Do firms use the trade credit channel to manage growth?

Ferrando, Annalisa; Mulier, Klaas

doi:10.1016/j.jbankfin.2013.02.013

Cited by 194 publications

(204 citation statements)

References 41 publications

(36 reference statements)

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“…Findings also show that firms follow maturity matching principle and use trade payables (current liability) to finance their trade receivables. Results are also found consistent with the findings of previous studies conducted by Ferrando andMulier, (2013), Al-Dohaiman (2013) and Murfin and Njoroge (2015). Thus findings of this study are consistent with liquidity and financing theories of trade credit.…”

Section: Results Of Regression Analysis and Discussionsupporting

confidence: 92%

Determinants of Trade Credit Extended by Manufacturing Firms Listed in Pakistan

Ahmad¹,

Afza²,

Nafees³

2017

BER

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Section: Results Of Regression Analysis and Discussionsupporting

confidence: 92%

Determinants of Trade Credit Extended by Manufacturing Firms Listed in Pakistan

Ahmad¹,

Afza²,

Nafees³

2017

BER

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“…The authors observe that investments in fixed assets and net working capital compete with each other for finance, which makes long-term bank credit and trade credit possible substitutes. Ferrando and Mulier (2013) find that trade credit may also be an important source of growth.…”

Section: Theoretical Frameworkmentioning

confidence: 98%

Trade Credit or Bank Credit? – Lessons Learned from Hungarian Firms between 2010 and 2015

Havran¹,

Kerényi²,

Víg³

2017

Hitelintézeti szemle

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“…The use of trade credit is composed of two parts: receiving it as accounts payable and supplying it as accounts receivable (Ferrando & Mulier, 2013). In some European countries like Spain and France, accounts receivable or accounts payable occupies a considerable proportion of assets (García-Teruel & Martínez-Solano, 2010).…”

Section: Hypothesis 3: Profitability Is a Positive Indicator To Successmentioning

confidence: 99%

The predictability of financial, accounting‐based, and industrial factors on the success of newly incorporated Spanish firms

Tong

Solé

2018

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Purpose: The purpose of this paper is to identify the impacts and predictability of financial, accounting-based, and industrial factors (as well as corporate venturing) on survival-based success of newly incorporated firms in Spain.Design/methodology: Logistic regression is used for comparing the differences of factors in the prediction of future success after different time periods since the studying years (age 1, age 2, and age 3 respectively) in manufacturing and distributive sectors.Findings: Differences in predictability are observed between manufacturing and distributive sectors: it is obvious in distributive sector (rather than manufacturing sector) that liquidity, bank credit, trade credit, and concentration are positively related to success while entry rate is negatively related to success. In spite of that, some factors still show strong predictability in both two sectors. Firm size and profitability are the strongest positive factors, which are followed by corporate venturing and the growth of industrial operating revenues with positive and generally negative relationships to success separately. Besides, for some factors and variables frequently showing statistical significance, their impacts in the same age tend to be relatively stable. Practical implications:The findings of this paper can help to identify the predictability of different factors on the success of newly incorporated firms and catch the differences between manufacturing and distributive sectors.Originality/value: This paper enriches the empirical study of new firm success in Spain in depression and stagnant environment (because the observed years here are from 2009 to 2014); besides, the findings also contribute to the specific prediction study of manufacturing and distributive sectors.

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Do firms use the trade credit channel to manage growth?

Cited by 194 publications

References 41 publications

Determinants of Trade Credit Extended by Manufacturing Firms Listed in Pakistan

Determinants of Trade Credit Extended by Manufacturing Firms Listed in Pakistan

Trade Credit or Bank Credit? – Lessons Learned from Hungarian Firms between 2010 and 2015

The predictability of financial, accounting‐based, and industrial factors on the success of newly incorporated Spanish firms

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