𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Testing alternative measures of microenterprise profits and net worth

✍ Scribed by Lisa Daniels


Publisher
John Wiley and Sons
Year
2001
Tongue
English
Weight
119 KB
Volume
13
Category
Article
ISSN
0954-1748

No coin nor oath required. For personal study only.

✦ Synopsis


Abstract

Using data from 448 microenterprises in Zimbabwe, this paper examines five alternative measures of profits and five alternative measures of net worth. The results show that the single‐question proxies are too difficult for proprietors to answer, whereas the most complex profit measures generate many negative estimates. The best measure of profits, based on three questions, could be answered by all proprietors and it avoids recall problems associated with sales and expenses. Among the net worth proxies, all of the measures are positively correlated. Nonetheless, the proxy based on fixed assets, accounts receivable, debt, and inventory, showed the highest correlation with the full measure of net worth. Copyright Β© 2001 John Wiley & Sons, Ltd.


πŸ“œ SIMILAR VOLUMES


Testing alternative theories of the firm
✍ Laura Poppo; Todd Zenger πŸ“‚ Article πŸ“… 1998 πŸ› John Wiley and Sons 🌐 English βš– 143 KB πŸ‘ 2 views

Firms' boundary choices have undergone careful examination in recent years, particularly in information services. While transaction cost economics provides a widely tested explanation for boundary choice, more recent theoretical work advances competing knowledge-based and measurement cost explanatio