Organization capital and trade credit access

Siqi Zou, Shan Li and Joseph Sowahfio Sowah

Economics Letters, 2025, vol. 253, issue C

Abstract: We present evidence of a positive link between organization capital and access to trade credit and offer an alternative perspective to the agency view. We show that firms with high organizational capital that secures greater trade credit are also more likely to grant credit to their customers, facilitating the flow of trade credit along the supply chain.

Keywords: Organization capital; Trade credit; Liquidity needs (search for similar items in EconPapers)
JEL-codes: G32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:253:y:2025:i:c:s016517652500237x

DOI: 10.1016/j.econlet.2025.112400

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