Level Of Net Income Research Articles

Assessing Income and Risk of Incorporating Pine Straw Production into Slash Pine Plantations

Abstract Slash pine plantation economic returns from both timber and pine straw producing perspectives were compared. Bare land values (BLVs) were calculated for site index 65 (base age 25) across three discount rates (4%, 5%, and 6%), three planting densities [545 (8 by 10 ft), 623 (7 by 10 ft), and 726 (6 by 10 ft) trees per acre], and two sets of timber prices (30-year and 10-year averages). Timber yields were obtained from the Cutover Slash Growth and Yield Simulator. Straw yields were estimated stochastically using a two-parameter Weibull distribution based on findings from a summary of pine straw yields and economic benefits in loblolly, longleaf, and slash pine stands. Straw production at an estimated average of 198 bales per acre (13 by 13 by 26 inches) improved net economic returns across all discount rates and planting densities. Increasing discount rates expectedly lowered BLVs. The BLVs varied much less across spacings, with planting at 7 by 10 ft being the preferred option. From 159 to 164 bales per acre were needed for pine straw operations to break even when planting 623 trees per acre depending on the discount rate. The distance from the average BLV to the 90th percentile was greater than the distance from the average BLV to the 10th percentile across strategies. This implied a greater potential existed for pine straw harvesting to improve BLV, but risk associated with a pine straw enterprise could reduce net income levels below simply choosing to forgo this activity.

Local politicians’ perceptions of financial conditions – do they align with financial indicators?

ABSTRACT Throughout history, critics of democracy have doubted people’s ability to govern themselves. For example, are local politicians – who often lack any formal training in accounting or economics – really able to comprehend complex financial information? Previous studies addressing this issue are in short supply, and their results are generally pessimistic. The aim of this paper is to test which – if any – financial indicators are related to local politicians’ perceptions of financial conditions in the setting of Swedish municipalities, thus extending earlier studies to a European context. Our analysis shows strong and significant correlations between most of the financial indicators tested and politicians’ perception of their municipality’s financial condition, including financial indicators capturing the levels of net income, equity ratio and tax rates. These findings provide optimism and strengthen arguments for the defenders of democratic government.

PENGARUH BIAYA PEMELIHARAAN ASET TETAP TERHADAP LABA BERSIH PADA PDAM KOTA CIREBON

In the 2016-2020 period, PDAM Cirebon City suffered losses due to water loss caused by pipe leaks, aged water meters, and illegal water theft. This water loss exceeds the tolerance limit of the national water loss rate of 20%, so the company must carry out maintenance activities. Based on these conditions, researchers want to know the development of maintenance costs, the level of net income and the effect of maintenance costs on net income. The sample used is financial statements for five years from 2016.--2020 using quantitative methods. The analytical test used is the classical assumption test, simple linear regressionqanalysis, Pearson correlation analysis, the coefficientpof determination, and perform the t test. The resultswof this study are the development of fixed asset maintenance costs fluctuated, while net income experienced a gradual increasing trend and maintenance costs had an effect but not significant on net income.

FINANCIAL PERFORMANCE ANALYSIS USING ECONOMIC VALUE ADDED, FINANCIAL VALUE ADDED, AND RETURN ON ASSET IN PT. BUANA

The company has goal of making profit so the company's performance increases well. The concept of measuring financial performance is done by making financial analysis such as measuring company finances with financial ratio analysis. Ratio analysis that can be used by companies is Economic Value Added (EVA), Financial Value Added (FVA), or Return On Assets (ROA).
 This research technique is a comparative descriptive analysis technique. Primary data were collected and obtained through observational interviews, documentation studies and literature studies, secondary data obtained from literature related to the research topic. Financial reports as the object of research.
 The results show the analysis of PT.BUANA's financial performance with EVA measurement has a positive increase from 2019 to 2020. Financial performance with EVA has a positive increase which can prove the company operates consistently. In profit, analysis of PT.BUANA's financial performance with the measurement of FVA experienced a negative decline from 2019 to 2020. A negative decline can prove the level of net income generated by the company cannot cover investment in assets in the company. Analysis of PT.BUANA's financial performance with ROA decreased in percentage from 2019 to 2020. This proves the company's ability to use capital and generate profits has decreased.

