Business Earnings Research Articles

IoT Integrated Smart Parking Zone and Website with Stand-alone System and Wireless Technology

The research project works to digitalize the full parking management system, transform the manual parking methods, solve traffic and road congestion problem and show live updates of the designated parking slots. It is ecofriendly and eliminates human interaction. It also offers personal and corporate business earnings. In the project, anyone can book time slots for parking following their convenient schedule, pay bills via the online payment system, control the entrance while entering and exit gate in the parking area with the vehicle using the website system. Users do not have to use any extra identity instrument, like- RFID Cards, QR Codes etc. The system will verify them by online credentials. Moreover, people can see the live slot updates for better security. The project collaborated with 3 major technology parts which are practical hardware, software and database system. NodeMCU, Ultrasonic Sensors, Servo motors, and other technical components are used in the hardware part. PHP, HTML, JavaScript, CSS etc. codes are implemented for the website development. Firebase Realtime Database and MySQL are integrated for the cloud and local database management with the hardware and software parts for building the IoT technology environment and infrastructure.

Stakeholders’ perspectives on critical success factors for environmental social and governance (ESG) implementation

Environmental Social and Governance (ESG) has emerged as a sensitive issue, attracting the attention of a large audience that could not be ignored. Government bodies continue to pass regulations mandating organizations to comply with ESG principles. However, many organizations have had unsatisfactory results while promoting sustainability ideals due to various challenges. To achieve ESG goals, the present study offers a thorough framework for ESG implementation across organizations based on the critical success factor (CSF) theory and the opinions of diverse stakeholders. Following a literature review and brainstorming with ESG experts and academicians, a survey questionnaire was sent to 400 respondents to evaluate the 20 factors identified as ‘super-set’ CSFs for ESG implementation. This paper represents a novel attempt in ESG research as it conducts a survey supported by exploratory factor analysis (EFA). The interactions between the significant CSFs were studied by employing total interpretative structural modeling (TISM) and fuzzy MICMAC approach. ESG implementation is found to be highly driven by firm characteristics, earnings quality, and environmental performance, which can be argued to be the fundamental determinants of ESG implementation. According to these findings, organizations' leadership should (1) focus on effectively structuring firms' attributes to swiftly operate the ESG implementation framework, (2) ensure consistent business earnings that signal improved future performance, and (3) continuously monitor and assess their environmental performance. These efforts should be supported by engaging with diverse stakeholder groups, each playing its respective role in ESG implementation. Consequently, ESG implementation across organizations is anticipated to accelerate with thoughtful organizational coordination, strategic planning, and compliance with authoritative policies. However, rather than solely focusing on creating ESG disclosure laws, policymakers should also focus on creating better ESG outcomes through effective ESG implementation. Therefore, this research offers valuable insights into improving ESG practices, which facilitates the adoption of mandatory ESG disclosure regulations.

ESTIMATION OF EFFICIENCY AND THE IMPACT OF COVID-19 ON THE EFFECT OF ACCESS TO FINANCE ON EFFICIENCY OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN THE WESTERN AREA OF SIERRA LEONE

<p>To estimate efficiency and the impact of COVID-19 on the effect of access to finance on the efficiency of small and medium enterprises (SMEs) in the Western Area of Sierra Leone, the study adopted the stochastic frontier estimation method of determining the efficiency of firms. A model of maximum performance (capacity) was estimated using 450 SMEs randomly selected from the population of registered SMEs in the Western Area of Sierra Leone from 2018 to 2020. The model of net business earnings was estimated using the Maximum Likelihood procedure and the firm efficiencies were consequently estimated. The mean inefficiencies are estimated by various categories, including SMEs' access to bank credit to determine firm characteristics that are associated with higher mean efficiencies. The empirical results reveal that the potential of firms is determined positively by capital productivity and labour productivity and negatively by the experience of firms, the latter results suggesting that more experience does not push their production outwards but inwards. However, other factors found significant in efficiency differences among firms include gender of the head of the SME, educational level, professional training of the firm heads, sector of operation and the area of operation of the SMEs. Moreover, firm mean efficiencies are not found to vary across the three periods 2018, 2019 and 2020, suggesting the COVID-19 pandemic did not affect firm efficiencies.</p><p><br /><strong>JEL:</strong> F13, F15</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0787/a.php" alt="Hit counter" /></p>

