Revenue Ratio Research Articles

Determinants of Tax Revenue: A Comparison Between ASEAN-7 Plus China And 8- European Countries

The aim of this paper is analyzing the level ratio of tax revenue and GDP depending on different consumer behaviors between two groups of countries: ASEAN-7 plus China (called the Eastern) and eight European countries (called the Western). The study applied the Feasible Generalized Least Square model to confirm the robustness of the Panel Corrected Standard Errors model, and the results indicate that all countries have a positive association between tax revenue with the human capital and FDI variables. In addition, in the Eastern, forest area and broad money has a statistically significantly positive impact on tax revenue while gross savings has a negative one. Further, the Western witnessed the positive impact with gross savings while broad money variables lead to a decrease in tax revenue. The major results indicate that in the East, the Governments should focus on how to improve their taxation by promoting the broad money - M2 and expanding the forest area as well as support their consumers spending more instead of saving. In contrast, European countries try to reduce the M2, encouraging their consumers to save more. The Eastern and Western governments may control natural and demographic determinants aimed to support taxation and sustainable economic growth.

The General Allocation Fund (DAU) Formulation Policy: Incentives or Disincentives to the Fiscal Independence of Local Governments

The implementation of fiscal decentralization in Indonesia is expected to improve economic welfare for the people in the regions because it can bring the government closer to the community in providing public services according to people's preferences. As a consequence of decentralization, the central government provides transfer funds to local governments. The amount of transfer funds to local governments is around thirty percent of total National Budget (APBN), excluding central expenditure funds allocated to regions. Central government expect the fiscal dependence of local governments to be reduced. In fact, since regional autonomy was implemented in 2001 until 20 years later, regional independence has never been achieved. Ratio of local revenues (Pendapatan Asli Daerah,PAD) to total revenues in Regional Budget (APBD) ranged from 36.8 percent in Java to only 6.1 percent in Maluku and Papua., the rest still expects transfer funds from the central government. It is suspected that regional independence is closely related to the formulation of the General Allocation Fund (Dana Alokasi Umum, DAU) where PAD is a component of reducing DAU in the formulation. It can be seen from this formulation that the central government has ambiguous policies. On the one hand, it punishes local governments whose PAD efforts are high by providing a smaller DAU, but on the other hand they hope that the regional fiscal dependence will be decrease through an increase in PAD. When there is a view that the effort to collect local taxes is not an important factor for the regions, the regions will prefer to receive a higher DAU rather than increasing their tax collection effort but reducing the DAU. This study will try to analyze the efforts of local governments and will examine the data on variables related to the DAU whether it is consistent with its formulation. Through Weight Least Square (WLS) analysis which is more suitable for heteroscedasticity data that may arise from the diversity of data between regions, this study will see whether the DAU formulation becomes an incentive or disincentive for regional fiscal independence through increasing PAD. The results showed that the PAD variable had a negative relationship with DAU. This means that the DAU formula actually becomes a disincentive for regions to increase their PAD. The greater the PAD, the smaller the DAU received by the local government. Review this policies or reformulate the DAU formulation in accordance with the principles of local government fiscal independence need to be implemented immediately.

THE EFFECTS OF SELECTED FINANCIAL RATIOS ON PROFITABILITY: AN EMPIRICAL ANALYSIS OF REAL ESTATE FIRMS IN VIETNAM

The paper examines the determinants of profitability of real estate companies by using panel data of Vietnamese listed companies on the Hanoi stock exchange (HNX) and Ho Chi Minh City stock exchange (HOSE) from 2007 to 2020. Profitability ratios are measured by return on assets (ROA) and return on equity (ROE). The results indicate that the cost on revenue ratio, debt-to-equity ratio and the crisis and COVID-19 pandemic are negatively correlated with firm profitability. Meanwhile, the sales to current assets ratio, money supply growth rate and economic growth rate (GDPG) provide a positive correlation with profitability. We find that firm size and equity to total assets have positive effects on ROA, while there is a negative relationship between equity to total assets and ROE, and not enough evidence to conclude how firm size affects ROE. The study thereby provides suggestions and recommendations for the administrators of the government, real estate companies and investors in Vietnam.

