Research on Small and Medium Enterprises Trade Credit Financing Based on Evolutionary Game

2010 ◽  
Author(s):  
Lang Zhang ◽  
Haiqing Hu ◽  
Daohong Zhang ◽  
Liang Chen
Keyword(s):  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Evolutionary Game ◽  
Credit Financing ◽  
Medium Enterprises

scholarly journals Factors behind trade credit financing of SMEs in Croatia

2020 ◽  
Vol 8 (1) ◽  
pp. 59-76
Author(s):  
Sandra Pepur ◽  
Dujam Kovač ◽  
Marijana Ćurak
Keyword(s):  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Added Value ◽  
Knowledge Generation ◽  
External Financing ◽  
The European Union ◽  
East European ◽  
Funding Sources ◽  
Credit Financing ◽  
Medium Enterprises

Small and medium enterprises (SMEs) contribute to the national economy in terms of employment, added value, knowledge generation, and innovation. However, their potential and in the case of economic downturns even their survival is affected by the difficulties in their access to external financing under acceptable terms and adequate timing and amount. In the case of asymmetric information problems, which make SMEs more sensitive to financial market imperfections, trade credit can be a valuable source of financing. In the European Union, trade credit is among the most relevant external funding sources and it is among the most important alternatives to financial intermediaries’ financing. However, there are substantial differences between the countries with respect to availability and use of trade credit. Therefore, this research examines determining (company-specific and country-specific) factors behind the use of trade credit as a financing source in Croatia. The empirical analysis is based on the data for 1,225 SMEs operating in Croatia in the period from 2008 to 2017 and is done using the panel data methodology. The findings confirm that firms’ characteristics, as well as the characteristics of financial, macroeconomic and legal environment in which the firms operate, influence the use of trade credit in SMEs in Croatia. The paper contributes to relatively scarce empirical evidence on the determinants of trade credit use by SMEs in South-East European countries.

scholarly journals Can Trade Credit Maintain Sustainable R&D Investment of SMEs? — Evidence from China

2019 ◽  
Vol 11 (3) ◽  
pp. 843 ◽  
Author(s):  
Langzi Chen ◽  
Zhihong Chen ◽  
Jian Li
Keyword(s):  
Developing Countries ◽  
Panel Data ◽  
Propensity Score ◽  
Information Asymmetry ◽  
Financial Constraints ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Medium Enterprises ◽  
D Investment

Due to the long-term nature and information asymmetry, SMEs (Small and Medium Enterprises) experience serious financial constraints that affect their R&D investments. This article examines the effect of trade credit maintaining sustainable R&D investment of SMEs under financial constraints. Using the panel data of Chinese SMEs from 2002–2014, it was found that although the R&D investments of SMEs are restricted by financial constraints, trade credit can maintain the sustainability of enterprises’ R&D investment. Private enterprises are more reliant on trade credit, which can be intensified during periods of monetary tightening. Considering the counterfactual framework and the endogenous problems, the empirical results were also robust when using propensity score matching. To summarize, this article develops a new explanation for maintaining sustainable R&D investment of SMEs under financial constraints in developing countries.

scholarly journals Analysis of Managing Safety in Small Enterprises: Dual-Effects of Employee Prosocial Safety Behavior and Government Inspection

2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Qiwei Wang ◽  
Qiang Mei ◽  
Suxia Liu ◽  
Jingjing Zhang
Keyword(s):  
Occupational Health ◽  
Small And Medium Enterprises ◽  
Evolutionary Game ◽  
Health And Safety ◽  
Small Enterprises ◽  
Safety Behavior ◽  
Dynamic Simulations ◽  
External Resources ◽  
The Government ◽  
Medium Enterprises

This paper aims to promote a national and international occupational health and safety (OHS) intervention for small and medium enterprises (SMEs) within internal and external resources. Based on the characteristics of small SME management, the work environment and occupational health may be positively affected by the dual-effects of employees and government. Evolutionary game theory is utilized to identify relevant interactions among the government, small enterprises, and employees. Furthermore, dynamic simulations of the evolutionary game model are used to explore stability strategies and to identify modes of equilibrium.

scholarly journals Parametric Conditions of High Financial Risk in the SME Sector