Estimation of Efficiency and the Effect of Access to Finance on Efficiency of Small and Medium Enterprises (SMES) in the Western area of Sierra Leone

Abstract To estimate the efficiency of SMEs and the effect of access to finance on the efficiency of SMEs the study adopted the stochastic frontier estimation method of determining efficiency of firms. A model of maximum performance (capacity) was estimated using 450 SMEs randomly selected from the population of registered SMEs in the Western Area of Sierra Leone from 2018 to 2020. The model of net business earnings was estimated using the Maximum Likelihood procedure and the firm efficiencies were consequently estimated. The mean inefficiencies are estimated by various categories, including SMEs access to bank credit to determine firm characteristics that are associated with higher mean efficiencies. The empirical results reveal that the potential of firms is determined positively by capital productivity and labour productivity and negatively by experience of firms, the latter results suggesting that more experience (in terms of age) does not push their production outwards but inwards. However, other factors are found significant in efficiency differences among firms. These are: gender of the head of the SME, educational level, professional training of the firm heads, sector of operation and the area of operation. JEL classification numbers: F14, F18, G14, G21. Keywords: Efficiency, Finance, Small and Medium Enterprises.

The impacts of COVID‐19 on racial inequality in business earnings

AbstractMany small businesses closed in the pandemic, but were economic losses disproportionately felt by businesses owned by people of color? This paper provides the first study of the impacts of COVID‐19 on racial inequality in business earnings. Pandemic‐induced losses to business earnings in 2020 were 16% to 19% for all business owners. Racial inequality increased in the pandemic: Black business owners experienced larger negative impacts on business earnings of 12% to 14% relative to White business owners. Regression estimates for Latinx and Asian business owners reveal negative point estimates but the estimates are not statistically significant. Using Blinder‐Oaxaca decompositions and a new pandemic‐focused decomposition technique, I find that the industry concentrations of Black, Latinx, and Asian business owners placed each of these groups at a higher risk of experiencing disproportionate business earnings losses in the pandemic. Higher education levels among Asian business owners helped insulate them from larger losses from COVID‐19. In the following year of economic recovery, 2021, business earnings rebounded strongly for all groups except for Asian business owners, who experienced large relative losses (which were partly due to industry concentrations). State‐level variation in policies and disease spread does not explain racial differences in business earnings losses or rebounds.

Is the Earnings Quality of Family Businesses Better Than Non-family Businesses?

Objective - This study aims to prove whether the earnings quality of family businesses is better than non-family businesses to address two conflicting theories regarding the quality of family business earnings: agency theory and socioemotional wealth theory. Methodology/Technique –. This research uses a regression model to examine the influence of family business/non-family business characteristics on earnings quality. To obtain robust results, this research measures earnings quality using 5 measurement proxies, including measurements of available opportunities for earnings management, earnings management practices, earnings persistence, earnings restatement, and investor responsiveness to earnings quality. The screening sample was carried out on firms listed on the Indonesia Stock Exchange (IDX) for the period 2016–2020, resulting in 932 research observations. Findings - Overall, this research proves that FB earnings quality is better than NFB earnings quality. The results of this study extend the implementation of socioemotional wealth theory in explaining the characteristics of FB, in which the characteristics of FB and non-FB have an impact on earnings quality. Novelty - Financial statement analysts can utilize the results of this study in interpreting earnings quality based on the characteristics of FB and NFB. Type of Paper: Empirical JEL Classification: M41, M49. Keywords: Earnings Quality, Family Business (FB), Non-family Business (NFB), Socioemotional Wealth Theory Reference to this paper should be referred to as follows: Purba, G.K; Surya, A.N; Joshi, P.L; Tyagi, A. (2023). Is the Earnings Quality of Family Businesses Better Than Non-family Businesses?, Acc. Fin. Review, 8(2), 36 – 53. https://doi.org/10.35609/afr.2023.8.2(1)

The effect of voluntary disclosure on financial performance: Empirical study on manufacturing industry in Indonesia.