Figures of Consolidated Income Statement of the World's Leading Publicly Traded Oil and Gas Corporations

Subject. The article considers the main figures of consolidated income statements of twenty five leading listed oil and gas companies from 2006 through 2018. Objectives. The purpose is to determine the current values of the main components of consolidated income statements of leading publicly traded oil and gas companies, to identify key trends in their change during the studied period, and to establish the factors that led to changes. Methods. The study draws on methods of comparative and financial-economic analysis, as well as generalization of materials of consolidated income statements. Results. The paper determines dynamics of changes in the value of key indicators and their correlation in the structure of income statements in the stock market sector of the industry, establishes the main factors that contributed to this transformation, based on the results of a comprehensive analysis of annual reports of 25 oil and gas companies. It shows a decrease in the sectoral level of net income of shareholders within the framework of the studied period, which occurred against the background of an increase in net revenue from core activities. The main factor behind such changes in the structure of the income statement was the increase in operating expenses outpacing revenue, primarily due to depreciation, depletion and amortization of assets. The strengthening of the role of interest expenses occurred in the stock market sector after the sectoral crisis. The overall reduction in income tax burden is a positive development. A return to the previous structure is possible only with a significant increase in oil prices, a reduction in operating costs, and a decrease in excises, duties and all other taxes not related to income tax. Conclusions. Net income of companies in the stock market sector of the oil and gas industry is decreasing due to an increase in expenses for core activities, which are faster than the growth of the corresponding revenue.

ОСОБЛИВОСТІ ПРОГНОЗУВАННЯ ЧИСТОГО ДОХОДУ ВІД РЕАЛІЗАЦІЇ ПРОДУКЦІЇ (ТОВАРІВ, РОБІТ ТА ПОСЛУГ) В ДІЯЛЬНОСТІ ВИРОБНИЧИХ ПІДПРИЄМСТВ

In this article are considered the basic theoretical and methodological aspects of forecasting, the approaches of foreign and national scientists to the concept of «forecasting», as well as substantiated the necessity of forecasting in manufacturing companies' activities. It has been proposed a number of methods for forecasting the net income from the sale of products (goods, works and services) and has considered the features and conditions of their use. It has been summarized and substantiated the factors which have a direct impact on the net income from the sale of products, works and services of the company. These include the volume of intangible assets, the volume of fixed assets, the volume of current assets, the volume of net worth, the volume of own current capital, the annual inflation rate, and the exchange rate. There was formed the information-digital database (factor and result indicators) for the period from 2012 to 2022 on the basis of the materials of the Private Joint Stock Company «Food company "Podillya». By using the Microsoft Excel software product and specifically one of its «Data Analysis» services, the linear multi-factor model has been calculated. There are presented the results of correlation and regression analysis of the received statistical data for construction of economical and mathematical model and established density and quality of correlation interrelations between the selected factor quantities influencing the level of net income from sale of products (goods, works and services). The created forecast model made it possible to estimate internal and external factors which have an impact on the dynamics of net income from sales of products (goods, works and services). A forecast of the studied indicator in 2022 has been made by calculating the average growth coefficients of the factor indicators. The calculated correlation-regression model can be applied as a basis for the creation of management measures to implement an effective company development strategy in the future and to improve management decision-making approaches based on the results of economicmathematical modelling.

Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region

“Industry prosperity”, as a key content of the Rural Revitalization Strategy, is an effective way to increase farmers’ income, agricultural development and rural prosperity. Cooperatives have the functions of serving, assisting and enriching the people and are an important organizational carrier for achieving rural industry prosperity. This paper uses the propensity score-matching model and the field survey data of Dajiuhu Town, Shennongjia, Hubei Province to study the effect of farmers’ participation in cooperatives on their net income by means of quantitative analysis. The empirical results show that (1) farmers’ participation in cooperatives can improve their net income level; (2) the education level of farmers has a significant effect on their participation in cooperatives; (3) household factors, production and management characteristics and external environment also have an important effect on farmers’ participation. Based on the above conclusions, this research proposes the encouragement of farmers to actively participate in cooperatives, improve their education level, vigorously improve rural infrastructure and enhance farmers’ self-development efficiency to promote the continuous increase of farmers’ incomes, and give rise to the positive role of cooperatives in rural development, in order to realize the revitalization and sustainable development of rural areas.

