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TİCARİ ALACAK TAHSİLAT SÜRELERİNİN FİRMA DEĞERİ ÜZERİNE ETKİSİ: BORSA İSTANBUL UYGULAMASI

Year 2022, Volume: 24 Issue: 1, 132 - 152, 31.03.2022
https://doi.org/10.31460/mbdd.904086

Abstract

Borsa İstanbul’da 2005-2017 yıllarında işlem gören sınai firmaların verisine dayanılarak yapılan analizlerde, ortalama ticari alacak tahsilat süresinin (OTAS) firma değeri üzerinde negatif bir etki yarattığı sonucuna varılmıştır. Bu negatif etkinin son bir ila üç yıl içinde OTAS’ı otuz gün ve üzerinde artış gösterenlerde istatistiki açıdan anlamlı olduğu gözlenmiştir. Öte yandan, OTAS’ın firma değeri üzerindeki negatif etkisi yüksek kârlı firmalarda anlamlı iken, düşük kârlı firmalarda anlamlı çıkmamıştır. Son olarak, ticari alacak kalitesindeki kötüleşmenin de firma değerini düşürdüğü ispatlanmıştır. Sonuçların güvenilirliği, alternatif firma değeri ölçütleri kullanılarak teyit edilmiştir. Atlanan değişkenler önyargısı ihtimaline karşın ticari alacak politikası ölçütü olan değişkenler tüm analizlerde endojen değişken olarak modellenmiştir.

