Econometric and Environmental Factors Assessment of Enterprise Accounts Payable

Abstract

© 2020. All Rights Reserved. The authors have constructed a linear model of trade accounts payable multiple regression depending on its financial indicators by considering the environmental concerns in digital era. Authors used a sample of monthly non-stationary time series with a deterministic trend from January 2016 to December 2019. To build the regression, the time series were reduced to a stationary form by switching to the differences in the initial levels. Connection of accounts payable with the financial indicators revealed the connection of accounts payable and the turnover ratio receivables turnover in accounts payable, as well as a ratio of own working capital. The assumption about the connection between accounts payable and gross profit of the enterprise has not received reasoned confirmation. The reliability of the results obtained was confirmed by Fisher, Student, Durbin-Watson, and White tests. The results of the obtained empirical estimates confirmed the feasibility of practical use of this approach in modeling the company's accounts payable in order to forecast it. Forecasting accounts payable will allow the company creating a budget for receipts and payments to optimize accounts payable. The authors note that the forecast will allow managing the amount of accounts payable by changing the maturity of the debt.