Profit Sharing Research Articles

Comparative Analysis of the Profitability of Major Value-added Activities Along the Pineapple Value Chain in Ghana

This study aimed to analyze the profitability of sampled pineapple farmers, processors, and marketers in Ghana, which will help to assess how these actors optimize available resources to generate profits and achieve production efficiency. A cross-sectional descriptive survey design was used with interview schedules as the data collection instruments. The sample size was 320, 66, and 169, pineapple farmers, processors, and marketers respectively. The study found that pineapple production and processing were profitable, but marketing was not. The results showed a significant difference in the profit share of the group actors, highlighting that the profit share of each actor along the pineapple value chain is different. The results also showed that income, capital, and planting materials were the main determinants of farmers' profits. On the other hand, capital, pineapples, and packaging materials were the predictors of processors' profits. While transport, revenue, and loading and unloading costs predicted the marketer's profit. Based on these findings, the study recommended that NGOs and other partner agencies promote the pineapple industry in various ways to reduce poverty by providing credit facilities to actors to increase their productivity, profitability, and sustainability.

Profit produced by post-pandemic inflation: Evidence from an emerging economy

This paper focuses on the post-pandemic inflationary context, providing further details on how rising corporate profits contribute to the inflationary process in Türkiye. Using quarterly data from 2010 to 2022, we extend the existing literature by employing the Quantile ARDL method to assess the roles that both cost-push and demand-pull factors play in post-pandemic inflation. The chosen empirical strategy is motivated by the main objective of the study, as it allows us to quantify how the factors contributing to inflationary process differ when comparing periods of high inflation (higher quantiles) with periods of low inflation (lower quantiles). The empirical findings support the idea that the drivers of Turkish inflation are context-dependent, with specific causes emerging during inflationary episodes. The results show that cost-push factors, rather than demand-pull factors, are the main cause of the post-pandemic inflation surge in Türkiye. Our estimation results show that the coefficient for interest rates in Türkiye is only -0.42 %, while the corresponding figure for the profit share is 5.26 %, indicating that the effect of the profit share is 12 times greater than that of interest rate. We also find evidence of conflict and profit-driven inflation, confirming that the post-pandemic inflation surge in Türkiye is largely driven by cost-push factors and rising profits.

Pengaruh Pelayanan dan Nisbah Bagi Hasil terhadap Minat Menabung Nasabah pada Bank Sumut Syariah Panyabungan

The aim is to determine the significant influence of Service and Profit Sharing Ratio on Customer Saving Interest at Bank SUMUT KCPSy Panyabungan. This research uses a quantitative description method. Sampling was taken using a simple random sampling technique, by distributing questionnaires directly to 98 respondents. With the help of SPSS version 25. The research results are based on SPSS calculations that service influences customers' interest in saving. This is proven by the calculated t value being greater than the t table, namely: (2,329 > 1.895) with a significant value of 0.022 < 0.05, and the profit sharing ratio influences customers' interest in saving. This is proven by the calculated t value being greater than the t table, namely: (2.258 > 1.895) with a significance value of 0.026 < 0.05, then it can be concluded that the Profit Sharing Ratio (X2) variable has a positive and significant effect on the customer's interest in saving variable. (Y). This is proven by the calculated F value of 5.654 > 3.092, a significant value of 0.005 < 0.05.

Enhancing supply chain resilience through risk mitigation strategies: Evidence from smallholder red chili supply chains in East Java Indonesia

The cultivation of red chili in East Java, Indonesia, has significant economic and social impacts, necessitating proactive supply chain measures. This research aimed to identify priority risk agents, develop effective risk mitigation, and enhance supply chain resilience using the SCOR model, House of Risk, Interpretative Structural Modelling (ISM), and synthesis analysis. Examining 238 respondents—including farmers, collectors, wholesalers, retailers, home-agroindustries, and experts—the findings highlight farmers’ critical role in supply chain resilience despite risks from crop failures, weather fluctuations, and pest infestations. Simultaneous planting led to market oversupply and price drops, but accurate pricing information facilitated quick market adaptation. Wholesalers influenced pricing dynamics and income levels, impacting farmers directly. To improve resilience, three main strategies were developed through ten key elements: proactive strategies (real-time SCM tracking, Weather Early Warning Systems, risk management team formation, and training), resistance strategies (partnerships, chili stock reserves, storage and drying technologies, GAP implementation, post-harvest management, agricultural insurance, and Fair Profit Sharing Agreements), and recovery and growth strategies (flexible distribution channels and customizable distribution centers). Furthermore, the study delves into the mediating and moderating effects between variables within the model. This research not only addresses a knowledge gap but also provides stakeholders with evidence to consider new strategies to enhance red chili supply resilience.

