Figure 1
Figure 2
Comparison of the average DPO in 2012 and 2013_
| Industry | Mean | t-test | p-value | N if DPO > 30 | ||
|---|---|---|---|---|---|---|
| 2012 | 2013 | 2012 | 2013 | |||
| Total sample | 79.84 | 56.50 | −37.1225 | 0.0000 | 21,505 | 21,478 |
| Manufacturing | 69.83 | 50.67 | −18.7757 | 0.0000 | 5,180 | 5,484 |
| Energy, water supply | 86.01 | 48.37 | −8.7616 | 0.0000 | 510 | 553 |
| Construction; mining | 94.96 | 70.68 | −11.1065 | 0.0000 | 2,714 | 2,526 |
| Wholesale and retail trade | 76.84 | 57.41 | −19.3372 | 0.0000 | 7,092 | 7,068 |
| Catering, culture & entertainment, other services | 84.81 | 56.73 | −5.2196 | 0.0000 | 403 | 329 |
| Transport; ICT, real estate, scientific & technical activities | 85.48 | 56.17 | −20.5605 | 0.0000 | 5,329 | 5,241 |
| Public administration; education; healthcare; NGOs | 68.57 | 41.45 | −5.8093 | 0.0000 | 277 | 277 |
Comparison of the average DPO in 2015 and 2016_
| Industry | Mean | t-test | p-value | N if DPO>30 | ||
|---|---|---|---|---|---|---|
| 2015 | 2016 | 2015 | 2016 | |||
| Total sample | 58.18 | 73.09 | −22.5545 | 0.0000 | 15,224 | 18,006 |
| Manufacturing | 52.80 | 63.78 | −10.6701 | 0.0000 | 3,956 | 4,593 |
| Energy, water supply | 50.75 | 66.89 | −3.6967 | 0.0001 | 363 | 445 |
| Construction; mining | 64.71 | 89.97 | −10.7411 | 0.0000 | 1,805 | 2,167 |
| Wholesale and retail trade | 58.14 | 70.15 | −12.2819 | 0.0000 | 5,323 | 6,128 |
| Catering, culture and entertainment, other services | 60.13 | 78.44 | −2.7465 | 0.0031 | 221 | 302 |
| Transport; ICT, real estate; scientific & technical activities | 62.24 | 79.81 | −10.5875 | 0.0000 | 3,389 | 4,130 |
| Public administration; education; healthcare; NGOs | 47.40 | 241.0 | −2.4718 | 0.0069 | 167 | 241 |
Entities shortening the DPO between 2013 and 2015_
| Pooled OLS | RE | FE | FE | |||||
|---|---|---|---|---|---|---|---|---|
| Delta DPO | Delta DPO | Delta DPO | Delta DPO | |||||
| Coef. | Coef. | Coef. | Coef. | |||||
| (Std. Err.) | (Std. Err.) | (Std. Err.) | (Std. Err.) | |||||
| ROA | −0.3381 | *** | −0.3360 | *** | −0.4296 | *** | −0.4522 | *** |
| (0.0350) | (0.0365) | (0.0802) | (0.0801) | |||||
| SIZE | 0.0304 | *** | 0.0320 | *** | 0.1367 | *** | 0.1472 | *** |
| (0.0027) | (0.0030) | (0.0202) | (0.0203) | |||||
| LEV | −0.2084 | *** | −0.2063 | *** | −0.3048 | *** | ||
| (0.0340) | (0.0362) | (0.0802) | ||||||
| _cons | −0.8136 | *** | −0.8467 | *** | −2.4691 | *** | −2.6113 | *** |
| (0.0426) | (0.0474) | (0.3152) | (0.3160) | |||||
| Number of observations | 3,619 | 3,619 | 3,619 | 3,619 | ||||
| Number of groups | 2,117 | 2,117 | 2,117 | |||||
| Breuch–Pagan test | 74.33 | 43.57 | 47.03 | 43.57 | ||||
| 0.000 | 0.000 | 0.000 | 0.000 | |||||
| Hausmann test | 35.83 | 31.34 | 35.83 | |||||
| 0.000 | 0.000 | 0.000 | ||||||
| R 2 | 0.070 | 0.078 | 0.052 | 0.057 |
Public policy change in 2013–2015 impact on DPO – DID model_
| Pooled OLS | FE | FE | FE | |||||
|---|---|---|---|---|---|---|---|---|
| DPO | DPO | DPO | DPO | |||||
| Coef. | Coef. | Coef. | Coef. | |||||
| (Std. Err.) | (Std. Err.) | (Std. Err.) | (Std. Err.) | |||||
| DID | −8.2606 | *** | −7.6617 | *** | −7.4576 | *** | −5.2356 | *** |
| (0.5497) | (0.4739) | (0.4699) | (0.4649) | |||||
| Years_2013_2015 | −0.7170 | *** | −0.6359 | *** | −0.4403 | *** | −0.3739 | *** |
| (0.1685) | (0.1444) | (0.1433) | (0.1247) | |||||
| Firm_DPO between 90 | 69.6898 | *** | ||||||
| and 150 days in 2012 | (0.3371) | |||||||
| SIZE | 9.3777 | *** | 9.1770 | *** | ||||
| (0.1861) | (0.2156) | |||||||
| LEV | 0.2104 | 4.4687 | *** | |||||
| (0.7007) | (0.9443) | |||||||
| CAPINT | −9.0475 | *** | −44.7629 | *** | ||||
