Profit share and balanced development of agro bussiness
2007
Franc-Dabrowska, J.,Szkola Glowna Gospodarstwa Wiejskiego, Warszawa (Poland). Katedra Ekonomiki i Organizacji Gospodarstw Rolniczych
The research involved a group of 15 joint-stock companies operating in farm and food industry in 2001-04. The following research hypothesis was formulated: Companies which take decisions to disburse cash from profits, are characterized by better financial condition, represented by among others sales volumes, capital yields and return on equity. Decisions regarding utilization of profits earned still remain one of the most difficult in the area of finance. Majority of companies decided to use net profit to increase reserve and disclosed capital. It can be stated that companies in a better financial condition characterized by harmonious, well balanced development were taking decisions to consume profits earned on current basis
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