References

  • Adiguzel, G. (2021). Credit quality of trade receivables and its impact on cash holdings and firm value. International Journal of Business Administration, 12(2), 89-101. https://doi.org/10.5430/ijba.v12n2p88
  • Aktas, N., Croci, E., & Petmezas, D. (2015). Is working capital management value-enhancing? Evidence from firm performance and investments. Journal of Corporate Finance, 30, 98-113. https://doi.org/10.1016/j.jcorpfin.2014.12.008
  • Atanasova, C. (2012). How do firms choose between intermediary and supplier finance? Financial Management, 41(1), 207-228. https://doi.org/10.1111/j.1755-053X.2012.01183.x
  • Barrot, J. N. (2016). Trade credit and industry dynamics: Evidence from trucking firms. The Journal of Finance, 71(5), 1975-2016. https://doi.org/10.1111/jofi.12371
  • Berger, P.G., & Ofek, E. (1995). Diversification's effect on firm value. Journal of Financial Economics, 37(1), 39-65. https://doi.org/10.1016/0304-405X(94)00798-6
  • Blazenko, G., & Vandezande, K. (2003). The product differentiation hypothesis for corporate trade credit. Managerial and Decision Economics, 24(6-7), 457-469. https://doi.org/10.1002/mde.1113
  • Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel models. Journal of Econometrics, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8
  • Boisjoly, R.P., Conine Jr. T.E., & McDonald IV, M.B. (2020). Working capital management: Financial and valuation impacts. Journal of Business Research, 108, 1-8. https://doi.org/10.1016/j.jbusres.2019.09.025
  • Boissay, F., & Gropp, R. (2013). Payment defaults and interfirm liquidity provision. Review of Finance, 17(6), 1853-1894. https://doi.org/10.1093/rof/rfs045
  • Bougheas, S., Mateut, S., & Mizen, P. (2009). Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable. Journal of Banking and Finance, 33(2), 300-307. doi:10.1016/j.jbankfin.2008.07.019
  • Box, T., Davis, R., Hill, M., & Lawrey, C. (2018). Operating performance and aggressive trade credit policies. Journal of Banking and Finance, 89, 192-208. https://doi.org/10.1016/j.jbankfin.2018.02.011
  • Brown, J., & Petersen, B. (2011). Cash holdings and R&D smoothing. Journal of Corporate Finance, 17(3), 694-709. https://doi.org/10.1016/j.jcorpfin.2010.01.003
  • Dary, S., & James Jr., H. (2019). Does investment in trade credit matter for profitability? Evidence from publicly listed agro-food firms. Research in International Business and Finance, 47, 237-250. https://doi.org/10.1016/j.ribaf.2018.07.012
  • Deloof, M. (2003). Does Working capital management affect profitability of Belgian firms? Business Finance and Accounting, 30(3-4), 573-587. https://doi.org/10.1111/1468-5957.00008
  • Deloof, M., & Jegers, M. (1996). Trade credit, product quality, and intragroup trade: Some European evidence. Financial Management, 25(3), 33-43. https://doi.org/10.2307/3665806
  • Denis, D. J., Denis, D. K., & Yost, K. (2002). Global diversification, industrial diversification, and firm value. Journal of Finance, 57(5), 1951-1980. https://doi.org/10.1111/0022-1082.00485
  • El Ghoul, S., & Zheng, X. (2016). Trade credit provision and national culture. Journal of Corporate Finance, 41, 475-501. https://doi.org/10.1016/j.jcorpfin.2016.07.002
  • Emery, G. W. (1984). A pure financial explanation for trade credit. Journal of Financial and Quantitative Analysis, 19(3), 271-285. https://doi.org/10.2307/2331090
  • Ferrando, A. & Mulier, K. (2013). Do firms use the trade credit channel to manage growth? Journal of Banking & Finance, 37, 3035-3046. https://doi.org/10.1016/j.jbankfin.2013.02.013
  • Ferris, J. S. (1981). A transactions theory of trade credit use. Quarterly Journal of Economics 96(2), 243-270. https://doi.org/10.2307/1882390
  • Frank, M.Z., & Maksimovic, V. (2003). Trade credit, collateral and adverse selection. Available at SSRN: https://ssrn.com/abstract=87868 or http://dx.doi.org/10.2139/ssrn.87868
  • Gao, J. & Wang, J. (2017). Is working capital information useful for financial analysts? Evidence from China. Emerging Markets Finance & Trade, 53, 1135-1151. https://doi.org/10.1080/1540496X.2016.1278166
  • Garcia-Appendini, E., & Montoriol-Garriga, J. (2013). Firms as liquidity providers: Evidence from the 2007–2008 financial crisis. Journal of Financial Economics, 109(1), 272-291. https://doi.org/10.1016/j.jfineco.2013.02.010
  • Giannetti, M., Burkart, M., & Ellingsen, T. (2011). What you sell is what you lend? Explaining trade credit contracts. Review of Financial Studies, 24(4), 1261-1298. https://doi.org/10.1093/rfs/hhn096
  • Gitman, L. J., & Zutter, C.J. (2012). Principles of Managerial Finance (13th Edition), Harlow: Pearson Education.
  • Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50, 1029-1054. https://doi.org/10.2307/1912775
  • Hansen, G. S., & Wernerfelt, B. (1989). Determinants of firm performance: The relative importance of economic and organizational factors. Strategic Management Journal, 10(5), 399-411. https://doi.org/10.1002/smj.4250100502
  • Harford, J., Mansi, S., & Maxwell, W. (2008). Corporate governance and firm cash holdings in the US. Journal of Financial Economics, 87(3), 535-555. https://doi.org/10.1016/j.jfineco.2007.04.002
  • Haushalter, D., Klasa, S., & Maxwell, W. (2007). The influence of product market dynamics on a firm’s cash holdings and hedging behavior. Journal of Financial Economics, 84(3), 797-825. https://doi.org/10.1016/j.jfineco.2006.05.007
  • Hermalin, B., & Weisbach, M. (1991). The effects of board composition and direct incentives on firm performance. Financial Management, 20(4), 101-112. https://doi.org/10.2307/3665716
  • Hill, M., Kelly, G., & Lockhart, G. (2012). Shareholder returns from supplying trade credit. Financial Management, 41(1), 255-280. https://doi.org/10.1111/j.1755-053X.2012.01198.x
  • Jacobson, T., & Schedvin, E. (2015). Trade credit and the propagation of corporate failure. Econometrica, 83(4), 1315-1371. https://doi.org/10.3982/ECTA12148
  • Jorion, P., & Zhang, G. (2009). Credit contagion from counterparty risk. The Journal of Finance, 64(5), 2053-2087. https://doi.org/10.1111/j.1540-6261.2009.01494.x
  • Lazaridis, I., & Tryfonidis, D. (2006). Relationship between working capital management and profitability of listed companies in the Athens Stock Exchange. Journal of Financial Management & Analysis, 19(1), 26-35.
  • Le, B. (2019). Working capital management and firm’s valuation, profitability and risk: Evidence from a developing market. International Journal of Managerial Finance, 15(2), 191-204. https://doi.org/10.1108/IJMF-01-2018-0012
  • Lee, Y. W., & Stowe, J. D. (1993). Product risk, asymmetric information, and trade credit. Journal of Financial and Quantitative Analysis, 28(2), 285-300. https://doi.org/10.2307/2331291
  • Martinez-Sola, C., Garcia-Teruel, P., & Martinez-Solano, P. (2013). Trade credit policy and firm value. Applied Economics, 45(2), 161-170. https://doi.org/10.1111/j.1467-629X.2012.00488.x
  • Martinez-Sola, C., Garcia-Teruel, P., & Martinez-Solano, P. (2014). Trade credit and SME profitability. Small Business Economics, 42(3), 561-577. https://doi.org/10.1007/s11187-013-9491-y
  • Molina, C. A., & Preve, L. A. (2009). Trade receivables policy of distressed firms and its effect on the costs of financial distress. Financial Management, 38(3), 663-686. https://doi.org/10.1111/j.1755-053X.2009.01051.x
  • Nadiri, N. I. (1969). The determinants of trade credit terms in the U.S. total manufacturing sector. Econometrica, 37(3), 408-423. https://doi.org/10.2307/1912790
  • Petersen, M., & Rajan, R. (1997). Trade credit: Theories and evidence. Review of Financial Studies, 10(3), 661-691. https://doi.org/10.1093/rfs/10.3.661
  • PricewaterhouseCoopers. (n.d.) Working Capital Report 2019/20: Creating value through working capital. https://www.pwc.com/gx/en/services/deals/business-recovery-restructuring/working-capital-opportunity.html
  • Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. Stata Journal, 9(1), 86-136. https://doi.org/10.1177/1536867X0900900106
  • Sagner, J. (2014). Working capital management: Applications and case studies, Hoboken, New Jersey: John Wiley & Sons, Inc.
  • Schwartz, R. A. (1974). An economic model of trade credit. Journal of Financial and Quantitative Analysis, 9(4), 643–657. https://doi.org/10.2307/2329765
  • Smith, J. K. (1987). Trade credit and informational asymmetry. The Journal of Finance, 42(4), 863-872. https://doi.org/10.1111/j.1540-6261.1987.tb03916.x
  • Studenmund, A. (2006). Using econometrics: A practical guide (5th Edition). Essex, England: Pearson Education Limited.
  • Vural, G., Sokmen, A.G., & Cetenak, E.H. (2012). Effects of working capital management on firm’s performance: Evidence from Turkey. International Journal of Economics and Financial Issues, 2(4), 488-495. https://econjournals.com/index.php/ijefi/article/view/312
  • Wu, W., Rui, O., & Wu, C. (2012). Trade credit, cash holdings, and financial deepening: Evidence from a transitional economy. Journal of Banking and Finance, 36, 2868-2883. https://doi.org/10.1016/j.jbankfin.2011.04.009
  • Yazdanfer, D., & Ohman, P. (2015). The impact of credit supply on sales growth: Swedish evidence. International Journal of Managerial Finance, 11(3), 329-340. https://doi.org/10.1108/IJMF-07-2014-0110