Analysis of Regional Tax Potential of Pamekasan Regency

Fiscal decentralization is a critical element in the implementation of regional autonomy where the central government gives authority to local governments to manage their finances independently. Pamekasan regency is one of the region that has succeeded in increasing the ratio of local own-source revenue (Pendapatan Asli Daerah/PAD) by rising the potential of its regional tax sector. However, several problems arising may cause inaccuracies in collecting local tax revenues. This study aims to analyze the potential loss of local taxes in Pamekasan regency. A qualitative approach sourced from primary data (interviews or filling the questionnaires) and secondary data (obtained and recorded by other parties, secondary data are the realization of Pamekasan Regency's original revenue) was adopted in this study. Results showed several potential tax leakages have occurred in Pamekasan regency with tax gap of 43% was sourced from total hotel tax revenue realization, 60.4% of total restaurant tax realization, 86% of total entertainment tax realization, 81% of total parking tax realization, and 32% of the total in groundwater tax realization. This study provides several policy recommendations for local governments to increase the potential for local tax revenues in the future.

The Impacts of Tax Revenue and Investment on the Economic Growth in Southeast Asian Countries

Research aims: This study focuses on the correlation between tax revenue, investment, and economic growth, taking into account the non-linear effects of tax revenue.Design/Methodology/Approach: Macro data of nine countries in ASEAN (including Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam) in 2000 - 2020 were extracted from the World Bank database. This research employed panel data estimations.Research findings: This study found statistical evidence of a negative effect of tax revenue on economic growth. However, when considering the non-linear effects of tax revenue, the empirical findings showed that higher tax revenue could reduce the disadvantages of tax impacts to boost economic growth. The negative effect of taxes is as obvious as the economic growth theories, but it depends on the taxation revenue. Lower tax revenue may encourage saving and investment, but it also leads to an increased government deficit, reducing economic growth through government debt, spending and investment. Moreover, this study provides consistent evidence of investment’s positive effect on economic growth in ASEAN countries during the research period.Theoretical contribution/Originality: The theoretical contribution provides evidence on the direct effect of tax revenue and investment on economic growth with a broader understanding of the tax’s non-linear effects and investment contributions in the ASEAN. The study confirms the vital role of government activity in regulating the development of the economy through taxation and investment. Practitioner/Policy implication: The severe impact of the COVID-19 pandemic has increased macroeconomic uncertainties, including uncertainty over savings, investment, and spending, potentially leading to tax revenue and investment losses. It, in turn, affects economic activities, so it requires careful consideration. Learned lessons from this study can prepare for future economic shocks and financial crises to reduce negative impacts on economic growth, including their adverse tax revenue effects.Research limitation: This study is limited by looking at the tax revenue ratio overview, which ignores the tax structure due to the lack of data collection. The following studies need to clarify the tax structure of ASEAN countries to determine which tax gives a negative impact/and which tax has a positive effect on economic growth.

Analisis Kinerja Keuangan Laporan Realisasi Anggaran Pendapatan dan Belanja Daerah Kota Bogor Tahun 2014-2019

The purpose of this study was to determine the financial performance of Bogor City from 2014 to 2019 based on the calculation of five ratios, namely: independence ratio, ratio, fiscal degree, regional financial dependence ratio, effectiveness ratio of local revenue, and regional financial efficiency ratio. This type of research is carried out by quantitative research and the data used are secondary data taken from ppid.kotabogor.go.id. The results of this study indicate that the financial performance of the city of Bogor is fine when measured by the Regional Financial Independence Ratio, Effectiveness Ratio of Regional Original Income, and the Degree Ratio of Fiscal Decentralization, but the Regional Financial Dependency Ratio does not optimize income from other sectors, resulting the level of dependence on funds transfers are still very high and the Efficiency Ratio is less efficient because the regional expenditure is greater than the regional income received.
 