Reconstruction of the Mudharabah Financing Agreement at Bank Syariah Indonesia

This research was motivated by the lack of maximum mudharabah financing due to the high risk experienced by Islamic banking. In addition, Islamic banks are extra careful in channeling mudharabah financing. This study aims to find out what the results of the reconstruction of mudharabah financing look like. Relating to rebuilding the mudharabah contract, the aims and practices align with what is determined in accordance with the basic principles of Islamic banking. Researchers use qualitative phenomenological approaches that are descriptive, analytical and inductive. This research seeks to explore data to find the basics of phenomena, reality and experience. This research uses documentary studies and studies of theories to explain and conclude the problems raised. This research is descriptive, which means it describes or describes a situation, symptoms, and events. In this case, to find out problems related to the status of Islamic banking as shahibul mal in the mudharabah contract that occurred at Bank Syariah Indonesia (BSI) Regional South Sulawesi. From various related information, from references that discuss mudharabah transactions and their application in Islamic banking that occur at Bank Syariah Indonesia (BSI) South Sulawesi Regional. This study concluded that the reconstruction carried out at BSI still did not go as expected. There are still many obstacles faced, including in determining profits. Meanwhile, the mudharabah contract applied at BSI is free from maysir, gharar, and usury elements—Mudharabah financing practices. The profit-sharing ratio given to mudharabah financing benefits both banks and customers. Profit sharing system where operational costs must reduce the profit earned by the fund manager and must also return the funds provided by shahibul maal therefore the profit obtained by the mudharib is by what is agreed. Various customers have felt this financing because customers who previously did not have the capital to do business with this financing customers can have capital provided by the BSI Regional South Sulawesi Bank. In practice, the distribution of profits between the two parties is based on a pre-agreed ratio. The ratio is the share of business profits for each party whose amount is determined based on the agreement. The partnership relationship in mudharabah financing is a collaboration between shahibul maal to provide funds. In contrast, the other party, mudharib, provides his mind, energy, and time to manage the cooperation business. The most important element in mudharabah financing cooperation is trust. This belief is mainly from shahibul maal to mudharib. Shahibulmaal should act as a supervisor to the mudharib to avoid business risks. The author advises BSI always to supervise customers when managing funds provided by banks in order to create transparency between the bank and customers. The bank should analyze the character and ability of prospective customers first before providing financing to customers to run a business and manage the funds provided by the bank, in order to minimize losses obtained by shahibul mall and can establish transparent cooperation and in accordance with Islamic economic principles

Financial uncertainty of a startup

This article discusses the transformation of the system of attracting investments in startups. The process of finding an investor for a startup has had a difficult path of formation in recent years. An entrepreneur’s interest in different sources of investment is associated with determining their possibilities for implementing the chosen business idea. For various purposes, businesses need different types of investments: loans, credits, sale of shares or stocks. The search for an investor for a startup and their attraction is associated with specific requirements for an entrepreneur, which are practically not written about in the media and advertised. The article focuses on the types of finance involved in business. The issues of the difference between grant financing of a startup and the process of searching and attracting an investor are raised, since the requirements from the grantee fundamentally change the requirements for specialists who should be involved in the work and the requirements for maintaining the financial stability of an organisation. The authors also consider the professional platforms for investors that have developed in Russia and the forms of investment relations: in exchange for receiving a share of profits; in exchange for a share of the proceeds.