Is motorcycle e-hailing welfare improving?

The proliferation of motorcycle e-hailing platforms in Indonesia is regarded by many as exerting myriads of benefits for the wider society as its consumers and its driver-partners. However, such online platforms have disrupted their traditional sector counterparts—the offline motorcycle ridesourcing. This paper gauges the impact of motorcycle e-hailing services using the difference-in-difference (DiD) framework using 422 respondents' data from 11 train stations in Jakarta. We provide welfare comparisons between the two groups of motorcycle ridesourcing (offline and online ridesourcing) at two distinct periods: before and after the advent of motorcycle e-hailing platforms. Our results suggest that, first, online drivers who enlisted themselves into the online platforms had come from the lower segments of the offline drivers' income distribution. Second, we also find that the online drivers exhibit higher levels of net income and hourly income than offline drivers, while the job satisfaction levels of these drivers remain unchanged. Third, we find strong indications that, after the proliferation of ridesourcing platforms, offline drivers' incomes have been well reduced even lower than the low performers of offline drivers before the treatment. Finally, while it is economically rational for offline drivers to join the online platforms, this paper has identified several barriers that potentially hamper them in doing so.

CORRESPONDENCE ANALYSIS PADA HUBUNGAN FAKTOR-FAKTOR YANG MEMPENGARUHI PENDAPATAN PETANI KOPI PAGARALAM

Pagaralam is one of the coffee-producing districts in South Sumatra (Sum-Sel). Pagaralam coffee farming is a hereditary business, where the majority of land processing is still traditional. This is related to working capital and farmers' income. This study aims to analyze the factors that affect the income of Pagaralam coffee farmers by using correspondence analysis. There are 30 variables or factors studied. Each variable is divided into several categories. The categories of each variable are described graphically with the categories of income variable. Primary data were obtained from 196 respondents who were selected based on purposive sampling technique. There are 13 factors that affect the income of respondents, namely: number of dependents, number of trees, age of the trees, number of female workers from outside the family, frequency of fertilization, frequency of herbicide application, production of harvest, production outside of harvest, gross income, minimum price of coffee beans, the maximum price of coffee beans, economic status and land productivity. There are 8 of the 13 factors that predominantly characterize the profile of net income level of Pagaralam coffee farmers. In general, the factor that must be considered in coffee farming is land productivity which is also related to production costs in land processing and crop production, as well as external factors regarding the market price of coffee.

Economic Effectiveness and Agricultural Indicators of Combinations Grafting-Varieties of Apple Plants

Research was carried out in the north-eastern part of the republic, in the Khuba-Khachmaz zone. Was carried out a comparative analysis of apple varieties on the different grafting and landing schemes. Namely, on the generative rootstock in the gardens, established in the village of Timiryazev of the Khuba region, according to the scheme 5x4m, in the village of Yeni Hayat of the Khusar region on the grafting M9 according to the scheme 4х1,25м and in the village of Dashliyatakh of the Shabran ragion on the grafting MM106 according to the scheme 5x3 m. The agricultural yield was calculated to the formula, proposed by A.S Ovsyannikov by the formula; Уa= Уs х Sa х N : 100; here Уs - Specific productivity, kg / m2 crown projection; Sa - area occupied by crown projection, м2; N – Number of trees per hectare; 100- for transfer of kg, in centners / hectare. To determine the optimum area for plant nutrition were used generally accepted formula: Sop = (D- 0,3) x (D+2)м2 ; D is the diameter of the crown in the period of full fruiting, м; 2- necessary gleam between rows, м; 0,3- the possibility of penetration of branches into the crown of a neighboring tree, м. Economic efficiency was determined by the method proposed by P. V.Dubrava. The results of research is different combinations varieties-grafting. It was determined that all varieties shows high profitability on different grafting. Also, identified a significant impact of the grafting both to the morphometric parameters, to the productivity and economic productivity of varieties. Varieties on the generative rootstock having a relatively large area of crown projection (11.3 m2), respectively, reduce the productivity of the crown to 3.63 kg / m2, against of, having the smaller area of the crown projection (2.43 ... 7.96 m2) and accordingly high productivity (11.70 ... 5.40 kg / m2) on the clonal grafting as M9 and MM106. Relatively less crown volume creates conditions for reducing the area of supply trees, thereby increase the number of trees per unit area and, accordingly, an increase the agrecultural harvest per hectare. This helps to increase the level of net income of varieties on clonal grafting. They have a net income of 3622.97 .... 16335.91 AZN is more than in the varieties of generative rootstock (3029.57 AZN). Accordingly, indicators of agrcultural produoctivity, in varieties on clonal grafting, vastly more (correspondingly 598.92 ... 352.56 center / ha) than in the varieties on the generative rootstock (247.87 center / ha). At the same time, high and high quality productivity of varieties on clonal grafting contributes to the increase in net income and, together with them, the profitability of production. It should be noted that, the profitability of farming in gardens on generative grafting is 100.06%, then this indicator in apple gardens, on clonal grafting is much higher and amounts of 147.54% on MM106 and 381.14% on M9.

