Customer risk and corporate financial policy: Evidence from receivables securitization

Firm life cycle and trade credit

“…5 In addition, market power (and RSI)-based arguments also suggest that suppliers may provide more trade credit to introduction and decline firms in order to develop an enduring product market relationship, to capture future business, and to maintain and benefit from an RSI. Liu et al (2018) also point out a link between the financing of supplier firms and the financial health of their customers because the latter limits the ability of these firms to securitize customer receivables. Recent supply-chain studies show analytically and empirically that in a supply chain where the retailer is capital constrained, trade credit can benefit both players (see, e.g., Chen, 2015;Li et al, 2018).…”

Commercial Creditas An Element Of Corporate Finance

“…And as we wound up, we found out that a commercial loan is an integral part of the corporation's finances. A study was conducted that established a direct relationship between the stability of the financial position of a corporation and the commercial credit of suppliers (Liu, Mao, & Nini, 2018). Another study concluded that commercial credit plays a significant role in corporate finance in developing countries (Harris, Roark, & Li, 2019).…”

Formation of the credit rating of buyers for the preventive control of accounts receivable

“…The present context of the state economy downfall, escalation of tension between contractual partners with regard to timely payments settlement, financial resources costeffectiveness, threat of asset low liquidity and debt load enlargement within the frames of business units as well as slowdown in the rates of economic growth or reputation damage call forth the necessity of creating the efficient control system in an enterprise management. Internal control permeates all areas of activity, making possible to expose violations of the established norms and rules for business transactions implementation and documentation as well as streamlining the actions of the officials involved in the processes of supply, production and marketing, optimizing funds movement with simultaneous prevention of their outflow from the economic entity [1,2].…”

“…The internal control system effectiveness depends not on the number of violations exposed but mostly on the number of violations prevented [13,14]. That is, among various types of internal control the preference should be given to the preventive measures, on any hand, within the framework of managing accounts receivable [15,16].…”