Understanding Market Dynamics and Profitability in Small Ruminant Marketing: An Economic Analysis in Southern Karnataka, India

Small ruminants, particularly sheep and goats, play a crucial role in India's agricultural economy, serving as a significant source of income and livelihood for millions of small and marginalized farmers. In regions like Southern Karnataka, where livestock farming is integral part of rural households as they are not only a source of meat, wool, and milk but also provide financial security during times of economic distress. Despite their importance, the marketing of small ruminants remains largely unorganized, posing significant challenges for farmers. The marketing of small ruminants such as sheep and goat involves the procurement of animals at primary markets from farmers, selling these animals at local markets, and further distribution to terminal markets through wholesalers or commission agents. For sheep and goat farmers, selecting the appropriate marketing channel is crucial, as the benefits they receive are largely dependent on this choice. The chosen channel must minimize marketing costs while maximizing the farmer's share of the consumer's rupee. So, this study was undertaken focusing on analysing the existing marketing channels for small ruminants in Karnataka, particularly sheep and goats, and to evaluate the cost structure of different marketing channels, understand the role of middlemen, and propose measures to reduce marketing costs and improve the farmers' share of profits. In the study area, four primary marketing channels were identified: (1) Farmer → Village Trader → Wholesaler/Butcher, (2) Farmer → Local Trader → Wholesaler/Butcher, (3) Farmer → Local Trader → Farmer, and (4) Farmer → Wholesaler → Distant Trader. The cost of marketing is a significant concern for sheep and goat farmers, encompassing expenses such as transportation, feeding, market fees, middlemen charges, personnel expenses, and loading/unloading fees. The average marketing cost per animal across various channels was ₹91.71, with transportation costs making up the largest portion (49.61%), followed by feeding costs (14.72%) and middlemen charges (17.01%).This highlights the challenges related to high transportation costs and inadequate market facilities, particularly for sheep and goat marketing. So, to improve the marketing efficiency and reduce costs for sheep and goat farmers, there is a need for the establishment of regulated markets for livestock and enhancing the transportation facilities in the rural areas to help farmers realize better prices for their small ruminants.

Cost-Push and Conflict Inflation: A Discussion of the Italian Case

ABSTRACT This study contributes to the ongoing discussion surrounding the recent surge in inflation. It presents an analytical framework and empirically examines inflation trends in Italy. The primary aim is to identify the underlying causes, distributive repercussions, and mechanisms through which inflation is propagated. We adopt a cost-push and distributive conflict perspective on current inflation. Within this perspective, some contributions argue for profit-driven inflation, while others dispute this interpretation, emphasizing that increases in the profit share, amid rising import costs do not necessarily imply heightened overall profitability. To clarify these issues, the paper puts forth an analytical framework that shows how escalating import costs can affect profit shares and set in motion a period of inflation propagation, even in the absence of a wage-price spiral. Turning attention to the Italian context, the study utilizes descriptive statistics, sectoral data, and simple simulations to gain insights into the drivers of inflation and its distributive consequences. Additionally, a local projections analysis is deployed to uncover the nature and timing of the propagation process. The paper concludes with some policy implications based on the findings.

Loss Mitigation Strategies in Sharia Commericial Banks in Indonesia

This research aims to determine the effect of Profit-Sharing Financing, Financing to Deposit Ratio (FDR), and Non-Performing Financing (NPF) on Profitability because there are several deviations in theory and there are still ratios in variables that do not comply with standards so this research is needed. This type of research is quantitative using secondary data. The population of this research is Sharia Commercial Banks in Indonesia and there are 9 samples selected using the purposive sampling method. The data analysis techniques used are descriptive statistics, panel data regression test, classical assumption test, hypothesis test and coefficient of determination using the Eviews 12 application. The results of this research show that partially the Profit Sharing Financing variable has no effect on the Profitability of Indonesian Sharia Commercial Banks, the Financing to Deposit Ratio (FDR) variable has a significant effect on the Profitability of Indonesian Sharia Commercial Banks, the Non Performing Financing (NPF) variable has no effect on the Profitability of Indonesian Sharia Commercial Banks, and simultaneously Profit Sharing Financing, Financing to Deposit Ratio (FDR), Non Performing Financing (NPF) has a significant effect on the Profitability of Indonesian Sharia Commercial Banks. Profit Sharing Financing in this period is considered still low so it cannot influence the Profitability variable and the Profitability variable can be influenced by other financing. A balanced or high FDR can reflect efficiency in managing funds. using customer savings funds, so that banks can reduce their capital costs, which affects the ups and downs of profit margins and profitability, and effective risk management is one of the reasons why NPF has no effect on profitability.

