Payment Period Research Articles

Does trade credit absorb adverse shocks? Evidence on SMEs in Japan

The aim of this paper is to examine whether trade credit can help absorb adverse shocks to firms. When firms encounter exogenous adverse shocks, if relaxation of terms of credit payment to suppliers can hold back the level of firms' real activities, then they do not need to reduce their purchases from suppliers. We test this hypothesis by using data of SMEs (small- and medium-sized enterprises) from two corporate surveys taken in Japan after the Global Financial Crisis and COVID-19. We find that firms with extended payment periods are still likely to reduce their purchases from suppliers that indicates trade credit does not help to absorb adverse shocks.

The Impact of Working Capital Management on Financial Performance: Evidence from Sokoine University of Agriculture

This study aims to investigate the effects of working capital management (WCM) components on financial performance of Sokoine University of Agriculture (SUA), focusing on how variations in the Average Collection Period (ACP), Average Payment Period (APP), Inventory Conversion Period (ICP), and Cash Conversion Cycle (CCC) influence financial performance measured in Gross Operating Profit (GOP). The study adopted a longitudinal research design utilizing a time series data from SUA’s annual financial statements covering the fiscal years 2013/14 to 2022/23. A multiple linear regression analysis was conducted to assess the effects of the WCM components on GOP, providing a comprehensive understanding of their financial implications. From the analysis, it was revealed that lnACP and lnCCC are negatively associated with GOP, indicating that delays in receivables collection and extended cash conversion cycles diminish financial performance. Conversely, lnAPP is positively related to GOP, suggesting that longer payment periods for liabilities can enhance financial performance. A longer lnICP also negatively impacts GOP, underscoring the need for effective inventory management. Moreover, this study offers fresh insights into the financial management practices at SUA, highlighting the significant effect of WCM on institutional profitability. By providing evidence of how different components of WCM affect financial outcomes, it delivers practical recommendations for improving financial performance through strategic management of working capital. The research contributes valuable knowledge to both academic and practical discussions on financial management in educational institutions.

The impact of economic uncertainty on corporate trade credit policy: insights from the COVID-19 pandemic

ABSTRACT During the COVID-19 pandemic, firms exposed to the crisis faced simultaneous shocks to product demand and supply chains. As a result, they faced changing dynamics and greater uncertainty for trade credit for both suppliers and customers. Using regression analyses on quarterly data around the pandemic outbreak, we find that US non-financial firms demanded quicker payments from customers and faced shorter payment periods themselves during the pandemic. We also document that reduced trade credit was more pronounced for financially constrained firms and those with lower operating flexibility. Interestingly, government supplier firms’ trade credit remains unaffected by their COVID-19 exposure. These findings support the precautionary motives guiding firms’ trade credit policies in the face of economic uncertainty.

Bride price payment and marriage Stability: An ethnographic study of the Brifors of the Upper West Region, Ghana

A bride price creates an unending bond for married couples in sub-Sahara Africa. This gesture is key within the Brifor cultural milieu in Ghana. This paper investigates the impact of bride price on marriage stability among the Brifor ethnic group. In-depth interviews were conducted with 45 Key Informants and seven defined groups. The results show that the cultural demands of high bride price payment among the Brifors stabilizes marriages, secures the entitlement right of the husband to the woman and children, but increases incidences of violence against women. From the results it is evident that apart from the high bride price payment contributing to marriage instability, there is also the indication that the abuse of the rights of wives depends largely on the character of the husbands, including the cultural mindset instilled in them through biological traits and/or family socialization in relation to their culture. The study concludes that although most participants felt that the practice of paying bride price should be reviewed, it was evident that the payment has become a double-edge sword confronting women in particular, relative to the stability or instability of marriages among the Brifors. Therefore, there is the need for traditional authority to reform the practice by reducing the bride price items and spacing out the payment period as a respite for husbands-to-be.

Implementation of Rescheduling as an Effort to Rescue Non Performing Financing in Rahn Tasjily Contracts at BMT Al Hikmah

Distribution of financing to members even though it has passed the 5 C analysis (Character, Capacity, Collateral, Capital, Condition) does not eliminate the possibility of problematic financing. BMT Al Hikmah's efforts to rescue problematic financing through non-litigation and litigation channels. This research examines financing settlement using a non-litigation process, namely, the mechanism for rescheduling problematic financing with the rahn tasjily agreement at BMT Al Hikmah as well as examples of cases of implementing rescheduling. The type of research used is by conducting research directly in the field (field research). Data collection techniques include interviews, collecting documents needed to dig up information, and direct observation. The data analysis technique is descriptive qualitative. The analysis results show that rescheduling provides relief to members by extending the payment period, with the aim that members can still pay their financial obligations without excessive pressure by considering members' income and abilities. The rescheduling process involves two mechanisms, namely by members who have good faith by visiting BMT Al Hikmah to carry out rescheduling and the second method is by the Account Officer (AO) when members do not have good faith, by visiting members directly to offer financing settlement options by rescheduling . This research also explains a concrete example that provides an overview of how rescheduling is implemented in practice.

