Paper #612

Title:

Importancia de la información contable para el análisis y predicción de la viabilidad de las explotaciones agrícolas

Author:

Josep M. Argilés

Date:

March 2002

Abstract:

Spanish and Western agriculture show a continuous decrease in the number of farms. One of the main factors for this trend is the economic non-viability of many of the existing farms. In addition, interrelationship of agriculture with other industries is growing. Thus, policymakers, banks, creditors and other stakeholders are interested in predicting farm viability. The aim of this paper is to provide empirical evidence that the use of accounting-based information could significantly improve understanding and prediction of various degrees of farm viability. Two multinomial logit models were applied to a sample of farms of Catalonia, Spain. One model included non-accounting-based variables, while the other also considered accounting-based variables. It was found that accounting added significant information to predict various degrees of farm viability. This finding reveals, both the need of encouraging the little existing use of accounting by farms and to develop appropriate accounting standards for agriculture.

Keywords:

Accounting, agriculture, farm, non-viability, failure prediction models

JEL codes:

M40

Area of Research:

Finance and Accounting

Published in:

Revista de Economía Aplicada, nº 41 (vol. XIV), págs. 141-167, 2006
With the title:
La información contable en el análisis y predicción de viabilidad de las explotaciones agrícolas

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