Accounting Information and the Prediction of Farm Viability

Abstract

Abstract:Farms make little use of accounting and until now have been largely excluded from the scope of accounting standards. However, we hypothesize that the use of accounting-based information can significantly improve the explanation and prediction of farm viability/failure. Two dichotomous logit models were applied to subsamples of viable and unviable farms in Catalonia, Spain. One model included non-accounting-based variables, while the other also considered accounting-based variables. It was found that, when accounting variables were added to the model there was a significant reduction in deviance.

New opportunities for farm accounting

“…Furthermore, agricultural lenders often claim more and better accounting information (Bronstien, 1995;Crane and Leatham, 1995), which is consistent with empirical evidence that accounting data makes a significant contribution to explaining and predicting farm failure (Argilés, 1998). Given the government interference in many agricultural markets in many countries, also policy makers have a need for accounting information.…”

New opportunities for farm accounting

“…Furthermore, agricultural lenders often claim more and better accounting information (Bronstien, 1995;Crane and Leatham, 1995), which is consistent with empirical evidence that accounting data makes a significant contribution to explaining and predicting farm failure (Argilés, 1998). Given the government interference in many agricultural markets in many countries, also policy makers have a need for accounting information.…”

Ūkių ekonominį gyvybingumą lemiančių veiksnių vertinimas Lietuvos ūkininkų ūkių pavyzdžiu

“…Tam reikėjo najų mokslinių tyrimų. Mokslininkai (Adelaja, Sullivan, 1998;Argiles, 2001 ir kt. ; Singh, Bhillar, Joshi, 2001;Popelier, 2005) iki šiol neturi vieningos nuomo nės, kokie veiksniai sąlygoja ūkių gyvybingumą.…”

“…Šiek tiek kitokį požiūrį į ūkių ekonominio gy vybingumą pateikia A. Adelaja Europos Komisija (1991a) pateikia platesnę ir konkretesnę ekonominio gyvybingumo prasmę, t. y. pelnas turi sudaryti apie 80 % vidutinio darbo užmokesčio tame regione ir du trečdalius mokamų palūkanų už kapitalą (Argiles, 2001). J. M. Argiles pritaria šiam teiginiui ir priduria, kad ūkininkai lygina visas savo pajamas su darbo užmokesčiu, gautu kitose darbo vietose, o už kapitalą atlygio nesitiki.…”