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The Effects of Working Capital Management on Profitability of Manufacturing Companies: The Case of Dire Dawa City
Issue:
Volume 7, Issue 6, December 2019
Pages:
135-139
Received:
30 July 2019
Accepted:
21 September 2019
Published:
27 November 2019
Abstract: In every organization, corporate finance deals with three decisions: capital structure decisions, capital budgeting decision, and working capital management decisions. Among these three decisions, working capital management is recognized as an important concern of the financial manager. The study examines the effects of working capital management on profitability of manufacturing companies in Dire Dawa city and have the following research objectives: Examine the effect of number of days account receivable (NDAR) on profitability of manufacturing companies, Examine the effect of number of days inventories (NDI) on profitability of manufacturing firms, To investigate the effect of no of days account payable (NDAP) on profitability of manufacturing firms and Examine the effect of cash conversion cycle (CCC) on profitability of manufacturing firms. The research was quantitative that utilizes secondary data of companies from 2011 – 2015 for sample of 14 companies to address the objectives. The study purposively selected Dire Dawa city this is because of the majority of the Eastern region industries found in this city. The secondary data was collected from different company’s records about from audited balance sheet and income statement that was submitted to Ethiopian revenue and custom authority Dire Dawa branch and Dire Dawa Administration Revenue Authority for tax purpose. The result of the study shows that there is significantly negative relationship between number of date account receivable, number of day’s inventory holding and company’s profitability. The study reveals that there is no significant relationship between number of days account receivable and profitability. But cash conversion cycle has significant negative relationship with profitability. Moreover debt ratio has statistically negative relationship with company’s profitability.
Abstract: In every organization, corporate finance deals with three decisions: capital structure decisions, capital budgeting decision, and working capital management decisions. Among these three decisions, working capital management is recognized as an important concern of the financial manager. The study examines the effects of working capital management o...
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Criteria for Investing in the Market of Visual Arts
Elio Amilcar Farfan Torrelles
Issue:
Volume 7, Issue 6, December 2019
Pages:
140-149
Received:
11 December 2018
Accepted:
1 November 2019
Published:
4 December 2019
Abstract: The market for the visual arts carries out a complex activity, which requires identifying key variables to establish valid investment criteria and obtain reasonable profits. This calls for differentiating the purpose of the purchase as either an investment or a collection. Then, focusing on the work and the artist, the trajectory of iconic and emerging elements is investigated and compared to identify the criteria that the buyer should consider when acquiring a piece of visual art. Accurate parameters are needed to invest considering this economic activity has clearly defined segments. For this reason, the claimed characteristics of the artwork, the artist and the market must be assessed as well as the need for the art piece or the added value that an artwork offers to the market and the reason why a certain amount of money must be paid to obtain it. The aim of the present research is to identify key variables to establish valid investment criteria, taking the case of the contemporary Venezuelan Art Market as basis. To achieve this objective, the documentary research methodology was applied and, in addition, interviews with some market agents were carried out, which revealed the presence of many agents with various interests within the market. As a conclusion, the study revealed that the visual arts market is a complex market, which requires different actors to handle accurate and reliable information when making purchasing or sales decisions.
Abstract: The market for the visual arts carries out a complex activity, which requires identifying key variables to establish valid investment criteria and obtain reasonable profits. This calls for differentiating the purpose of the purchase as either an investment or a collection. Then, focusing on the work and the artist, the trajectory of iconic and emer...
