TRADE RECEIVABLE POLICY AND FIRM VALUE: EVIDENCE FROM LISTED TURKISH INDUSTRIALS

This paper shows that average collection period of trade receivables (ACP) and a deterioration in the credit quality both have negative effect on firm value. Evidence is based Turkish industrial firms listed Borsa Istanbul over 2005-2017 period. The exists only for whose increased by more than thirty days within last one to three years. Similarly, value consequence ACP holds high-profit firms, but not low-profit firms. study utilizes system generalized method moments all estimations treats receivable policy variables as endogenous due omitted variable bias concerns. Overall, findings suggest destructive lengthened deferred payment terms specifically with historical upward trend ACP.