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Authors
Advisor(s)
Abstract(s)
Agriculture has always been a sector with several specificities that call for adjusted interventions from
public institutions through agricultural policies. This is
not an exception for the context in the European Union
where the Common Agricultural Policy has had more
impact in some contexts than the national agricultural
policies of the member-states. In turn, the profit margins
are, in general, narrow and this needs specific financial
and economic management. However, the financial, economic instruments, and indicators for farming are, often,
ignored, or at least, not sufficiently analysed. From this
perspective, the main objective of this study is to assess
the net working capital framework across European Union
countries and regions, including assessments through
types of farming and economic size. Another objective
is to analyse the impacts from financial indicators (current ratio, current assets-to-total assets ratio, current
liabilities-to-total assets ratio, and debt-to-total assets
ratio) on profitability (return on assets) and financial
performance (return on equity). For this purpose, data
from the Farm Accountancy Data Network were considered, for the period 2004–2018. These data were worked
through descriptive analysis, spatial autocorrelation
approaches, and panel data regressions. As main conclusions, it is worth noting the diversity of financial
realities across the European farming sector and the
null impacts from the liquidity ratio on the farms’
performance
Description
Keywords
return on assets return on equity working capital management policies farm accountancy data network spatial autocorrelation panel data regressions
Pedagogical Context
Citation
Publisher
De Gruyter