| (0.6238) | (0.9222) | |||||||
| NWC_TA | −51.4319 | *** | ||||||
| (0.7095) | ||||||||
| dummy_negative_NWC | 1.6215 | *** | ||||||
| (0.3839) | ||||||||
| dummy_negative_NWC# | 17.2079 | *** | ||||||
| NWC_TA | (1.7268) | |||||||
| ROA | −6.9075 | *** | ||||||
| (0.4584) | ||||||||
| _cons | 19.4264 | *** | 25.8588 | *** | −115.2718 | *** | −94.0512 | *** |
| (0.1021) | (0.0823) | (2.8401) | (3.4126) | |||||
| Number of observations | 176,876 | 176,876 | 176,876 | 126,859 | ||||
| Number of groups | 27,521 | 27,521 | 22,427 | |||||
| Breuch–Pagan test | 45963.40 | 31448.99 | 29796.13 | 28268.49 | ||||
| p-Value | 0.000 | 0.000 | 0.000 | 0.000 | ||||
| Hausmann test | 24.44 | 1367.96 | 1282.74 | |||||
| p-Value | 0.000 | 0.000 | 0.000 | |||||
| R 2 | 0.2621 | 0.0024 | 0.0194 | 0.0940 |
Definition of variables_
| Variable | Definition |
|---|---|
| Dependent (explained) variable | |
| DPO | The average DPO of a firm |
| DPO > 30 days | DPO longer than 30 days (subsample that contains only observations with DPO longer than 30 days) |
| ETR1 | Effective tax rate = (income tax – deferred tax)/gross profit |
| ETR2 | Effective tax rate = (income tax – deferred tax)/(gross profit + depreciation & amortisation) |
| ETR3 | Effective tax rate = income tax/gross profit |
| ETR4 | Effective tax rate = (income tax – deferred tax)/(gross profit + depreciation & amortisation), only for data retrieved from the Bisnode database |
| where: deferred tax = ((deferred tax liabilities in t – deferred tax liabilities in a t − 1) – (assets for deferred income tax in t – assets for deferred income tax in a t − 1)) | |
| Test variable | |
| Years_2013_2015 | Dummy variable equals 1 in 2013, 2014 and 2015 year, and 0 otherwise |
| Control variables | |
| SIZE | Firm size measured as ln(total assets) |
| LEV | Leverage = long-term debt/total assets |
| CAPINT | The capital intensity measured as tangible assets/total assets |
| NWC_TA | (current assets – current liabilities)/total assets |
| dummy_negative_NWC | Dummy variable equals 1 when NWC_TA is negative, and 0 otherwise |
| ROA | Return on assets ROA = gross profit/ total assets |
| For DID analysis | |
| firm_DPO less than 30 days in 2012 | Control dummy variable equals one if a DPO in 2012 was lower than 30 days and 0 otherwise |
| firm_DPO between 90 and 150 days in 2012 | Dummy variable equals one if a DPO in 2012 was higher than 90 days and lower than 150 days, and 0 otherwise |
Public policy change in 2013–2015 impact on ETR – DiD model_
| RE | RE | RE | FE | |||||
|---|---|---|---|---|---|---|---|---|
| ETR1 | ETR2 | ETR3 | ETR4 | |||||
| Coef. | Coef. | Coef. | Coef. | |||||
| (Std. Err.) | (Std. Err.) | (Std. Err.) | (Std. Err.) | |||||
| DID | 0.0102 | *** | 0.0083 | *** | 0.0098 | *** | 0.0111 | *** |
| (0.0019) | (0.0013) | (0.0018) | (0.0057) | |||||
| Years_2013_2015 | 0.0062 | *** | 0.0034 | *** | 0.0075 | *** | 0.0115 | *** |
| (0.0006) | (0.0004) | (0.0006) | (0.0015) | |||||
| Firm_DPO between 90 | 0.0174 | *** | 0.0140 | *** | 0.0176 | *** | ||
| and 150 days in 2012 | (0.0025) | (0.0019) | (0.0024) | |||||
| _cons | 0.1521 | *** | 0.1115 | *** | 0.1570 | *** | 0.1386 | *** |
| (0.0008) | (0.0002) | (0.0003) | (0.0005) | |||||
| Number of observations | 176,876 | 176,876 | 176,876 | 28,091 | ||||
| Number of groups | 27,521 | 27,521 | 27,521 | 8,380 | ||||
| Breuch–Pagan test | 110,000 | 150,000 | 120,000 | 3,393.36 | ||||
| 0.000 | 0.000 | 0.000 | 0.000 | |||||
| Hausmann test | 1.96 | 7.04 | 0.88 | 24.76 | ||||
| 0.3748 | 0.0296 | 0.6453 | 0.0000 | |||||
| R 2 | 0.0033 | 0.0036 | 0.0033 | 0.0030 | ||||