Artisans, Retailers, and Credit Transactions in the Roman World

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Cameron Hawkins
Keyword(s):  
Cash Flow ◽  
Trade Credit ◽  
Credit Market ◽  
Access To Credit ◽  
Goods And Services ◽  
Flow Problems ◽  
Roman World ◽  
Tangible Assets

AbstractIn this article, I argue not just that many artisans and retailers in the Roman world were able to finance their businesses only by relying heavily on access to credit, but also that they depended primarily upon trade credit—that is, upon interpersonal credit provided to them by suppliers and subcontractors to whom they were linked by relationships of trust, and from whom they purchased goods and services on account. This was true primarily because most artisans and retailers catered to clients who often lacked ready money when they made purchases, and thus found it necessary to offer shop credit instead of concluding sales in exchange for immediate cash payments. This strategy in turn exacerbated their own cash flow problems and compelled them to incur liabilities that could easily match or exceed the value of their tangible assets. In these circumstances, many found that trade credit was both more accessible than loans procured on the credit market (for which they often lacked the necessary collateral), and also less risky, since suppliers of trade credit could be more forgiving of missed payments than conventional lenders (who were likely to take actions that could result either in seizure of an entrepreneur’s collateral or in his or her insolvency).

Exploring the decline in trade credit investment

2017 ◽  
Vol 43 (12) ◽  
pp. 1375-1391 ◽  
Author(s):  
Chris Harris ◽  
Scott Roark
Keyword(s):  
Cash Flow ◽  
Trade Credit ◽  
Negative Relationship ◽  
Publicly Traded ◽  
Content Type ◽  
Access To Credit ◽  
Increased Risk ◽  
Cash Flow Volatility ◽  
Publicly Traded Firms ◽  
The Relationship

Purpose The purpose of this paper is to identify three factors leading to the observed decline in trade credit offered from publicly traded firms. Design/methodology/approach The study conducts firm fixed effect regressions testing the relationship between cash flow volatility and firm investment in trade credit. The relationship is further examined with all firms separated into two groups, based on SIC codes, designating if they are in industries that traditionally offer higher amounts of trade credit. Findings The proportion of US firms that has traditionally extended the most trade credit has been decreasing over time, contributing to part of the decline in trade credit offered. Increases in cash flow volatility have also contributed to decreasing investment in trade credit. The negative relationship with cash flow volatility is greatest amongst firms that traditionally place the highest value on trade credit. Firms with access to credit, proxied by investment grade debt ratings, do not experience the same decline in trade credit offered. Practical implications Firms that value the ability to extend trade credit may maintain their level of investment in trade credit, even with increased risk of cash flow volatility, by maintaining a comparative advantage in access to credit. Originality/value This study extends prior findings by providing three previously unexplored explanations for the decline in offered trade credit seen in the USA. The changing make-up of publicly traded firms, a market-wide increase in cash flow volatility, and access to credit all play an important role in observed declines of trade credit investment.

THEORETICAL AND METHODOLOGICAL PRINCIPLES OF CASH FLOWS OF ENTERPRISES

2017 ◽  
Author(s):  
Roman Greshko ◽  
◽  
Violetta Kharabara ◽  
Olena Tretyakova ◽  
◽  
...  
Keyword(s):  
Cash Flow ◽  
Cash Flows ◽  
Management Policy ◽  
Flow Management ◽  
Financial Investment ◽  
Cash Flow Management ◽  
Goods And Services ◽  
Methodological Approaches ◽  
Conducting Research ◽  
Methodological Principles