Service-Based Periodic Payment Provided/PBBL by the Government of Indonesia to Bayung Lencir – Tempino – Simpang Ness Toll Road

In 2020, PT Hutama Karya (Persero), a state-owned enterprise mandated by the government to build the Trans Sumatra Toll Road, appointed a private consultant to conduct a feasibility study and for the proposed construction of the Betung – Tempino – Jambi Toll Road. However, due to the low traffic volume in the Jambi Province, the toll road was deemed financially not feasible to be developed. Given the substantial costs required for the development of the Betung – Tempino – Jambi Toll Road, this toll road segment was divided into several sections. Betung – Tempino – Jambi Toll Road is a segment of the primary route of the Trans Sumatra Toll Road, Phase 2, which spans 171 kilometers across the provinces of South Sumatra and Jambi. Bayung Lencir – Tempino – Simpang Ness Toll Road, which stretches 52 kilometers, is a part of the Betung – Tempino – Jambi Toll Road prioritized for construction and operation. According to Presidential Regulation of the Republic of Indonesia Number 131 of 2022, a funding scheme known as Service-Based Periodic Payments/Pembayaran Berkala Berbasis Layanan (PBBL) shall be provided to PT Hutama Karya (Persero) to enhance the financial feasibility and to ensure the funding, technical planning, construction execution, operation, and maintenance of the toll road. This study will analyze and evaluate the financial feasibility of the Bayung Lencir – Tempino – Simpang Ness Toll Road before and after the implementation of PBBL provided to PT Hutama Karya (Persero) during the estimated duration of toll road concession for 50 years. The duration of the PBBL granted by the Government of Indonesia to PT Hutama Karya (Persero) is 15 years, with an annual payment of 880 billion Rupiah. Based on the financial feasibility analysis without PBBL, the results indicate a negative NPV, an IRR lower than the Weighted Average Cost of Capital (WACC), a Discounted Payback Period exceeding the toll road concession period, and a Profitability Index below 1, indicating that the project is not yet financially viable. On the other hand, the financial feasibility analysis after PBBL implementation shows a positive NPV, an IRR greater than WACC, a Discounted Payback Period within the toll road concession period, and a Profitability Index above 1, indicating that the project is financially feasible. Therefore, PT Hutama Karya (Persero) shall develop the Bayung Lencir – Tempino – Simpang Ness Toll Road with PBBL scheme that contributed by the Government.

The Effects of Working Capital Management on the Financial Performance of Commercial and Service Firms Listed on the Nairobi Securities Exchange in Kenya

Working capital management is critical because it affects a company’s profitability, liquidity, and investment decisions, all of which have an impact on financial performance. As a result, effective and efficient working capital management is an essential component for commercial and service businesses. Given the importance of the commercial and services industries to the Kenyan economy, the goal of this research was to investigate the impact of working capital management on the financial performance of these firms, particularly those listed on the Nairobi Securities Exchange (NSE), from 2003 to 2022. Working capital management was measured using the average age of inventory, average collection period, average payment period, and cash conversion cycle, whereas financial performance was measured using return on asset, return on equity, and net operating profit margin. Using panel regression analysis, the results showed that the average inventory age, average collection period, average payment period, and cash conversion cycle were all negatively related to financial performance for NSE-listed commercial and service firms. Based on the findings, it is recommended that Kenyan commercial and service firms adopt prudent optimal working capital management practices to improve firm financial performance and maximize shareholder wealth.

Analysis Of Future Health Insurance Premium Reserve Calculations Using The Commissioners Method With Woolhouse Formula

A premium reserve is the amount of funds that the insurance company needs to prepare for the payment of liability benefits when a claim occurs. One method of calculating premiums is the commissioners method which is an extension of the prospective reserve method.The main factor in the actuarial calculation is the mortality rate that can be determined using the WOOLHOUSE mortality law. This study aims to determine the size of the life insurance premiums reserve using the commisioners method and the WOLHOUSE mortality laws. The calculation of the premium reserve is linked to the determination of a person's chances of survival over a period of years of WOALHOUSE law which is then used to find the value of the insurance, the initial annuity value, the annual premium, the modified premiums based on the Commissioners method, and the amount of the premie reserve at the end of the year. The study was conducted on a 25-year-old woman who was enrolled in a dwiguna life insurance program with a 25 year liability period and a 23 year premium payment period at a 4% interest rate with a liability of Rs. 500,000,000. The results of the analysis showed that the large reserves of premiums obtained at the end of the period of liability with the Commissioners method and the WOOLHOUSE mortality law are equal to the given reservation value, so that the insurance company is prepared to give the amount of reservation promised to the policyholder.

