Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2018.1504690
Analysis of factors influencing managerial decision to use trade credit in construction sector
Nicoleta Bărbuţă-Mişu
orcid.org/0000-0003-4479-5338
; Department of Business Administration, “Dunarea de Jos” University of Galat¸i, Romania
Sažetak
Trade credit is one of the most flexible short-term funding sources for companies and covers a significant part of the financial
resources used by firms. Trade credit received makes available
financial resources to achieve other economic objectives of the
company. The managerial decision to increase or reduce trade
credit offered and received or the collection and credit period is
influenced by the company’s financial performance. The aim of
this paper is to analyse the correlation between trade credit
receivable/payable and collection/credit period and six measures
of financial performance and find if these variables have any
impact on the decision to use trade credit. To achieve this aim,
we used a sample of 958 European firms from the construction
sector which were analysed using correlation and OLS regression,
separately on developed and emerging countries. The main
results found are: trade credit offered/received is directly correlated with return on equity and firm size, and inversely correlated
with return on assets; trade credit offered is directly correlated
with current liquidity and long-term banking loans; trade credit
received is directly correlated with liquidity ratio and inversely
correlated with current liquidity and long-term banking loans; and
trade credit offered is inversely correlated with liquidity ratio.
Ključne riječi
Accounts receivable; accounts payable; trade credit period; firm profitability; banking loans; firm size
Hrčak ID:
217019
URI
Datum izdavanja:
3.12.2018.
Posjeta: 1.464 *