Profit Sharing System between Owners and Managers of Oil Palm Plantations at Sungai Kayu Aro Village

Not all landowners (farmers) are able to manage and cultivate their own land, so to overcome this, landowners and managing farmers enter into a cooperation agreement with a profit-sharing system. This study aims to determine the profit-sharing system, obstacles and solutions for profit-sharing between oil palm plantation owners and managers in the Sharia Economic Perspective in Sungai Kayu Aro Village, Senyerang District, West Tanjung Jabung Regency. The approach method uses qualitative analysis of primary data. The sample consists of plantation owners, plantation managers, and community leaders and government figures. Data collection methods use observation, interviews and documentation. Data analysis tools; data reduction, data display, and conclusions. Based on the results of observations and interviews in the field, it was found that the obligations between owners and managers include (a) owner obligations; provision of land, provision of grass, provision of seeds, and provision of fertilizer (b) manager obligations; provision of land processing tools, provision of maintenance tools, and provision of fertilization tools. The constraints of managers are only having limited capital and having to bear damage to equipment. The profit-sharing system between owners and managers includes; (a) first, 50% owner and 50% manager, with the note that the capital, equipment and damage are borne by the manager, (b) second, 65% for the owner and 35% for the manager, with the note that the owner bears the costs, while the manager bears all costs of damage to the equipment

Why right-wing governments restrict market competition: a demographic theory

Abstract Recent scholarship on the evolution of neoliberalism points out that, despite free market discourse, right-wing rule has often resulted in re-regulation and further market concentration, to the advantage of large corporations. This article argues that such an outcome is not an inevitable result of right-wing incumbency. Instead, I identify an exogenous, demographic, change that prompts right-wing governments to increasingly embrace market concentration: the aging of the workforce, which has intensified the substitution of capital for labor, and as a result, somewhat paradoxically, reduced the amount of pure profits that can be distributed to wealthy households. In response, right-wing governments restrict competition to shore up pure profits. Drawing on data from 14 to 20 OECD countries, I show that as workforce aging intensifies, right partisanship becomes increasingly associated with more regulatory restrictions on competition, greater market concentration, and a greater pure profit share of income.

Efficiency and equity: A general equilibrium analysis of rent‐seeking

AbstractWe study the rent‐seeking phenomenon using a simple, static general equilibrium model. The economy consists of two sectors, both employing a constant returns‐to‐scale technology with labor as its sole input. One of the sectors is a monopoly, where a continuum of agents compete for a share of monopoly profits (i.e. rent). Agents are heterogeneous in labor productivity and rent‐seeking ability: they face a choice between engaging in (productive) work or vying for a share of the rent (i.e., a contest against other rent‐seekers). At the aggregate level, rent‐seeking reduces the available amount of labor in the economy and thereby lowers output and welfare (rent‐seeking is inefficient). At the individual level, rent‐seeking shifts income towards rent‐seekers. Consequently, an economy with few rent‐seekers tends to have high income inequality: an effect that is exacerbated by the fact that rent is decreasing in the number of rent‐seekers (low levels of rent‐seeking increase inequity). This tradeoff between efficiency and equity is the primary focus of this paper. We investigate how the distribution of rent‐seeking ability and the correlation between labor productivity and rent‐seeking ability shape this tradeoff.

