Payment Terms Research Articles

Invoice level forecasting with discrete survival methods for effective forecasting of account receivables in supply chain

The objective of this study is to obtain accurate and timely Account Receivables forecasts that can feed into the Cash Flow Forecasting (CFF) for a generic wholesales scenario in a supply chain company. The main components of the CFF are the Account Receivables (AR), Account Payables (AP) and Working Capital (WC). The focus of this work is on AR, in particular on how they contribute to the overall cash flow forecasting. The prediction of AR is based on the predicted payment date of each invoice, which can be obtained from the time to payment given the issue date. In this context, we propose the use of discrete survival methods for predicting the time to payment of issued invoices. To obtain more accurate predictions for time to payment, we fit a generalized linear mixed effects model with a time-varying baseline hazard function. This approach provides greater precision for subsequent account receivables predictions compared to the prediction based on simply the payment terms of each invoice, standard time series and classification models, and continuous-time survival methods. We demonstrate the approach on two financial data sets.

The reverse mortgage market in New Zealand: key drivers of loan determination

ABSTRACT This paper examines the drivers of loan principals in the reverse mortgage and equity release market in New Zealand using a hedonic price model (HPM) approach. Our analysis using reverse mortgages data between 2004–2021, sourced from one major reverse mortgage bank, provides four key findings. First, the term of payment for repaid reverse mortgages is positively associated with loan principals, implying that longer repayment terms allow applicants who were able to repay mortgages to borrow more. Second, there is partial evidence to suggest the presence of a positive linear impact of the value of the current property on its loan principal, in line with previous house price modelling studies. Third, older applicants (age 75+) borrow less than younger applicants, which may be due to their repaying ability. Fourth, we confirm a positive effect of interest rates on reverse mortgage amounts but reject the positive association between wider loan-to-value policy restrictions and equity release lending amounts. The results broadly highlight that the house price is more relevant than any individual characteristic of a property in determining loan principals, and that all drivers are relevant in the early stage of the development of the reverse mortgages market in New Zealand.

Accounting for complementary currency transactions (the case for France)

The purpose of the study was to analyze the complementary currencies projects (СС-projects) implemented in France during the last decades. The active promotion of those projects in various countries has highlighted the problem of accounting and tax accounting for transactions of the currencies supplementing the national ones as a means of payment. There were questions about how to reflect and record such payments in invoices; whether it is necessary to purchase additional software for the cash register, etc. The author of the article proved that the use of complementary currencies does not significantly affect the billing and cash accounting, as well as the collection of commercial taxes, since the sales are always recorded in the national currency and in the same currency are transferred to accounting for further documentation (in this case, in euros). The tax reporting within the CC-projects is identical to the standard formalized one, however, the payment terms contained in it include an additional payment method. the methodological basis of the study was a system- functional approach and comparativistics. the results of the work have revealed the specifics and key problems of forming a legislative framework for innovative projects aimed at introducing new effective payment instruments into the sphere of commodity- money relations at the regional and local levels, and may be of interest to economists and representatives or specialists of taxation and financial services of Russia.

Measuring supply chain finance: a study of scale development and validation in the emerging market context

PurposeFinancing remains a serious concern for firms and is considered the main hurdle in the growth and development of small and medium enterprises (SMEs). Recently, a new stream of financing (SCF; supply chain finance) has emerged to meet the financing issues of SMEs. Therefore, measuring SCF is essential to support SMEs’ operations. This study aims to develop and validate the SCF scale based on extant literature.Design/methodology/approachUsing a mixed-method approach, this study recruited different samples of SME entrepreneurs to confirm the internal consistency, assess construct validity and check the item structure of the SCF scale in AMOS.FindingsThe outcomes of confirmatory factor analysis demonstrated the six factors of SCF (inventory financing, working capital optimization, reverse financing, fixed assets financing, logistics financing and order cycle financing) spread over 21 items. An interitem solid structure of the SCF scale offers invaluable contributions to the supply chain management literature.Practical implicationsThis research supports SME entrepreneurs to obtain secure financing at the best cost, mitigating the risk of default, supporting the buyers’ payment terms, providing early payment to suppliers and strengthening the firm’s value chains. SMEs can obtain financing per their requirements to support their operational business processes. Moreover, SMEs can plan, manage and control finance-related transactional activities by correctly identifying financing solutions.Originality/valueThe present study contributes to SCM literature by developing and validating the SCF scale. To the best of the author’s knowledge, this is the first study that redefined SCF and identified its six dimensions.