Efficient management of cash flows of the enterprise provides predict activities in a modern organization. The issue of ensuring balancing and synchronization of outflow and inflow of cash and their equivalents is important for any enterprise. The urgency of the study greatly increases in conditions of complex economic processes that create significant risks and difficulties in conducting a balanced cash flow management policy. The purpose of this study is to substantiate the theoretical and methodological principles of management of cash flows of the enterprise, which provides for the determination of the content of the concept of cash flows, their types and classification, as well as the formulation of methodological approaches to the management of cash flows of the enterprise. The theoretical basis for conducting research is the work of domestic and foreign scientists who studied the issue of managing the cash flows of the enterprise. In the course of the study of theoretical and methodological bases of management of cash flows of the enterprise, economic content and value of cash flows of the enterprise are determined. In the course of studying the approaches of various scholars, the proper definition of cash flows, which characterizes them as the receipt and payment of highly liquid assets of the enterprise within the framework of financial, investment and current activities of the enterprise, is formulated in order to ensure uninterrupted production, sales and other work, which leads to a change in the amount on the current account in the bank and the balance in the box office. Also in the article, methodological approaches to managing cash flows of enterprises that provide for quality accounting and collection of information on funds, analysis of preliminary management experience, substantiation of optimization measures, drawing up a payment calendar for the next year, control over the implementation of a substantiated cash flow management policy. Measures are determined to balance cash flow due to leasing, use of leasing, buying, emission or sale of corporate bonds or other securities, changing the policy of selling goods and services.

Dead Hand Proxy Puts and Hedge Fund Activism

2018 ◽  
Vol 54 (4) ◽  
pp. 1615-1642
Author(s):  
Sean J. Griffith ◽  
Natalia Reisel
Keyword(s):  
Cash Flow ◽  
Hedge Fund ◽  
Cost Benefit ◽  
Free Cash Flow ◽  
Cross Sectional ◽  
Flow Problems ◽  
Banking Relationships ◽  
Hedge Fund Activism ◽  
The Cost ◽  
Sectional Analysis

We investigate the Dead Hand Proxy Put, a contractual innovation in corporate debt agreements that may impact hedge fund activism. We find the provision principally in loans, not bonds, and provide evidence linking the adoption of the provision to hedge fund activism. Furthermore, controlling for endogeneity, we find that the provision significantly reduces the cost of loans. Bondholder wealth also increases. Moreover, cross-sectional analysis of share returns reveals that the provision is positively associated with repeat banking relationships and negatively associated with free cash flow problems, suggesting a cost-benefit tradeoff.

Access to Formal Credit in the Indian Agriculture: Does Caste matter?

2018 ◽  
Vol 4 (2) ◽  
pp. 169-195
Author(s):  
Karthick V. ◽  
Madheswaran S.
Keyword(s):  
Large Scale ◽  
Descriptive Analysis ◽  
Social Groups ◽  
Critical Factor ◽  
Credit Market ◽  
Access To Resources ◽  
Access To Credit ◽  
Indian Agriculture ◽  
Discrimination Coefficient ◽  
Lower Castes

Access to resources and opportunities can be a critical factor in improving outcomes for disadvantaged groups. Improving access to financial resources, in particular, is widely acknowledged to facilitate upward economic and social mobility. Conversely, lack of access to resources for certain groups based on caste, class, gender and ethno-social identities can perpetuate inequalities. In this context, this paper attempts to analyse the access to credit by social groups and decomposes the gross credit differentials using Oaxaca-blinder decomposition method using unit-level data from the All India Debt and Investment Survey, NSSO, 2013. The descriptive analysis clearly shows that there is a significant credit differential between forward caste (FC) and other social groups (SC, ST and OBC). Access to credit varies across social groups based on many factors. The decomposition result indicates that the discrimination coefficient against SC is 49per cent which explains that SCs are being discriminated by 49 per cent compared to FCs in the formal credit market. In case of ST, the discrimination coefficient against is 61per cent and for OBC it is 48per cent. Interestingly, the endowment difference is less among ST (38per cent) compared to SC and OBC (around 51 per cent). Also, the FC treatment advantage (benefit of being a FC in the credit market) is 5.7 per cent whereas the cost of being an SC in the credit market (treatment disadvantage) is 35.1 per cent. As expected, the disadvantage component for ST and OBC is 33.1 per cent and 17.8 per cent respectively. Thus, we see that although programmes, schemes and policies to promote the economic empowerment of lower castes through finance have been implemented on a large scale since the 1990s, they have not been very effective.

