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This paper introduces the core enterprise into the traditional accounts receivable financing model, which only includes the bank and the small and medium-sized enterprise (SME), and further analyses the strategic decisions of the bank, the SME, and the core enterprise by applying game theory. The stability of strategic decisions is also analysed. Finally, we prove the usability of the pledged financing mode of accounts receivable based on supply chain finance through simulation analysis and evolutionary game theory. Research results show that adding the core enterprise to the traditional accounts receivable financing model can reduce the bank's loan risk to a certain extent, enhance the credibility of the accounts receivable, which will be beneficial to the realisation of accounts receivable financing. The successful operation of accounts receivable financing mode will help the three parties to achieve three-win results. In addition, the lending rate of the bank and the reputation loss suffered by the core enterprise due to default will affect the evolutionary equilibrium of the tripartite evolutionary game. [ABSTRACT FROM AUTHOR]

This study examines the effects of exchange rates, export intensity, and days to receivable on the profitability of Indonesian coal exporting companies, using panel data from 2015 to 2023. The objective is to find if export intensity and exchange rate impedes the effect of days to receivable on profitability. Interaction analyses reveal that the positive impact of receivables on profitability diminishes with increasing exchange rates. Conversely, the interaction between days to receivable and export intensity does not significantly affect profitability. Therefore, it might be beneficial for Indonesian coal companies should explore implementing more flexible trade credit policies to enhance customer relationships, particularly during periods of rupiah appreciation. [ABSTRACT FROM AUTHOR]

This study examined how the COVID-19 pandemic impacted the financial performance of listed firms in the readymade garment (RMG) industry in Bangladesh. Out of 56 RMG companies listed in the Bangladesh Stock Exchange, 33 firms whose complete financial data from 2016-2021 was publicly available were selected as the sample. Through the use of descriptive, correlation, and regression analysis, the study explored the sector's financial well-being both before and during the pandemic, including the relationship between the pandemic and financial metrics, the extent of its impact, and other factors that influenced financial performance. The findings revealed a significant negative impact on RMG profitability indicators such as Return on Assets (-.032, p < .01) and Return on Equity (-.067, p < .05). Factors such as firm size, debt ratio, growth rate, and accounts receivable turnover were also identified as significant influencers of financial performance during the pandemic period. These findings underscored the pandemic-related challenges that RMG companies in Bangladesh faced, and emphasize the importance of proactive strategies for risk mitigation. They also highlight practical implications for strategic financial management and resilience-building measures within the sector. [ABSTRACT FROM AUTHOR]

The commercial bill, as a regulated commercial credit mode, offers better creditor protection, more financing channels, and stronger bargaining power in financing. This paper creatively constructs bills receivable index in the micro level of enterprises and examines the potential impact of billing of accounts receivable on the financing constraints faced by enterprises. This paper also explores the mechanism that causes the impact and check whether the establishment of the Shanghai Commercial Paper Exchange Corporation (SHCPE) has had positive effects. The results show that billing can alleviate the financing constraints of enterprises due to its benefits offered by the commercial bill. Furthermore, the establishment of the Shanghai Commercial Paper Exchange Corporation (SHCPE) can lead to the development of a standardized and transparent bill market, further alleviating the financing constraints. The study also reveals that billing of accounts receivable affects financing constraints mainly by enhancing the quality of debt-like assets and reducing information asymmetry between enterprises and the outside world. For enterprises with longer maturity structure, the effect of billing on the alleviation of financing constraints is more significant. [ABSTRACT FROM AUTHOR]

Peculium process is one of the most common types of legal transactions in daily life because it affects a right in the property. It is a legal transaction that directly affects a right in the assets of the person making the disposition, transferring, restricting, changing or terminating that right to another person. For this reason, it is important to evaluate the change made by the peculium process in the field of movable and immovable rights and relative rights. In this direction, the discussion of the intangibility of the receivables in the transfer of the receivable and the transfer of the receivables in the field of relative rights and the discussion of intangibility of the release and the intangibility of the reason in the release, which is a peculium process, were discussed and the results of the transaction were evaluated. [ABSTRACT FROM AUTHOR]