ANALYSIS OF THE EFFECT OF RETURN ON ASSET (ROA), OPERATIONAL COSTS AND OPERATING INCOME (BOPO) ON MUDHARABAH PROFIT SHARING IN SHARIA GENERAL TIRES FOR THE 2015-2020 PERIOD

This study aims to determine the retrun on asset (ROA) and operational costs and operating income (BOPO) on the profit sharing of mudharabah in Islamic commercial banks in Indonesia. The population uset in the study were 30 banks listed on the IDX and the total sample used 7 banks. In determining the sample, it uses random sampling with the criteria of Islamic banks that issue complete financial statement from 2015-2020. The analysis technique in this research is multiple analysis technique in order to get a comprehensiv picture between the relationship between one variable and another variable. In addition, the hypothesis test used is the t-test and f-test. Classical assision test which includes normality test, multicolinearity tets, heteroscedasticity test and autoccorelation tets were also used in this study. The results in this study show that the retrun on asset does not significantly affect the profit sharing of mudharabah, while operating costs and operating income also have no significant effect on the profit sharing of mudharabah. Keywords: Mudharabah Profit Sharing; Operating Costs; Operating Income; Retrun On Asset

70 years of US corporate profits

We construct and compare aggregate measures of profits for the U.S. non-financial corporate sector over the period 1946–2016. The measures commonly show that the profit share is declining from 1946 to the early 1980s and has been increasing since. As a share of gross value added, profits today are higher than they were in 1984, but lower than their value in the years after World War II.

How does the power structure affect the acquisition price and inventory decisions in the reverse supply chain

With growing concerns about environmental sustainability, reverse supply chains play a crucial role in recycling, remanufacturing, and reducing waste. Investigating the power structure’s impact on decisions related to acquisition prices and inventory management can provide insights into the integration of sustainable practices. This study analyzes a reverse supply chain with a supplier and a remanufacturer, in which the supplier provides the remanufacturer with sorted used cores. We investigate the acquisition pricing and inventory decisions under different power structures (supplierled Stackelberg model, remanufacturer-led Stackelberg model) through game theory analysis. We first establish the centralized model to explore optimal acquisition decisions and profit of the total system. Then we evaluate the acquisition quantity, wholesale prices, the profit of supplier and remanufacturer in the supplier-led model and in the remanufacturer-led model. Finally, the impact of power structure on the performance of supplier and remanufacturer are explored by numerical analysis, as well as the supply chain system. Our significant findings show that (i) the total profit of the supplier-led and remanufacturer-led reverse supply chain are less than the centralized model due to the double marginalization; (ii) the remanufacturer-led reverse supply chain is superior to the supplier-led model reverse supply chain; (iii) the selected grades in the supplier-led model is proved the same as that in the remanufacturer-led model, which could not been affected by the wholesale price; (iv) the greater the inventory risk (the uncertainty in demand), the greater the profit share for the remanufacturer (supplier) in the supplier-led (remanufacturer-led) model.

Determinants of Poverty Levels In Terms of Regional Revenues and Expenditures in Regency/City Jambi Province 2017-2022

The aim of this research is 1) To analyze the development conditions of poverty levels, local original income, general allocation funds, special allocation funds, profit sharing funds, capital expenditures and expenditures on regency/city goods and services in Jambi Province for 2017-2022. 2) To analyze the influence of Regional Original Income, General Allocation Funds, Special Allocation Funds, Profit Sharing Funds, Capital Expenditures and Goods and Services Expenditures on Regency/City Poverty Levels in Jambi Province in 2017-2022. The type of research used is descriptive and quantitative population research in this research is all districts/cities in Jambi Province, data collection techniques are indirect observation and library research (library study). The type of data used in this research is secondary data. The data analysis technique in this research uses panel data regression. The research results show that Original Regional Income has a negative and insignificant effect on the poverty level, meaning that if local original income increases, the poverty level will decrease. General Allocation Funds have a negative and significant effect on poverty, meaning that if general allocation funds increase, the poverty level will decrease. Special Allocation Funds have a negative and significant effect on poverty, meaning that if special location funds increase, the poverty level will decrease. Profit Sharing Funds have a negative and significant effect on poverty, meaning that if profit sharing funds increase it can reduce poverty rates. Capital expenditure has a negative and insignificant effect, meaning that if capital expenditure increases, the poverty level will decrease but not significantly. Expenditure on goods and services has a negative and significant effect, meaning that if expenditure on goods and services increases, the poverty level will decrease.

