Does The Firm’s Receivable Policy Tend to be Uniform Across their Industry and Stable over Time? Evidence from Matured Firms

This paper empirically examines whether the generally accepted finding that the firm’s accounts receivable tend to be industry-specific is valid for private mature Belgian firms between 2001 and 2008. The initial average receivable of the firm’s industry in 2001 is not an important determinant in explaining the future accounts receivable of mature private Belgian firms. This result implies that the firm’s accounts receivable is firm-specific. The findings are robust for European countries with medium customer payment risk such as The United Kingdom and France. A tentative explanation for these findings is provided.