Profitability and Expanding Collection Period in Bangladesh

IF 1 Q4 BUSINESS

International Journal of Asian Business and Information Management Pub Date : 2024-04-09 DOI:10.4018/ijabim.342479

S. N. Ahkam, Khairul Alom

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Abstract

In this article, the authors investigate the relationship between profitability and receivables management of DSE listed non-financial firms in Bangladesh for the years 2000-2017. A cointegration model is used to examine the relationship between average collection period (ACP), return on assets (ROA), firm size, and debt ratio of firms. Impulse response analysis indicates that while the other variables quickly return to equilibrium, a shock to ACP or profitability seems to have a significant and durable impact on the relationship. A GMM model has also been used to estimate a regression that shows the impact of increasing ACP on profitability. The results strongly point to a cointegrating relationship and the critical role of receivables management on profitability. The article contributes to the existing literature by providing strong evidence that the average collection period is the most critical variable in addressing control of working capital management. However, this variable is the most difficult variable to manage, especially after there is an indication that it is worsening.

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孟加拉国的盈利能力和扩大收款期

在本文中，作者研究了 2000-2017 年孟加拉国 DSE 上市非金融企业的盈利能力与应收账款管理之间的关系。本文采用协整模型研究了平均收款期（ACP）、资产收益率（ROA）、公司规模和公司负债率之间的关系。脉冲响应分析表明，虽然其他变量很快就会恢复平衡，但平均收款期或盈利能力受到的冲击似乎会对这一关系产生重大而持久的影响。此外，还使用了 GMM 模型来估计回归结果，以显示 ACP 增长对盈利能力的影响。结果有力地表明了协整关系以及应收账款管理对盈利能力的关键作用。这篇文章为现有文献做出了贡献，提供了强有力的证据，证明平均收款期是解决营运资本管理控制问题的最关键变量。然而，这个变量是最难管理的变量，尤其是在有迹象表明它正在恶化之后。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Asian Business and Information Management BUSINESS-

CiteScore

2.80

自引率

0.00%

发文量

期刊介绍： The mission of the International Journal of Asian Business and Information Management (IJABIM) is to establish an effective channel of communication between academic and research institutions, policy makers, government agencies, and individuals concerned with the complexities of Asian business, information technologies, sustained development, and globalization. IJABIM promotes and coordinates developments in the field of Asian and Chinese studies, as well as presents strategic roles of IT and management towards sustainable development with emphasis on practical aspects in Asia. It is especifically focused on Central Asia/Himalayan region/Southeast Asia/Far East.