Receivables Management and Factors Influencing its Quality
Purpose – to scientifically substantiate the factors influencing the quality of receivables management.
Design/Method/Research approach. This study uses a systematic approach and methods of synthesis, semantic analysis, historical analysis, analogies, generalization, explanation, classification and graphic are applied.
Findings. Management of receivables, which for the seller's company are the debts of buyers - is one of the components of modern relations between enterprises. Limited resources force managers to select tools and sources of financing sales with deferred payment, as well as to analyze the factors that affect the quality of management of such deferred payment. The subsystem of receivables management is presented and analyzed, in which the factors (elements) important for effective management in the enterprise management system are highlighted, which are usually analyzed and corrected during the management of the level of receivables. It is proved that this subsystem needs to be refined taking into account the factors of the macroenvironment. It is emphasized that the factors of influence should be singled out for wholesalers, as in the wholesale chain compared to retail trade, the markup on the value of goods is reduced and it is necessary to financially ensure the sale of goods with deferred payment. Accounts receivable management is considered to be high quality and efficient when, as a result of such management, enterprises become financially stable. The system of factors, where the main role belongs to economic factors, is improved, the approach to their quantitative estimation is offered.
Theoretical implications. The theoretical two-level mathematical model of quantitative estimation of factors of influence on quality of management of receivables of the enterprises is offered.
Practical implications. The results of the study can be used in the management of receivables of enterprises, the formation of tools for assessing the quality of receivables and identify the main factors influencing the quality of receivables.
Originality/Value. The scientific novelty of the research is the content of separate factors of influence on the quality of receivables management is generalized, structured and investigated.
Research limitations/Future Research. Prospects for further research is the development of a comprehensive application mechanism for managing receivables, taking into account the factors influencing its quality and industry characteristics of enterprises.
Paper type – theoretical.
Aggarwal, K., & Tyagi, A. K. (2018). Inventory and credit decisions under inflationary conditions with inflation induced bad-debts. International Journal of Operations Research and Information Systems, 9(3), 52-76. https://doi.org/10.4018/ijoris.2018070103.
Bei, Z., & Wijewardana, W. (2012). Financial leverage, firm growth and financial strength in the listed companies in Sri Lanka. Procedia -Social and Behavioral Sciences, 40, 709-715. https://doi.org/10.1016/j.sbspro.2012.03.253.
Belozertsev, V. S. (2012). Kontseptsiya upravlinnya debitorsʹkoyu zaborhovanisty u pidpryyemstv optovoyi torhivli [Wholesale Debt Management Debt Management Concept], Materiali za VIII Mezhdunarodna nauchna praktichna konferentsiya, 17–25 yuni 2012, (2), 19-21. Available at: http://www.economy.nayka.com.ua/?op=1&z=1839 (in Ukrainian).
Belozertsev, V. S., & Gunya, V. O. (2014). Rozrobka mekhanіzmu upravlіnnya debіtors'koyu zaborgovanіstyu pіdpriemstva: kontseptual'niy pіdkhіd [Development of a mechanism for managing accounts receivable: a conceptual approach]. Ekonomіst, 3, 57–60. Available at: http://ua-ekonomist.com/7646-rozrobka-mehanzmu-upravlnnya-debtorskoyu-zaborgovanstyu-pdpriyemstva-konceptualniy-pdhd.html (in Ukrainian).
Blank, I. A. (2011). Upravlenie finansovymi resursami predpriyatiya [Management of financial resources of the enterprise]. K.: El'ga (in Russian).
Coibion, O., Gorodnichenko, Y., & Ropele, T. (2019). Inflation expectations and firm decisions: New causal evidence. The Quarterly Journal of Economics,135(1), 165-219. https://doi.org/10.1093/qje/qjz029.
Dolgikh, Y., Panfilova, E., & Smorodina, E. (2020). Digital technologies in ensuring financial strength of Russian non-ferrous smelters. Proceedings of the 2-nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: From Regional Development to Global Economic Growth” (MTDE 2020). https://doi.org/10.2991/aebmr.k.200502.128.
Financial Strength and Linkages with Liquidity. (2015). The handbook of global corporate treasury,169-194. https://doi.org/10.1002/9781119199243.ch12.
Frennea, C., Han, K., & Mittal, V. (2019). Value appropriation and firm shareholder value: role of advertising and receivables management. Journal of Marketing Research, 56(2), 291-309. https://doi.org/10.1177/0022243718822506.
Giedt, J. Z. (2018). Modelling Receivables and Deferred Revenues to Detect Revenue Management. Abacus, 54(2), 181-209. https://doi.org/10.1111/abac.12119.
