NSU Research Contributions
Title : Profitability and Expanding Collection Period in Bangladesh, Journal of Asian Business and Information Management.
Authors : Sharif Ahkam, Khairul Alom
| Journal Article Title: International Journal of Asian Business and Information Management | Volume Number: 15 | Publication Year : 2024 | Issue Number: 1 |
| Index: scopus | Ranking: Q2 | ISSN (Print): 19479638 | Publisher Name: IGI Global |
| Pages : 1-14. | |||
| ISSN (Online): 1479-5922 | |||
| Funding Source : None |
|
Direct Sustainable Development Goals : SDG8 Decent Work & Economic Growth SDG9 Industry, Innovation & Infrastructure SDG12 Responsible Consumption & Production |
Indirect Sustainable Development Goals : SDG12 Responsible Consumption & Production |
Sustainable Development Sub Goals : Achieve higher levels of economic productivity through diversification, technological upgrading and Promote development-oriented policies that support productive activities and decent job creation Promote inclusive and sustainable industrialization |
| Impact statement: The article brings attention to expanding receivables collection period in Bangladesh. This hurts profitability and sustainability. In the long run, the trend will impact jobs, employment, and economic growth. Governments currently are going to great lengths to support small businesses, entrepreneurs, and women-owned businesses. It will not hurt if they evaluate the creditworthiness of their customers. It will also be worthwhile for banks, financial institutions, and the government to institute policies that encourage payments of due amounts in a reasonable time frame. A little moral persuasion should also be helpful. However, there may be truth to the allegation that defaulters are powerful people in the society and the political arena. We have taken extreme care in developing the database, but issues of earnings management and the tendency to keep uncollectible receivables in the books as collectible remain a major problem that inflates ACP. We strongly encourage researchers and policy makers to pay greater attention to the upward trend in ACP. Governing bodies may consider mandating the length of ACP, forcing the buyers to pay within a specified time frame. | Collaboration: Partner University | Keywords: Average Collection Period, Stationarity, Cointegration, Generalized Method of Moments Regression, Working Capita |
