The purpose of this paper is identifying factors that influence changes in accounts receivable and bad debt reserves. Although this paper estimates the relation between changes in the accounts receivable-to-sales ratio and the bad debt reserve-to-receivables ratio and changes in future earnings.
The data used to test the hypotheses is primarily taken from the Tehran Stock Exchange database over the years 2001- 2009 and the relation between the factors examined in several sets of cross- sectional regressions.
The results show that there is a positive relation between the number of years that firms exhibit and/ or anticipate losses and investment in receivables. Furthermore, the results indicate that the firm's age, size and growth in sale are positively related with the ratio of accounts receivable-to-sales.
Rahmani, A., & Tahazadeh, R. (2014). Fundamental Analysis of Receivables and Predicting Future Earnings. Journal of Accounting and Social Interests, 4(2), 135-156. doi: 10.22051/ijar.2014.496
MLA
Ali Rahmani; Ronak Tahazadeh. "Fundamental Analysis of Receivables and Predicting Future Earnings", Journal of Accounting and Social Interests, 4, 2, 2014, 135-156. doi: 10.22051/ijar.2014.496
HARVARD
Rahmani, A., Tahazadeh, R. (2014). 'Fundamental Analysis of Receivables and Predicting Future Earnings', Journal of Accounting and Social Interests, 4(2), pp. 135-156. doi: 10.22051/ijar.2014.496
VANCOUVER
Rahmani, A., Tahazadeh, R. Fundamental Analysis of Receivables and Predicting Future Earnings. Journal of Accounting and Social Interests, 2014; 4(2): 135-156. doi: 10.22051/ijar.2014.496
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