scholarly journals A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress

2019 ◽  
Vol 14 (1) ◽  
pp. 5-16
Author(s):  
Jamol Abdiev ◽  
Gurkan Akalin
Keyword(s):  
Empirical Study ◽  
Policy Change ◽  
Trade Credit ◽  
Financial Stress ◽  
Policy Changes ◽  
Accounts Receivable ◽  
Payment Policy ◽  
Accounts Payable ◽  
Inventory Turnover ◽  
The Subject

AbstractTrade credit, the credit extended to buyers by suppliers who let them buy now and pay later, is an important financing method for many buyers. Any policy change by buyers in accounts payable, a measure for trade credit, results in appreciation or frustration on the supplier side. Even though, such effects have been well documented in the literature, an empirical study on the subject is surprisingly lacking. As an example, a certain buyer might change the payment policy by extending or shortening the periods of the payments. We investigate how and if the payment policy change of the buyer affects the supplier’s operations, especially on the perspective of inventory of suppliers. This study further investigates how changes in a firm’s accounts payable days and accounts receivable days affect its inventory turnover days.

Accounts Receivable: Payable Impact on Each Other with Special Reference to Financial Performance—A Study of Small Cap Companies

2020 ◽  
Vol 47 (4) ◽  
pp. 362-373
Author(s):  
Sangeeta Mittal ◽  
Monika
Keyword(s):  
Financial Performance ◽  
Trade Credit ◽  
Unit Root Test ◽  
Effective Management ◽  
Manufacturing Companies ◽  
Causality Test ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
The Impact ◽  
Test Correlation

Trade credit is important as a funding source for companies having a liquidity shortage. Trade credit comprises of both accounts receivable and payable. The financial literature has discussed the impact of accounts receivable or payable on a company’s financial performance. However, there is a lack of studies on the effects of accounts receivable and payable on each other and further its effect on the financial performance of small-cap companies. Financial performance is determined using the profitability and value of the company. The researchers examined the financial performance implications of offering and receiving trade credit for a sample of 193 BSE small-cap manufacturing companies in India during the period 2011–2019. Granger causality test, Levin, Lin and Chu Unit root test, correlation and regression have been used for data analysis. The finding suggested that accounts receivable influenced the use of accounts payable. The aftermath of accounts payables is that it negatively and significantly affected the profitability and had an insignificant relationship with the value of the company. The result implies that effective management of accounts receivable can influence the application of accounts payable that improves a company’s profits and value. The current study is useful for SMEs’ managers in determining the financial performance and capital structure.

Trade Credit and the Effect of Macro-Financial Shocks: Evidence from U.S. Panel Data

2005 ◽  
Vol 40 (4) ◽  
pp. 897-925 ◽  
Author(s):  
Woon Gyu Choi ◽  
Yungsan Kim
Keyword(s):  
Monetary Policy ◽  
Panel Data ◽  
Trade Credit ◽  
Comparison Group ◽  
Large Firms ◽  
Financial Shocks ◽  
Accounts Receivable ◽  
Accounts Payable

AbstractUsing disaggregated panel data, we examine how firms change trade credit in response to a monetary tightening. We find that both accounts payable and accounts receivable increase with tighter monetary policy, implying that trade credit helps firms absorb the effect of a credit contraction. Further, both S&P 500 firms and a comparison group of smaller firms increase net trade credit (accounts receivable minus payable), making up for the reduced liquidity associated with tighter policy. However, we find no evidence that large firms play this role more actively than smaller firms.

Effect of Working Capital on Profitability of Selected Quoted Firms in Nigeria

2012 ◽  
Vol 13 (3) ◽  
pp. 367-381 ◽  
Author(s):  
Olayinka Olufisayo Akinlo
Keyword(s):  
Trade Credit ◽  
Capital Management ◽  
Working Capital ◽  
Credit Policy ◽  
Inventory Policy ◽  
Working Capital Management ◽  
Accounts Receivable ◽  
Financial Firms ◽  
Cash Conversion Cycle ◽  
Accounts Payable

The article examines the relation between working capital management and profitability for a sample of 66 Nigerian non-financial firms for the period 1997–2007. Trade credit policy and inventory policy are measured by number of days accounts receivable, accounts payable and inventories; and the cash conversion cycle (CCC) is used as a comprehensive measure of working capital management. The results suggest that firm’s profitability is reduced by lengthening the number of days accounts receivable, number of days of inventory and number of days accounts payable. The result shows that shortening the CCC improves the profitability of the firms.

The Image of the Accountant in a German Context

2004 ◽  
Vol 4 (1) ◽  
pp. 62-89 ◽  
Author(s):  
Andreas Hoffjan
Keyword(s):  
Content Analysis ◽  
Empirical Study ◽  
Cost Reduction ◽  
Maximum Degree ◽  
Work Ethic ◽  
Personal Characteristics ◽  
Management Accountant ◽  
The Subject ◽  
Professional Context

This study introduces content analysis as a method of examining the accountant's role. The empirical study is based on 73 advertisements, which are directed primarily at employees who are affected by the management accountant's work. The findings of the study indicate that the subject of accountancy is used particularly in connection with promises of “cost reduction.” Consequently, the majority of advertisements use the accountant stereotype of “savings personified.” In a professional context, the work ethic of the management accountant is given particular emphasis in the advertisements. He/she identifies him/herself with his/her task to the maximum degree, is regarded as loyal to his/her company and, for the most part, is well organized in his/her work. However, the characterization of the management accountant as a well disciplined company-person conflicts with the negative portrayal of his/her professional qualities. In advertisements, the management accountant is portrayed as a rather inflexible, passive, and uncreative specialist who, as a result of these qualities, often demotivates others. The personal characteristics of the management accountant are shown in a negative light. This gives him/her the unappealing image of a humorless, envious, dissociated, and ascetic corporate-person.

