Along with the current tax expenditure lies the classic economic argument that countries should switch to funded pension schemes due to low fertility [13]. "The declining tax base and the negative influence of governments on the markets are the flags of the Washington Consensus, the World Bank in 1990" ers and other economic institutes”([14], p. 2). In the base scenario, public capital costs are 0.5%, GDP per per capita is 1.6% per year and the average net return on the pension market is 3.74%.
PAYG DB scheme vs. mix pension scheme with pension guarantee
As the gap between GDP per capita and the government interest rate narrows, the discount factor decreases and the attractiveness of PAYG DB decreases. The poverty line is indexed to GDP per capita, while the wealth of high-income deciles grows faster.
Finding an equilibrium point
Significantly, high earners prefer the PAYG DB pension scheme to the alternative. Large earners prefer the DB pension scheme because of the lower tax burden in the work phase.
Discussion
To find the unfunded "box" size, we analyze the preferences while low earners benefit from it and high earners fund it. Figure 5 plots the convergence process to equilibria based on the funded scheme together with the unfunded box. For example, in panel A, when the yield gap is 1.1%, high earners will prefer the PAYG DB even with a minimum level of the box (1% of GDP).
Conclusion
Old-age income support in the 21st century: an international perspective on pension systems and reforms. Over a decade ago, researchers in various knowledge domains such as strategic management, economics, accounting and finance have contributed extensively to the theoretical and empirical studies of entrepreneurial finance.
Introduction
Informal entrepreneurship and developing economy 1 Introduction
Informal sector entrepreneurship and its economic impacts
Innovation saving therefore aims at a reconfiguration of informal sector and innovation opportunities to further the growth of the formal sector [12]. The liberalization of trade has consequences of the spread of workers from the formal to the informal sector as a result of the decline in demand and supply for goods and services.
Institutional forces, economic policies and informal entrepreneurship
In view of the above, it can be concluded that informality has a number of positive correlations with the growth of the economy, particularly in sub-Saharan Africa, which has the largest establishment of informal economic activities in the world. Finally, controversial issues of product counterfeiting and inaction by informal entrepreneurs tend to exacerbate the informal sector's illegitimacy problems.
Financing of informal entrepreneurship sector
Traditional financing of business venture and impacts on informal entrepreneurship
The resulting information asymmetry and superior social networks on the part of informal firms often create unfair competition for the firms operating in the same market. Nevertheless, in the institutional relationship between the two sectors, criminal and illegal activities of some of the informal firms must be considered separately within the linkage and do not make informality illegal in the whole economy.
Emerging trend of financial technology (FINTECH) and alternative fund providers
They tend to focus on startups and early-stage innovation and remain passive in the entrepreneurial structure. However, crowdfunding and a network of angel investors can be immensely beneficial to potential entrepreneurs in the informal sector.
Review of literature
Therefore, striving for investors' robustness in financing decisions, either in anticipation of or against possible information asymmetry, inexperience, or moral hazard conflict among entrepreneurs, has become a very important element in financial contract agreement and transaction costs for informal entrepreneurial opportunities [39]. ]. Nevertheless, regulatory and political incentives are also part of the environmental variables that can affect the opportunities and innovation of informal entrepreneurship, create a favorable climate for strengthening the productive relationship between investors and entrepreneurs, and create ways to reduce information asymmetry and conflict of interests in the informal sector [45].
Conceptual model and propositions
Conceptualisation of the model
Operationalization of innovation can be in the form of (i) number of new products in the market, (ii) number of renewed products in the market, (iii) new technology in the market and (iii) new informal market in the economy. In the final phase of the conceptual model, proposals for compensation are formulated in the form of contributions to theory to address financing bottlenecks in the informal entrepreneurship sector.
Implications for management accounting research 1 Contributions to theory and quest for further study
Contributions to accounting practice
One of the implications of this paper is the dematerialization of the impact that some regulatory policies have on the informality of entrepreneurship and financing. In this respect, management accounting research should explore the designs and qualitative analysis for tailored economic incentive model that bring informal markets closer to the boundary of formalities and regulatory framework and that can also benefit informal entrepreneurs with some of the advantages that formal firms do. enjoy, especially in the area of taxation, registration and compliance.