THE BUSINESS IMAGE OF SPORTS BETTING

The authors have identifi ed the factors infl uencing the image of betting companies. First of all, these are: the professional competence of the staff , the quality of the services off ered, the company’s fame in professional circles, payment terms, the appearance of the management staff , long-term cooperation in the fi eld of sports betting, the competence of managers.

An hedonic evaluation of the impacts of vertical coordination on business performance amongst apple producers in Morocco

We present an econometric analysis of the marketing of apples in Morocco that investigates the relationship between vertical coordination arrangements and the prices of apples for farmers. In this study, the hedonic method is used to evaluate the vertical coordination of apple fruit chains by analyzing the marginal implicit price of different product characteristics. We examine the variables influencing apple prices for farmers, comprising intrinsic factors related to the farm's characteristics and quality attributes such as fruit variety and fruit diameter. Additionally, we consider extrinsic variables associated with marketing factors, including vertical coordination systems, payment terms, seasonality of sale, cold storage, and geographical origin. Based on a nationally representative survey of 190 apple growers in the southeast of Morocco, an empirical analysis is conducted. Results highlight the pivotal role of apple growers' experience in elevating farm-level prices, indicating a deeper understanding of market dynamics. Significant price variations are tied to quality attributes, notably a 19.2% premium for larger apples (75–85 mm diameter), indicating market preference. The economic analysis underscores the influence of apple varieties, with Golden commanding a 16.4% higher price, indicating heightened consumer demand. Additionally, the study found that marketing factors, vertical coordination models, payment terms, seasonality of sale, cold storage, and geographical origin also have a positive impact on apple prices. Furthermore, vertical coordination models positively impact apple and prices provide producers with guidance for effective supply chain coordination. These insights, extending beyond theory, serve as a roadmap for policymakers to support the agricultural sector. Equipped with knowledge of business performance, farmers can implement targeted measures to enhance the marketing value of their agricultural products, fostering resilience and profitability in the Moroccan apple sector.

Organization of outsourcing activity at Ukrainian enterprises

Introduction. Outsourcing is the best strategy to be ahead of the competition in today's market. Researches indicate that the activity of outsourcing companies is strongly affected by the war, which is relevant for Ukrainian companies. But, despite the fact that the topic of outsourcing activities is actively discussed in the scientific literature, not enough attention is paid to the issue of describing specific stages of the implementation of this activity at enterprises. The purpose of the paper is to determine the most optimal stages of the implementation of outsourcing activities at a Ukrainian enterprise in modern conditions. Results. Because of different problems exists a need to develop appropriate stages of outsourcing activities at Ukrainian enterprises. The first stage shows whether outsourcing is profitable. At the second stage, clear goals for outsourcing are expected to be established. The third stage describes the development of a description of the project, and the fourth stage is the selection of an appropriate outsourcing engagement model. At the fifth stage, the project budget and payment terms are established. The sixth and seventh stages involve planning and appointing an outsourcing manager, who in the eighth stage should send the project description to the relevant firms and review the proposals. The ninth stage is to choose an outsourcing company. At the tenth stage, risks associated with outsourcing are managed. The results and processes of outsourcing activities need to be monitored at the eleventh stage. The twelfth stage includes evaluating and adjusting the outsourcing, and the last stage is the outsourcing report. Conclusion. Outsourcing is a process that delegates some responsibilities and functions of the company to specific service providers. To create a successful outsourcing strategy at Ukrainian enterprises, it is advisable to implement thirteen stages of outsourcing activities. These stages should include the implementation of outsourcing opportunities and the management of related risks. Identifying risks with planned appropriate actions to mitigate them will set the company up for an active response. Understanding the implications of risk will help enterprise to have a control over the outsourcing process.

Features of the Association between Debt and Earnings Quality for Small and Medium-Sized Entities

The main source of financing is bank loans for Portuguese small and medium-sized entities (SMEs), which implies several constraints to obtaining additional funds. Relying on the argument of Positive Accounting Theory (PAT) that accounting choices are not neutral and on Agency Theory that information asymmetry prevails between insiders and outsiders, we analyzed the impacts of debt on earnings quality, focusing on its level, its increases, and its term of payment. We estimated econometric regressions using panel data with fixed effects over 2013–2019, using discretionary accruals as an inverse proxy of earnings quality. We found empirical evidence that the relationship between debt and earnings quality tends to vary in sign, as the quality of financial information deteriorates with debt, but as debt becomes high, firms tend to increase the quality of earnings. Furthermore, we found that short-term debt tends to decrease earnings quality more than long-term debt. This article aimed to contribute to the prior literature by collecting evidence that debt levels tend to be an incentive to increase earnings management and fill the gap by analyzing the influence of different debt features. This evidence is useful because earnings management may compromise both stakeholders’ confidence and the efficient allocation of capital.

