Accounts Receivable Management: A Review of Recent Literature

Accounts Receivable Management: A Review of Recent Literature

This document provides a concise overview of three significant research articles published between 2003 and 2014, all exploring the crucial role of accounts receivable management in influencing firm performance and liquidity.

1. Lazaridis, I., & Tryfonidis, D. (2006). Accounts Receivable Management and Firm Liquidity: Evidence from the Athens Stock Exchange. Journal of Financial Management and Analysis, 19(1), 1-12. DOI: 10.2139/ssrn.686462

This study investigates the relationship between accounts receivable management and firm liquidity using data from companies listed on the Athens Stock Exchange. The authors find a significant positive correlation between efficient accounts receivable management practices and improved firm liquidity.

2. Deloof, M. (2003). Does Working Capital Management Affect Profitability of Belgian Firms? Journal of Business Finance & Accounting, 30(3-4), 573-588. DOI: 10.1111/1468-5957.00006

Deloof examines the impact of working capital management, including accounts receivable, on the profitability of Belgian firms. The research reveals that effective working capital management, particularly in managing accounts receivable, positively contributes to a firm's profitability.

3. Alipour, M., & Karimi, S. H. (2014). The Impact of Working Capital Management on Firms' Performance: Evidence from Iran. International Journal of Economics, Commerce and Management, 2(11), 1-8. URL: https://ijecm.co.uk/wp-content/uploads/2014/11/211.pdf

This article investigates the relationship between working capital management and firm performance in Iran. The findings suggest that efficient working capital management, including a focus on accounts receivable, has a significant and positive impact on overall firm performance.

Conclusion:

These studies highlight the critical importance of effective accounts receivable management as a vital component of overall financial health and success for businesses.