RPPH Blog Books / Libros
Short-term Finance and Trade Credit
PDF

Keywords

family difficulties
obsessive-compulsive personality disorder
women with symptoms obsessive – compulsive personality disorder

How to Cite

Reza Pourali, M., Samadi Largani, M., Hasanpour, H., & Ebrahimi, M. (2018). Short-term Finance and Trade Credit. Revista Publicando, 5(15(2), 1674-1687. https://revistapublicando.org/revista/index.php/crv/article/view/1568

Abstract

Trade credit plays a main role in the commercial activities of every company and trade credit in the company shows the amount of trust of suppliers and creditors to the company. Companies with the good trade credit receive their required goods and service from suppliers without payment of cash and banks and other creditors proceed to confer the facilities by consideration of trade credit of the company. Therefore, one can consider the trade credit as a short-term investment instrument. This research intends to examine the relationship between short-term finance and trade credits in the companies agreed in stock exchange of Tehran during 2012-2016. Hence, one has been selected a sample of 90 companies by the method of systematic elimination. Result of this research implies significant and reverse relationship between short-term finance and trade credit. This result shows that well-off companies with a high credit can carry their purchases as credit and have lesser requirement to the finance out of company.

PDF

References

- Coulibaly, B., Sapriza, H., & Zlate, A. (2013). Financial frictions, trade credit, and the 2008–09 global financial crisis. International Review of Economics and Finance,26(April), 25–38.

- Dittmar, A. Duchin, R (2013). Looking in the Rear View Mirror: The Effect of Managers”™ Professional Experience on Corporate Cash Holdings. ". Journal of Finance, 50, 1-51.

- Fadaee Vahed, Meisam; Mayeli, Mohammadreza (2014), “Prioritizing the effective factors on the finance in Iran using the method of hierarchy analysis”, quarterly journal of economic-financial policies, ”…

- Fakhari, Hossein; Rasooli, Shadi (2013), “Review effect of conservatism and quality of accruals on the investment performance” experimental- accounting researches, No. 8, Pages 81-100.

- Foroghi, Dariush; Farazi, Saeed (2014). “Review the effect of cash flow volatility on the level of holing cash fee considering limitation of financefor accepted companies in Stock Exchange of Tehran”, scientific-research Quarterly journal of asset management and finance, 2nd year, 4th edition, No. (4), spring 2014, pages 21-36.

- Giannetti, M., Burkart, M., & Ellingsen, T. (2011). What you sell is what you lend? Explaining trade credit contracts. The Review of Financial Studies, 24(4), 1261–1298.

- Gerhard Kling, Salima Y .Paul, Eleimon Gonis (2014). “Cash holding, trade credit and access to short-term bank finance. www.ScienceDirect.com.

- Gertler. m and b. bernanke. (1995). Inside the Black Box: the Credit Channel of Monetary Policy Transmission. journal of Economic perspectives,9,27-48.

- Jiri .Chod, Evgeny .Lyandres S. Alex Yang (2016), “Trade Credit and Supplier Competition”. https://econ.ubbcluj.ro

- Karimzade, Mostafa; Norouzi, Mohammad; Nadem, Masoud (2013), “Review effect of financial resources and amount of focus of shareholders on the reaction of stock exchange of Tehran to reported profits of companies” monetary-financial economy quarterly (former Knowledge and Development), new series, 20th year, No. 5, Spring and Summer 2013. Pages 116-135.

- Meijun Qianab, Bernard Y. Yeung (2015). “Bank financing and corporate governance, http://www.sciencedirect.com,Volume 32, June 2015, Pages 258-270.

- Nobanee, H., Abdullatif, M., & AlHajjar, M. (2011). "Cash conversion cycle and firm”™s performance of Japanese firms". Asian Review of Accounting, 19, 147-156.

- Tsung Te Lin , Jian Hsin Chou (2015).“Trade credit and bank loan: Evidence from Chinese firms” International Review of Economics & Finance, Volume 36, March 2015, Pages 17-29

- Wenfeng Wua, Oliver M. Rui b, Chongfeng Wu (2011). The relationship between capital structure and product markets: evidence from New Zealand. Available at: http://ssrn.com.

- Whited,T.M,Wu,G,2006.“Financial constraint risk”. Rev. Financ.Stud. 19, 531–559.

- Zajernia, Ehsan; Khojehzadeh Dezfooli Mehdi; Fadaee Vahed, Meisam (2015), “Prioritizing effective factors on the selection of finance method in Iran using TOPSIS method in fuzzy environment based on the verbal variables”, Journal of Financial Engineering and Management of Securities, No. 27, Summer 2015.

- Zhang, J. (2011). The Relationship BetweenWorking Capital Management And The Corporate Cash Holdings, University of Eastern Finland, Faculty of Social Sciencesand Business Studies, Master”™s thesis: 67 p.Available at: http://epublications.uef.fi.

You are free to:

Share — copy and redistribute the material in any medium or format.
Adapt — remix, transform, and build upon the material.
The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.

NonCommercial — You may not use the material for commercial purposes.

ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.

No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Downloads

Download data is not yet available.