Evaluating Murābahah Contract Practices in BPRS Financing Agreement No. 8854/MBA/11/2010 and Associated Challenges in Islamic Banking

This research aims to analyze the application of the murābahah contract in BPRS financing agreement number 8854/MBA/11/2010 related to the payment period and problems that may arise in BPRS financing practices in Islamic banking. The research method uses a literature study that uses an empirical normative approach, which focuses on the application of normative law to certain legal situations that occur in society. the results showed that the application of the murābahah contract in the BPRS financing agreement Number 8854 / MBA / 11/2010 in the context of the payment period. In the application of the murābahah financing contract, the profit is not more than one-third or one-fifth and the repayment period is not more than three years because if it is more, it will cause ribā because the calculation uses a profit calculation instead of profit sharing as based on the calculation. second Problems that can occur in murābahah financing. In the practice of murābahah financing, there are various problems that can occur, including non-transparent margins, risks of ownership and storage, problems with the quality of goods, risk of bad financing, uncertainty of market prices, high involvement of third parties and the difficulty of renegotiating and if viewed from various aspects such as sharia aspects, legal aspects, and operational aspects, it is very likely that there will be a failure in the contract.

Implementasi Fatwa DSN MUI Nomor 31/DSN-MUI/VI/2002 Tentang Pengalihan Utang Di Bank Syariah

The purpose of this study is to find out whether the application of the debt transfer contract is in accordance with Fatwa DSN MUI and to find out the supporting and obstacles in implementing the debt transfer contract. This type of research is field research using data collection methods in the form of interviews, observations and literature related with the problem under study, both as primary and secondary sources. While the method used is the qualitative description method. The results of this study explain that the application of debt transfer begins with the provision of qardh to customers the buyback process between customers with the bank until the end of the installment installment payment period. While the supporting factors are helping and facilitate customers who want to migrate from conventional banks to Islamic banks. For inhibiting factors is the lack of ability customers in paying installments, the customer's ability to provide the necessary funds related to financing in the debt transfer contract transfer of debt, the house that used as collateral is not feasible based on the appraisal assessment, did not get approval from the bank that will be transferred.

Exploring Factors Influencing Market Engagement and Marketing Channel Selection among Smallholder Macadamia Farmers in Embu West Sub County, Kenya

This study delves into market participation and marketing channel preferences among smallholder Macadamia farmers in Embu West Sub County, Kenya. Employing a stratified multistage sampling procedure and multinomial logit regression analysis, the research reveals that despite offering lower prices, brokers remain the favored marketing channel. Several factors, including age, farming experience, consideration of macadamia quality, information flow, farm size, distance to market, payment period, and education level, significantly influence farmers' channel choice. The findings underscore the importance of policy interventions emphasizing non-price incentives, such as enhanced extension services and dissemination of macadamia marketing information, to encourage participation in more lucrative markets.

OPTIMALISASI ALGORITMA C4.5 TERHADAP METODE DECISION TREE DALAM MENENTUKAN PLAFON KREDIT NASABAH

The most basic banking activity is collecting money and buying money from the whole society. Then sell the collected money by directing it to the community through credit or credit. However, it is often found that customers are unable to pay their receivables based on the amount of receivables which often exceeds the specified payment period. Therefore, banking companies must know the ability to pay customers by providing credit limits to avoid losses. The purpose of this study was to analyze the data using the Decision Tree method with the C4.5 Algorithm on the report data of BPR Pijer Podi Kekelengen receivables in order to determine the customer's credit ceiling. From the data obtained from the accounts receivable report, the company produces 5 attributes, namely Payments, Receivables, Transactions, Recommendations, and Ceiling where the decision label is Ceiling. After testing the report data at BPR Pijer Podi Kekelengen using the Decision Tree method with the C4.5 Algorithm, it is concluded that if the ceiling is large, the payment is not good.

