Earnings and cash flow persistence: Case of medium agriculture enterprises in Serbia

Stevanović, Slavica; Minović, Jelena; Marinković, Grozdana Miloš

doi:10.5937/ekopolj2101141s

Cited by 4 publications

(3 citation statements)

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“…The study focuses on evaluating earnings persistence around an IPO, which is related to the informativeness of past earnings on future performance. Following previous studies (Stevanović et al, 2021;Li, 2019), earnings persistence is measured by the coefficient α1 from the equation, in which current earnings (EATt) are explained by past earnings (EATt-1):…”

Section: Methodsmentioning

confidence: 99%

“…In this context, the quality of information disclosed to the public, especially financial information, is one of the key drivers of expected returns (Agarwal et al, 2019). Because of informational capacity and wide comprehensibility, corporate earnings are in the spotlight (Stevanović et al, 2021). Thus, high-quality earnings are expected to provide more information about the features of a company's financial performance, which is relevant to certain users (Dechow et al, 2010, p. 344).…”

Section: Introductionmentioning

confidence: 99%

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Persistence of pre-IPO earnings of new companies from CEE stock markets

Sosnowski

2022

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Research background: A company?s earnings are one of the main determinants of investment decisions on the stock market. Thus, the reliability of disclosed financial information is crucial for the efficient allocation of capital. Unfortunately, reported earnings are an economic category susceptible to manipulation. This problem grows especially in the case of an initial public offering (IPO), as there is significant information asymmetry. Purpose of the article: The main aim of the paper is to assess the persistence of earnings reported by companies in the IPO process and to empirically identify financial characteristics associated with persistence of earnings. The usefulness of financial information is directly related to the issue of earnings quality. Therefore, this paper contributes to the stream of study on the quality of financial reporting of new stock companies. Methods: I employ a simple single-factor regression model to recognize the earnings persistence in new stock companies. Pre-IPO earnings are the explanatory variable. Then, I use multiple regression analysis to identify factors that influence this metric of reported earnings quality. Findings & value added: Using a sample of companies from stock exchange markets in Central and Eastern Europe (i.e., the Warsaw Stock Exchange, the Bulgarian Stock Exchange, the Bucharest Stock Exchange, the Belgrade Stock Exchange, the Prague Stock Exchange) that went public between 2010 and 2018, I find that, generally, pre-IPO earnings hold higher persistence compared to earnings reported in the year of the IPO. Profitability seems to be a factor that significantly influences this feature. Thus, the results contribute to corporate theory and practice facing insufficient empirical evidence on the issue of sustaining pre-IPO profitability in the long term, additionally putting these concerns in the context of the economic environment of European emerging stock markets.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Persistence of pre-IPO earnings of new companies from CEE stock markets

Sosnowski

2022

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“…The improvement of selling volume indicates that consumers can obtain enough goods from the food market, while the ability to sell products at a better price indicates that such products are of satisfactory quality. These two factors are also key determinants of the operating income of agricultural enterprises that can persistently influence their operations [ 7 , 8 ]. Therefore, the growth of operating income is essential for maintaining the sustainable operation of agricultural enterprises and enhancing food security.…”

Section: Introductionmentioning

confidence: 99%

Enhancing Food Security through Digital Inclusive Finance: Evidence from Agricultural Enterprises in China

Huang

Azman

2023

IJERPH

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As a means of enhancing food security, efficient agricultural processing and the maintenance of a smooth supply chain are essential for ensuring food quality and reducing food wastage. Agricultural enterprises play a crucial role in the processing and transportation of food from farms to dinner tables. Operating income growth plays the vital role of ensuring that agricultural enterprises function in a stable manner while also indicating the quantity and quality of market food supply. Therefore, the objective of this study is to explore the impact of digital inclusive finance on food security by analyzing the effect of digital inclusive finance on the operating income of agricultural enterprises in China. By applying pooled OLS analysis to Chinese agricultural enterprises that are listed in the National Equities Exchange and Quotations, this study finds that digital inclusive finance can help improve agricultural operating income. The results reveal that digital inclusive finance can facilitate the promotion of agricultural operating income by increasing the supply of financing, accelerating inventory liquidity, and supporting investment in research and development. In addition, this study concludes that digital inclusive finance is more effective for increasing agricultural operating income as a result of its wider coverage and deeper utilization. Furthermore, the development of traditional finance is still necessary for the digitization of digital inclusive finance to be effective.

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Metamorphoses of Earnings in the Transport Sector of the V4 Region

et al. 2022

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The transportation sector is a crucial sector of the sustainability of every national economy. Previous studies highlighted the core significance of transport enterprises in European countries over the past 60 years. The long-term sustainability of enterprises is determined by their ability to gain earnings. Thus, earnings are the synonym of significance in corporate life. The purpose of this study was to capture the lever year, the trend, and the slope of the development of earnings in the transport sector before the COVID-19 pandemic. Time series of the annual earnings of the enterprises from the close countries of the V4 region were used during a 10-year period. Buishand’s test sets the change-points of the development and indicated the values of specific central lines. The year 2013 was the lever date for the earnings of 830 Slovak and 1042 Hungarian enterprises. The year 2015 was the year of momentum for 757 Polish enterprises. The development of 397 Czech enterprises was mainly influenced by the year 2014. The results of the Mann–Kendall test detected a positive trend in the series of business finance in all countries. In addition, the Sen’s slope was estimated in the transport sector for the analyzed period 2010–2019.

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Earnings and cash flow persistence: Case of medium agriculture enterprises in Serbia

Cited by 4 publications

References 8 publications

Persistence of pre-IPO earnings of new companies from CEE stock markets

Persistence of pre-IPO earnings of new companies from CEE stock markets

Enhancing Food Security through Digital Inclusive Finance: Evidence from Agricultural Enterprises in China

Metamorphoses of Earnings in the Transport Sector of the V4 Region

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