The manufacturing sector's adherence to managing natural resources from the environment still needs to be improved. This study's objective is to determine how Corporate Social Responsibility (CSR) influences the financial performance of manufacturing firms featured in the LQ45 Index, as measured by Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). All manufacturing companies that are included in the LQ45 Index's population for this study were sampled using the purposive sampling method. This study uses secondary data from the CSRI based on the Global Reporting Initiative (GRI) G4 standard for 2018-2020 and the annual reports of companies in the manufacturing industry sector listed on the LQ45 Index. Moreover, applying a quantitative methodology, descriptive statistical methods, conventional assumption tests, and simple linear regression analysis were applied in this study's data analysis. The results of the study proved that CSR has a significant effect on ROA but does not affect the ROE and NPM of LQ45 manufacturing companies. In accordance with the signaling theory, CSR disclosure sends a favourable message to outsiders, which stakeholders and shareholders will respond to through changes in business earnings. CSR implementation can establish a positive image for the company, but it can also improve the company's image in both the commodity and capital markets. Investors will be more attracted to a company with a positive corporate image since a positive corporate image increases consumer loyalty. As consumer loyalty rises, the company's sales will likewise rise, and its profitability will increase as a result. This paper opens a new research path in corporate social responsibility and financial performance for possible links among variables; a matter that has not been previously explored in Indonesia Manufacturing Public Companies.

The Impacts of COVID-19 on Racial Inequality in Business Earnings

The Impacts of COVID-19 on Racial Inequality in Business Earnings

The Impacts of COVID-19 on Racial Inequality in Business Earnings

The Impacts of COVID-19 on Racial Inequality in Business Earnings

The Impacts of Covid-19 on Racial Inequality in Business Earnings

The Impacts of Covid-19 on Racial Inequality in Business Earnings

The Effect of Workload, Work Stress and Work-Life Balance On Employee Performance (Case Study On Startup Employees In Jakarta)

In order to ultimately boost business earnings, this study tries to ascertain the impact of workload, work stress, and work-life balance on employee performance. Descriptive quantitative research methodology is employed. This study used an unlimited number of startup employees in Jakarta as its population. The nonprobability sampling approach is employed in the sampling procedure. According to the research's findings, employee performance among startup workers in Jakarta is significantly improved by workload. Because of this, the company's performance expectations will not be met the more work the employees feel they are expected to do. Workload significantly influences how stressed out startup employees in Jakarta feel at work. Thus, employees experience more stress the more work they have to do. Work-life balance for startup employees in Jakarta is significantly impacted by workload. As a result, employees feel less of a work-life balance as their burden increases. Workplace stress significantly affects startup employees' productivity in Jakarta. Employee performance suffers as a result of increased work stress. Work-life balance significantly influences how well startup employees in Jakarta perform at work. Therefore, the greater the employee's success for the organization, the better the ability to manage work and personal life. Work-life balance is significantly impacted by work stress for startup employees in Jakarta. Therefore, the employee would experience less stress the better he can balance his life. work stress and workload have a significant effect on employee performance. this means that the amount of burden and stress felt by employees causes employee performance to decrease. workload, work stress have a significant effect on work-life balance. this means that workload and work stress will be reduced when employees can balance their lives. workload, work life balance has a significant effect on employee performance. This means that the demands of work will cause difficulties for employees to balance between personal life and work life. Work-life balance is significantly impacted by workload and workplace stress. Employees will perform better when they can balance their personal and professional life, which will lessen work-related stress. workload, work stress and work life balance affect performance. this means that workload and work stress will decrease when employees can balance their lives so that employees will improve their performance.

Analisis Tingkat Keuntungan Usaha Peternak Ayam Ras Petelur Berdasarkan Skala Usaha (Studi Kasus: Kecamatan Manggis, Karangasem)

Analysis of The Profitability Level of Laying Chicken Farmers Based on Business Scale (Case Study: Manggis District, Karangasem)
 Livestock is one of the sub-sectors that plays a critical role in supplying food needs, particularly for animals. Laying hens are one of the farms that the community has created, with eggs as the major product. Manggis District, Karangasem, is one of the ideal regions for the development of laying hens. The goal of this research is to define and assess the business earnings of laying hens based on their size of operation. The information was gathered by the distribution of questionnaires to 30 laying hen breeders. Secondary information gleaned from linked literature. The study's findings include a description of the laying hen business, which is conducted on dry land with a population of chickens ranging from 1,000 to 50,000 heads, and the workers employed are from their own families as well as from outside the community. The benefits of laying hens range depending on the size of the business. Farmers with a business scale of more than 10,000 heads get the highest profit of Rp 4,179,976,688, while farmers with a business size of fewer than 5,000 heads earn the lowest profit of Rp. 1,287,538,708. As a result, farmers in each business scale earn by 12% of overall revenue and costs incurred throughout a period of chicken growing.