О РЕГУЛИРОВАНИИ УРОВНЯ НАЛОГОВЫХ САНКЦИЙ ДЛЯ ИНДИВИДУАЛЬНЫХ ПРЕДПРИНИМАТЕЛЕЙ

This article examines and analyzes the main parameters of the development process of the system of individual entrepreneurship in the Russian Federation over the past 10 years. Considered in general terms the system of taxes on individual entrepreneurs, operating in the Russian Federation and the features of the system for regulating the level of tax sanctions for individual entrepreneurs. The possibilities of establishing differentiated amounts of payments for individual entrepreneurs and legal entities, as well as their correction, taking into account the average level of net income of entrepreneurs in the Russian Federation, have been analyzed.

Application of fuzzy time series forecasting approach for predicting an enterprise net income level

To ensure the sustainable development of an enterprise, it is necessary to properly analyze the enterprise development, to ground the plans and management decisions on effective diagnostics and prediction of current and future economic situation at the enterprise. The article presents a study on the application of fuzzy time series forecasting methods. A new approach is applied to forecasting an enterprise's net income using a fuzzy technique. For testing the methodology, there were used statistical data on the enterprise net income level of the Ukrainian enterprise from 2002 to 2017. In the method of Stevenson and Potter, it is proposed to use as the universe of discourse, in the process of applying the method for all defined fuzzy sets, the intervals of variation of such indicator as growth rate. The same background as in Stevenson and Porter’s model is used in this article for forecasting the time series levels using the growth rates of the actual data as the universe of discourse. The forecasting results, obtained by this approach, are supposed to have more accuracy rate than other fuzzy time series models. Some modifications of this technique are proposed to obtain a higher accuracy rate and a point forecast one step forward.

Моделювання перспективних систем аграрного вироб­ництва на меліорованих землях Волинського регіону

Goal. To assess the level of profitability of modern crop production practices, to identify the factors influencing this indicator, and offer ways to increase net income from production activities in the reclaimed lands of Volyn. Methods. Multivariate simulation computer modeling of promising options for the development of agricultural production in the reclaimed lands of Volyn region was carried out with the help of the software package “Agroecosystem” using statistical data. Results. Modern agricultural production of crop specialization is characterized by a low level of profitability with significant fluctuations over the years. In the Volyn region on average for 6 years (2011–2016) net profit from growing crops was at the level of 170 USD/ha. The difference between sales revenue and production costs for growing winter wheat varies from 78 to 175 USD/ha with an average value of 134 USD/ha. The close relationship is determined between sales price and cost of grain, as well as the inverse relationship between these indicators and crop yields. This may indicate the existence of factors that limit the profitability of all producers of crop products at a certain level. Significant fluctuations in yield and profitability, on the other hand, are due to changing weather conditions, in particular the deterioration of favorable conditions for crops grown in the summer months, when the likelihood of moisture shortages has increased significantly. Therefore, there is a need for bilateral regulation of the water-air regime of the soil by modernizing reclamation systems. At the current level of net income, the expected amount of capital expenditures will pay off for too long. The transition to the principles of bioenergy diversified agricultural production will significantly increase its profitability with short payback periods. Conclusions. Intersectoral optimization based on restoration of the efficient operation of reclamation systems of the Volyn region, livestock development, flax cultivation and deep processing of raw materials for finished products and bioenergy requires capital expenditures at the level of 13000 USD/ha with an expected net profit of 8000–10000 USD/ha and the payback period of financial resources 2–3 years. Such production systems should be formed based on attracting large investment resources and creating associations of land users within the scope of reclamation systems.