Determining the urban economic resilience planning through ratio of original local government revenue

Today, the economic resilience in Indonesia measures using the index approach, but it does not consider the effect of the disturbance and causes meaningless. The index is essentially an average, and the average is not a model that captures the relationship between variables. This research differs significantly from earlier studies that used the index to measure economic resilience. The crucial step in assessing the economic resilience of a city is to determine the economic resilience decision variable itself. If a variable significantly correlates with the disturbance factors in each relationship pattern, it is considered suitable as an economic resilience variable. This study evaluates variable Z as an economic resilience variable with a significant relationship to its disturbance variable. The evaluation method is conducted in-depth by studying Indonesia's cities over five years (2015-2019). Z, the ratio of Original Local Government Revenue (PAD) to the number of poor people in a city as a cost centre, will be evaluated as a prospective decision variable for economic resilience. The statistical relationship between Z and 9 disturbance variables is examined using piecewise linear regression analysis. All 514 cities in Indonesia were observed extensively for identification during a five-year observation period. Rosenbrock pattern search estimation was used to estimate the model parameters. The following results were obtained by analysing the data with the STATISTICA software. As determined by parsimonious analysis, the price of Pertalite fuel and the US dollar foreign exchange are two disturbance factors that are crucial to the fall in the resilience variable Z. The joint effect of these two variables on the decline in the resilience measure Z is 73.63 percent. The study concludes that Z is a city-level economic resilience decision variable that applies to all 514 cities in Indonesia and is measured as the ratio of PAD to the number of poor people. This study's novel contribution to Indonesian policymakers is Z as a new economic resilience decision variable that can be used to assess cities' relative economic resilience.

The Impact of Tax Policy on Income Distribution in Turkey: 1980-2018

Nowadays, inequality in income distribution is one of the major problems. In economic development, it is expected that the income should be equally distributed. But income is not evenly distributed without any other external policy intervention. Therefore, governments intervene in income distribution through financial policy via taxes. Direct taxes are fairer taxes because they are charged according to the income level of individuals. However, the share of direct taxes in total tax revenues is lower than the share of indirect taxes in Turkey. The purpose of this study is to explain how income distribution is affected by the change in taxes. To see the result of this effect, the relationship between the taxes and Gini coefficient is analyzed by performing ADRL boundary test method. Turkey’s data between the 1980-2018 periods is used to indicate how the change in the ratio of various taxes and total tax revenue to GDP affects the Gini coefficient. The result of this study, an increase in tax on goods and services %GDP causes an increase in the Gini index in the short-term and reducing effect in the long period. A rise in tax revenue %GDP decreases the Gini index in the short run and increases the Gini index in the long-term. Lastly, an increase in tax on corporate profits %GDP deteriorates income distribution in the long run.

Analysis of Time Driven Activity Based Costing Implementation in Calculation of Cost Efficiency Level Capacity in Government Agencies (Case Study of KPP Pratama Binjai)

Currently, Indonesia still uses tax revenue as the main source of state revenue. However, the problem occurred when for several years it turned out that tax revenues did not meet the target. The percentage of realized tax revenues compared to the tax revenue target from year to year indicates that the ratio of tax revenues did not reach the target. One of the factors causing the non-achievement of tax revenue is related to the number of employees of the Directorate General of Taxes who are still not ideal with their workload. This study aims to determine how to calculate the efficiency level of capacity costs by using the theory of Time Driven Activity Based Costing (TDABC) in the utilization of currently available resources at the Tax Service Office, Kantor Pelayanan Pajak (KPP) Pratama Binjai. The population of this research is all the executor of the Service Section and Account Representative who are in KPP Pratama Binjai. The researcher uses descriptive (qualitative) data analysis method which only aims to explain the observed facts/practices based on certain theories. This study uses primary and secondary data from KPP Pratama Binjai. The results show that through the TDABC theory, the level of capacity cost efficiency at KPP Pratama Binjai is included in the less efficient category, which means that there is still a lot of unused capacity that should be maximized from available capacity and used capacity. Keywords: Time Driven Activity Based Costing (TDABC), Efficiency, Available Capacity, Used Capacity, Unused Capacity.

