Trade credit in emerging economies: an interorganizational power perspective

Liu, Bai; Wang, Yibo; Shou, Yongyi

doi:10.1108/imds-05-2019-0292

Cited by 29 publications

(21 citation statements)

References 59 publications

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“…Likewise, Zhu and Lu (2009) reported that the average cash holding in China was 24% from 1998 to 2007, which was higher than that for U.S. companies during that period. Moreover, the Chinese firms managed the informal credit granted by their vendors (banks and/or other financial institutions) to finance growth opportunities (Liu et al 2020). Further, Ding et al (2013) revealed that Chinese firms retain the funds from their operations, use bank financing and trade credit to finance their business operations (Hu et al 2016).…”

Section: Introductionmentioning

confidence: 99%

Cash Holding and Firm Value in the Presence of Managerial Optimism

Habib

Bhatti

Khan

et al. 2021

JRFM

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Cash holding is important for Chinese manufacturing firms coping with the increasing costs of financing and tough economic conditions. This study examines the impact of cash holding on the firm value of Chinese manufacturing businesses. We found evidence that a non-linear relationship exists between cash holding and firm value in these companies. The study reveals that a higher level of cash holding in financially constrained firms negatively affects the firm value, while unconstrained firms with a less cash holding level have a better firm value. Finally, this research is enriched by implementing the novel measure of managerial optimism. Revealed is the interactive role of cash holding and optimism and how they affect firm value. The study concludes that managerial optimism influences a firm’s cash holding decisions, and this is more costly for unconstrained firms.

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Section: Introductionmentioning

confidence: 99%

Cash Holding and Firm Value in the Presence of Managerial Optimism

Habib

Bhatti

Khan

et al. 2021

JRFM

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“…The problem of imbalances in the world economy has been studied in sufficient detail and is covered in the available publications of Ala'raj et al ( 2018 ), Liu et al ( 2020 ), Munir and Ameer ( 2018 ). The prospects for achieving balance and sustainable development of the world economy are discussed in the works of Andronova et al ( 2019 ), Frolov et al ( 2017 ), Goyal and Sergi ( 2015 ), Inshakov et al ( 2019 ), Morozova et al ( 2019 ), Petrenko et al ( 2018 ), Popkova et al ( 2014 ), Popkova et al ( 2017 ), Popkova et al ( 2016 ), Ragulina ( 2019 ), Ragulina et al ( 2019 ), Sergi ( 2018 ), Saveleva (2017), Zavyalova et al ( 2018 ), Sorokina ( 2017 ), Shakhovskaya and Arakelova ( 2017 ), Artemyeva ( 2018 ).…”

Section: Methodsmentioning

confidence: 99%

The Impact of the 2020 Crisis on Imbalances in the World Economy: Problems of Balance and Prospects for Sustainable Development

Zmiyak

Porotkin

Steblyakova

et al. 2021

Lecture Notes in Networks and Systems

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Purpose: The purpose of this work is to study the impact of the 2020 crisis on imbalances in the world economy from the point of view of the problem of its balance and the prospects for its sustainable development. Design/methodology/approach : The methodology of this study is to predict and scenario the values of the indicators of sustainable development highlighted in chapter 2 of this book, as well as to compare the difference between developed and developing countries in each scenario. Findings : It has been proved that as the 2020 economic crisis deepens, the imbalances in the world economy, expressed in the differences between developed and developing countries, increase. In 2019, developed countries showed 100.26% greater sustainability compared to developing countries. In 2020, under the optimistic scenario, the imbalance will increase to 119%, under the realistic scenario to 142.96%, and under the pessimistic scenario to 198.45%. Originality/value : It is justified that the 2020 economic crisis has a negative impact not only on national economies, impeding their sustainable development, but also on the global economy as a whole, increasing its imbalances. Therefore, in order to maintain a balanced world economy, it was necessary to combine the efforts of developed and developing countries to jointly manage the crisis and accelerate the resolution of the crisis.

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“…Devalkar and Krishnan (2019) indicated that financial frictions increased financing costs and weakened the ability of trade credit to coordinate supply chains [34]. Liu et al, (2020) considered that an advantaged buyer benefits from trade credit in the market. Furthermore, political relations have a positive impact on trade credit [35].…”

Section: Trade Creditmentioning

confidence: 99%

Trade Credit with Barter in a Capital-Constrained Supply Chain

Huang

Fang

2021

Sustainability

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Barter has emerged to alleviate capital pressure, maximize the circulation of goods, and facilitate the disposal of excess inventory. This study considers a two-level supply chain consisting of a manufacturer and a capital-constrained retailer with trade credit, in which the retailer exchanges unsold products for needed subsidiary products on a barter platform. The retailer’s optimal order quantity and the manufacturer’s wholesale price are derived, and the influences of barter and other factors on the equilibrium strategy and performance of the supply chain are examined; these results are verified and supplemented by numerical simulation. We find that the retailer can increase profit by bartering when facing highly uncertain demand, that the retailer’s optimal order quantity increases with the supply rate and demand for subsidiary products, and that both manufacturer and retailer benefit from the high supply rate of subsidiary products. However, barter induces the manufacturer to raise the wholesale price to prevent its profit from being harmed. In addition, the manufacturer suffers from the retailer’s initial capital.

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Trade credit in emerging economies: an interorganizational power perspective

Cited by 29 publications

References 59 publications

Cash Holding and Firm Value in the Presence of Managerial Optimism

Cash Holding and Firm Value in the Presence of Managerial Optimism

The Impact of the 2020 Crisis on Imbalances in the World Economy: Problems of Balance and Prospects for Sustainable Development

Trade Credit with Barter in a Capital-Constrained Supply Chain

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