Purpose: Consumer goods firms often tie up inventory and accounts receivable resources, creating cost and liquidity issues. Dynamic working capital management (DWCM) can mitigate these concerns and enhance operational profitability. The study investigates DWCM's impact on operational efficiency (OE). Design/methodology/approach: The empirical estimation uses pooled ordinary least squares (OLS), random effect and system generalized method moments (GMM) regression analysis of consumer goods firms in Scandinavia from 2005 to 2022 to present the results. Findings: The findings indicate that DWCM has an inverse relationship with operating cost, while positively impacting operating profit. The final outcome demonstrates that DWCM enhances OE. Furthermore, the working capital ratio (WCR) consistently exceeds the cash conversion cycle (CCC) in all models, indicating that prudent management of cash in accounts receivable, inventory and accounts payable leads to higher cost savings and superior performance. Practical implications: The results suggest that organizations that prioritize the management of the absolute cash committed to inventory, receivables and payables as much as the CCC experience improved OE. Originality/value: This paper adds to the literature on how DWCM affects OE in the consumer goods sector. It also highlights the impact of time management and cash management in WCM on OE. Additionally, it analyzes how DWCM variables affect operating costs and profits, shedding light on their efficiency impact. [ABSTRACT FROM AUTHOR]

This study examines the extent to which firms in emerging markets build supply chains around social relationships. Most existing studies contend that companies decide who to buy (sell) products from (to) based on cost–benefit trade considerations of product quality, price, and other factors. We argue that companies make supply chain decisions around social relations to reduce possible risks. We empirically test this conjecture by using data from Chinese municipal party secretaries who served in different places from 2006 to 2017, and the primary customers of listed companies. The results show that after an official move from one jurisdiction to work in another, the firms in the latter jurisdiction will see an increase in customers from where the official previously served. Further investigation reveals that companies that are economically strong, face fierce competition, are state‐owned, and are located in areas with low degrees of marketization are more likely to attract customers from the area where the official last served after the new municipal party secretary takes office. Making supply chain decisions based on the social relationships of the secretaries of the municipal party committees does not improve companies' profitability, but doing so will increase the turnover rate of accounts receivable and accounts received in advance. [ABSTRACT FROM AUTHOR]

In recent years, blockchain technology has attracted substantial interest for its capability to transform supply chain management and finance. This paper employs evolutionary game theory to investigate the application of blockchain in mitigating financial risks within supply chains, taking into account the technology's maturity and the risk preferences of financial institutions. By modeling interactions among financial institutions, small and medium enterprises (SMEs), and core enterprises within the accounts receivable financing framework, this study evaluates blockchain's impact on their decision-making and its efficacy in risk reduction. Our findings suggest the transformative potential of blockchain in mitigating financial risks, solving information asymmetry, and enhancing collaboration between financial entities and SMEs. Additionally, we integrate smart contracts into supply chain finance, proposing pragmatic procedures for their deployment in real-world contexts. Via a detailed examination of blockchain's maturity and financial institutions' risk preferences, this research demonstrates the primary determinants of strategic decisions in supply chain finance and underscores how blockchain technology fosters system stability using risk mitigation. Our innovative contribution lies in the design of smart contracts for the ARF process, rooted in blockchain's core attributes of security, transparency, and immutability, thereby ensuring efficient operation and cost reduction in supply chain finance. [ABSTRACT FROM AUTHOR]

Efficient management of working capital in the realm of trade serves to bolster a company's liquidity by meticulously handling cash, receivables, and inventory. This approach emphasizes the optimization of sales, upkeep of inventory, and the implementation of judicious customer payment policies. Challenges inherent within the cash cycle can exert considerable influence on liquidity, compelling heightened borrowing practices that could potentially impact the overall performance of the company. The research delves into analyzing how different aspects of working capital and the level of liquidity impact the profit performance of a trading company. The empirical analysis is centered around the case study of PT XYY, spanning from 2016 to 2021. The research methodology entails examining monthly time series data and applying the vector error correction model (VECM) to comprehend the long-term relationships among the variables. Days of sales in outstanding (DSO), days of sales in inventory (DSI), days of payable outstanding (DPO), and cash conversion cycle (CCC). Liquidity is also measured by the current ratio and cash ratio with the sales growth control variable. The Principal aim of the study is to fathom how these elements collectively impact the company's profitability, gauged by return on assets (ROA). ROA assesses the company's capability to derive profit from its assets. The research findings indicate that DPO and current ratio notably positively influence ROA. DSO, cash ratio, and CCC significantly negatively impact ROA. Meanwhile, the DSI variable has no significant effect. The Implications of these findings underscore the importance of skillfully managing commitments to suppliers to uphold profitability. Companies can leverage these outcomes to fine-tune their operational policies, particularly concerning payment terms with suppliers within purchase agreementsas well as maintaining optimal cash availability in liquidity security. [ABSTRACT FROM AUTHOR]