Does Efficiency in Working Capital Management Impact the Overall Performance of Firms? Evidence from India

Using 514 Indian-listed firms for 11 years (2012–2022), this study provides evidence that efficiency in working capital management (WCM) positively influences the overall financial performance (proxied by return on equity [ROE]). WCM impacts each decomposed component as per DuPont analysis, such as profit margin (PM), asset turn (AT), and equity multiplier (EMR). Efficient WCM enhances PM and AT. Sample firms with longer working capital (WC) conversion cycles have higher EMR, indicating that inefficiency in WCM pushes the firms towards more dependence on debt financing. The shorter inventory days, speedy receivable collections, and prompt payment terms augment ROE, PM, and AT. Longer inventory storage days and generous credit terms extended to the customers increase EMR of the sample firms. The firms with higher EMR delay payment to their suppliers. Furthermore, among the relationship of each DuPont performance lever with ROE, we find that the relationship of PM with ROE is most influenced by efficient WCM for the Indian sample firms compared to the relationship of AT with ROE and the relationship of EMR with ROE.

Modernisation of legislation in the field of economic and commercial activity in the context of European integration

The article deals with the issues of peculiarities of modernisation of legislation in the field of trade and economic activity in the context of European integration.It is noted that economic and trade activity is the industry which is subject to active modernisation, taking into account the requirements of the Association Agreement. The author concludes that the obligations to adapt Ukrainian legislation to EU legislation in trade have changed due to the fact that a number of EU acts have been amended or repealed, and therefore it is now important to implement the novelties of EU legislation in the period after ratification of the Association Agreement.
 The term «economic and commercial activity» used in the Commercial Code of Ukraine essentially means trading activities carried out by business entities. Expanding the scope of digitalisation of economic and commercial activities is another vector of European integration.
 The food supply chain is vulnerable to unfair trade practices due to a sharp imbalance between small and large agricultural market operators. In Ukraine, we see unfair practices when large retailers dictate the terms of market entry and payment for products. Therefore, the implementation of the provisions of Directive 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trade practices between undertakings in the agriculture and food sectors is important for Ukraine.
 In general, EU legislation is quite dynamic, especially given the direction of EU policy towards the development of a green economy and digitalisation, and a number of provisions are being adopted to improve trade in these areas. For Ukraine, an important task is not only to adapt national legislation to the existing EU acts, but also to take into account the legal policy ideas that are actively discussed and developed in the EU, in particular, the provisions on harmonisation of business law.

Project Selection of Indonesian Local Oil and Gas Service Company Using Analytical Hierarchy Process (AHP)

PT Duta Wisesa Servisindo or PT. DWS is a local Indonesian company that offers services in the oil and gas sector. This company was founded in 2015 when world oil prices were falling and used this momentum to invest in assets, especially in cementing units used for drilling and workover work. At the beginning of the establishment of PT. DWS believes that they can become the main local Indonesian oil and gas services company in Indonesia, because many local competitors stopped their businesses during the 2015 crisis. In 2023, world oil prices have improved, at the end of 2023 PT. DWS received 4 job offers from SOE and private sector to work on in early 2024, namely the Jambi Project, Lampung Project, Jambi Project and Cepu Project, but due to unit limitations, this company could only choose 3 job offers to work on. Because PT. DWS does not yet have a decision-making process. In this research, the Analytical Hierarchy Process or AHP is used to provide recommendations for 3 projects that are recommended to be taken by the company. In this AHP assessment, the criteria used as assessment parameters are marketing and sales, customers, financial feasibility, administration and project specifications, each of these criteria has several sub-criteria with a total of 13 sub-criteria. Based on the assessment, the criterion with the highest weight is financial feasibility (51.4%) and the sub-criterion with the highest weight is ability to pay (22.9%). After the assessment was carried out, based on the ranking, the 3 projects that were recommended to be taken were the Jambi project (33.4%), Cepu Project (30.7%) and Lampung Project (19%). Based on the assessment results, it can be seen that service users from the BUMN sector dominate compared to the private sector because they have the ability to pay and have high profitability compared to private companies, even though private companies are superior in terms of payment, administration and equipment requirements.

