Accounting information and the prediction of farm viability
Until recently farm management made little use of accounting and agriculture has been largely excluded from the scope of accounting standards. This article examines the current use of accounting in agriculture and points the need to establish accounting standards for agriculture. Empirical evidence shows that accounting can make a significant contribution to agricultural management and farm viability and could also be important for other agents involved in agricultural decision making. Existing literature on failure prediction models and farm viability prediction studies provide the starting point for our research, in which two dichotomous logit models were applied to subsamples of viable and unviable farms in Catalonia, Spain. The first model considered only non-financial variables, while the other also considered financial ones. When accounting variables were added to the model, a significant reduction in deviance was observed.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Palepu, Krishna G., 1986. "Predicting takeover targets : A methodological and empirical analysis," Journal of Accounting and Economics, Elsevier, vol. 8(1), pages 3-35, March.
- Max Colwell & Robert Koroluk, 1990. "Differences in Farm Incomes using Cash or Accrual Accounting Methods on Canadian Crop Farms and Implications for Farm Management Decision Making," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(4), pages 655-665, December.
- James J. Wadsworth & Boris E. Bravo-Ureta, 1992. "Financial performance of New England dairy farms," Agribusiness, John Wiley & Sons, Ltd., vol. 8(1), pages 47-56.
- J.-C. Kroll, 1987. "Le Nouveau Plan Comptable : les occasions perdues," Économie rurale, Programme National Persée, vol. 180(1), pages 20-25.
- Frederick M. Richardson & Gregory D. Kane & Patricia Lobingier, 1998. "The Impact of Recession on the Prediction of Corporate Failure," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 25(1&2), pages 167-186.
- Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(3-4), pages 443-58.
- Foster, Williams E. & Rausser, Gordon C., 1990.
"Farmer behavior under risk of failure,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt5kk2g186, Department of Agricultural & Resource Economics, UC Berkeley.
- Altman, Edward I. & Haldeman, Robert G. & Narayanan, P., 1977. "ZETATM analysis A new model to identify bankruptcy risk of corporations," Journal of Banking & Finance, Elsevier, vol. 1(1), pages 29-54, June.
- Ofek, Eli, 1993. "Capital structure and firm response to poor performance: An empirical analysis," Journal of Financial Economics, Elsevier, vol. 34(1), pages 3-30, August.
- Laurence M. Crane & David J. Leatham, 1995. "External equity financing in agriculture via profit and loss sharing contracts: A proposed financial innovation," Agribusiness, John Wiley & Sons, Ltd., vol. 11(3), pages 223-233.
- Olsson, Rolf, 1988. "Management for Success in Modern Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 15(2/3), pages 239-59.
- Johnson, R. Bruce & Hagan, Albert R., 1973. "Agricultural Loan Evaluation With Discriminant Analysis," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(02), December.
- Frydman, Halina & Altman, Edward I & Kao, Duen-Li, 1985. " Introducing Recursive Partitioning for Financial Classification: The Case of Financial Distress," Journal of Finance, American Finance Association, vol. 40(1), pages 269-91, March.
- Martin, Daniel, 1977. "Early warning of bank failure : A logit regression approach," Journal of Banking & Finance, Elsevier, vol. 1(3), pages 249-276, November.
- Lo, Andrew W., 1986. "Logit versus discriminant analysis : A specification test and application to corporate bankruptcies," Journal of Econometrics, Elsevier, vol. 31(2), pages 151-178, March.
- Bernard Roze & Guenhaël Jégouzo & Jean-Louis Brangeon, 1994. "Les revenus agricoles négatifs," Économie rurale, Programme National Persée, vol. 224(1), pages 32-38.
- F. André, 1987. "Vers un renouveau de la formation économique des agriculteurs ?," Économie rurale, Programme National Persée, vol. 177(1), pages 53-56.
- Phimister, Euan, 1995. "The Impact of Borrowing Constraints on Farm Households: A Life-Cycle Approach," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 22(1), pages 61-86.
- Smale, Melinda & Saupe, William E. & Salant, Priscilla, 1986. "Farm Family Characteristics and the Viability of Farm Households in Wisconsin, Mississippi, and Tennessee," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
- Bernard Pineau & François Colson, 1991. "Les indicateurs de détection de la difficulté financière des exploitations en période d'installation," Économie rurale, Programme National Persée, vol. 206(1), pages 57-63.
When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:277. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.