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Title: Implications of Trade Receivables Management on the Liquidity of Zimbabwe Stock Exchange Listed Retail Companies
Authors: Luphahla, Amanda
Keywords: trade receivables
current assets
Zimbabwe Stock Exchange
Issue Date: May-2018
Publisher: Lupane State University
Abstract: The research study assesses the implications of trade receivable management on the liquidity of Zimbabwe Stock Exchange listed retail firms. The study looked into the trade receivables proportions to total current assets of the firms, trade receivables constituted above 50% of the current assets which was the basis of statement of the problem. This research involved the only two companies that the main objective which was to determine the implications of trade receivable management on liquidity, the annual reports from 2009 to 2016 were used as sources of data. Receivable’s Debtor collection represented trade receivables management and Creditor’s Payment Period represented liquidity. These ratios were subjected to statistical analysis using linear regression model to test the hypothesis null hypothesis indicated that there is no relationship between trade receivables management and liquidity. The study revealed that a significant positive relationship exists between trade receivables management and liquidity. CPP indicates the liquidity position of an organization, which is its capacity to pay short term debts when they fall due. If trade receivables do not pay debts due, the firm will not have funds to settle its own payables. The researcher recommends that retail firms review credit policies on a yearly basis in order to minimize liquidity problems as trends on the behavior of customers and competition will be learnt and adjustments to the policy made accordingly
Appears in Collections:Department of Accounting and Finance

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