Administracyjne kary pieniężne za nadmierne opóźnianie się ze spełnianiem świadczeń pieniężnych jako instrument zwalczania kryzysu gospodarczego

The increasing phenomenon of delayed payment of obligations and the use of extended payment terms in contracts prompted the legislator to seek more radical solutions than those stipulated in the Act on countering excessive delays in commercial transactions, in the form of private law instruments aimed at reducing payment backlogs. Since 2020, this goal has been pursued through the imposition of administrative fines for excessive delays in fulfilling monetary obligations by the President of the Office of Competition and Consumer Protection. The passage of 3.5 years since the enactment of the amendment to the law allows for an assessment of the functioning of the new regulation. The purpose of the article was to determine whether the legal regulation of administrative fines is effective, i.e. whether it has contributed to reducing payment backlogs and, therefore, whether it can be considered one of the effective methods for combating the economic crisis. The research problem was explained based on the analysis of statistical data concerning the timeliness of financial commitments by entrepreneurs, the analysis of decisions issued by the President of the Office of Competition and Consumer Protection, and information obtained from entrepreneurs. These studies led to the conclusion that the described regulation did not contribute to reducing payment backlogs; however, an improvement in this situation can be expected when proceedings before the President of the Office of Competition and Consumer Protection can be conducted based on the amended provisions in 2022. It does not seem possible, though, for administrative fines for excessive delays in fulfilling monetary obligations to be an effective tool for combating an economic crisis.

Bargaining power in the market for intellectual property: Evidence from licensing contract terms

AbstractWe study a novel database of intellectual property (IP) licensing agreements sourced from filings made by publicly listed corporations, a large fraction of which firms (initially) disclose with redacted terms. In contrast to the benchmark that IP quality alone determines the pricing of IP, we argue that bargaining power between licensing counterparties plays a critical role in explaining several patterns in observed royalty rates. Licensors with differentiated technology and high market power charge higher royalty rates, while larger‐than‐rival licensees pay lower royalty rates. Licensors command premium royalty rates for contract exclusivity, especially in competitive markets. Finally, we employ this framework and setting to understand the pricing implications of nondisclosure: licensors redact payment terms when they transact at lower royalty rates, consistent with preserving bargaining power for future negotiations. Our findings offer a new explanation for innovator secrecy and have several practical takeaways for transfer pricing and patent litigation.

Ranking the Importance of Marketing Strategies in Building Client Loyalty

The current article reviews the opinions and counterarguments within the scientific argument on the causal linkage between the components of marketing strategy and client loyalty. The systematization of the literary sources demonstrated that the causal connections from the components of marketing strategy to client loyalty are different. However, nearly none of the research projects have rated and compared the differences among the components of marketing strategies in improving client loyalty. Therefore, the key purpose of this article is to weigh the relative importance of the components of marketing strategy to client loyalty. The current research developed research hypotheses based on experiential learning theory, resource dependency theory, and social exchange theory. Vietnam was chosen as a case study because it is one of the fastest emerging economies. The research data were gathered by employing a structured questionnaire. For this research, responses from 210 enterprises were collected using the simple random sampling method from 1128 firms publicly listed on the main stock exchanges in Vietnam. Finally, this research yielded 222 suitable replies with satisfactory compulsory information. Then, this project employed the procedures of the analytic hierarchy to assess the comparative importance of the components of Product, Price, Place and Promotion of marketing strategy to client loyalty. The results show that Price strategy is first, Pricing is second, Sales promotion is third, Advertising is fourth, Allowances is fifth, Discounts is sixth, Public relations is seventh, Channels is eighth, Direct marketing is ninth, Payment terms are tenth, Features are eleventh, Quality is twelfth, Market coverage is thirteenth,Assortment is fourteenth, Branding is fifteenth, Packaging is sixteenth, Location is seventeenth, Inventory is eighteenth,Sercies is nineteenth, Warranties is twentieth, and Transport is the last in improving client loyalty. This research is expected to provide researchers with a better understanding of the comparative significance among the components of marketing strategy for client loyalty. The results of the current research can also support business executives by helping them make better decisions on suitably planning the components of Product, Price, Place and Promotion of marketing strategy in business so that they can gain the best possible efficiency.

Examining the relationship between trade credit payment terms and manufacturing firm performance: the moderating effect of market share

Examining the relationship between trade credit payment terms and manufacturing firm performance: the moderating effect of market share

Efficiency Management and Financial Performance of Listed Consumer Goods Firms in Nigeria

The study investigated efficiency management on the financial performance of listed Consumer Goods Firms in Nigeria. Specifically, the study examined the effect of Inventory Turnover Ratio (INVTR), Trade Receivable Turnover Ratio (TRTR) on Return on Assets (ROA). Firm size was introduced in the model as a control variable. The design of the study was Expo-Facto. Data covering 10 years (2013 -2022) was obtained from the annual reports of five (5) companies selected from twenty-one (21) firms in the Consumer Goods sector through judgmental sampling technique. Techniques of data analysis include descriptive analysis and panel regression technique. Results revealed that the inventory turnover ratio had significant positive effect on ROA while there was no evidence of significant effect of Trade Receivable on ROA. However, firm size had significant positive effect on ROA. Based on findings, the study concluded that efficiency management improves the financial performance of listed consumer goods firms in Nigeria. Based on these findings, the study recommended the adoption of efficient inventory techniques such as demand forecasting, vendor management, planning of materials required by firms, and economic order quantity for management of inventory. The study also recommended the use of practices such as establishing payment terms, offering cash discount, providing customers with multiple payment options, adopting shorter collection period, the use of reminders before due date in management of trade receivables.

