DELAYING PAYMENTS IN THE EUROPEAN UNION: AN EMPIRICAL DYNAMIC PANEL DATA ANALYSIS

• Authors: Obeng Isaac Kwame Essien
• Languages of publication: EN

Abstracts

EN

We analyse delaying payments of accounts receivable by combining macro-economic shocks with firm characteristics controls. We use microeconomic dataset on financial statements of selected firms in European Union member states from AMADEUS for the period 2005 – 2014, and employ the system Generalized Method of Moments (GMM) framework to analyse the dynamic models. The empirical results show positive impact of the financial crisis on delaying payments. The two-step System GMM estimator obtains significance positive estimates of the coefficient of lagged late payment. Also, we identify significance positive relationship between late payment and firm performance measures of current ratio and gearing ratio, but negative relationship between late payment and firm turnover. The results suggest firms that delay in payments might have the tendency to delay in future payments.

Keywords

EN

DELAYING PAYMENTS; ACCOUNTS RECEIVABLE; ACCOUNTS PAYABLE; FINANCIAL CRISIS; CREDIT COLLECTION; MACROECONOMIC SHOCKS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2017
• Volume: 65
• Issue: 10
• Pages: 952 – 971

Contributors

author

Obeng Isaac Kwame Essien

• Mendel University in Brno, Faculty of Business and Economics, Zemědělská 1, 613 00 Brno, Czech Republic