Dynamic Account Receivable and Its Determinants: A Case of Pakistani Firms

Abstract/Description

The Dynamics of Accounts Receivable in Pakistani Firms
/="/"> by Maria Khoso – 2025 – Cited by 4 – Related articles


/="/"> This paper investigates whether Pakistani firms maintain a target level of accounts receivable and the speed at which they adjust toward that target. Using panel data from 2000 to 2023 and employing a partial adjustment model with GMM estimation, the study finds that key financial variables such as total assets, sales, cash flow, net profit, and debt increase with rising receivables. Results confirm the existence of target receivables and highlight the influence of firm size, age, leverage, cash flow, and profitability.

Keywords

Accounts Receivable, Target Adjustment, Trade Credit, Firm Characteristics, Financial Determinants, Pakistani Firms, Dynamic Panel Data, GMM Estimation, Corporate Finance, Working Capital Management, Receivables Policy, Firm Size, Cash Flow, Short-Term Leverage, Profitability

Track

Finance

Session Number/Theme

Finance - Session II

Session Chair

Dr. Noureen Ayaz

Start Date/Time

14-6-2025 10:55 AM

End Date/Time

14-6-2025 12:35 PM

Location

MCC 12 Ground Floor, AMAN CED Building

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Jun 14th, 10:55 AM Jun 14th, 12:35 PM

Dynamic Account Receivable and Its Determinants: A Case of Pakistani Firms

MCC 12 Ground Floor, AMAN CED Building

The Dynamics of Accounts Receivable in Pakistani Firms
/="/"> by Maria Khoso – 2025 – Cited by 4 – Related articles


/="/"> This paper investigates whether Pakistani firms maintain a target level of accounts receivable and the speed at which they adjust toward that target. Using panel data from 2000 to 2023 and employing a partial adjustment model with GMM estimation, the study finds that key financial variables such as total assets, sales, cash flow, net profit, and debt increase with rising receivables. Results confirm the existence of target receivables and highlight the influence of firm size, age, leverage, cash flow, and profitability.