Judicial efficiency has been widely identified as a factor that has an impact on credit markets and firms' financial decisions. In this paper, we study the relationship between judicial efficiency and trade credit granted by firms to their customers, as well as how the judicial system influences the proportion of those credits that are deemed 'doubtful'. We test our assumption by analysing a sample of 1526 listed, 'non-financial' firms located in countries in the eurozone, during the period 2011–2021. The proxies of judicial efficiency are the length of judicial proceedings and rule of law, obtained from the World Bank's 'Doing Business' and the World Bank Governance Indicators (WGI) databases, respectively. The empirical findings confirm our hypotheses that efficient justice allows for increased supplier confidence when extending financing to their customers and reduces doubtful trade credit. [ABSTRACT FROM AUTHOR]

The present study aims to investigate the impact of the COVID-19 crisis and firm risk on working capital management policies among manufacturing firms listed on the Tehran Stock Exchange (TSE). The study sample consists of 1200 observations and 200 companies listed on the TSE over a six-year period from 2016 to 2021; furthermore, the statistical method used to test the hypotheses is ordinary least squares (OLS). The results show that the COVID-19 pandemic has led managers to increase current assets to total assets ratio (CATAR), current ratio (CR), quick ratio (QR), net working capital (NWC), cash to current assets (CTCA) ratio, while it has caused a decrease in operational cycle (OC), days account receivables (DAR), and current liabilities to total assets ratio (CLTAR). Furthermore, we find that the higher the company's risk, the more managers are motivated to embrace the working capital investment policy, net working capital, cash to current assets ratio, and cash conversion efficiency (CCE). In general, our findings indicate that during times of crisis, Iranian companies tend to adopt conservative working capital policies to ensure sufficient liquidity to respond appropriately to unforeseen events. In this study, the theory of liquidity preference aligns with the observed behavior of firms in response to the COVID-19 crisis and firm risk, where the emphasis on liquidity and short-term financial stability becomes paramount. [ABSTRACT FROM AUTHOR]

Purpose: Effect of accounts receivable management practice on listed manufacturing firms value at NSE, Kenya Design/Methodology/Approach: Causal design adopted on 8 manufacturing firms listed NSE. A five year secondary data was hence attained for 2017 to 2021 years. Data presented through tables was inferentially computed. Findings: Accounts receivable management practice had a significant association with value of listed NSE manufacturing companies Kenya Implications/Originality/Value: The study recommends that credit sales and cash sales should be checked to ensure that accounts receivable management practice is effective.

The aggravation of relations in the field of global finance, the change of international partners and disruption of international economic relations cause the need to strengthen payment discipline and accelerate payments, which is especially important in the context of the expansion of new associations of states. The consequences of the COVID-19 pandemic have also led to a reduction in the liquidity of organizations and increased the need for funds. Timely repayment of accounts receivable increases the availability of cash to suppliers, and the acceleration of settlements contributes to an increase in available funds, which makes it possible to use them additionally in commercial turnover. The purpose of the study was to improve the system of settlements (based on their turnover) with debtors and rational distribution of the terms of cash refunds using the matrix method. The existing systems for assessing financial and cash flows in settlements with debtors and the indicators used for this purpose do not always express the dependent relationship between the growth of sales revenue, the turnover of accounts receivable and the degree of its repayment. In this regard, the objective of the study was to improve the existing indicators of the analysis of accounts receivable. The article examines the methods of accounts receivable management integrated into the system based on a client- oriented approach. In the course of the work the methods of comparison, statistics, mathematical modeling were used. A system for tracking the balances of accounts receivable, comparing them with sales volumes and turnover indicators is proposed. The author formulated the concept of the cycle of accounts receivable circulation. It is revealed that the use of indicators of turnover of accounts receivable and sales volume do not accurately reflect the quality of repayment of accounts receivable, their interdependence and do not disclose the possibility of additional release of funds from settlements with debtors. To solve this problem, a new indicator has been introduced — the rate of repayment of receivables. An approach is proposed to substantiate the expediency and feasibility of accelerating payments based on the elasticity of revenue or proceeds from the sale of products, works and services to the rate of repayment of receivables. The results of the research were the creation of a system for tracking receivables balances and comparing them with sales volumes and turnover indicators, which can be useful for organisations selling products, works and services under credit agreement to accelerate cash receipts.