scholarly journals MOTIVASI KEWIRAUSAHAAN PETANI PADI ORGANIK DI KABUPATEN BANTUL

2017 ◽  
Vol 12 (1) ◽  
pp. 19
Author(s):  
Nur Ratmawati ◽  
Triyono Triyono ◽  
Sriyadi Sriyadi
Keyword(s):  
Credit Market ◽  
Business Environment ◽  
Survey Method ◽  
Individual Factors ◽  
Access To Credit ◽  
Rice Farmers ◽  
Organic Rice ◽  
Interview Survey ◽  
The Government ◽  
The Individual

The  improvement  of  farmers’  welfare,  especially  rice  farmers  require efforts  to  improve  the  ability  of  farmers  to  produce  quality  products  and  which  is competitive. An effort that can be done is to increase the motivation of entrepreneur communities  through  organic  farming  which  can  be  expected  to  ensure  the preservation of the environment for sustainable production, achieve food security at the same time improving the welfare of people that having quality.This research aims to identify the motivation of entrepreneur    farmers and the individual factors and the influence  of  environments.  The  study  was  conducted  by  interview  survey  method  on organic rice farmers, then it was analyzed by descriptive and regression analysis. The results showed that the general motivation of entrepreneur farmers is strong enough. Factors that influence entrepreneurmotivation is the business environment; access to credit, market orientation, a network of cooperation and support from the government as well as individual factors, namely education.

Investment and Cash Flow: New Evidence

2016 ◽  
Vol 51 (4) ◽  
pp. 1135-1164 ◽  
Author(s):  
Jonathan Lewellen ◽  
Katharina Lewellen
Keyword(s):  
Measurement Error ◽  
Cash Flow ◽  
Strong Evidence ◽  
Investment Decisions ◽  
Free Cash Flow ◽  
Financing Constraints ◽  
Flow Problems ◽  
Cash Flow Sensitivities ◽  
New Evidence

We study the investment–cash flow sensitivities of U.S. firms from 1971–2009. Our tests extend the literature in several key ways and provide strong evidence that cash flow explains investment beyond its correlation with q. A dollar of current- and prior-year cash flow is associated with $0.32 of additional investment for firms that are the least likely to be constrained and $0.63 of additional investment for firms that are the most likely to be constrained, even after correcting for measurement error in q. Our results suggest that financing constraints and free-cash-flow problems are important for investment decisions.

scholarly journals Famers’ access to credit: Does collateral matter or cash flow matter?—Evidence from Sindh, Pakistan

2017 ◽  
Vol 5 (1) ◽  
pp. 1369383 ◽  
Author(s):  
Abbas Ali Chandio ◽  
Yuansheng Jiang ◽  
Feng Wei ◽  
Abdul Rehman ◽  
Dan Liu ◽  
...  
Keyword(s):  
Cash Flow ◽  
Access To Credit

ALBA malaise may boost Mercosur in Latin America

2015 ◽  
Keyword(s):  
Latin America ◽  
Cash Flow ◽  
Oil Prices ◽  
Political Capital ◽  
International Arbitration ◽  
Virtual Currency ◽  
Content Type ◽  
Flow Problems ◽  
Anglophone Caribbean ◽  
The Future

Subject The future of the Venezuela-dependent ALBA. Significance Although Venezuela's discretionary involvement in the Bolivarian Alliance for the Peoples of Our America (ALBA) will be hit by its cash-flow problems, ALBA's better designed and more institutionalised initiatives (Petrocaribe, the SUCRE virtual currency) will continue to function. However, Venezuelan President Nicolas Maduro's efforts to make political capital out of conflict with Guyana has reinforced the historical division between Anglophone and Latin states that ALBA looked to bridge, whereas larger Andean ALBA members continue to shift their attention towards Mercosur. Impacts ALBA will continue to stagnate unless oil prices rise significantly. Schemes similar to SUCRE are likely to appear, incorporating non-ALBA members. The Guyana conflict will entrench positions in the Anglophone Caribbean and Latin America; international arbitration is likely.

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