Panel regression approach to study the impact of management of receivables on the profitability of the indian steel industry

Abstract

The receivable being the major component of the working capital, every organization tries to make maximum unitization of these receivables. The cost of funding the receivable is also very high. In this context the management of every company is proactive to choose a best possible receivable management practice. Some practices are successful some are not. This paper concentrates around the receivable management practice adopted by the steel industries in India. 29 companies across the steel industry of India are selected for the study and the sty period is 10 years ending 31.03.2021. Panel regression approach has been adopted to study the impact of the receivable management on the profitability of the companies.