Econometric assessment of the factors of enterprise receivables

Abstract

© 2019, Research Trend. All rights reserved. The authors built a linear model of accounts receivable multiple regression of agricultural enterprises depending on its financial performance. The authors used a sample of non-stationary time series with a deterministic trend from 2016 to 2018 quarterly. According to the Frisch–Waugh–Lovell theorem for regression construction, time series were reduced to a stationary form by including the trend component as an additional regressor. The study of the relationship of accounts receivable with financial indicators revealed that there is a close relationship between accounts receivable and sales revenue, accounts payable, and cash. The assumption about the relationship of receivables and cash assets of the company received a reasoned proof. The reliability of the results is confirmed by the "short"-"long" test, Durbin-Watson test, Wight test. The results of the empirical estimates confirmed the feasibility of practical use of this approach in the modeling of receivables of agricultural enterprises for the purpose of its forecast. Forecasting receivables will allow the company to stimulate sales by providing discounts or benefits in the form of deferred payment to optimize receivables. The authors note that the forecast will allow managing the amount of receivables by reducing the maturity of debt, reducing the share and amount of doubtful and overdue debts.