Quarterly Publication

Document Type : Original Article

Authors

1 Assistant Professor, Accounting Department,Tehran Faculty of Petroleum, Petroleum University of Technology, Iran

2 MSc Student of Oil and Gas Financing and Investment, Tehran Faculty of Petroleum, Petroleum University of Technology, Iran

Abstract

Designation of incentive mechanisms to increase the speed of liquidity of receivables is one of the leading options for streamlining domestic resources in the field of oil and gas industry financing. The main objective of this research is to investigate and optimize the liquidity methods of gas sales receivables in line with the requirements of the National Iranian Gas Company. After a deep review of literature, we extract methods and legal platforms for receivables liquidation methods. The current research is an applied and descriptive-analytical research in terms of its purpose and methodology. The data analysis is a combination of quantitative and qualitative methods and required data for this study including the amounts and duration of deferred receivables by different categories of subscribers of the NIGC during 2012 to 2018. Subsequently, in order to visualize the data in the form of heat tables, Microsoft's Business Intelligence software is applied to understand the process of creating and settlement of receivables, cluster receivables by the different categories of subscription and, finally, reveal the subscriber behavior patterns in disbursements. Finally, using theoretical foundations and experts' opinions, a set of optimal methods has been recommended to accelerate the process of collecting current receivables, depending on the behavior of different groups of subscribers. Based on the results of the interviews, NIGC should apply IT-based methods, incentive policies and deterrent (punitive) strategies to accelerate the liquidation of receivables in household and commercial subscription.

Keywords

Main Subjects

Bakhshi, L. & Darzi, A. (2014). Factoring financing, Journal of Commercial research, 12 (66), 14-33.

Bakker, M. H. R., Klapper, L., Udell, G. F. (2004). Financing small and medium-size enterprises with factoring: Global Growth in Factoring and Its Potential in Eastern Europe. The World Bank.

Berger, A. N. and R. DeYoung (1997). Problem Loans and CostEfficiency in Commercial Banks. Journal of Banking and Finance, 21(25), 849-870.

Brealey, Richard A., Ian A. Cooper, and Michel A. Habib. Using project finance to fund infrastructure investments. Journal of Applied Corporate Finance 9.3 (1996): 25-39.

Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2012). Principles of corporate finance. Tata McGraw-Hill Education.

Castro Jr, Daniel I. (2013). Asset‐Backed Securities. The Capital Markets: Evolution of the Financial Ecosystem, 312-328.

Dianati Dailami, Z. & Barzegar, M. (2014), Risk Management Model for Accounts Receivable, Journal of Accounting and Auditing Management, 3(11), 23-39.

Ernest and Young. (2009). Factoring and forfeiting business and regulatory perspective. Mc Grawhill Publication.

Hartman, TH., Stoter, A. (2012). Accounts Receivable Management and the Factoring Option: Evidence from a Bank – Based Economy. Page 2.

Jahankhani, A. & Kanani, M. (2006). Presentation of a model for determining capital expenditures in companies listed in Tehran Stock Exchange using accounting information, Shahed University Academic Journal, 13 (17), 57-68.

Jaiswal, Seema. (2010). Relationship between Asset and Liability of Commercial Banks in India, 1997-2008, International Research Journal of Finance and Economics, P 43-58.

Klapper, L. (2005). The role of factoring for financing small and medium enterprises. The World Bank.

Ljubic, D., Mance, D. (2009). A Model of Accounts Receivable Risk Management for Bosnia and Herzegovina’s Business Environment. Southeast Europe Enterprise Development

Michalski G.(2012). Accounts Receivable levels as Part Liquidity Management Strategy in Polish Nonprofit Organizations, Economics and Management, vol. 17, no.3, pp.906-913.

Michalski, G. (2012). Accounts receivable management in nonprofit organizations. Zeszyty Teoretyczne Rachunkowości 68.124, 83-96.

Nabavi, H. (2014). Reviewing the receivables from subscribers (domestic, industrial, commercial), case study; Ilam Province Gas Company, International Conference on Accounting and Management.

Nafchi, M. (2003), Problems of collecting energy receivables from subscribers of Isfahan Power Distribution Company, Case Study, 9th Conference of Power Distribution Networks.

Nouri, A. (2002). contracts and contractual obligations in general and non-contractual requirements of the Civil Code of France, Tehran, Ganje Danesh.

Pedersen, Lasse H. (2008).Liquidity risk and the current crisis. Part II June (2008): 147.

Philippe Jorion, Value at Risk: The New Benchmark for Managing Financial Risk, Second Edition, McGraw Hill..

Pike, R, & Nam S. (2001). Credit management: an examination of policy choices, practices and late payment in UK companies. Journal of Business Finance & Accounting 28.7‐81, 1013-1042.

Rahmani, A. & Ghashghai,F. (2012). The role of factoring in financing small and medium enterprises. The fifth financing system conference in Iran, Tehran, Financial and Investment Group of Sharif University of Technology Studies.

Ross, S. A., Westerfield, R. W., & Jaffe, J. F. (2002). Corporate Finance. Mc Grawhill Publication.

Schwarcz, Steven L., and Adam D. (2002). Ford. Structured finance: A guide to the principles of asset securitization. Practicing Law Institute.

Shamsoddini, M., Abdi Kasalari, A. & Mohammadkhani, A. (2012). Effect of Paying Accounts Subscribers on Qom Gas Company, First International Conference on Management, Innovation and National Production, Qom, Payame Noor University of Khuzestan Province.

Soroush, m. (2003). Review of the Recovery of Electricity Consumption Receivables and Its Solutions. The 9th Conference of Power Distribution Networks.

Storkey, J. (2003).The combination of a simulation and an empirical model of crop/weed competition to estimate yield loss from Alopecurus myosuroides in winter wheat. Field crops research 84.3, 291-301.