ОБЛІК І ВНУТРІШНІЙ КОНТРОЛЬ ЗОБОВ’ЯЗАНЬ ПІДПРИЄМСТВА ЗА РОЗРАХУНКАМИ З КОНТРАГЕНТАМИ

Accounting for a company's obligations in settlements with counterparties is an important and complex part of accounting that affects the company's material interests. This area of accounting is mandatory for any company and requires great attention and accuracy to ensure timely settlements. The article concludes that inventorying a company's obligations in settlements with counterparties is an effective tool that can be used in various cases depending on the circumstances and purpose of the operation. Additionally, inventorying is an effective tool for verifying the accuracy of debt accounting with suppliers and determining the actual state of settlements. It can also be a useful tool for reconciling debts with suppliers and reducing potential misunderstandings or conflicts. During inventorying, opportunities for cost optimization and negotiations with suppliers to reduce costs or revise payment terms can be identified. Furthermore, inventorying can be used as a basis for discussing new delivery terms or expanding credit lines with suppliers if the company plans to negotiate. It is also a useful tool for identifying overdue payments and developing strategies to reduce them. Digitizing the internal control of a company's obligations in settlements with counterparties through a digital platform contributes to increasing the efficiency of the procurement process. The proposed methodology aims to create an integrated internal control system that includes the following aspects: ensuring the availability of information channels, system interfaces, their accuracy, timeliness, and security; ensuring the accuracy, timeliness, completeness, and security of transaction processing within business processes, information channels, and system interfaces; ensuring information security and confidentiality control in accordance with legal requirements and internal standards, etc. The methodology aims to create a comprehensive internal control system that includes ensuring the proper functioning of information channels, system interfaces, transaction processing, information security, and confidentiality control, as well as risk management and ensuring the continuity of organizational activities.

Нові підходи до оплати праці державних службовців в Україні

Нові підходи до оплати праці державних службовців в Україні

Menakar Peran Persepsi Harga dalam Penciptaan Keputusan Pembelian Jasa Wisata

This research located in Mangkang Zoo. The aim of the research is to evaluate services that influence the decision to purchase tourism services at the Mangkang Zoo, Semarang, by considering perceptions of price as a moderating factor. This research shows that service quality has an impact on purchasing decisions at the Mangkang Zoo, Semarang. Meanwhile, other findings, namely price perception, show that service quality has an influence on purchasing decisions, with price as a mediating variable at the Mangkang Zoo, Semarang. This illustrates that management has succeeded in implementing an appropriate pricing policy, including in terms of price levels, special price offers, payment processes, payment terms, all of which are in line with the quality of the services provided. The population studied was visitors who decided to use tourist services at the Mangkang Zoo, Semarang, with an unspecified number. The sampling method was carried out by chance and involved 100 respondents. The research results are that service quality has an impact on the decision to purchase tourism services at the Mangkang Zoo, Semarang. Furthermore, perceptions of price also have a positive and significant influence in strengthening the correlation between service quality and purchasing decisions for tourism services at the Mangkang Zoo, Semarang.

Implementation the Indonesian Ulema Council Fatwa regarding the Sale and Purchase of Gold in Installments at Sharia Bank of Indonesia

Purchasing gold using an installment payment model or in the form of savings has been applied to Sharia Bank of Indonesia (BSI) (BSI) and Pegadaian products. This started with the issuance of MUI Fatwa Number 77/DSN-MUI/V/2010 concerning the Implementation of Gold Installments, even though there were several ulama' who prohibited the practice of buying and selling gold in installments. Based on this, the author is interested in studying the application of gold installments at Sharia Bank of Indonesia (BSI) and its differences with gold savings transactions implemented by pawnshops, both in terms of contracts, payments and comparison of the installments of the two gold installments. The research method used is normative juridical using a statutory approach and a comparative approach. The theory used is the theory of legal benefit. The results of this research show that the transaction model applied by BSI is in the form of gold installments using a murabahah contract and a rahn contract, while Pegadaian is a gold savings account. These two gold installment models can provide benefits for people who want to invest in gold.