Parallels and Differences in Earnings Management of the Visegrad Four and the Baltics

Earnings management is a legal and widely preferred phenomenon of business finance that financial managers use to maintain and improve the enterprise’s competitiveness. Managers purposely manipulate business earnings to achieve the required status of the enterprise. The consequence of these activities is to provide a positive perspective for the owners, encourage the profitability for the creditor and the investors as well as demonstrate economic strengths to competitors. This article aims to identify parallels and differences in earnings management of enterprises in the Visegrad Four and the Baltics in terms of competitiveness for the nineyear period 2010-2018. The research uses a final sample of 4,543 observations from the EBITs of Slovak, Czech, Hungarian and Polish enterprises as well as 1,633 observations from the EBITs of Latvian, Lithuanian and Estonian enterprises. Time-series methods with all necessary assumptions have been run for the analyzed financial dataset. The results of the econometric modeling of unit roots show significant parallels in these groups of countries. The enterprises from the Visegrad group and the Baltics group use the apparatus of earnings management to be competitive. The obtained results confirm the systematic but legal manipulation from the side of management. A quantitative analysis of homogeneity tests using 1,000,000 Monte Carlo simulations indicates significant time differences of manipulation in these emerging countries. The year 2014 signaled a radical “accelerando” in earnings management for the V4, and the year 2016 is highlighted for the Baltics.

Which resource acquisition acts drive growth of informal firms? Evidence from Zambia

PurposeThe study seeks to differentiate informal firms with high-growth prospects by their resource acquisition acts and to improve identification of growth-oriented informal firms for effective design and targeting of support measures.Design/methodology/approachAn original set of firm-level data was collected using face-to-face survey in Lusaka, Zambia. Six clearly defined criteria were used to sample informal firms, apart from general informal business. Regression analyses were conducted to test the association of different resource acquisition acts with two growth dimensions: number of employees and business earnings of the 325 informal firms sampled.FindingsAccessing clientele beyond local market, linking up with formal businesses and acquiring information and knowledge via online sources were found influential to growth in business earnings. Surprising, acquisition of finance and skills showed no effect. Employment expansion, though widely used, may not be a stable indicator of informal firm growth.Research limitations/implicationsThe study highlights the relevance of the emerging entrepreneurship perspective to understanding the topic. It cautions against pre-setting a size threshold for sampling informal firms and against relying on employment expansion as the sole proxy of growth.Practical implicationsThe findings prompt a rethink of the effectiveness of conventional support programmes to drive growth of informal firms such as funding and training. Directing support measures to target growth-oriented informal firms will lead to creation of decent and sustainable jobs and formalisation.Originality/valueWith an original firm-level dataset, the study challenges a long-held assumption that growth of informal firm is negligible and shows that segments of informal firms are sustainable and could attain significant growth and derives new insights into researching and supporting informal firm growth.

Monetary value of human capital disclosure for predicting future business earnings

Orientation: Human capital (HC) is a key dimension of intellectual capital (IC) that creates shareholder value when integrated with structural capital (SC) and relational capital (RC). The disclosure of HC reveals how the human resource (HR) practices support business growth.Research purpose: The primary focus of this study was to investigate the extent of how human capital disclosure (HCD) could predict organisational performance (expected future earnings) of the Johannesburg Stock Exchange (JSE)-listed companies.Motivation for the study: Human capital disclosure reduces information asymmetry, predicts future business performance and improves the investors’ buy-sell-hold decisions.Research approach/design and method: A causal, comparative design was applied quantitatively in a cross-sectional survey of 150 top- and low-performing JSE-listed companies sampled based on their market capitalisation. A self-constructed disclosure index with a seven-point scoring system was developed to examine the extent of disclosure across 81 items. Subsequently, multiple regression analysis was computed to test the relationship between the dependent and independent variables.Main findings: Human capital disclosure was associated with both the market capitalisation and book value. Overall, no mediation of human resource risk disclosure (HRRD) against organisational performance was found. Lastly, information disclosed on gender diversity yielded the interaction effect with both structural capital disclosure (SCD) and relational capital disclosure (RCD) but not with HCD.Practical/managerial implications: Human capital disclosure identifies key HR practices that drive organisational performance and create shareholder value. This information can potentially improve benchmarking and support investor decision-making.Contribution/value-add: The study provides a novel contribution to IC theory by demonstrating how HCD can be used to identify HR practices that leverage the monetary value of HC for business improvement.

