Article Per Year (5 Year)
p-Index From 2021 - 2026
0
P-Index
This Author published in this journals
All Journal JABM JOURNAL of ACCOUNTING - BUSINESS & MANAGEMENT
Nick Wilson
Leeds University Business School
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Other

Published : 2 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 2 Documents
Search

 1 
Trade Credit Supply: An Empirical Investigation of Companies Level Data Salima Paul; Nick Wilson
Journal of Accounting, Business and Management (JABM) Vol 13 No 1 (2006): October
Publisher : STIE Malangkucecwara

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

Trade credit is an important economic phenomenon and a variety of theories have been put forward to explain the decision firms make on credit extension. This paper reports an empirical investigation of a number of aspects of trade credit supply decisions which aims to test these theories using a rich level dataset from a survey of 355 UK companies. Multivariate models of trade credit supply are developed to explore aspects of the characteristics that drive trade credit extension decisions. Our results suggest that trade credit supply is a set of subtle and complex motivations over and above those predicted by standard theory. In particular, trade credit extension can be used as a many-faced marketing/relationship management tool and/or as a means of signalling information to the market or to specific buyers about the firm, its products and future prospects/commitment. Much of credit extension can be seen as customer focused, encouraging frequent purchasers which offer the potential for relationship development, for example, or accommodating customers demand for credit to help finance their production period. The requirements/bargaining power of large customers can influence a firm to extend more credit. Firms will vary terms in anticipation of capturing new business, to attract specific customers and in order to achieve specific marketing aims.
The Determinants of Trade Credit Demand: Survey Evidence and Empirical Analysis Salima Paul; Nick Wilson
Journal of Accounting, Business and Management (JABM) Vol 14 No 1 (2007): October
Publisher : STIE Malangkucecwara

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

If there is a time lapse between the transaction of delivering goods and the payment, buyers are demanding finance from non-financial firms that are not in business to provide funds to their customers but to sell goods. This paper analyses the determinants of trade credit demand, which is modelled as a function of several theories: financing, transaction cost, asymmetric information, firms business environment, and specific investment. It builds on previous studies by examining a wider range of aspects of trade credit demand namely the level of purchase on credit as well as the period companies take to pay their suppliers within and outside the agreed period. Amongst our findings, our results show that the level of credit demanded and the period are affected by the need for short-term finance and thus trade credit is used to complement and/or substitute other sources of funds.
Co-Authors Salima Paul