Delimitation
Management accounting research should expand its boundaries to accommodate studies of economic incentives from regulatory policies that characterize informal markets. Such an incentive model should provide the governing authority with constructive guidance for making policy decisions, reinforce the blueprint for entrepreneurship and make a good case for a standardized information system for informal entrepreneurship rather than an accounting model.
Conclusion
The rationale for selecting management accounting research is to position the literature as contributing to and expanding the boundaries of agency theory, contingency theory, organizational theory, transaction cost theory, financial reasoning theory, and the search and matching model, all of which highlight the bottlenecks of informal sector financing. If working capital is not managed properly, it will reduce the liquidity of the company and ultimately affect the profitability.
Review of literature
The effect of working capital management on profitability [15]: A sample of three (3) manufacturing companies listed on the Dar es Salaam Stock Exchange (DSE) is used over a period of ten years. To analyze the relationship between working capital management and profitability [16]: This paper basically analyzes the relationship between working capital and profitability in the Indian IT company (TCS).
Research question
The result of this study showed that there is a negative relationship between cash conversion cycle and profitability; longer the CCC, the profitability decreases. And the study also shows a negative relationship between debtor turnover ratio and return on capital employed.
Hypotheses development
They found a negative relationship between liquidity and profitability, showing that when liquidity decreases, profitability, average collection period and profitability increase, indicating that a decrease in the number of days a firm receives payment from sales positively affects firm profitability. This study shows a negative relationship between inventory turnover ratio with ROA excluding and including revaluation, which shows that with the inventory turnover, the company should increase its return on assets.
Objectives of the study
The Impact of Working Capital Management on Profitability: A Case Study of Trading Firms DOI: http://dx.doi.org/10.5772/intechopen.99912.
Methods
Sample and data collection
The purpose of the present study is to provide some empirical evidence on the impact of working capital management on profitability for a sample of 15 trading companies for the five-year period from 2015 to 2019. Grainger (GWW), 8) H&E Equipment Inc. HDS) 10 ) Houston Wire and Cable Company (HWCC), 11) Huttig Building Products Inc.
Results
Net profitability is taken as the dependent variable, while average collection period (ACP), average payment period (APP), inventory days converted to sales (ITD), and advertising cash conversion cycle (CCC) are considered as independent variables.
Correlation analysis
Regression analysis
Summary and conclusions
Limitations of the study
Working Capital Management in the Indian Oil and Gas Industry - A Case Study of Reliance Industries LTD.
TOP 1%
GCC countries background
A brief background of the GCC countries is necessary to gain some understanding of the institutional environment. Recently, the share of the GCC countries in the global GDP has doubled to 2.2 percent, which refers to the development of a dynamic economy [18].
Theoretical framework
- Agency theory
Literature review
- Independence factor, firm performance, and firm value
- Family factor, firm performance and firm value
- Board factor, firm performance and firm value
- Government factor, firm performance and firm value
- Effectiveness factor, firm performance and firm value
- Expertise factor, firm performance and firm value
- Board composition factor, firm performance and firm value
Furthermore, despite the mixed results in the Big4 firms literature, most studies [48-52] conclude that Big4 firms enhance firm performance and value. In addition, this study follows the majority of the literature, which finds a negative relationship between CEO duality and firm performance.
Methodology
- Measurement of firm’s performance and firm value
- Principal component analysis (PCA)
The study of the effect of CG on business performance and business value based on principal component analysis (PCA). PCA identifies a sparse set of CG variables that affect business performance and business value.
Regression
On the other hand, investors seem to prefer to evaluate the firm structure of CG based on Q and Tobin's measure [13]. Firm Performance LN_ROA Natural Log of Return on Assets LN_ROE Natural Log of Return on Equity Firm Value LN_TOBIN'S Q Natural log of independent variable Tobin's Q.
Results and analysis
- Descriptive statistics and correlation matrix
- Regression analysis
- Robustness test
AUDITEX is the ratio of members with financial or accounting expertise to the total number of directors. LN_GROWTH is the natural logarithm of the change in net sales divided by total assets.
Discussion
Regarding the control variable, growth and leverage appear to have a significant relationship with firm performance and value. First, the study runs regression models using a different measure of firm performance (Adj ROA) and firm value (Adj Tobin's Q.