TRADE RECEIVABLES COLLECTION PERIOD AND FIRM VALUE: EVIDENCE FROM LISTED TURKISH INDUSTRIALS

Year 2022, Volume: 24 Issue: 1, 132 - 152, 31.03.2022
https://doi.org/10.31460/mbdd.904086

Abstract

This paper shows that average collection period of trade receivables (ACP) and a deterioration in the credit quality of trade receivables both have negative effect on firm value. Evidence is based on Turkish industrial firms listed on Borsa Istanbul over 2005-2017 period. The effect exists only for firms whose average collection period increased by more than thirty days within the last one to three years. Similarly, the value consequence of ACP holds for high-profit firms, but not for low-profit firms. This study utilizes system generalized method of moments in all estimations and treats trade receivable policy variables as endogenous due to omitted variable bias concerns. Overall, findings suggest a destructive effect of lengthened deferred payment terms on firm value specifically for high-profit firms and for firms with a historical upward trend in ACP.

References

  • Adiguzel, G. (2021). Credit quality of trade receivables and its impact on cash holdings and firm value. International Journal of Business Administration, 12(2), 89-101. https://doi.org/10.5430/ijba.v12n2p88
  • Aktas, N., Croci, E., & Petmezas, D. (2015). Is working capital management value-enhancing? Evidence from firm performance and investments. Journal of Corporate Finance, 30, 98-113. https://doi.org/10.1016/j.jcorpfin.2014.12.008
  • Atanasova, C. (2012). How do firms choose between intermediary and supplier finance? Financial Management, 41(1), 207-228. https://doi.org/10.1111/j.1755-053X.2012.01183.x
  • Barrot, J. N. (2016). Trade credit and industry dynamics: Evidence from trucking firms. The Journal of Finance, 71(5), 1975-2016. https://doi.org/10.1111/jofi.12371
  • Berger, P.G., & Ofek, E. (1995). Diversification's effect on firm value. Journal of Financial Economics, 37(1), 39-65. https://doi.org/10.1016/0304-405X(94)00798-6
  • Blazenko, G., & Vandezande, K. (2003). The product differentiation hypothesis for corporate trade credit. Managerial and Decision Economics, 24(6-7), 457-469. https://doi.org/10.1002/mde.1113
  • Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel models. Journal of Econometrics, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8
  • Boisjoly, R.P., Conine Jr. T.E., & McDonald IV, M.B. (2020). Working capital management: Financial and valuation impacts. Journal of Business Research, 108, 1-8. https://doi.org/10.1016/j.jbusres.2019.09.025
  • Boissay, F., & Gropp, R. (2013). Payment defaults and interfirm liquidity provision. Review of Finance, 17(6), 1853-1894. https://doi.org/10.1093/rof/rfs045
  • Bougheas, S., Mateut, S., & Mizen, P. (2009). Corporate trade credit and inventories: New evidence of a trade-off from accounts payable and receivable. Journal of Banking and Finance, 33(2), 300-307. doi:10.1016/j.jbankfin.2008.07.019
  • Box, T., Davis, R., Hill, M., & Lawrey, C. (2018). Operating performance and aggressive trade credit policies. Journal of Banking and Finance, 89, 192-208. https://doi.org/10.1016/j.jbankfin.2018.02.011
  • Brown, J., & Petersen, B. (2011). Cash holdings and R&D smoothing. Journal of Corporate Finance, 17(3), 694-709. https://doi.org/10.1016/j.jcorpfin.2010.01.003
  • Dary, S., & James Jr., H. (2019). Does investment in trade credit matter for profitability? Evidence from publicly listed agro-food firms. Research in International Business and Finance, 47, 237-250. https://doi.org/10.1016/j.ribaf.2018.07.012
