A Dynamic Approach to Accounts Receivable: a Study of Spanish SME<scp>s</scp>

García‐Teruel, Pedro J.; Martínez‐Solano, Pedro

doi:10.1111/j.1468-036x.2008.00461.x

Cited by 67 publications

(41 citation statements)

References 49 publications

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“…Our finding regarding the difference in the speed of adjustment between public and private firms contributes to the nascent literature studying the optimality and dynamics of various components of firms' working capital (e.g., García-Teruel and Martínez-Solano, 2010a;2010b). It further adds to evidence of differences in the target adjustment behavior of public and private firms documented by recent research on other corporate policies, such as capital structure (Brav, 2009) and cash holdings (Gao et al, 2013).…”

Section: Introductionsupporting

confidence: 62%

Stock market listing and the use of trade credit: Evidence from public and private firms

Abdulla

Dang

Khurshed

2017

Journal of Corporate Finance

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This paper examines differences in the use of trade credit by publicly listed firms and their privately held counterparts. We show that public firms maintain a significantly lower level of trade credit than private firms. This finding is consistent with the argument that public firms rely less on supplier financing because of their greater access to cheaper and less risky sources of external capital. We further find that while public and private firms actively seek to adjust toward their optimal trade credit levels, the former firms experience faster adjustment. The recent financial crisis had differential effects on the trade credit ratios of public and private firms.

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Section: Introductionsupporting

confidence: 62%

Stock market listing and the use of trade credit: Evidence from public and private firms

Abdulla

Dang

Khurshed

2017

Journal of Corporate Finance

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“…Research empirically examining the determinants of trade credit extension include Nadiri (1969), Deloof and Jegers (1996), Petersen and Rajan (1997), Love, Preve, and Sarria-Allende (2007), Giannetti, Burkart, and Ellingsen (2008), Bougheas, Mateut, and Mizen (2009), Molina and Preve (2009), and Garcia-Teruel and Martinez-Solano (2010.…”

mentioning

confidence: 99%

Shareholder Returns from Supplying Trade Credit

Hill¹,

Kelly²,

Lockhart³

2012

Financial Management

129

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We examine shareholder wealth implications of supplying financing to customers. Robust results suggest that excess returns and changes in trade receivables are directly and significantly related. Further evidence indicates the value of receivables is higher for suppliers with stronger motives relating to operating and contracting costs. The results also suggest a discounted value of receivables for financially unconstrained firms. Overall, we conclude that investors recognize trade credit as an effective instrument in mitigating frictions hindering sales growth. Thus, certain suppliers are positioned to derive increased strategic benefits from credit policy.

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“…Finally, suppliers also play an important role in the capital structure of SMEs. García-Teruel and Martínez-Solano [99] reviewed some of the literature on this topic, pointing out several advantages that justify the SMEs' use of trade debt. In this vein, these authors have argued that trade debts are a great way of obtaining funds for firms that have difficulties accessing bank funds.…”

Section: Description Of the Variablesmentioning

confidence: 99%

Stakeholders and Long-Term Sustainability of SMEs. Who Really Matters in Crisis Contexts, and When

Lizano

Alfaro

Cruz³

2019

Sustainability

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The impact of crises on the long-term sustainability of small and medium-sized enterprises (SMEs) has been attracting growing interest in the literature and from governments due to the significance of such companies with respect to economic growth, innovation, and employment. Although failure prediction models have been proposed based on accounting and other qualitative information, little is known regarding the influence of stakeholders on the failure process of SMEs. From the perspective of long-term sustainability, this article analyzes the role of the financial influence of stakeholders on the likelihood of business failure. An empirical study was carried out on a sample of 2352 Spanish SMEs, examining the differences between failed and non-failed SMEs and using a classification tree methodology to investigate the role played by each type of stakeholder in overcoming crisis events. The study provides empirical evidence regarding the relative importance of stakeholders to SMEs under conditions of financial distress, and proposes their categorization on the basis of their control over firms’ financial resources. Specifically, the analysis reveals that the capacity of the firm to generate sustainable wealth over time and to overcome critical situations is dependent on the most critical stakeholders. Workers, customers, and suppliers are the most important in ensuring the long-term sustainability of SMEs during the first stages of a crisis. Following the initial operational problems, other creditors (financial institutions) become relevant. In this sense, the results of this study encourage firms and governments to develop cooperation strategies with stakeholders (co-responsibility) in line with the proposed conceptual models of business sustainability.

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A Dynamic Approach to Accounts Receivable: a Study of Spanish SMEs

Cited by 67 publications

References 49 publications

Stock market listing and the use of trade credit: Evidence from public and private firms

Stock market listing and the use of trade credit: Evidence from public and private firms

Shareholder Returns from Supplying Trade Credit

Stakeholders and Long-Term Sustainability of SMEs. Who Really Matters in Crisis Contexts, and When

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