Inessa, S., Artem, S., & Wielki, J. (2019). Analysis of macroeconomic factors affecting the investment potential of an enterprise. European Research Studies Journal,XXII (Issue 4), 140-167. doi:10.35808/ersj/1503.
Karadağ, H. (2018). Cash, receivables and inventory management practices in small enterprises: Their associations with financial performance and competitiveness. Small Enterprise Research, 25(1), 69-89. https://doi.org/10.1080/13215906.2018.1428912.
Karpenko, O. A., Karpova, D. P., Grigorieva, E. M., Savenkova, E. V., & Guirinskiy, A. V. (2017). The empirical study of the efficiency of the impact of macroeconomic variables on national currency. Efficiency in Business and Economics Springer Proceedings in Business and Economics, 81-87. https://doi.org/10.1007/978-3-319-68285-3_7.
Klimova, O. (2017). Receivables management features of engineering enterprises. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2971094.
Kozka, A. (2010). Yeshche raz o dolgakh, ili kak odolet' debitora [Once again about debts, or how to overcome a debtor]. General manager, 8(84), 40-45 (in Russian).
Krylov, S. (2020). Information and accounting support for accounts receivable management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3635413.
Kumsta, R., & Vivian, A. (2019). The financial strength anomaly in the UK: Information uncertainty or liquidity? The European Journal of Finance, 26(10), 925-957. https://doi.org/:10.1080/1351847x.2019.1641532.
Lishchenko, O. G., & Beskosta, G. M. (2012). Analіz debіtors'koji zaborgovanostі v sistemі upravlіnnya pіdpriemstvom [Analysis of accounts receivable in the enterprise management system]. Derzhava ta regіoni. Serіya: Ekonomіka ta pіdpriemnitstvo, 1, 114–117. https://doi.org/10.31558/2307-2296.2019.1.10 (in Ukrainian).
Oladnichuk, N. V., Konzeba, S. M., & Podlubna, O. D. (2019). Receivables accounting: the problems and the ways to solve them. Herald of Kiev Institute of Business and Technology, 42(4), 64-68. https://doi.org/10.37203/kibit.2019.42.10.
Purwanti, T. (2019). An analysis of cash and receivables turnover effect towards company profitability. International Journal of Seocology, 1(01), 37-44. https://doi.org/10.29040/seocology.v1i01.6.
Sági, J., Chandler, N., & Lentner, C. (2020). Family businesses and predictability of financial strength: A Hungarian study. Problems and Perspectives in Management, 18(2), 476-489. doi:10.21511/ppm.18(2).2020.39.
Siekelova, A., Kliestik, T., Svabova, L., Androniceanu, A., & Schönfeld, J. (2017). Receivables management: The importance of financial indicators in assessing the creditworthiness. Polish Journal of Management Studies, 15(2), 217-228. https://doi.org/10.17512/pjms.2017.15.2.20.
Sinevičienė, L. (2016). Tax burden and economic development: The case of the European Union countries. Entrepreneurship, Business and Economics - Vol. 2 Eurasian Studies in Business and Economics, 283-298. https://doi.org/10.1007/978-3-319-27573-4_19.
Stam, N., & Westerman, W. (2018). Accounts receivable overdue and market dynamics: A case study. The Central European Review of Economics and Management, 2(3), 5. https://doi.org/10.29015/cerem.678.
Tacchella, A., Mazzilli, D., & Pietronero, L. (2018). A dynamical systems approach to gross domestic product forecasting. Nature Physics, 14(8), 861-865. https://doi.org/10.1038/s41567-018-0204-y
Volnin, V. A. (2010). Kreditnaya politika predpriyatiya: perekhod k sistemnomu upravleniyu [Credit policy of the enterprise: transition to system management]. Vestnik: finansy, nalogi, ctrakhovaniye, bukhgalterskiy uchet, 5, 21-22 (in Ukrainian).
Zimon, G. (2018). Strategies of receivables management in multi-entity organizations. Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018). https://doi.org/10.2991/febm-18.2018.2.
The authors agree with the following conditions:
1. Authors retain copyright and grant the journal right of first publication (Download agreement) with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors have the right to complete individual additional agreements for the non-exclusive spreading of the journal’s published version of the work (for example, to post work in the electronic repository of the institution or to publish it as part of a monograph), with the reference to the first publication of the work in this journal.
3. Journal’s politics allows and encourages the placement on the Internet (for example, in the repositories of institutions, personal websites, SSRN, ResearchGate, MPRA, SSOAR, etc.) manuscript of the work by the authors, before and during the process of viewing it by this journal, because it can lead to a productive research discussion and positively affect the efficiency and dynamics of citing the published work (see The Effect of Open Access).