  • Deloof, M. (2003). Does Working capital management affect profitability of Belgian firms? Business Finance and Accounting, 30(3-4), 573-587. https://doi.org/10.1111/1468-5957.00008
  • Deloof, M., & Jegers, M. (1996). Trade credit, product quality, and intragroup trade: Some European evidence. Financial Management, 25(3), 33-43. https://doi.org/10.2307/3665806
  • Denis, D. J., Denis, D. K., & Yost, K. (2002). Global diversification, industrial diversification, and firm value. Journal of Finance, 57(5), 1951-1980. https://doi.org/10.1111/0022-1082.00485
  • El Ghoul, S., & Zheng, X. (2016). Trade credit provision and national culture. Journal of Corporate Finance, 41, 475-501. https://doi.org/10.1016/j.jcorpfin.2016.07.002
  • Emery, G. W. (1984). A pure financial explanation for trade credit. Journal of Financial and Quantitative Analysis, 19(3), 271-285. https://doi.org/10.2307/2331090
  • Ferrando, A. & Mulier, K. (2013). Do firms use the trade credit channel to manage growth? Journal of Banking & Finance, 37, 3035-3046. https://doi.org/10.1016/j.jbankfin.2013.02.013
  • Ferris, J. S. (1981). A transactions theory of trade credit use. Quarterly Journal of Economics 96(2), 243-270. https://doi.org/10.2307/1882390
  • Frank, M.Z., & Maksimovic, V. (2003). Trade credit, collateral and adverse selection. Available at SSRN: https://ssrn.com/abstract=87868 or http://dx.doi.org/10.2139/ssrn.87868
  • Gao, J. & Wang, J. (2017). Is working capital information useful for financial analysts? Evidence from China. Emerging Markets Finance & Trade, 53, 1135-1151. https://doi.org/10.1080/1540496X.2016.1278166
  • Garcia-Appendini, E., & Montoriol-Garriga, J. (2013). Firms as liquidity providers: Evidence from the 2007–2008 financial crisis. Journal of Financial Economics, 109(1), 272-291. https://doi.org/10.1016/j.jfineco.2013.02.010
  • Giannetti, M., Burkart, M., & Ellingsen, T. (2011). What you sell is what you lend? Explaining trade credit contracts. Review of Financial Studies, 24(4), 1261-1298. https://doi.org/10.1093/rfs/hhn096
  • Gitman, L. J., & Zutter, C.J. (2012). Principles of Managerial Finance (13th Edition), Harlow: Pearson Education.
  • Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50, 1029-1054. https://doi.org/10.2307/1912775
  • Hansen, G. S., & Wernerfelt, B. (1989). Determinants of firm performance: The relative importance of economic and organizational factors. Strategic Management Journal, 10(5), 399-411. https://doi.org/10.1002/smj.4250100502
  • Harford, J., Mansi, S., & Maxwell, W. (2008). Corporate governance and firm cash holdings in the US. Journal of Financial Economics, 87(3), 535-555. https://doi.org/10.1016/j.jfineco.2007.04.002
  • Haushalter, D., Klasa, S., & Maxwell, W. (2007). The influence of product market dynamics on a firm’s cash holdings and hedging behavior. Journal of Financial Economics, 84(3), 797-825. https://doi.org/10.1016/j.jfineco.2006.05.007
  • Hermalin, B., & Weisbach, M. (1991). The effects of board composition and direct incentives on firm performance. Financial Management, 20(4), 101-112. https://doi.org/10.2307/3665716
  • Hill, M., Kelly, G., & Lockhart, G. (2012). Shareholder returns from supplying trade credit. Financial Management, 41(1), 255-280. https://doi.org/10.1111/j.1755-053X.2012.01198.x
  • Jacobson, T., & Schedvin, E. (2015). Trade credit and the propagation of corporate failure. Econometrica, 83(4), 1315-1371. https://doi.org/10.3982/ECTA12148
  • Jorion, P., & Zhang, G. (2009). Credit contagion from counterparty risk. The Journal of Finance, 64(5), 2053-2087. https://doi.org/10.1111/j.1540-6261.2009.01494.x
