Efficiency of Accounts Receivable Management in Polish Institutions

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