Summary This paper focuses on the question whether West German firms have experienced an increase in their financial risk position with due implications for the macroeconomy. The investigation is based on a special evaluation of the balance sheet statistics by the Deutsche Bundesbank broken down...

Purpose – The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects. Design/methodology/approach – The authors utilize a novel...

Purpose – Trade credit (TC) provides access to capital for construction contractors globally and is an important source of finance in both developed and developing countries. The purpose of this paper is to explore key factors underpinning construction suppliers’ decisions to provide TC to...

Purpose – The purpose of this paper is to empirically investigate the impact of credit supply on sales growth among small- and medium-sized enterprises (SMEs). Design/methodology/approach – The three-stage least square (3SLS) method was used to analyse a cross-sectional panel data set...

Purpose – The supply of trade credit by small‐ to medium‐sized enterprises (SMEs) is the product of both customer demand and the possibility of strategic advantage, but is subject to risk. In the current financial climate the demand for trade credit may be heightened, leading to further...

Purpose This paper aims to test for a potential target accounts payable ratio and the determinants of accounts payable ratio. Design/methodology/approach The author use data from 104 firms over the period 2000-2014 and analyse these data using the system-generalised method of moments...

Purpose – The purpose of this paper is to study integrated inventory system and pricing and ordering strategy for vendor‐buyer supply chain system. Here, the vendor offers a trade credit to the buyer when the buyer's order quantity exceeds a given pre‐specified quantity. Therefore, to...

Purpose The purpose of this paper is to identify three factors leading to the observed decline in trade credit offered from publicly traded firms. Design/methodology/approach The study conducts firm fixed effect regressions testing the relationship between cash flow volatility and firm...

Purpose This study aims to investigate trade credit as a financing source among small- and medium-sized enterprises (SMEs), particularly the influence of short-term debt, long-term debt and profitability on the use of such credit. Design/methodology/approach Ordinary least squares (OLS),...

Purpose – The purpose of this paper is to test the effect of informal finance and trade credit on the performance of private firms. Design/methodology/approach – Based on a survey to private firms in 19 cities, the paper empirically tests the promoting effects of informal finance and trade...