CURRENT ISSUES OF PUBLIC FINANCE MANAGEMENT IN UKRAINE

Abstract. The article describes the approaches to defining the essence of understanding «public finance» and «public finance management» in the context of administrative and financial decentralization. A study on the current state of economic development of Ukraine is carried and the public financial management system is analyzed. The dynamics of the ratio of revenues and expenditures of the State and local budgets is shown and the national and subnational levels in the financing of public expenditures are described. The sequence of achieving a new level of welfare of the population is presented and the ways of state influence on local economic development are outlined. The content of the state’s activity on financial resources management and public importance of finances is given. Particular attention is paid to the financial capacity of UTC and the existing positive developments within the decentralization reform in Ukraine. The need to improve the management of public finances was emphasized, as it was evidenced by the size of the budget deficit. The division of budget expenditures by functional classification between the national and subnational levels is presented and the decline of financial independence of subnational budgets is witnessed. An assessment of the level of confidence in financial asset management services of territorial communities based on the calculation of the relevant index is made, and the relationship between the selected indicators (the monetary expenditures of the population; deposits of individuals in investment funds; population savings; volume of capital investments; volume of investments in Ukraine; assets of investment funds) and the level of public confidence in the management of UTC financial assets is researched. Keywords: financial management, public finance, financial capacity of territorial communities, financial assets. JEL Classification H70, H89, R59, Q01 Formulas: 1; fig.: 5; tabl.: 3; bibl.: 20.

COVID-19 Tourist Seasons and Business Activities of Listed Hotel Companies in Croatia

The spread of the COVID-19 pandemic has caused an interruption to everyday life and the economy. In many countries, as in Croatia, tourism revenues account for one-fifth of the GDP, so any reduction in tourism revenues significantly impacts the economy. In Croatia, the peak season, July and August in 2020, was 54 percent and in 2021 was 84 percent of 2019 arrivals due to a better epidemiological situation. Based on the result of listed companies in the touristic sector on the Zagreb Stock Exchange in 2020, a multiple regression analysis defined a common indicator for detecting business results. The model of the common indicator is based on the ROE indicator, the ratio of business revenue and total assets and financial strength. The entire economy, especially the hotel industry, cannot survive the COVID-19 crisis without government support measures

Profitability analysis of small-scale fishing along Coastal Areas of Ondo State, Nigeria

This study evaluated the profitability analysis of small-scale fishing along coastal areas of Ondo State, Nigeria. Structured questionnaire was used to collect data from 400 small-scale fishermen which were selected via multi-stage sampling procedure. Data collected was analyzed using descriptive statistics and profitability indicators. Results revealed that mean age of respondents was 39 years, among the fixed assets for fishing, outboard engine has the largest percentage cost (88.32%) while among variable assets, fuel has the largest percentage cost (67.16%). Profitability indicators such as Benefit Cost Ratio (BCR) 1.29, Gross margin ₦1,261,476.60k/fisherman/year, Return on Investment (ROI) 0.29, Net Profit Margin (NPM) 0.23 and Gross Revenue Ratio (GRR) 0.77 were used to estimate the profitability of small-scale fishing. The findings further revealed that fishing boat (1.284), outboard engine (0.352), fishing nets (1.342) and fuel (0.193) were positively and statistically significant at p<0.05 level with fish output level while accessories (floats, sinks and hooks) (0.142) was positively and statistically significant at p<0.1 with fish output level. The R2 value was 72.1% showing that the independent variable was well explained by the exogenous variables. Problems encountered by small-scale fishermen include inadequate infrastructural facilities, poor road networking system and inadequate credit facilities. Based on the findings, it was recommended that small-scale fishermen should organize themselves into cooperatives in order to increase their credit accessibility. Likewise, government should embark on construction of good road network in order to ease transportation of fish harvested to the neighboring towns.

Misallocation or Mismeasurement?

The ratio of revenue to inputs differs greatly across plants within countries such as the U.S. and India. Such gaps may reflect misallocation which lowers aggregate productivity. But differences in measured average products need not reflect differences in true marginal products. We propose a way to estimate the gaps in true marginal products in the presence of measurement error. Our method exploits how revenue growth is less sensitive to input growth when a plant’s average products are overstated by measurement error. For Indian manufacturing from 1985 to 2013, our correction lowers potential gains from reallocation by 20%. For the U.S. the effect is even more dramatic, reducing potential gains by 60% and eliminating 2/3 of a severe downward trend in allocative efficiency over 1978 to 2013.

