Trade credit and bank loan in period of financial crisis: Evidence from Tunisian exporting companies

Bellouma, Meryem

doi:10.5267/j.ac.2016.8.001

Cited by 5 publications

(3 citation statements)

References 16 publications

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“…It showed that financially constrained firms used trade credit as another financing source during financial crisis. Bellouma [17] (the case of Tunisian firms) found out the substitute effect between trade credit and bank credit, and confirmed that during the financial crisis firms relied more on trade credit. Ellingsen, Jacobson and Schedvin [18] revealed that clients preferred trade credit over other available funding sources.…”

Section: Empirical Evidence Of Previous Studiesmentioning

confidence: 60%

Factors Determining Trade Credit Dynamics During Crisis: Panel Data Analysis for Macedonian Firms

Deari

Lakshina

2019

jour

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The study is aimed at determining the factors influencing the trade credits dynamics for twenty three firms registered on the Macedonian Stock Exchange, as well as at checking for crisis effects from 2011 to 2015. The study includes a review of the literature on commercial credit factors; elaborately analyzed descriptive statistics of the collected data and dependent variable variance; tests for unobservable effects and their functional form; evaluation of panel regression and interpretation of the results. The authors have proved that net trade credits for these firms depends mainly on the growth potential of lagging firms and their vulnerability, and the crisis effects are significant only for the latter factor. Moreover, the overall efficiency of firms' assets and their ability to convert income into cash does not have a significant impact in the crisis and post-crisis periods. The growth opportunities and profitability demonstrate a negative impact, meaning that growing and more profitable firms on average tend to expand and receive more trade credits than counterparties. Profitability has a significant impact on trade credit and the effect is seen during the first year after the crisis. Thus, the dynamics of trade credits of registered Macedonian firms is largely determined by the internal factors of a firm, and not by the external macroeconomic situation. Therefore, better financial management is suggested to improve the trade credit policy. One of the directions for further research is the evaluation of the autoregressive component of the trade credit dynamics, as well as including spatial effects in the regression equation. ОРИГИНАЛЬНАЯ СТАТЬЯФакторы, определяющие динамику торгового кредита во время кризиса: панельный анализ данных для македонских компаний Ф. Деари a , В. В. Лакшина b a Юго-восточный европейский университет, Тетово, Республика Северная Македония; b Национальный исследовательский университет «Высшая школа экономики», Нижний Новгород, Россия a http://orcid.org/0000-0002-0050-9793; b http://orcid.org/0000-0003-1447-9377 АННОТАЦИЯ Цель исследования -определение факторов, влияющих на динамику коммерческих кредитов для двадцати трех фирм, зарегистрированных на Македонской фондовой бирже, а также проверка наличия кризисных эффектов в период с 2011 по 2015 г. Исследование включает в себя: обзор литературы, посвященной факторам коммерческого кредита; подробный анализ описательной статистики собранных данных и анализ дисперсии зависимой переменной; проведение тестов на наличие ненаблюдаемых эффектов и их функциональную форму; оценку панельной регрессии и интерпретацию результатов. В статье доказано, что показатель чистого коммерческого кредита для рассматриваемых фирм главным образом зависит от возможностей роста отстающих фирм и их уязвимости, а последствия кризиса для компаний значимы только для последнего фактора. Кроме этого, общая эффективность активов фирм и их способность CC BY 4.0 © ФИНАНСЫ И КРЕДИТ / FINANCE AND CREDIT ФИНАНСЫ: ТЕОРИЯ И ПРАКТИКА / FINANCE: THEORY AND PRACTICE  Т. 23, № 2'...

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Section: Empirical Evidence Of Previous Studiesmentioning

confidence: 60%

Factors Determining Trade Credit Dynamics During Crisis: Panel Data Analysis for Macedonian Firms

Deari

Lakshina

2019

jour

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“…Concerning working capital management manufacturing companies should manage their trade activities at a minimum cost. Analysing credit worthiness for new and existing customers makes firms eliminate extra cost of using external resources such as credit agencies (Bellouma, 2014). Manufacturing firms should ensure that customers pay their bills on time thus reducing costs of hiring debt collectors and debts write off (Dary & James, 2019).…”

Section: Transaction Cost Theorymentioning

confidence: 99%

Untitled

2022

EJCSIT

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This study examined effect of working capital management on profitability containing twenty manufacturing firms listed in Nairobi securities exchange. Kenya's manufacturing sector has been hit by poor working capital management leading to unstable profits. Despite various scholars conducting studies concerning Kenyan manufacturing firms' working capital, lack of consistence revenues require further examination on what causes these deviations. Current study was piloted by following specific objectives; Influence of inventories, receivable, payable, and cash managements on profitability of manufacturing firms. Theories that guided this study were: agency, transaction cost, and cash conversion cycle. Descriptive statistics was used on analysis especially, minimum, maximum, mean and standard deviation. Mathematical data evaluation involved inferential statistics. In addition, study model quantitative data was presented in tables. The study accepted census sampling method for collecting secondary data from population of 20 companies listed for five years from 2016 to 2020. Secondary details were found in financial statements of manufacturing firms and Nairobi Securities Exchange. Data was collected using checklist. The study recommended that manufacturing companies should estimate desirable quantity of working capital and concluded that increased working capital should match increased expenses, sales and revenue.

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“…Garcia-Appendini and Montoriol-Garriga (2013) demonstrate that firms with high pre-crisis liquidity levels provide more trade credit. Moreover, Bellouma (2013) shows that during the financial crisis, firms relied more on trade credit.…”

Section: Literature Reviewmentioning

confidence: 99%

Trade credits substitution during crisis period: spatial aspects within developing countries

Deari¹,

Lakshina

Lapshina³

2020

JES

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PurposeThe purpose of this study is to empirically test the hypothesis about substitution of trade and bank credits during the crisis period among 1,570 firms from 16 developing countries.Design/methodology/approachThe study examines the dynamics of trade credits, following previous studies with special emphasis on the research by Love et al. (2007). The foregoing methodology was expanded by taking into account the effects of the interdependence between firms by means of spatial panel model.FindingsThe study reveals that, taking into account spatial effects, there is a positive relationship between bank and trade credits, that is, they behave as complements for each other. Significant positive spatial correlation, obtained for the firms within the same country or cluster, points to the presence of externalities inside these groups. The latter implies that neighboring firms demonstrate similar unidirectional dynamics of trade credits.Originality/valueResults of this study may create a basis for policy implementation in the sphere of corporate lending, and allow to build appropriate supporting policies during crisis period.

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Trade credit and bank loan in period of financial crisis: Evidence from Tunisian exporting companies

Cited by 5 publications

References 16 publications

Factors Determining Trade Credit Dynamics During Crisis: Panel Data Analysis for Macedonian Firms

Factors Determining Trade Credit Dynamics During Crisis: Panel Data Analysis for Macedonian Firms

Untitled

Trade credits substitution during crisis period: spatial aspects within developing countries

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