Conclusion
Do Institutional Shareholder Services (ISS) corporate governance ratings reflect company performance. 2004), "The Impact of Corporate Governance Practices on Firms' Financial Performance", ASEAN Economic Bulletin, Vol. An Investigation of Earnings Management Practices and the Role of Corporate Governance and External Audit in Emerging Markets!: Empirical Evidence from Saudi Listed Companies.
Organizational culture as part of a dynamic system
The "scientific method" essentially assumes that systems are closed systems in that the components of the system and the system as a whole exist in isolation and are not affected by outside forces. Decisions driven by the flow of information and knowledge through the system become observable outcomes through which the health of the system (organization) can be evaluated.
The Performance Triangle Model
The question then becomes twofold, what are the critical "unconscious and rarely discussed" dimensions and can they be measured". We claim that, armed with insight into many "unconscious and rarely discussed" beliefs, values and shared assumptions embedded in the employee population, managers will be able to take targeted and effective actions to design organizations that will be successful in ' a VUCA 21st Century environment and dramatically increases the likelihood of a successful change initiative.
Qualitative and quantitative foundations of the Performance Triangle Model
- Qualitative origins
- Quantitative analysis: phase one .1 The sample
- Quantitative analysis: phase 2
For PCA, the seven main PTM constructs were clustered into three clusters. All factors are above 0.5 in cluster 1, however leadership and systems are commonly separated in the literature.
Practical implications
- How do we measure success?
- Culture: the glue that binds the organization
- Leadership: shaping vision and inspiring the organization
- Systems: rules, routines, and tools that shape decisions
- People: the power for the system
- Purpose, relationships, and collaboration: transferring people power throughout the system
- Can anything be done … and if so… what?
People share a common vision and values of the organization to find purpose and drive performance. Instead of band-aiding the problems of the organization, managers can gain insight into many "unconscious and rarely discussed".
Conclusion: what have we learned?
This study investigates the impact of managers' experience and gender on the relationship between internationalization and business performance of manufacturing firms in Turkey. While many other empirical studies have found a linear relationship between internationalization and business performance of multinationals in the world and Taiwan [3, 4].
Literature review
Managerial experience is measured by the number of years the manager has worked in the current position. All this represents such a significant obstacle to the process of internationalization if the leader is a woman.
Internationalization and Firm Performance in Turkey
According to the Turkish Institute of Statistics, the number of enterprises operating in the manufacturing and processing sectors was 3,221,000. According to the Turkish Institute of Statistics, industrial production of Turkish processing and manufacturing enterprises in the 2008–2018 generally tended to increase gradually, reaching from USD 124.5 billion (2008) to USD 146.1 billion (2018).
Trait Characteristics of the managers of the firms in Turkey
A leader's experience is often measured by years of experience in leadership positions in the manufacturing industry. According to the World Bank, senior leaders in the manufacturing and manufacturing sector have a relatively large number of years of experience, focusing mainly on 20–30 years of experience.
Data and Research method 1 Data
- Estimation model
Many companies are also managed by managers with little experience from 2 to 5 years. Managerial experience experts Years of experience = years with managers in the manufacturing and processing industries [33].
Results and discussion
Zúniga-Vicente (2016), 'The international diversification-performance link in Spain: Does firm size really matter?', International Business Review, 1248, 11. Cheng (2011), 'The internationalization and performance of a firma: Moderating effect of en virksomheds adfærd', Journal of International Management Cuervo-Cazurra, A., L.
Brief of the accounting quality
The quality of accounting according to applicable standards is closely related to the usefulness of financial information to users, especially in supporting user decision-making. Thus, the behavioral understanding of accounting quality is also an important issue to investigate.
Constraints and challenges to provide qualified information
- Political hegemony
- Bureaucrat behaviours in budget ratcheting
- Auditors’ and users’ cognitive distortion
- International accounting standard (IAS) and accounting quality
Meanwhile, we know that the financial statements or the report is the result of the process of the accounting system. Regarding audit quality as one of the dimensions of accounting qualities, in the last study, Sumiyana et al.
Conclusions
The demands of the report users primarily drive the presentation of financial reports that are useful for decision making. The implication is that the auditor's role in assessing the fairness of the presentation of financial statements is also less than optimal.
Future research
Dichev, “Accruals and Earnings Quality: The Role of Accrual Errors,” in Accounting Review, Mar. Schmidt, "Effects of Auditors' Access to "Tone at the Top" Knowledge on Audit Judgments,".