  • Lazaridis, I., & Tryfonidis, D. (2006). Relationship between working capital management and profitability of listed companies in the Athens Stock Exchange. Journal of Financial Management & Analysis, 19(1), 26-35.
  • Le, B. (2019). Working capital management and firm’s valuation, profitability and risk: Evidence from a developing market. International Journal of Managerial Finance, 15(2), 191-204. https://doi.org/10.1108/IJMF-01-2018-0012
  • Lee, Y. W., & Stowe, J. D. (1993). Product risk, asymmetric information, and trade credit. Journal of Financial and Quantitative Analysis, 28(2), 285-300. https://doi.org/10.2307/2331291
  • Martinez-Sola, C., Garcia-Teruel, P., & Martinez-Solano, P. (2013). Trade credit policy and firm value. Applied Economics, 45(2), 161-170. https://doi.org/10.1111/j.1467-629X.2012.00488.x
  • Martinez-Sola, C., Garcia-Teruel, P., & Martinez-Solano, P. (2014). Trade credit and SME profitability. Small Business Economics, 42(3), 561-577. https://doi.org/10.1007/s11187-013-9491-y
  • Molina, C. A., & Preve, L. A. (2009). Trade receivables policy of distressed firms and its effect on the costs of financial distress. Financial Management, 38(3), 663-686. https://doi.org/10.1111/j.1755-053X.2009.01051.x
  • Nadiri, N. I. (1969). The determinants of trade credit terms in the U.S. total manufacturing sector. Econometrica, 37(3), 408-423. https://doi.org/10.2307/1912790
  • Petersen, M., & Rajan, R. (1997). Trade credit: Theories and evidence. Review of Financial Studies, 10(3), 661-691. https://doi.org/10.1093/rfs/10.3.661
  • PricewaterhouseCoopers. (n.d.) Working Capital Report 2019/20: Creating value through working capital. https://www.pwc.com/gx/en/services/deals/business-recovery-restructuring/working-capital-opportunity.html
  • Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. Stata Journal, 9(1), 86-136. https://doi.org/10.1177/1536867X0900900106
  • Sagner, J. (2014). Working capital management: Applications and case studies, Hoboken, New Jersey: John Wiley & Sons, Inc.
  • Schwartz, R. A. (1974). An economic model of trade credit. Journal of Financial and Quantitative Analysis, 9(4), 643–657. https://doi.org/10.2307/2329765
  • Smith, J. K. (1987). Trade credit and informational asymmetry. The Journal of Finance, 42(4), 863-872. https://doi.org/10.1111/j.1540-6261.1987.tb03916.x
  • Studenmund, A. (2006). Using econometrics: A practical guide (5th Edition). Essex, England: Pearson Education Limited.
  • Vural, G., Sokmen, A.G., & Cetenak, E.H. (2012). Effects of working capital management on firm’s performance: Evidence from Turkey. International Journal of Economics and Financial Issues, 2(4), 488-495. https://econjournals.com/index.php/ijefi/article/view/312
  • Wu, W., Rui, O., & Wu, C. (2012). Trade credit, cash holdings, and financial deepening: Evidence from a transitional economy. Journal of Banking and Finance, 36, 2868-2883. https://doi.org/10.1016/j.jbankfin.2011.04.009
  • Yazdanfer, D., & Ohman, P. (2015). The impact of credit supply on sales growth: Swedish evidence. International Journal of Managerial Finance, 11(3), 329-340. https://doi.org/10.1108/IJMF-07-2014-0110
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Details

Primary Language English
Subjects Business Administration
Journal Section MAIN SECTION
Authors

Güldehen Adıgüzel 0000-0003-1326-0648

Publication Date March 31, 2022
Submission Date March 26, 2021
Published in Issue Year 2022 Volume: 24 Issue: 1

Cite

APA Adıgüzel, G. (2022). TRADE RECEIVABLES COLLECTION PERIOD AND FIRM VALUE: EVIDENCE FROM LISTED TURKISH INDUSTRIALS. Muhasebe Bilim Dünyası Dergisi, 24(1), 132-152. https://doi.org/10.31460/mbdd.904086