Efficiency of Accounts Receivable Management in Polish Institutions

European Financial Systems, 2012

11 Pages Posted: 28 Sep 2012 Last revised: 25 Dec 2012

See all articles by Grzegorz Michalski

Grzegorz Michalski

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics

Date Written: September 28, 2012

Abstract

Accounts receivable management should contribute to realization of basic financial purpose of an enterprise which is the realization of such strategy which is linked with its owner (or its stake holders) wealth maximization. The enterprise performance and value maximization strategy realization is more effective when it is realized in the most efficiency way. It is also executed with a focus on risk and uncertainty (Gentry 1988, Michalski 2012). This paper presents the consequences that can result from operating risk to determine the level of accounts receivable in the enterprise. The change in the level of accounts receivables in an enterprise increases net working capital level and influence costs of holding and managing accounts receivables. As illustration material is used data collected from 2009 and 2010 financial statements of over 3000 Polish enterprises.

Keywords: efficiency of decisions, accounts receivable management, entrepreneurial finance

JEL Classification: G32, G11, M11, D81, O16, P33, P34

Suggested Citation

Michalski, Grzegorz, Efficiency of Accounts Receivable Management in Polish Institutions (September 28, 2012). European Financial Systems, 2012. Available at SSRN: https://ssrn.com/abstract=2153895 or http://dx.doi.org/10.2139/ssrn.2153895

Grzegorz Michalski (Contact Author)

Uniwersytet Ekonomiczny we Wrocławiu - Faculty of Engineering and Economics ( email )

ul. Komandorska 118-120
Wroclaw, 53-345
Poland

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