The Impact of Size on the Performance of Transnational Corporations Operating in the Textile Industry in Portugal during the COVID-19 Pandemic

The aim of this work is to understand the impact of size on the performance of transnational corporations (TNCs) operating in the textile and clothing industry in Portugal during the COVID-19 pandemic. For this purpose, we used ORBIS data for the period 2019–2020 and narrative, financial and correlation analyses to assess the performance of five companies. Thus far, the impact of company size on the competitiveness of Portuguese textile affiliates during the pandemic has remained unexplored. The results show that smaller firms performed better than larger ones, likely due to the higher fixed costs of the latter at times when orders declined worldwide. Our analysis suggests that there are some characteristics of TNCs that matter in explaining company-level performance during crises, such as management experience and flexibility. Furthermore, as Portugal is a major European textile exporter, it is useful for the host country to assess the economic sustainability of its foreign investors. The results provide some policy recommendations regarding the promotion of foreign direct investment (FDI) in Portugal.

Analysis of infeasible unit-commitment solutions arising in energy optimization

The day-ahead problem of finding optimal dispatch and prices for the Brazilian power system is modeled as a mixed-integer problem, with nonconvexities related to fixed costs and minimal generation requirements for some thermal power plants. The computational tool DESSEM is currently run by the independent system operator, to define the dispatch for the next day in the whole country. DESSEM also computes marginal costs of operation that CCEE, the trading chamber, uses to determine the hourly prices for energy commercialization. The respective models sometimes produce an infeasible output. This work analyzes theoretically those infeasibilities, and proposes a prioritization to progressively resolve the constraint violation, in a manner that is sound from the practical point of view. Pros and cons of different mathematical formulations are analyzed. Special attention is put on robustness of the model, when the optimality requirements for the unit-commitment problem vary.

Company Internal Factors and Their Influences on Financial Performance

This research aims to systematically, actual, and accurately explain the facts and characteristics of the company and their effect on financial performance. Data in the form of time-series data from 2015-2019 and cross-section data collected from the financial statements of automotive companies listed on the Indonesia Stock Exchange then obtained nine companies that meet the criteria. The independent variables are Firm Size, Leverage, Liquidity, and the dependent variable is financial performance as proxied by Return On Equity (ROA). The research used panel data techniques; Common Effect Model, Fixed Effect Model, and Random Effect Model. The results show that Firm Size partially has a negative and significant effect, meaning that the greater the assets owned by the company, the more complex the agency problems faced. The partial leverage variable has a negative and significant effect, means that the use of relatively high debt will cause fixed costs in the form of interest expenses and loan principal installments to be paid, the greater the fixed costs. The liquidity variable partially has a positive and insignificant effect. This means that changes that occur in both the number of current assets or current liabilities affect increasing profits so that the increase in Liquidity (CR) or the level of liquidity affects changes in increasing company performance (ROA).

BUSSINES MODEL CANVAS SEBAGAI ALTERNATIF STRATEGI BISNIS KERAJINAN SEDOTAN PURUN DI DESA TUMBANG NUSA, KECAMATAN JABIREN KABUPATEN PULANG PISAU

This study aims to analyze the business model of the purun straw craft business in Tumbang Nusa Village and determine the strategy for developing the purun straw craft business model in Tumbang Nusa Village with the Bussines Model Canvas (BMC) approach. Purun straws in Tumbang Nusa village. This study uses descriptive research methods to collect detailed actual information that describes existing symptoms, identifies problems or examines prevailing conditions and practices. The results of the research on the canvas model business mapping that have been carried out, it turns out that the customer segment of the purun straw craftsmen has been diversified into Bussines to Bussines and Bussines to Consumer customers with marketing reach in the cities of Palangkaraya, Jakarta and Bali. The revenue stream element from straw craftsmen is only in the form of selling straws. Furthermore, the main resources used are production equipment, human resources, capital, transportation and communication tools with key activities in the form of production and marketing activities. Meanwhile, the main partnership that keeps the business running is the Liaison and the government. The last element in the form of a cost structure contains fixed costs and variable costs. After getting information from the business model environment and SWOT analysis, the changes to the existing canvas business model are obtained. In order for the production process to run more efficiently, the use of appropriate technology is added through production mechanization, while for the main activity promotional activities are added. Researchers suggest craftsmen can implement improvement strategies on the Business Model Canvas elements that focus on five elements, namely, Customer segments, Channels, Customer relationships, Key activities and Key partners so that operational activities are expected to be more effective

