scholarly journals Trade Credit Contracts, Theories and their Applications: A Synthesis of the Literature

2020 ◽  
Vol 17 (1) ◽  
pp. 86-91
Author(s):  
Stanley Kojo Dary ◽  
Harvey S. James Jr.

The paper studies theories relating to trade credit contracts as well as their applications and limitations, via review and synthesis of the trade credit literature. Using keywords and search phrases, the literature was identified from key economics, business and financedomains. Trade credit contracts are not complex, this can be explained by factors such as shortness of credit period, frequent transactions, proximity and interaction between trading parties, and effective informal enforcement mechanisms. In contrast to the longstanding conception that trade credit is more expensive than bank credit, trade credit is often cheaper than bank credit, hence its high incidence and level of use across countries. The high use of trade credit should warrant some policy attention, particularly trade credit regulation. Theories explaining trade credit are highly interconnected; most of them have received considerable empirical support in both developed and developing countries. The interconnected nature of the trade credit theories should inform methodological approaches to their empirical testing and present an opportunity for comprehensive theory development in the field. Keywords: Trade Credit, Trade Credit Contracts, Trade Credit Theories, Trade Credit Motives, Trade Credit Supply and Demand

Author(s):  
Leora Klapper ◽  
Luc Laeven ◽  
Raghuram Rajan

2015 ◽  
Vol 29 (5) ◽  
pp. 498-509 ◽  
Author(s):  
Shannon Kerwin ◽  
Larena Hoeber

The main goal of our article is to encourage personal reflection within the field of sport management as a tool to strengthen methodological approaches in our research. We explore and discuss the utility of collaborative self-ethnography as one way to acknowledge personal identities through a reflexive account of our experiences as sport fans and sport researchers with this methodology. We draw on a previous study of our experiences as sport fans to illustrate techniques, downfalls, and benefits of studying one’s experiences in a collaborative methodological approach. We have two objectives: First, we hope to encourage sport management researchers to acknowledge and reflect on their personal identities related to sport, such as being a fan, coach, volunteer, or former participant, in their research. Second, we aim to demonstrate the utility of collaborative self-ethnography as one way to incorporate reflexivity in sport management research and theory development.


Author(s):  
Mariassunta Giannetti ◽  
Mike C. Burkart ◽  
Tore Ellingsen

2014 ◽  
Vol 687-691 ◽  
pp. 4794-4798
Author(s):  
Dan Wu ◽  
Yan Luo

The paper, sampling the data from A-shares listed companies of electrical energy during the period of 2009 to 2012, checks out the influence of the enterprise’s market power on its capacity for trade credit and bank credit financing. The paper tries to find out the internal relationship among them by building linear regression models of the explained variable, Credit, the explaining variable, MP, and the control variables, SIZE, EBIT, LIQ, CFO, SBA and SBA*MP. In the study, we find that the target customers of trade credits and bank loans are almost enterprises with a high market power.


Author(s):  
Leora F. Klapper ◽  
Luc A. Laeven ◽  
Raghuram G. Rajan

2021 ◽  
pp. 135406612110640
Author(s):  
Erik Lin-Greenberg ◽  
Reid B.C. Pauly ◽  
Jacquelyn G. Schneider

Political scientists are increasingly integrating wargames into their research. Either by fielding original games or by leveraging archival wargame materials, researchers can study rare events or topics where evidence is difficult to observe. However, scholars have little guidance on how to apply this novel methodological approach to political science research. This article evaluates how political scientists can use wargames as a method of scholarly inquiry and sets out to establish a research agenda for wargaming in International Relations. We first differentiate wargames from other methodological approaches and highlight their ecological validity. We then chart out how researchers can build and run their own games or draw from archival wargames for theory development and testing. In doing so, we explain how researchers can navigate issues of recruitment, bias, validity, and generalizability when using wargames for research, and identify ways to evaluate the potential benefits and pitfalls of wargames as a tool of inquiry. We argue that wargames offer unique opportunities for political scientists to study decision-making processes both in and beyond the International Relations subfield.


2020 ◽  
Author(s):  
◽  
Eddie Mighten

This thesis is a critical investigation of a theory of expert leadership (hereafter TEL) and has the central aim of theory development. In proposing a TEL, Goodall (2012) argues that those at the top of organisations should be among the best experts in their industry, as opposed to general, professional managers. Empirical support for the TEL and its effects are reported in a small number of studies that show positive correlations between expert leadership and organisational performance. Moreover, expert leaders are thought to gain credibility and respect and are better able to understand motivations and values of followers having been one of them. Whilst these findings are interesting and imply something important in terms of what we might look for when choosing leaders, they raise conceptual and methodological concerns that were the starting point for this study. My approach draws on Gadamer’s (1989) conceptualisation of hermeneutics and Josselson’s (2011b) narrative approach in what I described as hermeneutic storytelling to account for the lived experiences of managers in the backdrop of men’s professional football, on the assumption that stories about our lives are representations of reality. To explore this phenomenon, I borrow from J. L. Austin's (1962) work, How to Do Things With Words, and the idea of felicity conditions, as a theoretical lens to understand expert leadership influence. Felicity conditions refer to criteria that must be in place and satisfied for performative acts to achieve their purpose. As a theoretical contribution to knowledge I found first that, for expert leadership influence to be felicitous, football managers need to meet, in the requisite way, conditions of; authority and be authorised beyond the position they hold; which is granted by virtue of authenticity, in the way they operate in relation to others; and sincerity, with thoughts, intentions and motivations that embodied the virtue. This is mediated by interplay of thoughts, beliefs and expectations of people who interact with football managers and also what is rooted in historically affected cultures and traditions. Second, there is a dark side to this leadership that undeniably exists and in any study involving people who have great authority and hold powerful positions this reality needs to be truthfully told. Third, as a practical contribution my thesis proposes the Human Resources (HR) profession, and recruitment in general, moves away from traditional competency and behavioural practice, to selecting leaders on a values-based process, that assesses the fit of human values and the cultural of an organisation. My thesis allows the reader to reimagine expert leadership and proposes the need to examine what is human about the phenomenon in question. I conclude, the TEL is a paradoxical mix of perceptions of leadership qualities, human conditions and performativity in context.


Author(s):  
LARS NORDEN ◽  
STEFAN VAN KAMPEN ◽  
MANUEL ILLUECA

We investigate whether and how SMEs’ credit quality influences their substitution of bank credit for trade credit. Using data from the five largest European countries, we find that substitution of bank credit for trade credit decreases during the financial crisis, but it decreases significantly less for ex ante low credit quality firms. We control for pre-crisis or lagged firm characteristics including size and external finance dependence, industry effects, sample selection effects and cross-country heterogeneity. We also find that low credit quality firms increase their absolute and relative trade credit usage significantly more than high credit quality firms during the financial crisis. The effects are consistent across countries and stronger for net trade credit borrowers and financially constrained firms. The evidence highlights how credit quality influences demand-side driven substitution in SME finance.


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