Is Trade Credit a Sustainable Resource for Medium-Sized Italian Green Companies?

Arcuri, Maria Cristina; Pisani, Raoul

doi:10.3390/su13052872

Cited by 9 publications

(11 citation statements)

References 100 publications

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“…In this context, a recent empirical analysis (Arcuri and Pisani 2021 ) of Italian Medium-sized Enterprises (MEs) examines the relationship between trade credit and green-oriented firms. A panel analysis is applied to 101,250 observations over the period 2010–2019.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Access to external credit during COVID-19: evidence from green SMEs in Italy

Arcuri

Pisani

2023

Rev Manag Sci

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This study explores the impact of being “green” as a response to variability in the business environment. We examine the financial resilience of green Small and Medium-sized Enterprises (SMEs) in Italy compared to non-green during the COVID-19 pandemic. We verify whether green SMEs are more able to attract external funding than non-green and whether green SMEs rely more heavily on trade credit than non-green ones. We carry out an analysis with 215,564 observations, of which 6844 refer to “green” firms, over the period 2017–2020 and we find that before and during the pandemic, Italian green SMEs do not attract more external funding than other SMEs, but they rely more on trade credit than non-green SMEs. Our results partially confirm the traditional substitution effect, and we suggest that the reasons for this relationship are also supplied in the literature which sees trade credit as a component of a long-term portfolio management strategy, i.e., as a tool for consolidating relationships with clients, for price discrimination and/or for increasing firm profitability in facing variable demand conditions. Our paper contributes to the literature in two ways. First, it investigates the relationship between the “green” characteristics of a firm and its level of economic and financial resilience during the pandemic. Second, it verifies whether, during a complex economic shock, green orientation increases or decreases the importance of trade credit relative to bank credit in financing the firm.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Access to external credit during COVID-19: evidence from green SMEs in Italy

Arcuri

Pisani

2023

Rev Manag Sci

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“…According to GMM approach, a concave connection exists between WCM practices and firm performance. Accounts payable turnover is the period required for suppliers to receive payment for the things acquired (Arcuri & Pisani, 2021). To achieve these goals, it is essential that each component be well managed to optimize working capital.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Iqbal, Hussain, Khalique, and Tabassum (2020), as well as Siraj, Mubeen, and Sarwat (2019), examined the significant effect of WC on company performance. WCM has been utilised before in studies such as the effect of WCM on the financial performance (Ilham, 2020), the impact of WCM on profitability and sustainable development (Kumar, Vishal, Jindal, & Sonia, 2019), and the impact of WCM on financial and values (Arcuri & Pisani, 2021). To the best of researcher's knowledge, relatively few studies exist that examine influence of working capital management and EVA.…”

Section: Introductionmentioning

confidence: 99%

Impact of Working Capital Management on Firm’s Performance: Evidence From Automobile Sector

Thongnim

Sohail²,

Abbas

2022

GUJR

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This research aims to analyse the factors that influence the profitability of enterprises in automobile sector of developing economies. This research aims to analyse impact of working capital management on the profitability of the private and publicly traded automobile firms. This research employs secondary data for data collecting, which comprises10-year financial data from 2011 to 2020. The study used descriptive statistics, OLS, random effect, and fixed effect models to define the sample and evaluate the influence of working capital on utomobile industry. Findings suggested that working capital management proxies have a major impact on the performance of the company. The findings suggested that sales growth had a little impact on a company's performance. Findings suggested that size of a company had no influence. In conclusion, it is stated that good management of the working capital results in the improved financial performance. Study would benefit company investors and managers in the non-financial sector of developing economies. This offers investors with a framework for making investment selections.

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“…Accounts receivable turnover refers to a managed time period from the goods being sold to the reception of the payment. Lastly, accounts payable turnover is the period from the goods being purchased and payment to suppliers (Arcuri and Pisani 2021). In line with these descriptions, each component should be appropriately managed to optimize the working capital.…”

Section: Introductionmentioning

confidence: 99%

Does Working Capital Management Influence Operating and Market Risk of Firms?

Akbar

Nazir

et al. 2021

Risks

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Extant empirical studies have predominantly focused on the nexus between working capital management (WCM) and corporate profitability. While there is a dearth of literature on the nexus between WCM and a firm’s risk, the present study examines Pakistani-listed firms coming from 12 diverse industrial segments to observe this association for a time span of ten years (2005–2014). To ensure robustness, we employed a System Generalized Method of Moments (SGMM) regression estimation to investigate the influence of WCM on the operational and market risk for firms. Empirical testing revealed that higher working capital levels were associated with lower volatility in firms’ stock price, which shows that shareholders prefer a conservative working capital policy. Moreover, firms with better cash positions were subject to lesser stock market volatility. In contrast, excess working capital and a larger net trade cycle were associated with increased volatility in the operating income. Besides, firms with lower working capital levels relative to their respective industry experienced fewer fluctuations in their operating profits. Our findings assert that short-term financial management has important ramifications for firms’ operating and market fundamentals. Practical implications are discussed for corporate managers and relevant stakeholders.

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Is Trade Credit a Sustainable Resource for Medium-Sized Italian Green Companies?

Cited by 9 publications

References 100 publications

Access to external credit during COVID-19: evidence from green SMEs in Italy

Access to external credit during COVID-19: evidence from green SMEs in Italy

Impact of Working Capital Management on Firm’s Performance: Evidence From Automobile Sector

Does Working Capital Management Influence Operating and Market Risk of Firms?

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