The Wage Impact on the Net Value-Added in the Agricultural Sector

Frýd, Lukáš; Machová, Veronika; Horák, Jakub; Pardal, Pedro

doi:10.36708/littera_scripta2020/1/12

Cited by 4 publications

(3 citation statements)

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“…Achieving the right balance in the capital structure is a crucial prerequisite for any business. However, defining what constitutes an optimal capital structure remains a complex challenge (Ionescu et al, 2018;Stevanović et al, 2022;Florea, 2019;Pantić et al, 2022;Frýd, et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Determinants of Capital Structure in the Agricultural Sector: Empirical Evidence From Listed Companies

Grujić,

Vojinović,

Đuričić

et al. 2024

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This study investigated the capital structure of 18 publicly traded agricultural companies over a 10-year period (2012-2022), specifically focusing on short-term debt to total liabilities (SHTDTL). Employing a dataset of 121 observations, the strategic financing decisions of these firms in the Republic of Srpska’s stock market were analyzed. The study examines the impact of various factors, including total debt to total equity (TDTC), tangible assets (TOA), company size (CS), current assets ratio (CR), current assets to total assets (CAA), return on equity (ROE), and return on assets (ROA), on capital structure choices. Results reveal that TOA, CAA, and ROE significantly positively influence the short-term debt ratio, while CS and ROA have a significant negative impact. This research sheds light on the financial decision-making of agricultural enterprises, offering insights that can inform their financing strategies and improve financial performance.

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Section: Introductionmentioning

confidence: 99%

Determinants of Capital Structure in the Agricultural Sector: Empirical Evidence From Listed Companies

Grujić,

Vojinović,

Đuričić

et al. 2024

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“…Good financial decisions can increase the market value of equity and bad financial decisions can reduce it [3]. An optimal capital structure is a key prerequisite for a business, although the determining of an optimal capital structure is difficult [4]. The available studies represent many different and contradictory factors that need to be taken into account in managers' strategic financial decisions.…”

Section: Introductionmentioning

confidence: 99%

Optimization of the capital structure of an agricultural company in the Czech Republic

2022

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The topic of optimizing capital structure is very important for a company to work efficiently and reliably. It is important for every company to optimize everything so that they have the highest possible efficiency. Entrepreneurs also try to make this optimization last them as long as possible. Therefore, the aim of this paper is to determine the optimal capital structure of an agricultural company operating in the Czech Republic. The base source of data is the closing data of individual agricultural companies from the Albertina database of Bisnode. More than 9,000 agricultural enterprises operating in the given sector of the national economy in the Czech Republic are recorded in this data set. The calculation of the WACC method and the level of debt of individual agricultural companies are used. Subsequently, the equation for calculating the cost of capital is determined using power regression. Here we also obtain the value of reliability, which in this particular case is not ideal, but still reasonable. A line chart is used to determine the optimal interval for the agricultural company. The optimal debt interval comes out to 20 to 25%, at which the cost of capital is declared to be from 22 to 24%. If agricultural companies had higher or lower debt ratios, it would be inefficient for the enterprise.

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“…Other natural risks include the changing hydrological specifics of the agricultural landscape as well as changes in pest communities. Various diseases that attack plant tissues and ravage agricultural crops also pose a significant risk (Frýd et al, 2020). The hydrological conditions of the agricultural landscapes are primarily regulated through water management.…”

Section: Introductionmentioning

confidence: 99%

Methods for risk premium: Application for agriculture companies in Czech Republic

Machová¹,

Kučera²,

Kašparová³

2022

Journal of International Studies

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In business valuation, alternative cost of equity plays an important role considering the risk related to investment. Even a slight change in cost of equity can significantly affect the resulting business value. However, in the Czech Republic, risk premium has not been adequately addressed in terms of methodology. The objective of the paper is to explore the application of selected methods in calculating risk premium, and to select or modify existing methodology for the calculation of risk premium used in agricultural companies. For the purposes of determining the alternative cost of equity, three methods are selected: build up model, CAPM, and Fama and French Three Factor model; internal data of a family farm XY are used. Beta coefficient is calculated on the basis of the input data, and the results of the individual methods are compared. Based on the data of companies operating in the Czech market, the performed analysis suggests that the Build Up model is suitable for expressing alternative cost of equity. The agriculture sector is very specific, as agricultural companies are the first to be affected by the climate change. A follow-up study could be focused on the analysis and prediction of the impacts of climate change, with possible emphasis on the importance of weather derivatives for agriculture companies.

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The Wage Impact on the Net Value-Added in the Agricultural Sector

Cited by 4 publications

References 0 publications

Determinants of Capital Structure in the Agricultural Sector: Empirical Evidence From Listed Companies

Determinants of Capital Structure in the Agricultural Sector: Empirical Evidence From Listed Companies

Optimization of the capital structure of an agricultural company in the Czech Republic

Methods for risk premium: Application for agriculture companies in Czech Republic

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