Working Capital Management and Financial Performance: Evidence from Nigeria’s Public Listed Manufacturing Companies

Working capital management is important in corporate finance and considerably impacts organizational profitability. The study investigates how working capital management impacts the performance (specifically in the context of financials) of publicly traded manufacturing companies listed on the Nigeria Stock Exchange (NSE). Data collected for this study was analyzed using Statistical Package for Social Sciences (SPSS) based on the sample of 18 manufacturing companies for five years from 2013 to 2017. Working capital management is important for all organizations as it can considerably impact profitability and financial performance. The linear regression study revealed a notable positive correlation between the Account Payable Period and profitability. An escalation in the duration of accounts payable is associated with increased profitability. The second regression model conclusion indicates that a reduction in the duration (days) to collect sales from consumers is linked to a reduction in the profit since accounts receivable are negatively and insignificantly correlated with profitability. The third discovery in this study revealed an insignificant adverse relationship between the conversion period for inventory and profitability. Manufacturing companies need to turn their inventory into sales to increase profits promptly. This analysis revealed an insignificant inverse correlation between the conversion cycle for cash and profitability.

Systematic Literature Review (SLR) on Annuity Modeling of Plantation Replanting Cost Reserves Based on the Cobb-Douglas Model

Annuity is a financial concept that involves a series of periodic payments or receipts. In oil palm plantation management, the annuity concept is adapted to model and estimate the reserves required for replanting costs over time. The Cobb-Douglas model is a model that considers the contribution of various factors in the production process. This model can be used to estimate the income of plantations. This study discusses the Systematic Literature Review on Annuity Modeling of Plantation Replanting Cost Reserves through the application of the Cobb-Douglas Model using the Reporting Method of Choice for Systematic Review and Meta-Analysis (PRISMA) method. The study systematically collected and analyzed relevant literature from Scopus, Science Direct, Dimensions, and SAGE databases. The review followed a structured methodology that included four main stages: Identification, Screening, Eligibility, and Inclusion. Analysis was conducted on the datasets obtained at the Eligibility and Inclusion stages. Statistical techniques facilitated by the "bibliometrix" package in RStudio software were used to process the findings. In addition, the results can be accessed through the "biblioshiny ()" command, allowing easy access through a web interface for in-depth exploration. Based on the inclusion and exclusion criteria carried out in this study, it can be concluded that there is no research that discusses the topic of annuity modeling of plantation replanting cost reserves using the Cobb-Douglas model specifically. This can be further research on this topic.

Public Willingness to Pay for Interstate Cooperation to Preserve the Ecological Integrity of the Han River Estuary in Korea

The Han River Estuary (HRE), Yellow Sea, forms part of the border between South Korea and North Korea, and these two countries are militarily hostile. Since the HRE has quite excellent ecological integrity, the task of preserving it well is emerging as important. Thus, the South Korean Government is attempting to preserve the ecological integrity of the HRE through interstate cooperation. By employing contingent valuation, this study delves into South Korean households’ willingness to pay (WTP) for this preservation. One thousand households nationwide were sampled and surveyed through face-to-face individual interviews. Annual household income tax was selected as the payment vehicle. Dichotomous choice questioning was chosen as the WTP induction method. A spike model was selected as a method for modelling a WTP of zero. The main results showed statistical significance. Annual WTP per household and national WTP were obtained as KRW 4487 (USD 3.92) and KRW 125.75 billion (USD 109.83 million), respectively. When a 10-year payment period and a 4.5% discount rate were adopted, the value was KRW 766.14 billion (USD 669.12 million). South Korean households placed considerable value on the preservation of the ecological integrity of the HRE through interstate cooperation.

Optimizin Restaurant Tax Supervision In Jakarta: A Case Study Of The Tanah Abang Area

This research aims to explain the business process of supervising the restaurant tax collection in DKI Jakarta. This research also aims to provide suggestions to optimize supervising the restaurant tax collection in DKI Jakarta. The approach used in this research is a qualitative approach with descriptive methods. The data collection in this study was done using the techniques of observation, interview, and documentation study. The results of this study are an explanation of the general description of the restaurant tax collection supervision business process such as monitoring the payment of periodic restaurant tax deposits, comparison of third-party CMS data with internal restaurant taxpayer data, comparison of restaurant tax periodic deposit payment data with similar taxpayers (benchmarking), and implementation of silent operations to taxpayers business premises. This research also produced a proposal in the form of a method to optimize restaurant tax collection supervision activities in DKI Jakarta, especially in Tanah Abang area, namely by using tax data integration between central and local taxes, which is the result of cooperation between DKI Jakarta Provincial Government and the Directorate General of Taxes of the Ministry of Finance of the Republic of Indonesia. This research has several contributions, namely this research supplements the literature regarding the supervision of local tax collection, especially restaurant tax in Indonesia. In addition, the results of this study can also be used by DKI Jakarta Regional Revenue Agency (Bapenda DKI Jakarta) in the formulation of policies on the supervision of local tax collection, especially restaurant tax.