Impact of earnings management on bankruptcy prediction

Research background: Managers of the companies intentionally manipulate business earnings to achieve the required status of the company. Earnings management is a legal and widely preferred phenomenon of business finance that financial managers use to maintain and improve the company´s competitiveness. The consequence of these activities is to provide a positive view for the owners, encourage the profitability for the creditor and the investors as well as demonstrate economic strengths to competitors. Consequently, these activities lead to the modification of financial statements of the companies, which have a direct impact on the prediction ability of bankruptcy models. Purpose of the article: The main goal of the paper is to point out the impact of earnings management in the companies on the possibility and ability of bankruptcy prediction. There is a correlation between application of earnings management in companies followed by changes in financial statements of the companies. Therefore, the ability of bankruptcy prediction models to predict possible financial problems of the company is questionable. Methods: The paper presents the connection of earnings management and its impact on bankruptcy prediction based on the bibliometric overview and deep literature review. Findings & Value added: The paper presents results, connections and impact of earnings management on bankruptcy prediction.

SHARIA BANKS AND THEIR BUSINESS EARNINGS: AN EMPIRICAL EXPLORATORY OF THE CASE OF INDONESIA

This research aims to identify the tendency of business earnings obtained by shariah banks and detect its patterns. The sample of this research was sharia commercial banks listed in Indonesia Bank and Financial Services Authority over the period of 2010-2017. The data of financial statements were utilized in this research. The result of this research pointed out that net income during eight periods of observation has shown fluctuative result. The further result found that the value of smoothness tends to go zero. It indicated that earnings pattern in sharia banks is highly smooth.

Education towards Entrepreneurial Careers in a Czech College: An Empirical Study

The article presents the results of research into entrepreneurship education in economic and non-economic study programmes of the College of Polytechnics Jihlava (n = 104). The College represents a regional public college of professional orientation in the Vysocina Region, where the business potential is relatively high. Significant differences in attitudes concerning entrepreneurship among students of economic and non-economic programmes have not been proven. As well the correlation between attitudes (interest in conducting business, having preconceptions to start a business and subjective evaluation of one's own ideas) and the students' knowledge of entrepreneurship was not significantly demonstrated. Despite these insignificant differences, there have been links in students’ attitudes. Students of both programmes have a great interest in doing business even at the cost of having preconception to start a business. Above all, the high risk and uncertainty of business earnings are perceived very negatively. They also admit that they do not have enough knowledge and are thus afraid of starting a business, even though they have their own business ideas. Therefore, it is desirable to focus on new platforms for the development of entrepreneurship education and thus support the potential of students.

Why do businesses grow faster in urban areas than in rural areas?

We document that the growth rate of business earnings among young firms is significantly higher in metro areas than in non-metro areas. Agglomeration economies and firm selection (less productive firms are more likely to exit in metro areas) are known to explain a part of the productivity growth in urban areas, but less is known about the role of borrowing constraints. By developing a firm-dynamics model with a location choice, we show borrowing constraints interact with growth and location choices of firms, and contribute to a substantial part of the observed growth-rate difference between urban and rural young firms. Our model suggests the distortion in location choice due to borrowing constraints can induce non-trivial welfare loss.

Taxing Top Earners: The Role of Entrepreneurs

This paper studies the optimal top marginal income tax rate in a quantitative framework with entrepreneurial choice, financing constraints, and realistic earnings and wealth distributions. I find that the revenue-maximizing top tax rate is approximately 41 percent — close to the recent levels in the US. In contrast, when calibrated with only workers to match realistic earnings and wealth distributions, the model predicts a revenue-maximizing top tax rate of 81 percent — close to the established view. There are two channels through which the baseline model has a lower revenue-maximizing top tax rate. First, the wealth distribution channel: increasing the top tax rate decreases wealth accumulation and leads to a less skewed wealth distribution in the long run (there are more top entrepreneurs with low wealth and less top entrepreneurs with high wealth). With financing constraints, there is a similar change in the business earnings distribution, implying a fall in the average business earnings at the top. Second, the general equilibrium effect on labor earnings of workers: in the model with entrepreneurs, increasing the top tax rate reduces the capital stock much more than labor supply, which decreases the capital-labor ratio and thus the equilibrium wage rate in the model economy. Finally, I find that the welfare-maximizing top marginal income tax rate is close to the revenue-maximizing one.