The accounts payable payment period for transportation costs is usually less than the accounts receivable cycle for transportation fees for a third-party logistic (3PL) firm in China; hence, a capital-constrained 3PL firm has a strong demand to seek credit loans from some competitive lenders (e.g., fourth-party logistic [4PL] firm or private lending [PL] organization). To investigate the attractiveness and effectiveness of different financing modes, two practical financing modes (4PL-driven and PL-driven) and an improved 4PL-driven financing mode are formulated in this work. We present a game-theoretical approach to investigate the equilibria based on the profile functions among 4PL firm (or PL), 3PL firm, supplier and retailer under different financing modes. We find that (1) the practical 4PL-driven financing mode will be the Pareto-dominant financing mode for 3PL firms, suppliers and retailers when the initial budget of the 3PL firm falls below a certain level. (2) The 4PL firm's profit is always higher when using the improved 4PL-driven financing mode. (3) The 4PL firm should use the practical 4PL-driven financing mode for start-up 3PL firms to support their growth; but when they grow to a certain scale, the 4PL firm should use the improved 4PL-driven financing mode to enhance its profit. [ABSTRACT FROM AUTHOR]

Purpose: Trade credit is an important business-to-business marketing tool for building firms' competitive advantage. Many studies explore the determinants of trade credits from a trust-based view, but the role of political connections is largely overlooked, despite their potential influence in assessing firms' trustworthiness in the context of emerging economies. This study aims to fill this gap by examining how political connections affect the capacity of emerging economy firms (EEFs) to grant and receive trade credit. Design/methodology/approach: This study tests a conceptual model using secondary data collected from 1,149 Chinese privately owned listed manufacturing firms between 2008 and 2016. Findings: This study finds that political connections reduce EEFs' accounts receivable and payable; their philanthropic activities alleviate this negative effect for accounts payable, while patent applications reduce it for accounts receivable. These findings suggest the effect of political connections can spillover to EEFs' relationship with their up- and down-stream partners. Practical implications: This study has implications EEF managers, particularly in pointing to the detrimental effect of political connections on relationships with buyers and suppliers, and highlights the need to adopt suitable approaches to offset this effect. Originality/value: This study sheds new light on the negative effect of political connections on EEFs' capacity to grant and receive trade credit in their exchanges with up-stream and down-stream partners. It enriches the trust-based view of trade credit by revealing the significant influence of EEFs' political connections, while also advancing a contingency view by testing the moderating role of corporate philanthropic activities and patent applications. [ABSTRACT FROM AUTHOR]

The paper examines the nexus between working capital management (WCM) and financial performance of listed non-financial firms in Ghana. An unbalanced panel data for the period 2008 to 2021 was used for the study. It is observed that the residual terms of the models were cross-sectionally independent and all the series were first-differenced stationary and cointegrated in the long term The elasticities of the predictors were explored via the Fully Modified Ordinary Least Squares (FMOLS) and the Dynamic Ordinary Least Squares (DOLS) techniques. The findings of the study indicate that WCM proxied by accounts receivable period (ACP), accounts payment period (APP), and inventory turnover period (ITP) have significant positive effect on firms' financial performance measured by return on assets (ROA), return on equity (ROE), and return on capital employed (ROCE). This suggests that the working capital management practices of non-financial firms in Ghana improve their financial performance. Also, firm size and asset growth improve firm financial performance. On the causalities between the variables, bidirectional causalities between ACP, APP, ITP, size, and thecompanies' ROA, ROE, and ROCE are disclosed. Finally, causality from growth to the ROA, ROE, and ROCE of the firms are unraveled. It is recommended that policy makers of non-financial firms in Ghana should not overlook WCM practices in their financial decisions, since ignoring them could seriously compromise the firms' short- and long-term sustainability. [ABSTRACT FROM AUTHOR]