Working capital management strategies and financial performance: A cause-and-effect analysis

This study attempts to validate whether the working capital management strategies can be considered as the causes of good or bad financial performance of an organization, particularly in Indian cement industry. Whether the decisions of finance managers of Indian cement companies concerning the components of working capital such as account receivables, inventory, accounts paybles, cash holding etc. affect the firm’s performance individually and in total, a sample of 31 Indian cement companies listed on the Bombay Stock Exchange are being selected and their financial statements are analyzed for a period of 11-years (2010-2020). The findings of Pearson’s correlation coefficient and random effect regression model analysis show that there exists a negative relationship between financial performance measured in terms of return on assets (ROA) and inventory turnover period (ITP) as well as accounts payable period (APP). In contrast, a firm’s performance is not significantly affected by the accounts receivable period (ARP) and cash conversion cycle (CCC). Similarly, it has been observed that liquidity ratios such as current ratio (CR) and quick ratio (QR) have a significant positive association with ROA. Moreover, the size of the firms and leverage are inversely related to ROA but the age of the firms is not significantly affecting their financial performances.

Why Should We Pay Attention to Working Capital Management? A Case of Ghana

The paper examines the nexus between working capital management (WCM) and financial performance of listed non-financial firms in Ghana. An unbalanced panel data for the period 2008 to 2021 was used for the study. It is observed that the residual terms of the models were cross-sectionally independent and all the series were first-differenced stationary and cointegrated in the long term The elasticities of the predictors were explored via the Fully Modified Ordinary Least Squares (FMOLS) and the Dynamic Ordinary Least Squares (DOLS) techniques. The findings of the study indicate that WCM proxied by accounts receivable period (ACP), accounts payment period (APP), and inventory turnover period (ITP) have significant positive effect on firms’ financial performance measured by return on assets (ROA), return on equity (ROE), and return on capital employed (ROCE). This suggests that the working capital management practices of non-financial firms in Ghana improve their financial performance. Also, firm size and asset growth improve firm financial performance. On the causalities between the variables, bidirectional causalities between ACP, APP, ITP, size, and thecompanies’ ROA, ROE, and ROCE are disclosed. Finally, causality from growth to the ROA, ROE, and ROCE of the firms are unraveled. It is recommended that policy makers of non-financial firms in Ghana should not overlook WCM practices in their financial decisions, since ignoring them could seriously compromise the firms’ short- and long-term sustainability.

Comprehensive Explanation of the Correlation between the Average Payment Period, the Working Capital Financing Policy, and a Firm's Profitability

Comprehensive Explanation of the Correlation between the Average Payment Period, the Working Capital Financing Policy, and a Firm's Profitability

부동산 경매 시 유치권의 대항력 제한 법리에 대한 검토

The retention right holder has the right to refuse delivery to the buyer in the auction procedure. As part of resolving the problem of this situation, the Supreme Court has established the legal principle that liens established after the registration of the auction commencement decision cannot be used against the buyer in the auction process. However, in 2022, the Supreme Court made a ruling that is difficult to explain with these legal principles. This is because the opposing power of the lien was recognized even though the lien was not established at the time of registration of the auction commencement decision due to the postponement of the payment period. However, the 2022 Supreme Court ruling does not provide specific standards, but simply lists various circumstances that do not undermine the stability of the auction procedure even if the lien is recognized in the case. Therefore, it is not possible to know which of them is the decisive factor. In other words, this ruling is significant in that it demonstrates the need for change in the existing Supreme Court jurisprudence, but it has the limitation of failing to present specific standards to resolve this issue. In this paper, the following conclusions were presented regarding the standards for judging the opposing power of liens by comparing previous rulings with the 2022 ruling.
 (1) Limiting the opposing power of liens established by transfer of possession after registration of the auction commencement decision is an appropriate way to protect the interests of enforcing creditor. And this can be explained by the prohibition effect of attachment.
 (2) Even if a claim is established after registration of the auction commencement decision, it is necessary to deny the opposing power of the lien. This can be explained if the effect of attachment is broadly understood.
 (3) The fact that the payment period arrives after the registration of the auction commencement decision cannot be a factor to be considered when determining the adversarial power of the lien.
 (4) Whether or not a lien is listed in the status investigation report cannot be a decisive criterion for determining opposing power. However, in cases where it is necessary to protect the trust of buyers in the auction process who were unaware of the existence of a lien, opposing power must be determined by reviewing the lien holder's fault for the failure to include it in the status investigation report.