Risks ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 84 ◽  
Author(s):  
Ślusarczyk ◽  
Grondys
Keyword(s):  
Low Income ◽  
Financial Risk ◽  
Small And Medium Enterprises ◽  
Small Enterprises ◽  
Continuous Variables ◽  
National Economic ◽  
Credit Financing ◽  
High Level ◽  
Medium Enterprises ◽  
The Impact

The sector of SME is the major force for the national economic and social development. Financial risk is one of the key threats to the activity of small and medium enterprises. The most common manifestation of the financial risk of SMEs is difficulty in financing the business and lack of funds for development. Banks are unwilling to grant loans to such companies. Moreover, it is the rising operating costs that cause shrinking profits, which may result in corporate debt, difficulty in debt repayment, and consequently, high financial risk of these entities. Numerous differences in conducting the activity of small and large enterprises intensify this risk and mean that the model of credit financing for companies is not adjusted to the capabilities and principles of the operation of small enterprises. Therefore, risk management is one of the most important internal processes in small and medium enterprises. The identification of factors that affect the level of financial risk in these entities is therefore crucial. The main objective of this research was to analyze the impact of selected parametric characteristics of the SME sector on the intensity of financial risk they take. This objective was accomplished on the basis of the survey with the participation of Polish SMEs. In order to test the adopted research assumptions, the linear regression model was used with four continuous variables for each type of the identified financial risk. Based on the final research results, the logit model was obtained for the risk of insufficient profits. It was indicated that both the internationalization of the company and the ability to manage risk are the only factors that affect a high level of risk of low income. The article ends with the discussion and the comparison with some previous research in this area.

scholarly journals Determinants of entrepreneurial small and medium enterprises performance with the interaction effect of commercial loans

2020 ◽  
Vol 14 (2) ◽  
pp. 161-173
Author(s):  
Muhammad Asif Khan ◽  
Asima Siddique ◽  
Zahid Sarwar ◽  
Le Thi Minh Huong ◽  
Qaiser Nadeem
Keyword(s):  
Interaction Effect ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Content Type ◽  
Correlation And Regression Analysis ◽  
Trade Credits ◽  
Commercial Loans ◽  
Medium Enterprises ◽  
First Time

Purpose The purpose of this study is to investigate the interaction effect of commercial loans in between trade Credit, retain earning, and entrepreneurial small and medium enterprises (SMEs) performance. Design/methodology/approach In this research, the cross-sectional research design was used, and data were collected from 362 SMEs located in Pakistan by using a questionnaire. Correlation and regression analysis was adopted to establish the interaction effect of commercial loans in between trade credits, retain earning and entrepreneurial SMEs performance. Findings The results demonstrated that commercial loans, trade credit and retain earning have a positive relationship with entrepreneurial SMEs performance. The findings also confirmed the interaction effect of commercial loans in between retain earnings, trade credit and entrepreneurial SMEs performance. Originality/value The study examined the association and interaction effect of commercial loans in between retain earnings, trade credit and SMEs performance in the emerging state (Pakistan). So, this is the first time to study the relationship between these variables, which highly contributes to entrepreneurial SMEs literature.

scholarly journals DUAL BANKING SYSTEM PASKA MERGER DI INDONESIA

2021 ◽  
Vol 6 (1) ◽  
pp. 77-90
Author(s):  
Arivatu Ni'mati Rahmatika ◽  
Nurvita Putri Romadhani
Keyword(s):  
Small And Medium Enterprises ◽  
Banking System ◽  
Third Party ◽  
Islamic Banks ◽  
The Public ◽  
Library Research ◽  
Before And After ◽  
Credit Financing ◽  
Conventional Banks ◽  
Medium Enterprises

This article explains that (1)  The Post-Merger Dual Banking System is banking that has been implemented in Indonesia. Management of assets together with third party funds with large incomes that have been obtained from conventional banks and Islamic banks, third party funds that run accordance with funding and lending. Conventional banks and Islamic banks provide credit financing to MSMEs (Micro, Small and Medium Enterprises) and differentiate in operations between conventional banks and Islamic banks, (2) this study aims to determine the concept of managing and distributing funds in the dual banking system in Indonesia before and after the merger, (3) the method used is a qualitative method in the form of a library (library research), (4) the results of the study that between Islamic and post-merger conventional banks continue to operate credit funds to the public.