Summers, B., Nicholas W. (2000). Trade credit management and the decision to use factoring: an empirical study. Journal of Business Finance & Accounting 27.1‐2, 37-68.

Taheri, S. (2010). Reviewing the methods for receivables collections in Kerman Gas Company, Master's Degree in Kerman University.

Westlake, M. (1975). Credit Factoring and Bill Discounting. Pitman Publishing Ltd.

 

Wood worth, G. Walte. (1968). Bank Liquidity Management: Theories and techniques. Bankers Magazine, CL 4, P 66-78.

-                 Bakhshi, L. & Darzi, A. (2014). Factoring financing, Journal of Commercial research, 12 (66), 14-33.

-                 Bakker, M. H. R., Klapper, L., Udell, G. F. (2004). Financing small and medium-size enterprises with factoring: Global Growth in Factoring and Its Potential in Eastern Europe. The World Bank.

-                 Berger, A. N. and R. DeYoung (1997). Problem Loans and CostEfficiency in Commercial Banks. Journal of Banking and Finance, 21(25), 849-870.

-                 Brealey, Richard A., Ian A. Cooper, and Michel A. Habib. Using project finance to fund infrastructure investments. Journal of Applied Corporate Finance 9.3 (1996): 25-39.

-                 Brealey, R. A., Myers, S. C., Allen, F., & Mohanty, P. (2012). Principles of corporate finance. Tata McGraw-Hill Education.

-                 Castro Jr, Daniel I. (2013). Asset‐Backed Securities. The Capital Markets: Evolution of the Financial Ecosystem, 312-328.

-                 Dianati Dailami, Z. & Barzegar, M. (2014), Risk Management Model for Accounts Receivable, Journal of Accounting and Auditing Management, 3(11), 23-39.

-                 Ernest and Young. (2009). Factoring and forfeiting business and regulatory perspective. Mc Grawhill Publication.

-                 Hartman, TH., Stoter, A. (2012). Accounts Receivable Management and the Factoring Option: Evidence from a Bank – Based Economy. Page 2.

-                 Jahankhani, A. & Kanani, M. (2006). Presentation of a model for determining capital expenditures in companies listed in Tehran Stock Exchange using accounting information, Shahed University Academic Journal, 13 (17), 57-68.

-                 Jaiswal, Seema. (2010). Relationship between Asset and Liability of Commercial Banks in India, 1997-2008, International Research Journal of Finance and Economics, P 43-58.

-                 Klapper, L. (2005). The role of factoring for financing small and medium enterprises. The World Bank.

-                 Ljubic, D., Mance, D. (2009). A Model of Accounts Receivable Risk Management for Bosnia and Herzegovina’s Business Environment. Southeast Europe Enterprise Development

-                 Michalski G.(2012). Accounts Receivable levels as Part Liquidity Management Strategy in Polish Nonprofit Organizations, Economics and Management, vol. 17, no.3, pp.906-913.

-                 Michalski, G. (2012). Accounts receivable management in nonprofit organizations. Zeszyty Teoretyczne Rachunkowości 68.124, 83-96.

-                 Nabavi, H. (2014). Reviewing the receivables from subscribers (domestic, industrial, commercial), case study; Ilam Province Gas Company, International Conference on Accounting and Management.

-                 Nafchi, M. (2003), Problems of collecting energy receivables from subscribers of Isfahan Power Distribution Company, Case Study, 9th Conference of Power Distribution Networks.

-                 Nouri, A. (2002). contracts and contractual obligations in general and non-contractual requirements of the Civil Code of France, Tehran, Ganje Danesh.

-                 Pedersen, Lasse H. (2008).Liquidity risk and the current crisis. Part II June (2008): 147.

-                 Philippe Jorion, Value at Risk: The New Benchmark for Managing Financial Risk, Second Edition, McGraw Hill..

-                 Pike, R, & Nam S. (2001). Credit management: an examination of policy choices, practices and late payment in UK companies. Journal of Business Finance & Accounting 28.7‐81, 1013-1042.

-                 Rahmani, A. & Ghashghai,F. (2012). The role of factoring in financing small and medium enterprises. The fifth financing system conference in Iran, Tehran, Financial and Investment Group of Sharif University of Technology Studies.

-                 Ross, S. A., Westerfield, R. W., & Jaffe, J. F. (2002). Corporate Finance. Mc Grawhill Publication.

-                 Schwarcz, Steven L., and Adam D. (2002). Ford. Structured finance: A guide to the principles of asset securitization. Practicing Law Institute.

-                 Shamsoddini, M., Abdi Kasalari, A. & Mohammadkhani, A. (2012). Effect of Paying Accounts Subscribers on Qom Gas Company, First International Conference on Management, Innovation and National Production, Qom, Payame Noor University of Khuzestan Province.

-                 Soroush, m. (2003). Review of the Recovery of Electricity Consumption Receivables and Its Solutions. The 9th Conference of Power Distribution Networks.

-                 Storkey, J. (2003).The combination of a simulation and an empirical model of crop/weed competition to estimate yield loss from Alopecurus myosuroides in winter wheat. Field crops research 84.3, 291-301.

-                 Summers, B., Nicholas W. (2000). Trade credit management and the decision to use factoring: an empirical study. Journal of Business Finance & Accounting 27.1‐2, 37-68.

-                 Taheri, S. (2010). Reviewing the methods for receivables collections in Kerman Gas Company, Master's Degree in Kerman University.

-                 Westlake, M. (1975). Credit Factoring and Bill Discounting. Pitman Publishing Ltd.

-                 Wood worth, G. Walte. (1968). Bank Liquidity Management: Theories and techniques. Bankers Magazine, CL 4, P 66-78.