Return Characteristics of Commodities

2018 ◽  
Author(s):  
Dianna Preece
Keyword(s):  
Financial Crisis ◽  
Negative Correlation ◽  
Institutional Investors ◽  
Financial Stress ◽  
Commodity Futures ◽  
Futures Contracts ◽  
The Subject ◽  
Diversified Portfolio

The role of commodities in a diversified portfolio has been the subject of research and debate since the late 1970s. Investors can hold the physical commodity or use derivatives such as futures contracts to access commodity exposure. Institutional investors primarily gain exposure to commodities via futures contracts. Commodity futures returns are comprised of a collateral return, a spot return, and a roll return. Research dating back to the late 1970s suggests that commodities should be included in diversified portfolios because they act as an inflation hedge, are portfolio diversifiers due to negative correlation with stocks and bonds, and potentially offer returns and volatility comparable to equities. Commodity performance has been generally weak in the years following the financial crisis of 2007–2008. Many studies find that correlation of commodity returns with stocks and bonds increases during periods of financial stress.

Parties on the Left, Parties on the Right: Electoral Competition and Citizenship Policy Change in Europe

2020 ◽  
pp. 1-19
Author(s):  
John Graeber
Keyword(s):  
Policy Change ◽  
Spatial Competition ◽  
Electoral Competition ◽  
Party Competition ◽  
Policy Changes ◽  
Far Right ◽  
Left Party ◽  
Political Spectrum ◽  
The Right ◽  
Restrictive Policy

Abstract In recent decades, citizenship policies in Europe have changed significantly: some governments have introduced restrictive new requirements for citizenship, while others have made citizenship more accessible. What explains this variation? Despite a burgeoning literature on both comparative citizenship and spatial competition among parties, scholarship on this question remains in its infancy and primarily focused on the influence of the far right. Expanding on this growing research, this article argues that citizenship policy change results from electoral competition on both sides of the political spectrum, in conjunction with governments’ ideological orientation. Using new data on citizenship policies across sixteen European countries from 1975 to 2014, the author demonstrates that left-of-center governments facing increasing levels of left party competition are associated with more accessible policy changes, while increasing levels of party competition from the far right yield more restrictive policy changes under not only right-of-center governments, but also centrist and left-of-center governments as well.

Managing accounts receivable and accounts payable

2021 ◽  
pp. 7-13
Author(s):  
А.П. СОЛОВЬЕВА ◽  
А.В. СКРЯБИНА ◽  
Л.А. ЭВЕРСТОВА ◽  
Ф.Н. ПЕТРОВА
Keyword(s):  
Accounts Receivable ◽  
Accounts Payable ◽  
A Company

Предприятие обязано контролировать дебиторскую и кредиторскую задолженность, следить за сроками погашения, не позволять необоснованного роста суммы дебиторской задолженности, особое внимание уделять по истребованию просроченной задолженности, вести активную работу с контрагентами. Крайне внимательно относиться к расчетам с кредиторами, вовремя погашать им долги, в противном случае предприятие будут иметь штрафные санкции по расчетам с контрагентами – все это объясняет актуальность этой проблемы. Для повышения эффективности использования дебиторской и кредиторской задолженности нами разработаны мероприятия по управлению дебиторской задолженностью. A company must control accounts receivable and accounts payable, be sure to monitor repayment rates, not allow unreasonable growth of debtors and the amount of their debts, take timely measures to recover overdue debts, and actively work with debtors. It is also necessary to be extremely attentive to settlements with creditors, repay their debts on time, otherwise the company may lose the trust of its suppliers, banks and other creditors, will have penalties for settlements with counterparties – all this explains the relevance of this issue. To improve the efficiency of the use of accounts receivable and accounts receivable, we developed measures on managing accounts receivable.

Domestic Constraints on Foreign Policy Change in Belarus

2021 ◽  
Vol 11 (1) ◽  
pp. 27-55
Author(s):  
Paul Hansbury
Keyword(s):  
Foreign Policy ◽  
Policy Change ◽  
Interest Group ◽  
International Affairs ◽  
Policy Changes ◽  
Group Competition ◽  
Domestic Constraints ◽  
Foreign Policy Change ◽  
The Relationship ◽  
Policy Shifts

Abstract After 2014 the relationship between Russia and its ally Belarus was strained. Russia was dissatisfied with Belarus’s foreign policy and sought to influence the latter’s international affairs. This article considers the extent of change and continuity in Belarus’s foreign policy, and thus whether Russia’s criticisms reflect consequential shifts, covering the period 2016–2019. The analysis begins with the removal of EU sanctions, which afforded Belarus new opportunities, and ends before the protest movement that emerged ahead of the election in 2020. The study considers three policy areas: international trade; diplomacy more broadly; and foreign policy concerns for prestige. The article argues that Belarus made appreciable policy changes in response to structural pressures in the period 2016–2019, but the parameters of these foreign policy shifts were necessarily highly constrained by domestic interest group competition which prevents Belarus distancing itself from Russia. It concludes with a brief reflection on how the 2020 election protests and repressions affect the dynamics described.

Sign in / Sign up

Export Citation Format

Share Document