixed Assets / Total Assets, has a significant negative effect on ROA and ROE

scholarly journals Liquidity or Capital? The Impacts of Easing Credit Constraints in Rural Mexico

2021 ◽  
Author(s):  
Gabriela Aparicio ◽  
Vida Bobic ◽  
Fernando De Olloqui ◽  
María Carmen ◽  
Fernández Diez ◽  
...  
Keyword(s):  
Credit Constraints ◽  
Rural Mexico

scholarly journals Firm characteristics and credit constraints among SMEs in the Philippines

2021 ◽  
Vol 5 (1) ◽  
pp. e332
Author(s):  
John Paul Flaminiano ◽  
Jamil Paolo Francisco
Keyword(s):  
Financial Management ◽  
Credit Constraints ◽  
Digital Technologies ◽  
The Philippines ◽  
Lower Probability ◽  
Firm Characteristics ◽  
Predicted Probability ◽  
Fixed Assets ◽  
Logistic Regressions ◽  
The Relationship

Access to finance is critical to support the growth of small and medium-sized enterprises (SMEs). However, lack of access to adequate financing is one of the biggest obstacles that SMEs face. This paper analyzed the relationship between firm characteristics and credit constraints among SMEs in the Philippines. We determined which firm characteristics are correlated to the predicted probability of being credit-constrained or “quasi-constrained” — i.e., able to borrow from informal sources. Estimates of marginal effects at the means (MEMs) from logistic regressions provide some suggestive evidence that increased firm size, previous purchase of fixed assets, and increased use of digital technologies for accounting and financial management are associated with a lower predicted probability of being credit-constrained. The use of digital technologies in accounting and financial management is also associated with a lower probability of credit constraint in informal financial markets.

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