scholarly journals Assessment of trade credit risk in business companies

2014 ◽  
pp. 133-148
Author(s):  
Jūratė Každailienė ◽  
Dalia Daujotaitė
Keyword(s):  
Credit Risk ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Business Development ◽  
Debt Ratio ◽  
Financial Indicators ◽  
Economic Sectors ◽  
Net Profit ◽  
Medium Enterprises ◽  
Key Indicators

The article‘s topic is relevant, because the importance of trade credit constantly increases. Trade credit can be one of the most important preconditions for the competitiveness of the enterprise and business development. There is a lack of scientific sources in the field of estimation of trade credit risk – there is no any particular, simple to use methodology to assess company trade credit risk. The aim of the article – to compose a methodology of assessment company trade credit risk for Lithuanian small and medium enterprises. In the article, following scientific sources approach, the advantages, risks and key financial and non-financial trade credit risk factors were identified. Based on the scientific sources and expert evaluation, the methodology of company trade credit risk assessment was created. The methodology is based on 10 key indicators identified by the experts. 12 financial ratios and non-financial indicators are being used – current and quick ratio, gross and net profit margin, Altman Z model, debt ratio, stock and debtors turnover, enterprise age, reputation, number and dynamics of employees. The indicators have been scored. The highest possible score is 100. The research approves that the methodology suits to be used in practice. It is simple, reliable, cheap, non-time consuming; it is easy to collect data, the data is being formalized and quantified. The disadvantages of methodology – the data is not always reliable and some ratios are of different importance in the different economic sectors. The methodology should be modified to adapt for the different sectors of business.

scholarly journals Determinants of small and medium enterprises with the interaction effect of managerial activities

2020 ◽  
Vol 9 (4) ◽  
pp. 153-160
Author(s):  
Muhammad Asif Khan ◽  
Marium Burki
Keyword(s):  
Interaction Effect ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Poor Performance ◽  
Developed Countries ◽  
Small And Medium Enterprise ◽  
Medium Enterprise ◽  
Commercial Loans ◽  
Performance Development ◽  
Medium Enterprises

The financial system and capital market in developed countries are more developed as compare to emerging countries. Firms like small and medium enterprise (SMEs) needs finance to operate their business and make a competitive position in the market. In an emerging country like Pakistan, SMEs face a lot of financial and non-financial obstacles that may relate to the poor performance of SMEs. This study investigates the relationship between commercial loans, retain earnings, trade credit, managerial activities, and SME's performance. This study also investigates the interaction effect of managerial activities between independent variables and dependent variables.  A survey was conducted in a small and medium enterprise of KPK Pakistan. Data were collected from 362 employees. SPSS (Statistical Package for the Social Sciences) software was employed for data analysis for descriptive and regression analysis. The finding confirmed that commercial loans, trade credit, retained earning have a positive and significant impact upon SME's performance. It is also found that managerial activities have played a mediating role and increased the performance of SMEs. Among variables under study, the more trade credit activities, the higher the performance of the SMEs is observed. Based on this study's results, Leaders, supervisors, and managers are those employees having a substantial role in the performance, development, failure, and success of an organization. Managerial activities are vital for a manager for the purpose to know what should be done in different circumstances and improve overall performance and accomplish organizational goals.

scholarly journals The Role of Trade Credit in Activities of Small and Medium-Sized Enterprises

2020 ◽  
Vol 12 (6) ◽  
pp. 126-135
Author(s):  
E.A. Panova ◽  
Keyword(s):  
Small Businesses ◽  
Price Competition ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Negative Relationship ◽  
Bank Lending ◽  
Cash Flows ◽  
Accounts Payable ◽  
Medium Enterprises ◽  
Return On Sales

Trade credit has a special meaning for small and medium-sized enterprises (SMEs). When they act as a supplier, it allows them to increase sales and cash flows, and helps establish and maintain permanent relationships with clients. Deferred payment provision is a tool for non-price competition, giving a client time to make sure of product quality. Trade credit as a financial source is an important alternative to bank lending. The article is devoted to studying the determinants of accounts payable in Russian industrial SMEs.It is based on the financial indicators calculated using the SMEs’ accounting statements for the period 2010–2018, published by Rosstat. The statistical data analysis has led to the conclusion that accounts payable are the main borrowed financial source for Russian industrial SMEs. The results of the regression analysis demonstrate a direct dependence of the accounts payable amount on sales growth and a reverse dependence of the former on the liquidity both in small and medium enterprises. Small businesses are also characterized by a negative relationship between return on sales and the accounts payable amount.

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