The Effect of Profit Sharing Rate, Interest Rate, and FDR on Mudarabah Financing

The Effect of Profit Sharing Rate, Interest Rate, and FDR on Mudarabah Financing

Interest Saving In Islamic Banks: Profit Sharing, Religiosity, Product Diversity, And Moderation By Promotions

This research aims to analyze the influence of profit sharing, religiosity, and product diversity on interest in saving at Islamic banks, with promotion as a moderating variable. The population of this research is students at private Universities in Central Java, with a total of 465,584 people, according to the latest source from Central Statistics Agency Central Java. The sampling technique used random sampling with a sample size of 100 people after being measured using the Slovin approach. The analysis technique for this research uses multiple linear regression and moderated regression analysis (MRA). The data is processed using IBM SPSS 25 software. This research shows that partially profit sharing, religiosity, product diversity, and promotion positively and significantly affect interest in saving at Islamic banks. Promotion can moderate the relationship between profit sharing and religiosity on interest in saving at Islamic banks. However, promotion cannot moderate the relationship between product diversity and interest in saving at Islamic banks. This research can complement existing theories and be a reference source for further research. It can also be a source of information for Islamic banking to increase customer interest in saving through profit sharing, religiosity, and diversity of products and promotions.

Sellers' Inflation and Distributive Conflict: Lessons from the Post-COVID Recovery

ABSTRACT The paper offers a post-Keynesian explanation of the soaring inflation experienced during the post-COVID recovery, coherent both at the microeconomic and macroeconomic levels. The microeconomic argument is rooted on the premise that price-making firms consider both their costs and their desired share of profits when setting prices. To defend profit margins in the aftermath of the pandemic, the initial cost-push shock was passed to consumers through higher prices; in a second phase, some firms, particularly in more highly concentrated and systemically significant sectors, benefited from the post-pandemic permissive pricing environment to increase their price mark-ups, leading to temporary profit-fueled inflation following the cost-push shock. This microeconomic explanation is compatible with the macroeconomic notion of a stable inflation barrier. For a given quantity of real output, it is shown that if profit earners defend their share of income following a cost-push, this will produce a one-time price increase, with inflation becoming more persistent if the target adapts endogenously — i.e., if the aggregate mark-up changes. The paper contrasts the notion of a wage-price spiral with that of a profit-price sink, arguing that sellers' inflation is a real — albeit temporary phenomenon.

Analyzing the Eucalyptus Timber Value Chain in Thailand: Profit Distribution and Opportunities for Improvement

The Thai forestry sector relies greatly on Eucalyptus as a raw material. The rapid expansion of plantations during the last few decades and the high demand for Eucalyptus for several purposes has led to numerous supply chain practices. A comprehensive understanding of the Eucalyptus value chain is lacking in Thailand, which has consequences for optimization, sustainability, and profitability aspects. This study analyzed actors and their activities along the value chain and estimated added value and profit margin benefit distributions. The study method involved a value chain analysis approach, whereby input data were collected from the following groups: seedling suppliers and developers, farmers and tree growers, timber traders and collectors, intermediaries, processors, wholesalers, and consumers via key informant interviews, in-depth interviews, and group discussions. The results revealed the vertical integration of Eucalyptus timber businesses, where sapling breeders were the major input suppliers with a significant role in the value chain based on the role of controlling the majority of seedling production, promoting cultivation, and ensuring the raw material supply for the pulp industry through a full-cycle membership program. Total gross marketing margin was highest (90.6%) in the path of the pulp mill industry and lowest in the path of the biomass power plant (73.4%). The profit share of growers varied between 9.9% and 26.6% depending on the path and chain. The overall benefit distribution analysis demonstrated a positive gross profit margin but minor distribution to the growers. Our study determined that decision-makers should create supportive programs, funding opportunities, and infrastructural support for research and development, capacity building, and regulation to ensure suitable benefits for all actors in the Eucalyptus timber value chain in Thailand.