Transformation of Regional Budgetary Independence and Security: Spatial Analysis

The issue of increasing budgetary independence and security is relevant for the majority of territorial systems, both at the regional and municipal levels. It was hypothesised that changes in the structure of regional public debt have a negative impact on their budgetary security. According to this hypothesis, an increase in the proportion of bank borrowing and corresponding decrease in the issue of debt securities by the constituent entities of the Russian Federation leads to a greater overall debt burden on the regional budget. In order to study transformation processes affecting budgetary independence and regional security. We developed a methodology to permit a separate assessment of these concepts. According to this approach, we propose to evaluate the budgetary independence of regional systems in terms of: (1) the balance of the budget (ratio of internal tax and non-tax revenues to budget expenditures); (2) financial dependence on transfers and subsidies from budgets at other levels; (3) budget security, taking into account gratuitous and non-gratuitous transfers. Thus, budget ary security can be assessed in accordance with the public debt dynamics, as well as the level of budgetary debt covered by the region’s own tax and non-tax revenues. The novelty of the presented methodological approach consists in its systematic use of Moran’s I for various spatial weight matrices combined with regression analysis methods based on panel data. Testing this methodology demonstrated the spatial heterogeneity of regional fiscal capacity, highlighting the financial dependence of most regions on federal and other gratuitous transfers. Autocorrelation analysis carried out according to Moran’s I using various spatial weight matrices confirmed the increasing tendency of the budgetary debt of Russian regions towards spatial heterogeneity. Future studies will focus on simulating the influence of various factors on regional budgetary security in order to predict the dynamics of its change.

Equity And The Uneven Distribution Of Federal COVID-19 Relief Funds To US Hospitals.

People of color, immigrants, and those relying on the safety net have experienced a disproportionate share of the death and disease resulting from COVID-19 in the US. At the same time, Congress delegated great power to the Trump administration to distribute $178billion in funding to health care providers. We studied the relationship between the relief received by 2,709 hospitals and community- and hospital-level characteristics. Funding through early February 2021 averaged $25.7million per hospital. Our findings offer a mixed picture. Some correlates of real-world need, including serving a community with a very high share of Black residents or having a very high ratio of Medicaid revenue to beds, were associated with meaningfully increased funding. Other correlates of need-including serving a very high share of Hispanic residents or a Medically Underserved Area-were associated with decreased funding or no difference in funding. Our findings emphasize that funding formulas reflect consequential political judgments. In future allocations, the relationship between need and aid should be strengthened by de-emphasizing historical net patient revenue in favor of a broader set of community and hospital characteristics.

WAYS TO INCREASE THE PROFITABILITY OF THE ENTERPRISE IN MODERN CONDITIONS

The article analyzes the essence of such important categories as profit and profitability. Factors, both external and internal, have been identified that have a large impact on these categories. The conditions of the modern market and the situation caused by the COVID-19 pandemic were considered. The main purpose of the study is to identify how the COVID-19 pandemic and quarantine restrictions affected revenue, service delivery, etc.; what measures have been taken to increase profits in business; what risks can be expected due to the re-introduction of lockdown in Ukraine. The analysis of profitability of the realized production will allow to understand, to what goods it is necessary to pay special attention at their sale or in general to withdraw from realization to reduce expenses for their manufacture considering needs of the modern market. The analysis of profitability of sales within the limits of a complex estimation of efficiency of results of the enterprise gives the chance to consider profit in several its kinds. The ratio of gross profit and revenue shows how much from the sale of products the organization can use to cover commercial and administrative costs. In this regard, increasing the profitability of the organization will be a key area of activity in today's environment, associated with the optimization of existing costs and increase projected revenues. Having made a certain analysis of the average level of profitability, it is possible to determine which products and which specific units of the enterprise create the required level of profitability, and which lead to losses. Such information is most important in a particularly competitive market economy, as financial performance will depend on specialization and concentration of production. It is concluded that increasing the profitability of enterprises in modern conditions is of paramount importance, and management needs to use all possible ways to increase this indicator, in order to increase profits, which will ultimately affect the efficiency of the business entity as a whole.The economic downturn, reduced purchasing power, lack of support (or inefficiency) from the state have led to a reduction in production, or even the shutdown of entire sectors of the economy.