This case allows students to wrestle with the ethical decisions relating to accounting choices. At issue in this case is the timing of the implementation of the Current Expected Credit Losses (CECL) model standard. The objectives of the case are to help students (1) raise their awareness of the ethical decisions inherent to accounting choices, (2) weigh the validity of different viewpoints and approaches, (3) understand the far-reaching implications of ethical decisions in financial reporting, and (4) practice preparing to effectively advocate their positions in a professional setting. When delivered alongside lessons on accounting for receivables and doubtful accounts, the case can help reinforce the real implications of the judgment involved in estimating bad debt. It is also appropriate for any graduate or upper division undergraduate accounting course in which students discuss ethics and codes of conduct. [ABSTRACT FROM AUTHOR]

As a key component of enterprise assets, accounts receivable play an important role in enterprise financial management and determine the long-term development of enterprises in the later period. In order to minimize the financial risk brought by the credit sales of enterprises, this subject studies the intelligent optimization of enterprise financial account receivable management. BP neural network and K -means clustering algorithm are used to evaluate the risk of account receivable and the owner's credit, respectively. The account balance accounts for 45.20% of the total amount, and the risk rating of accounts receivable is 4. The training result of BP neural network algorithm has high accuracy. With K -means clustering algorithm, accurate evaluation of owner's credit can be achieved, which can provide reference for optimization of enterprise account receivable management mode. [ABSTRACT FROM AUTHOR]

Cessie is a method of solving loan problems for default debtors. Through Cessie there is a transfer of receivables originating from debtors to new creditors. However, the legal facts that occurred, in the process of implementing the Cessie also experienced legal problems. Therefore, this writing with an empirical juridical approach will identify other legal problems that arise in Cessie and analyze the legal settlement of Cessie problems that occur in state-owned banks. Based on the studies that have been done, it is concluded that the legal problems that occur are creditors who secretly transfer their receivables through a Cessie to other new creditors, even though this is normatively justified in Article 613 of the Civil Code. However, in fact, the debtor’s denial and non-approval often occur, causing new problems with new creditors. The settlement efforts made by BUMN Banks in this problem are by giving a warning letter to the debtor. [ABSTRACT FROM AUTHOR]

The research is based on data for 43 non-financial enterprises listed on the Bulgarian Stock Exchange for the period 2018-2022. The results show a statistically significant positive relationship between the indicators of the trade credit policy and the term structure of the enterprises' debt in most years of the studied period. An indicator of the maturity structure of the debt in the study is the ratio Short-term debt/Total debt, and indicators of the trade credit policy of companies are the amount of receivables from customers and suppliers, the ratio Receivables from customers and suppliers/Short-term assets and the ratio Receivables from customers and suppliers/Total assets. This positive relationship is in accordance with the hypothesis of matching the maturities of the liabilities and the assets financed with them and reflects the desire of the companies to hedge the risk and reduce their costs on the borrowed resource. It is established that only in the first year of the Covid-19 pandemic in Bulgaria, there is no significant relationship between the trade credit policy and the maturity structure of the debt of public companies. The reasons for this are the sharp and unexpected deterioration of business conditions in the sectors affected by the pandemic, the strong increase in uncertainty, the disruption of supply chains and difficulties in accessing finance. [ABSTRACT FROM AUTHOR]

Purpose: This paper investigates the existence of an optimal point of the cash conversion cycle (CCC) and its components, which minimizes firms’ stock risk. Methodology: This study applies fixed effect models to a sample of firms listed in Euronext exchanges, from 2011 to 2019. Stock risk is proxied by the standard deviation of stock returns. The quadratic function of the CCC and its components (days sales outstanding – DSO, days sales inventory – DSI, and days payable outstanding – DPO) is applied to capture an optimal point of the working capital management (WCM). Results: Results show the existence of a U-shaped relation between WCM and stock risk, suggesting the existence of an optimal CCC and DSI point that minimizes stock risk Originality: To the best of our knowledge, this is the first paper that explores the existence of an optimal CCC point and also an optimal point of its components (DSO, DSI, and DPO), which minimizes stock risk. This paper is also the first to assess the impact of WCM on stock risk of firms listed in European stock exchanges. The results are also relevant to managers, shareholders, and investors since they demonstrate that firms can minimize the risk of their stocks by practicing an optimal WCM. [ABSTRACT FROM AUTHOR]

