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Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.

This paper presents a model for determining the optimal capital structure for cooperatives and explores the relationship between financial leverage and the ability of cooperatives to retire member equity.

A model is developed to determine the optimal capital structure and explore the relationship between capital structure and the rate at which a cooperative can retire member equity. Using data from cooperative financial statements, ordinary least-squares regressions are conducted to test two hypotheses on capital structure and equity retirement.

The model shows that the optimal capital structure is determined by the ratio of the rate of return on capital employed to the interest rate on borrowed capital and the required level of interest coverage. The regressions suggest that cooperatives choose their capital structure largely according to the rate of return on capital employed and the interest rate in a manner consistent with maximizing the rate of return on equity and that the rate at which cooperatives can retire member equity is directly related to leverage.

The model does not consider unallocated earnings. Analysis of the relationship between leverage and equity retirement yields results contrary to the assumptions of earlier studies.

Cooperatives can use the model because the necessary parameters are easily understood and readily available from financial statements, lenders and industry sources.

The model is developed specifically for determining the capital structure of cooperatives and differs substantially from the corporate model. A theoretical basis is provided for the relationship between leverage and equity retirement.

A distinction must be drawn between a dismissal on the one hand, and on the other a repudiation of a contract of employment as a result of a breach of a fundamental term of that contract. When such a repudiation has been accepted by the innocent party then a termination of employment takes place. Such termination does not constitute dismissal (see London v. James Laidlaw & Sons Ltd (1974) IRLR 136 and Gannon v. J. C. Firth (1976) IRLR 415 EAT).

The accounting rate of return on capital employed (RRCE) still enjoys extraordinary popularity as a criterion of achieved financial performance, as a divisional and corporate financial objective, and as a public policy index of relative profitability. Its popularity may in no small way lie in the presumption that the RRCE provides, in the form of a single magnitude, a comprehensive criterion for measuring the ex post and ex ante profitability of capital investment. Moreover, the components of the RRCE calculation can be taken directly from the traditional accounting records — the hallmark of respectability.

The Howard Shuttering Contractors case throws considerable light on the importance which the tribunals attach to warnings before dismissing an employee. In this case the tribunal took great pains to interpret the intention of the parties to the different site agreements, and it came to the conclusion that the agreed procedure was not followed. One other matter, which must be particularly noted by employers, is that where a final warning is required, this final warning must be “a warning”, and not the actual dismissal. So that where, for example, three warnings are to be given, the third must be a “warning”. It is after the employee has misconducted himself thereafter that the employer may dismiss.

Highlights the operating cycle, its importance, and reviews basic relationships related to the cycle. In particular, it focuses on capital “flow through”, invested capital, capital at risk, and economic returns generated relative to capital employed. Reveals an amplification effect that results from improvements in the management of the cycle, that benefit traceable to a reduction in operating risk allowing incremental benefits from financial leverage. Suggests specific actions to take with respect to the cycle that will improve the value of your firm. Shows that small improvements in operating factors within the cycle yield amplified benefits to the firm. The discussion ignores taxes except in instances when tax effects are important. This does not detract from the discourse or conclusions. Reveals that increases in firm value that result from improved management of the operating cycle stem from several sources: greater levels of economic returns from operations; a reduction in operating risk; less capital invested and at lower risk; lower cost of capital; and increased tax benefit.

There are two main alternative explanations in the literature for the patterns of financial reporting during the period of the British Industrial Revolution (BIR). Rob Bryer sees the new social relations of production in which manufacturing entrepreneurs strove to increase the productivity of wage‐labour as leading to a distinct capitalist “calculative mentality”, focused on the return on capital employed; Dick Edwards argues from agency precepts that financial reporting emerged with the transition from “industrial” to “financial capitalism”. This paper aims to reappraise these theorisations using new archival evidence.

Canals, the crucial transport network during the BIR, were owned by limited liability companies financed by outside investors, with clear separation of ownership and control, yet were not capitalist in Bryer's sense because their profits came from a form of rent (tolls on freight) not from the exploitation of wage‐labour. The paper reviews the financial statements of seven major English canals from the 1770s to the 1850s, and uses these findings as a basis for appraising the above‐mentioned theories.

The financial statements of English canal companies do not distinguish profit or enable users to calculate rates of return on capital employed and so assess the performance of management. This sharply conflicts with agency theory but is consistent with Bryer's thesis.

The paper contributes to the authors' understanding of how and why corporate financial reporting emerged, and the relationship between this process and the transition to the capitalist mode of production.

The paper aims to find out the information content of performance measures from accounting and value-based measures that best explain the total shareholder return.

To achieve this aim, static and dynamic panel data regression analysis is applied to the sample of 56 Indian companies taken from the Nifty Midcap 100 Index, between 2012 and 2019.

It is found that accounting-based measures have more relative information content in predicting total shareholder return as compared to value-based measures. Economic value added (EVA) and cash value added (CVA) do not add to the information content provided by accounting-based measures. A combination of accounting-based measures and value-added intellectual coefficient (VAIC) adds marginally to the information content provided by accounting-based measures in explaining the total shareholder return. Dynamic panel regression analysis shows that return on assets (ROA), return on capital employed (ROCE), return on equity (ROE) and EVA have a significant impact on total shareholder return.

In this study, along with EVA, other measures from value-based measures, i.e. CVA are empirically tested to explain the total shareholder return. Intellectual capital efficiency computed by VAIC is also empirically tested along with accounting-based measures, EVA, CVA and market value added (MVA). To bring robustness to findings, data are tested by using dynamic panel regression analysis.

Business objectives play a vital role in providing direction and purpose for a company. Just as an individual cannot plan a route for a journey until he determines his destination, so a company needs to establish some notion of its final destination for its journey into the future before managers can begin to deploy company resources. Even in companies which do not have formal planning systems, managers must still make strategic decisions regarding investment, product development and the like which will set their course into the future, and so they must have some goals in mind in making their decisions. But whilst such companies will have objectives, in the absence of any formal planning these objectives are likely to remain implicit, being carried in the heads of executives. Thus there is always the danger that managers will operate with different goals in mind, so that the company lurches into the future in an unco‐ordinated fashion.

The purpose of this study is to introduce working capital efficiency multiplier (WCEM) as a direct profitability measure of working capital management. The existing accounting measures in the literature establish an indirect approach to study the relationship between working capital efficiency and profitability of the firms.

Using the help of a set of companies from CMIE Prowess database, the study introduces WCEM as a direct profitability measure of working capital efficiency.

In this study, a new direct measure of working capital efficiency is introduced which is multiplicative in nature. WCEM is a product of three components, namely, WACC, ratio of the sum of trade receivables and inventories to trade payables and ratio of net working capital (NWC) to net sales.

The importance of direct measure like WCEM could be enormous in performance evaluation of a firm. It can be used as an indicator for choosing a suitable investment opportunity by an investor. This is due to the fact that the firm that is highly efficient in managing working capital is less exposed to liquidity risk. At the same time, the firm is less dependent on external financing. Therefore, such firms eventually create more value for their shareholders. Another indication that WCEM provides is to gauge the bargaining power of the firm and its competitive position in the market. Lower WCEM indicates higher bargaining power of a firm across the value chain, and its superior position relative to its competitors.

Most of the studies on WCM are of the empirical type and there is a complete dearth on theoretical framework. Researchers hereafter can consider WCEM as one of the financial performance variables in place of the existing measures such as return on asset (ROA), return on invested capital (ROIC), return on equity (ROE), gross operating income (GOI) and net operating income (NOI) and thereby can contribute new empirical insights through their research outcomes.