Analisis Pengaruh Tingkat Laba Bersih Dan Ukuran Perusahaan Terhadap Koefisien Respon Laba

Abstract This research aims to test and analyze empirically the effect of the level of net income and company size on the earnings response coefficient of the empirical study of manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2018. This study uses a quantitative approach with the research population, namely companies included in the research. in the manufacturing sector listed on the Indonesia Stock Exchange in 2014, 2015, 2016, 2017 and 2018. Financial report data can be obtained through access to www.idx.co.id. The population in this study were 163 manufacturing companies listed on the Indonesia Stock Exchange in the 2014-2018 period. The number of samples used in this study was 44 company samples. The analysis technique used in this research is multiple linear regression in order to obtain a comprehensive picture of the relationship between the independent and dependent variables. Based on the results of this study, the level of net income has a significant effect on the earnings response coefficient with a significant value of 0.022. Meanwhile, company size has no significant effect on the earnings response coefficient with a significant value of 0.970. Keywords: level of net income; firm size; earnings response coefficient. Abstrak Penelitian ini bertujuan untuk menguji dan menganalisis secara empiris adanya pengaruh tingkat laba bersih dan ukuran perusahaan terhadap koefisien respon laba studi empiris perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2014 sampai 2018. Penelitian ini menggunakan pendekatan kuantitatif dengan populasi penelitiannya yaitu perusahaan-perusahaan yang termasuk dalam sektor manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2014, 2015, 2016, 2017 dan 2018. Data laporan keuangan dapat diperoleh melalui akses ke www.idx.co.id. Populasi pada penelitian ini sebanyak 163 perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia pada periode 2014-2018. Jumlah sampel yang digunakan pada penelitian ini sebayak 44 sampel perusahaan. Teknik analisa yang digunakan dalam penelitian ini adalah regresi linier berganda agar dapat memperoleh gambaran yang menyeluruh mengenai hubungan variabel independen dan variabel dependen. Berdasarkan hasil penelitian ini tingkat laba bersih berpengaruh signifikan terhadap koefisien respn laba dengan nilai signifikan sebesar 0,022. Sedangkan ukuran perusahaan tidak bepengaruh signifikan terhadap koefisien respon laba dengan nilai signifikan sebesar 0,970. Kata Kunci : Tingkat laba bersih; Ukuran perusahaan; Koefisien respon laba.

DU PONT SYSTEM: STUDI KOMPARASI KINERJA KEUANGAN PT. INDOSAT Tbk. dan PT. XL AXIATA Tbk.

The level of competition of telecommunications companies is getting tougher. Net income is one reference to measure the company's financial condition through the company's financial performance. This research will compare the two companies so that it can be known which company performance is better in that year and what influences it. The research method used is a quantitative method with a descriptive approach. This study uses secondary data types obtained from the Indonesia Stock Exchange. Researchers used the DuPont System analysis technique in conducting data analysis. Return on Investment (ROI) in the 2017 and 2019 period PT Indosat Tbk experienced a decline in ROI compared to 2017, this indicates that the level of net income obtained by the company owner for the capital invested in the company decreased. Return on Equity (ROE) in the 2017 and 2019 periods of PT XL Axiata Tbk has increased from 1.69 to 3.7, this indicates that the management of PT XL Axiata is able to provide better gains for shareholders.