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Effect of Fair Value Accounting on Assets of Consumer Goods Firms in Nigeria
Ubesie Madubuko Cyril,
Akparhuere Godwin Oghenekohwo,
Mba Chris Chukwuemeka
Issue:
Volume 7, Issue 6, December 2019
Pages:
150-158
Received:
10 October 2019
Accepted:
28 November 2019
Published:
13 December 2019
Abstract: Fair value of a firm’s asset is one of the determinants of its net-worth and marketability. It is a rational and unbiased estimate of the potential market price of a good (commodity), stock, service or asset of a firm. The main objective of the study is to determine the effect of fair value accounting on assets of consumer goods manufacturing companies in Nigeria. The study adopted ex-post facto research design and data were sourced from three selected companies through purposive sampling technique. Analysis was carried out on ten years pooled data on total assets (the dependent variable), fair value (proxy by share value), market value (proxy by Net Assets), and depreciation value. The findings show that fair value has significant effect on assets of consumer goods firms in Nigeria. The study recommends that management of consumer goods companies should consolidate on improvement of fair value of firms through their assets management and appropriate policies, adopt the best practices that would raise the share prices and maintain higher book values of the firms, and use depreciation as a source of replacement of old assets thereby stabilizing the Net worth of the firms.
Abstract: Fair value of a firm’s asset is one of the determinants of its net-worth and marketability. It is a rational and unbiased estimate of the potential market price of a good (commodity), stock, service or asset of a firm. The main objective of the study is to determine the effect of fair value accounting on assets of consumer goods manufacturing compa...
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Discuss the Similarities and Differences of Amazon and Alibaba with Respect to Cross-border E-commerce
Issue:
Volume 7, Issue 6, December 2019
Pages:
159-163
Received:
27 November 2019
Accepted:
16 December 2019
Published:
27 December 2019
Abstract: The purpose of this paper is to discuss the similarities and differences between Amazon and Alipay in their cross-border e-commerce. Nowadays, cross-border trade has become more and more frequently with the development of society and technological progress. Cross-border trade has been put on the top agenda by businesses when they set up their long-term plans in the contemporary business environment. At the same time, e-commerce has become a popular business model in the world with the maturity of information technology. The combination of these two, cross-border e-commerce, has become one of the most prominent industries in the world. This paper adopts the case study approach and chose the industry giants: Amazon and Alibaba as the case study objectives. These two giants are both attach importance to the cross-border trade to expand their market. This paper will discuss the similarities and differences in cross-border e-commerce between Amazon and Alibaba. Amazon and Alibaba both have their own shopping platform for global customers and the reason for Alibaba and Amazon choose their target market is similar. However, Amazon and Alibaba have differences in their market strategies, delivery methods and payment system. Among them, the political and economic both the main factors cause they have these differences. This essay will attempt to explain the differences and similarities between Amazon and Alibaba to help readers have cleaned understand about the cross-border e-commerce in the modern business environment.
Abstract: The purpose of this paper is to discuss the similarities and differences between Amazon and Alipay in their cross-border e-commerce. Nowadays, cross-border trade has become more and more frequently with the development of society and technological progress. Cross-border trade has been put on the top agenda by businesses when they set up their long-...
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Value Chain in the Visual Arts Market
Elio Amilcar Farfan Torrelles
Issue:
Volume 7, Issue 6, December 2019
Pages:
164-172
Received:
11 December 2018
Accepted:
17 December 2019
Published:
31 December 2019
Abstract: The added value allows an asset or a service to meet a specific need. The value chain represents all those activities properly organized, which create these assets and services to make them available for final consumers. Documentary review has revealed that in the visual arts market these roles are not always adequately defined and often, the agents involved are unaware of their functions and responsibilities, generating aesthetic and financial distortions or imbalances that hinder this economic activity. This article aims to reveal this value chain as a way of legitimizing a piece of art as well as the benefits that some of these links have brought recently, given the new relationship between art and people. Such is the case of museums, especially the Guggenheim in Bilbao, with its positive impact on the economies of the communities that house them; art fairs, in the globalization of artists, works and aesthetic tendencies and art critics who influence the behavior of consumers and markets.
Abstract: The added value allows an asset or a service to meet a specific need. The value chain represents all those activities properly organized, which create these assets and services to make them available for final consumers. Documentary review has revealed that in the visual arts market these roles are not always adequately defined and often, the agent...
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