To Profit Maximize, or Not to Profit Maximize: For Firms, This Is a Valid Question

Robson, Gregory

doi:10.1017/s0266267118000329

Cited by 6 publications

(3 citation statements)

References 20 publications

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“…As was mentioned above, provision of trade credits impacts corporate payment ability, mainly in cases when a client does not pay properly and on time. Authors (Menger, 2016;Robson, 2019) dealing with this issue recommend companies analysis payment ability of potential clients before providing trade credits. Payment ability is usually analysed by using these indicators:…”

Section: Methodsmentioning

confidence: 99%

Provision of trade credits in relation to corporate payment ability: A case study of the Visegrad four

Krištofík¹,

Horák²,

Šuleř³

2019

EMS

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The contribution is focused on the issue of payment discipline and providing trade credits. Providing trade credits has become a common business practice. In contribution, our attention is paid to receivables in particular trade receivables, also known as trade credits. Advantageous payment terms can be considered as a competitive advantage. If a supplier does not request immediate payment for a good or service but provides its customers a possibility for invoice payment, we can talk about advantageous payment terms. In a functioning and efficient market economy, providing trade credits is a necessity. Nevertheless, trade credits need to be provided very carefully. The main aim of the contribution is to evaluate the current state of payment discipline of enterprises in the Visegrad Four together with the identification of factors affecting the solvency and at the same time to propose solutions to this crucial issue of the business environment. Within the practical part of the contribution, the authors focus on the importance of proactive management of receivables and the comparison of surveys of chosen agencies. The first part of the contribution is focused on the analysis of payment discipline. The key results of the chosen survey were analyzed. Atradius-European Payment Practices Barometer: Eastern Europe 2018, EOS-Payment Practices 2018 and Intrum Justitia-European Payment Report 2018 were used. The authors also test a hypothesis about existing a statistically significant relationship between payment discipline and selected indicators. The last part is focused on designing possible solutions for more effective receivables management, which will result in partial recovery of the business environment.

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Section: Methodsmentioning

confidence: 99%

Provision of trade credits in relation to corporate payment ability: A case study of the Visegrad four

Krištofík¹,

Horák²,

Šuleř³

2019

EMS

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“…However, following researchers argue that -even if firms are required to maximize their social welfare contributions, they are not necessarily required to maximize their profits.‖ In addition, maximizing profits is not the only main course of action for economic efficiency and the ‗personal sphere' commentary should also be given recognition. (Robson, 2019;Hussain, 2012).…”

Section: Entrepreneurial Characteristicsmentioning

confidence: 99%

From Business Disaster to Professional Breakthrough: The Coping Mechanisms of Filipino Migrant Workers, a Phenomenology

MAT¹,

Guzman²,

B.³

et al. 2021

IJAR

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Background: Some businesses, compared to million-dollar enterprises, fail to make an impact. As a result, some entrepreneurs resort to closing their businesses. To excel in their professions, they need to cope with business losses. Method: This paper used a phenomenological design to understand the participants lived experiences, particularly Filipino migrant workers who have experienced business loss, relative to the central question, How do Filipino professionals cope with business loss? Findings: Filipinos displaying entrepreneurial characteristics (business mindedness, profit orientation, future planning) have desires to raise enterprises. However, entrepreneurial trials (e.g. management issues, competition issues, financial burdens) will be faced, which result in business losses. They coped with losses through entrepreneurial solutions, specifically career motivation and family motivation. Conclusion: Maintaining an enterpriseis never easy as it requires sacrifices, time, and especially money. Business disasters come with overwhelming consequences and complications. Nevertheless, after facing different challenges of experiencing business loss, former entrepreneurs can achieve breakthroughs. This research aims to help future entrepreneurs cope with predicted business losses. Recommendation: The researchers recommend considering other coping mechanisms to explore other options for future entrepreneurs. Furthermore, it is also recommended to focus on one business nature and one employment sector to achieve more specific findings.

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“…(Jin Yeub and Myungkyu, 2019) Nevertheless, based on survey results profit-making remains an important success factor for not only small and medium-sized enterprises. (Olah et al, 2019;Dvorsky et al, 2018;Robson, 2019, Nadanyiova, 2014, Stefanikova and Masarova, 2014 In our contribution, we focused on the analysis of the profitability of small and medium-sized enterprises as well as on the identification of indicators that significantly influence the rate of profit. The aim of our paper is profit analysis and identification of the main profit-taking indicators.…”

mentioning

confidence: 99%

Profit Management as an Instrument for SMEs Developing: the Case for Slovakia

Siekelová

Kováčová

Adamko

et al. 2019

MMI

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The goal of the business should reflect its efforts to achieve a certain future state. Classical economic theories emphasize the achievement of profit as a fundamental goal of business. Modern theories consider gaining profit as one of the basic motivating factors. In practice, we distinguish several profit categories that are described in our contribution. The effort of businesses is detection of indicators that help enterprises to generate profit. In our contribution, we focused on the analysis of the profitability of small and medium-sized enterprises as well as on the identification of indicators that significantly influence the rate of profit. In our research we worked with a sample of 9,500 Slovak small and medium-sized enterprises. It was primarily a limited liability company with domestic ownership. We mainly focused on this type of businesses because many authors emphasize the irreplaceable role of small and medium-sized enterprises in countries' economies. Small and medium-sized enterprises play a very important role not only in Slovakia but also in the global economy. The significantly influence the creation of hundreds of jobs, regional development or a high percentage of GDP. Approximately 98% of enterprises in the Slovak Republic fall into the category of small and medium-sized enterprises. For their functioning, it is very important to have the capital that they inevitably need, either for the start of business as such, for development. However, these type of businesses does not always have easy access to financing, especially in the case of bank loan financing. Profit for SMEs is a very important internal source of funding. The aim of our paper is profit analysis and identification of the main profit-taking indicators. The analysis of the profitability was conducted by using methods of descriptive statistics. Based on the studied literature, we selected individual profit categories as basic indicators of profitability as well as selected indicators of profitability that are defined below. Pearson's correlation coefficient and the one-way ANOVA were used to examine the relationship between the selected indicators and achieved profit. Graphs and charts are used to clear the processing of the results of our research. Keywords: ANOVA, cash management, earnings before interest and taxes, earnings before interest, taxes, depreciation and amortization, net operating profit after tax, earnings before interest after taxes, Pearson correlation coefficient.

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To Profit Maximize, or Not to Profit Maximize: For Firms, This Is a Valid Question

Cited by 6 publications

References 20 publications

Provision of trade credits in relation to corporate payment ability: A case study of the Visegrad four

Provision of trade credits in relation to corporate payment ability: A case study of the Visegrad four

From Business Disaster to Professional Breakthrough: The Coping Mechanisms of Filipino Migrant Workers, a Phenomenology

Profit Management as an Instrument for SMEs Developing: the Case for Slovakia

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