Soy dairy performance metrics

Soybean (Glycine max (L. Merr.) has been a crop of interest to address both poverty and malnutrition in the developing world because of its high levels of both protein and oil, and its adaptability to grow in tropical environments. Development practitioners and policymakers have long sought value added opportunities for local crops to move communities out of poverty by introducing processing or manufacturing technologies. Soy dairy production technologies sit within this development conceptual model. To the researchers’ knowledge, no research to date measures soy dairy performance, though donors and NGOs have launched hundreds of enterprises over the last 18 years. The lack of firm-level data on operations limits the ability of donors and practitioners to fund and site sustainable dairy businesses. Therefore, the research team developed and implemented a recordkeeping system and training program first, as a 14-month beta test with a network of five dairies in Ghana and Mozambique in 2016-2017. Learning from the initial research then supported a formal research rollout over 18 months with a network of six different dairies in Malawi and key collaboration from USAID’s Agricultural Diversification activity. None of the beta or rollout dairies kept records prior to the intervention. The formal rollout resulted in a unique primary dataset to address the soy dairy performance knowledge gap. The results of analysis show that the dairies, on average, achieve positive operating margins of 61%, yet cannot cover the fixed costs associated with depreciation, amortization of equipment and infrastructure, working capital, marketing and promotion, and regulatory compliance. The enterprises in our sample operate only at 9% of capacity, which limits their ability to cover the normal fixed costs associated with the business. The challenge is not the technology itself, as when operated, it produces a high-quality dairy product. The challenges involve a business that requires too much capital for normal operations relative to a nascent and small addressable market.

Amtek Auto – financing under distress

Learning outcomes The primary teaching objective is to discuss the capital raising efforts of a firm under financial distress. It also provides supporting data to calculate cost of capital, DuPont/modified DuPont values and Altman’s Z-Score that can appropriately be incorporated into the discussion. Case-B provides information and data of the company’s recent performance and to changes in bankruptcy law in India. Overall, this case study provides ample scope to discuss, understand and provide the solution to the following key corporate finance themes as follows: 1. Analyzing accounting statements and examine potential earnings quality issue. 2. Predicting default and bankruptcy using qualitative analysis, financial ratios, traditional and modified DuPont models and Altman’s Z score model. 3. Examining the capital raising efforts of a distressed firm, which has already defaulted on borrowings. 4. To explore the impact of changes in regulation on the turnaround efforts of the firm as well as on the promoters of the firm. Case overview/synopsis Since 2005, Amtek Auto moved at a breathtaking speed with the goal of reaching $10bn in sales, from the current level of about $1.2bn. The group had acquired more than a dozen companies spending about Rs.5,000cr. ($850m) during this period primarily through borrowed funds. However, the market and business expansion was not happening as expected. The company’s capacity utilization was just about 40% (approx.) during much of this period. The mounting fixed costs of operation and debt servicing grew to the level of unsustainability, led the firm to default on its borrowing. Now the company had to quickly recapitalize itself to run its operations and retain the premier position in auto component industry. The company and its promoters were considering various methods of debt restructuring, asset sale and further equity infusion. Complexity academic level Introductory and elective level corporate finance. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.

Economic and environmental impact assessment of sustainable future irrigation practices in the Indus Basin of Pakistan

Pakistan’s agriculture is characterized by insecure water supply and poor irrigation practices. We investigate the economic and environmental feasibility of alternative improved irrigation technologies (IIT) by estimating the site-specific irrigation costs, groundwater anomalies, and CO2 emissions. IIT consider different energy sources including solar power in combination with changes in the irrigation method. The status quo irrigation costs are estimated to 1301 million US$ year−1, its groundwater depletion to 6.3 mm year−1 and CO2 emissions to 4.12 million t year−1, of which 96% originate from energy consumption and 4% via bicarbonate extraction from groundwater. Irrigation costs of IIT increase with all energy sources compared to the status quo, which is mainly based on diesel engine. This is because of additional variable and fixed costs for system’s operation. Of these, subsidized electricity induces lowest costs for farmers with 63% extra costs followed by solar energy with 77%. However, groundwater depletion can even be reversed with 35% rise in groundwater levels via IIT. Solar powered irrigation can break down CO2 emissions by 81% whilst other energy sources boost emissions by up to 410%. Results suggest that there is an extremely opposing development between economic and ecological preferences, requiring stakeholders to negotiate viable trade-offs.

Effect of Broiler Prices on Logistics and Supply Chains In Developing The Poultry Industry In Egypt

This study aimed to study the effect of changes of broiler prices on the profitability of broiler logistics under Egyptian conditions. This study was undertaken during the period 2016 – 2020 on random cycles of both broiler and layer farms in three different provinces which were Menofia, Kaliobia and Giza. The data were collected from a cross-sectional survey on the broiler and during the data collection the researcher was contact with the poultry holders and managers. The data were collected from the accurate records which available in the poultry farms of the study areas and from the structured questionnaires methods which established by the researcher and admitted to the farmers during the time of interview, also, the data collected from the Agricultural Directorates of governorates, Livestock development sector and Economic Affairs Sector. The data includes data about logistics costs, returns and net prpfits of broiler production, the data were analyized statistically and economically. The price of broilers considered as the main variable affecting the profitability of broiler production farms. The price of poultry affected by the costs of production costs that includes variable and fixed costs The results, concluded that, the higher prices of broiler prices observed during the years 2018, 2019 and 2020 than that of years 2016 and 2017 and in winter seasons than the summer seasons. The increasing of broiler prices causes increasing returns level for broiler sales, the summer seasons achieved a higher net profit than the winter seasons due to increasing the level of production costs in winter seasons than the summer seasons.