MOTIVASI PETANI DAN TINGKAT ADOPSI TEKNOLOGI TERHADAP PENDAPATAN USAHATANI KACANG TANAH PADA PERTANIAN LAHAN KERING

The motivation of farmers in adopting groundnut cultivation technology, especially relay cropping patterns technology of corn and groundnut on dry land is relatively low. The study aims to determine the motivation of farmers in adopting groundnut cultivation technology that can increase farmers' incomes. The study was conducted in Labangka Subdistrict, Sumbawa Regency from December 2016 until August 2017 using survey approach. Data collection techniques carried out by observation, recording, and in-depth interviews with respondents. The sample population who adopted corn relay cropping pattern with groundnuts was 276 people. Determination of the sample of respondents was purposive as many as 40 people. Data were analyzed using descriptive analysis method. The results showed that the motivation of farmers in adopting technology was 79,29%. The adoption rate of groundnut technology components was 81,39%. Net income level or profitability of groundnut farming produced in the rainy season averages Rp 9.967.500/ha with an R/C Ratio of 2,65. Net income level or profitability of groundnut farming cultivated in the dry season averages of Rp 8.517.000/ha with an R/C ratio of 3,34. The R/C ratio value is more than 1 on groundnut farming that are cultivated in rainy season or in dry season are feasible to be cultivated because it can provide benefits and high income.

Wer pflegt wann und wie viel? Eine Bestandsaufnahme zur häuslichen Pflege in Deutschland

German society is ageing and the need for nursing care is increasing. In 2017, just under 5 million people claimed to be providing nursing care in a private setting. An analysis of the data from the Socio-Economic Panel provides a heterogeneous picture of how the home care burden is shared. Most carers are of working age and the majority are working part-time, though there are also many in fulltime jobs. However, those who are not in paid employment spend significantly longer hours nursing. More women of working age than men are looking after a relative, and on average women also spend more time nursing, although among older cohorts the difference between the sexes is less marked. While the proportion of home carers differs only slightly in relation to net income, it rises significantly with the level of net assets. However, the average number of hours of care provided is in inverse proportion to the level of net income or net assets. As the population ages, it is becoming increasingly important to adapt the conditions that our society and companies provide for home nursing accordingly. If the political objective is to enable those in need of care to remain in the home environment as long as possible, the compatibility of work and family life - and this means taking care not only of children but also of infirm relatives - must be further improved.

Comparative Analysis of Current Trends in Wage Dynamics in Ukraine and in the European Union

The purpose of the current research is the systematic analysis of the current state of the labor market in Ukraine in the context of the regional wage formation. Detailed literature reviews indicated lack of research on wage dynamics in Ukraine, which determines the relevance of the conducted study. During the research, the following methods have been used: general scientific methods of system analysis and synthesis; generalization, systematization, and grouping of data; modern statistical and mathematical instruments, in particular, methods of the system dynamics. Study results. The comprehensive empirical assessment of the wage dynamics revealed the presence of the significant gap in the labor market development between Ukraine and European countries. Similar findings were also confirmed by the estimation and realization of the elaborated system dynamic model of the Ukrainian labor market. Overall, there are several possible explanations of the occurred regional wage divergence in the labor market. On the one hand, it may be caused by the huge variation in housing costs between regions. The cost of living in metropolitan areas, innovation centers and business areas are much higher than in the periphery in Ukraine. On the other hand, not all factors are appeared to be mobile across regions. Moreover, it was also interesting to analyze structural changes in employment across all Ukrainian regions. Calculation of the CSC correlation value indicated that Ukrainian regions have experienced different scale of structural shifts in employment affected by macroeconomic and financial instability. Conclusions. An empirical assessment of the wage dynamics over the years and testing of the wage convergence hypothesis showed that EU members demonstrate income converging pattern: those with the lowest initial net income level (Romania, Bulgaria, Baltic states, Hungary, etc.) demonstrated the highest growth rate in wages. In contrary, regional wage analysis revealed that in Ukraine the highest growth rates are presented in the most industrially developed regions, such as Kyiv, Zaporizhzhia, Dnipropetrovsk, Donetsk, Luhansk (before ATO), Mykolaiv, etc. Such the pattern is called wage divergence and it is not a favorable phenomenon in the context of the sustainable regional development of the country. This trend only exacerbates existing internal imbalances in the regional development of Ukraine: highly developed regions and agglomeration continue to develop at a rapid pace, while the periphery is in a situation of economic and demographic stagnation. Consequently, the main goals of the state policy in the field of labor market stabilization should be enhancing wage bargaining by efficient activity of the trade unions; advanced revision of the tax legislation in order to formalize the shadow share of the labor market; the reduction of unemployment through the efficient use of labor resources and the creation of new jobs, which will favorably contribute to the country’s economic growth in the future.Article received 10.04.2019

