Predicting farm performance: do indicators of farm economic viability and efficiency signify of probability of bankruptcy?
Laen...
Kuupäev
2021
Kättesaadav alates
Autorid
Savickienė, J.
Miceikienė, A.
Ajakirja pealkiri
Ajakirja ISSN
Köite pealkiri
Kirjastaja
Estonian University of Life Sciences
Abstrakt
Following the analysis of the indicators characterising the economic viability,
efficiency and bankruptcy probability of farms proposed by researchers and employed in practice,
the relationships between the indicators and their capacity to predict the prospects of farm
activities as well to assess whether or not the indicators are indicative of the same patterns of farm
activity, several different researchers' approaches have been identified. Certain researchers have
been claiming that all of the indicators provide the same farm performance prospects, while others
consider economic viability and efficiency to provide long-term farm performance prospects,
while bankruptcy probability-negative profitability in the short term. The methods of convergent
and discriminant validation employed allowed for analysis of the risk of potential overlap
between the index of economic viability of a family farm and farm economic efficiency
coefficient with the already available bankruptcy probability prediction models. For this purpose,
categorical regression analysis was employed. This enabled the authors to determine that the
index of economic viability of a family farm and coefficient of farm economic efficiency did not
repeat the already available and used bankruptcy probability prediction models. Summarizing the
results, it could be claimed that the index of economic viability of a family farm and coefficient
of farm economic efficiency are not suitable as an alternative for assessment of the bankruptcy
probability.
Kirjeldus
Received: April 24th, 2021 ; Accepted: September 8th, 2021 ; Published: October 5th, 2021 ; Correspondence: jurate.savickiene@vdu.lt
Märksõnad
farm economic viability, farm economic efficiency, bankruptcy prediction models, family farms, articles