This paper constructs a commercial credit supply decision-making model based on the analysis of corporate accounts receivable. The regression analysis algorithm is used to categorize and calculate the variable parameters affecting credit supply, and the expectations of suppliers and vendors are used as the predicted value for decision-making. The BP neural network is used to assess the risk of business accounts receivable from the horizontal as well as vertical perspectives, respectively, and to enhance the security quality of credit supply decision-making. The results show that strengthening the management of accounts receivable enhances the robustness of corporate accounting, keeps the rate of change in surplus around 0.4% per year, and the accounts receivable turnover rate reaches a maximum of 15.9 times/year so that the business credit supply decision will be more prudent.

With the rapid growth of the global digital economy, supply chain finance has entered the stage of platform development in view of the history, policy environment, market status and other factors. Supply chain finance relies on multiple supply chain stakeholders to carry out financial business, which needs to solve a variety of financial risk control and pricing issues. The financing model in supply chain finance can be differentiate from the traditional credit model. The service mode and leading mode of supply chain finance need to be adjusted in accordance with the changes of the industrial operation. Further, the business mode of supply chain finance shows a diversification trend, which includes traditional supply chain financial models such as accounts receivable, advance payment, inventory financing, and supply chain credit financing models. In this paper, we investigate the similarities between supply chain finance and options, and further introduce American call options to supply chain financial products under the mode of small and medium-sized enterprises' (SMEs) accounts receivable financing. The price of supply chain financial products is derived through the trinomial tree option pricing model, which determines the corporate financing interest rates. The rationality of the proposed pricing model is validated in comparison with the medium and long-term load bank interest rates. The contribution of the paper is in providing SMEs with supply chain financial products under the accounts receivable model to resolve financing difficulties and the pricing the products through the trinomial budget pricing model. [ABSTRACT FROM AUTHOR]

In the process of carrying out economic activities, each entity engages with various business partners, governmental bodies, personnel, and others. Consequently, the relationships formed often result in the emergence of receivables, owing to the time delay in meeting financial obligations related to the sale of economic goods or the provision of advances. The main objective of this research is to comprehensively examine the theoretical aspects related to the concept of accounts receivable, including their definition, classification, and regulation. Additionally, it aims to analyze the normative framework at both the national and international levels, considering economic and legal perspectives. Furthermore, this study encompasses an assessment of scientific productivity, the impact of scientific research, trending topics, and other aspects through bibliometric analysis. It's worth noting that the current market conditions underscore the significance of this research topic, where economic agents have the ability to choose their market and business partners. In this context, accounts receivable play a pivotal role in reflecting the economic and financial situation of both parties involved. [ABSTRACT FROM AUTHOR]

Socioemotional wealth (SEW) refers to those family‐centered goals that are likely to have a major influence on the strategic decision‐making process and performance of family firms. Many studies have used indirect indicators related to family involvement in ownership and management to measure SEW; meanwhile, others have developed scales to directly measure the level and importance of SEW in family firms. Limitations of both indirect and direct measures of SEW lead empirical research on SEW to be under threat. In the current study, we use random forests to identify the important indicators related to financial and economic decisions, as well as family‐related measures, for explaining the family firms' SEW and to design a good prediction model using the smallest set of nonredundant indicators. Our results show that the model that exhibits the minimum out‐of‐bag sample (OOB) error rate includes variables that refer to the presence of family members in the firm's management positions, long‐term nonfinancial debt, personnel expenditures, long‐term financial investments, short‐term financial debt, average storage period, and accounts receivables. For prediction, the model with a reasonably low estimated classification error includes only three variables, which refer to the presence of family members in the firm's management positions, long‐term nonfinancial debt, and accounts receivables. [ABSTRACT FROM AUTHOR]