Improving the methodology for assessing the sustainable development of municipalities

The purpose of the article is to assess the level of sustainable development of municipalities and improve the assessment methodology by taking into account the budget sustainability index. The paper defines the concept of sustainable development of a municipality as a process of managing the ecologio-socio-economic system of a municipality that ensure the integral stability of the structure, elements and their connections. The current state of the urban districts of the Republic of Bashkortostan in dynamics in the period from 2015 to 2019 is analysed, the level of sustainability of municipal districts is assessed according to indicators of economic, environmental and social subsystems. The assessment methodology is supplemented by the following indicators of the budget subsystem: overall budget stability; budget deficit/surplus; total solvency; the ratio of accounts payable and local budget expenditures; the ratio of municipal debt and revenue; the level of budget balance.

Pengaruh Religiusitas Dan Keadilan Pajak Pada Sikap Kepatuhan Wajib Pajak (Survei pada Wajib Pajak Orang Pribadi Pada Kantor Wilayah Direktorat Jenderal Pajak Jawa Barat I)

The low tax revenue ratio reflects the low level of taxpayer compliance, because the increasing level of compliance will encourage the tax revenue ratio and vice versa. A number of non-economic factors that influence tax compliance behavior are related to religious value (religiosity) and tax justice. This research is a quantitative research developed with a descriptive verification method with a time horizon that is cross section /one shot. The unit of analysis in this study is an individual taxpayer registered at the Regional Office of the Directorate General of Taxes, West Java 1 in 2019. The data analysis technique used in this study uses multiple linear regression. The results showed that taxpayer religiosity and tax justice had a positive and significant effect on taxpayers partially. he magnitude influence of religiosity and tax justice on taxpayers is 73.2%, and 26.8% is contribute from the other variables.

Introducing “Focused Firms”: Implications from REIT Prime Operating Revenue

We examine the relationship between a firm’s main business focus and its risk and performance, using the unique settings of U.S. equity real estate investment trusts (REITs). In this paper, a REIT’s prime operating revenue ratio (POR) is measured as the ratio of rental revenue to total revenue. The empirical results show that REITs that earn more revenue from their prime business—property rentals—are less apt to take on risk but also achieve higher operational performance in the cross-section and over the medium term. The magnitudes of these results in a market crisis period are even stronger than in normal times. We also find evidence that REITs with higher POR are associated with less information asymmetry, higher operational efficiency, and higher market value. We also use three alternative REIT business focus measures based on their assets, expenses, and income. The results are qualitatively and quantitatively similar. To investigate why some REITs focus to a greater extent on non-prime businesses, the paper provides evidence that REIT executives receive, on average, higher pay when their firms engage more extensively in other businesses, and larger REITs are more likely to explore non-rental-revenue businesses. Lastly, we use the coronavirus pandemic as a quasi-experimental setting and provide evidence that REITs that have earned higher POR in recent years generally achieve better operational performance and reduce risk during the first three quarters of 2020. In sum, the results suggest that a REIT’s focus on its prime business generally leads to greater profitability and lower risk.

Characteristics of rice agribusiness in rural areas of Serdang Bedagai regency, North Sumatra

This research was conducted to determine the characteristics of the rice farming system in Serdang Bedagai Regency and to recommend policies to increase the contribution of rice agribusiness to rural development. The studies carried out included the existing technology used by farmers, production, productivity, cropping index, analysis of farming system and distribution, and marketing of products. The research method used in this study is a survey method with a purposive sampling technique to 40 farmer respondents. Structured interviews were also conducted with traders, rice mill entrepreneurs, and policymakers. The data analysis used in this research is qualitative and quantitative analysis. Qualitative analysis is used to find an overview of the technology, production, productivity, cropping index, and marketing and to explain the costs and income of rice farmers which are described descriptively. The quantitative analysis used is the analysis of farm costs and income, which are the ratio of revenue and costs (R/C ratio) analysis and the cost per kg milled dry grain. The results showed that the cultivation technology used by farmers was varied, there were 23 villages whose rice productivity was still below 5 tons/h, 10 villages in 3 sub-districts had the cropping index still below 2, the R/C ratio of rice farming was 1.45, where the cost to produce 1 kg of milled dry grain in Serdang Bedagai Regency, on average are IDR 3,099. Meanwhile, the distribution and marketing of the harvest were controlled by big rice mill entrepreneurs.