Speed of Adjustment in Dividend Payout Decisions: A Comparative Analysis of Developed and Developing Countries

The analysis of dividends payout policy has been apopular subject of research since the middle of the 20thcentury. Despite a huge number of investigations thereis no consensus opinion as to the best practices in thefield. Over the years, different hypotheses have been putforward proposing various methodologies. Some workingpapers underline share repurchase as the best approachtowards payout policy [1]. On the other hand, there aresome investigations which emphasize the opposite pointof view: that dividends are more preferable [2]. Anotherexplanation states that there is no qualifiable difference intypes of payout policy [3]. However, the majority of recentworking papers argue that the best approach is to combine share repurchases and dividends [4].Academic investigations into payout policy began withLintner’s working paper [5]. This research includes notonly financial modeling and results based on regression analysis, but also presents information concerningthe preferences of top-management in payout policydecisions. As a result of interviews with top managers,Lintner identified the existence of a target value fordividend payouts. So, managers tried to maintain theshare of net income attributed to dividends instead ofthe value of dividends themselves. Moreover, Lintnerfound that there is a pertinent speed of adjustment1individend policy. This phenomenon is described by thefact that in case of significant net income changes, firmsdo not pay all the dividends targeted at a specific level ofnet income. Companies only adjust the level of dividendsin the direction of the changes. Lintner also providedan explanation of this fact. It was noted that companies’top management was sure that significant changes in dividends can be negatively appraised by the stock market,especially in case of a fall in the value of dividends. So,managers understate the changes in dividends to betterassure that next year’s profit can cover the new dividends. However, next year’s net income also incurs somefluctuations, so it it is necessary to make some adjustments to dividends. As a result the process of dividendadjustment becomes permanent.The investigation of Brav et al. [6] also was devoted to theanalysis of payout policy, and included interviews with alarge number of CFOs. This research confirms the mainresults of Lintner’s work, but with some limitations. Thestudy carefully analyzed the existence of any target level inpayout decisions. The authors found that only 6% of CFOsdo not target dividends at all. However, in contrast toLintner’s work the majority of CFOs (approximately 40%)answer that their key target is dividends per share. Only28% try to target a dividends payout, and 27% of managers target dividends per share growth. This investigationshows that nowadays, targeting dividends per share is amore common practice than targeting payouts. Despite the fact that these results display some differences fromLintner’s one, they do not reject the hypothesis aboutexistence of dividend smoothing.

Does Management Accounting Information Meet the Needs of SMEs? An Investigation of Its Usefulness from Manufacturing Enterprises

The use of appropriate management accounting techniques for the problem at hand are useful to managers. This study describes the level of usefulness of management accounting tools (MATs) used, test the relationship of MATs used to net income and capital, test of difference between the level of its usefulness and the difficulties encountered in applying the tools. Questionnaire survey was used to obtain information from manufacturing sector. Frequency, median, Spearman Rho and Mann-Whitney U were utilized to analyze the data. The study suggest that medium firms utilized more tools than small enterprises. Statement of cash flow analysis, capital budgeting decisions and financial budgets were considered as the very useful tools used. Likewise, the study developed significant relationship between selected variables of size, level of net income and level of capital to the level of its usefulness for medium-sized enterprises and sufficient to create significant difference between the levels of its usefulness. Lack of qualified employees and its use are not deem necessary as to the nature of the enterprise operations ranked as the top barriers encountered in applying the tools. Therefore, the appropriateness of management accounting information depends upon the operating activities, strategies and the size of the organization.