DoctorateOpen Access

Determination of account receivable and payable policy in firms: An econometric application on BIST manufacturing sector

2018
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Advisor: Dr. Öğr. Üyesi Erkan Alsu

Abstract (EN)

The aim of this study is to create up-to-date econometric models for accounts receivable and accounts payable management. Within this framework, econometric models are developed to guide accounts receivable and payable policies utilizing both quarterly data (before IFRS) and 2008–2014 data (after IFRS) of 110 firms operating in the manufacturing sector of the İstanbul Stock Exchange. The first set of models aims to reveal the financial determinants of the enterprise investing in account receivables (the maturing entity), while the second set of models examines the financial determinants of the business providing debt financing (the maturity-recognized entity). Cross-section dependency tests are performed for the variables of each model installed. Then, first and second unit root analyses of each of the variables are performed. The models are established by taking the first difference of non-stationary variables when the stationary variables are taken directly according to whether or not the series are stationary. Models 1 and 2 are presented for both pre-IFRS and post-IFRS periods. For both periods, the necessary assumptions are made for estimation of both models, and then both the clustered standard error method and the Driscoll-Kraay is chosen from the resistant estimators. A positive relationship is found between accounts receivable and accounts payables for both pre- and post-IFRS periods in the findings; there is a negative relationship found between accounts receivable and sales, stocks, and liquidity in both periods; and only negative relation is found between accounts receivable and profitability in the post-IFRS period. There is a positive relationship noted between accounts payable and stocks in both periods. Once profitability is determined, only post- IFRS period commercial liabilities and liquidity are found to be positively correlated.

Author

Cengizhan Karaca

How to Cite

Cengizhan Karaca (Doctorate thesis). Determination of account receivable and payable policy in firms: An econometric application on BIST manufacturing sector, 2018, Gaziantep University.

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