EconPapers    
Economics at your fingertips  
 

A CLOSE LOOK INTO SUPPLIER POLICY CHANGES IN RESPONSE TO THEIR BUYERS' FINANCIAL STRESS

Jamol Abdiev and Gurkan Akalin
Additional contact information
Jamol Abdiev: Eastern Illinois University, USA
Gurkan Akalin: Eastern Illinois University, USA

Studies in Business and Economics, 2019, vol. 14, issue 1, 5-16

Abstract: Trade credit, the credit extended to buyers by suppliers who let them buy now and pay later, is an important financing method for many buyers. Any policy change by buyers in accounts payable, a measure for trade credit, results in appreciation or frustration on the supplier side. Even though, such effects have been well documented in the literature, an empirical study on the subject is surprisingly lacking. As an example, a certain buyer might change the payment policy by extending or shortening the periods of the payments. We investigate how and if the payment policy change of the buyer affects the supplier’s operations, especially on the perspective of inventory of suppliers. This study further investigates how changes in a firm’s accounts payable days and accounts receivable days affect its inventory turnover days.

Keywords: Trade Credit; Inventory; Payment Policy Change (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://eccsf.ulbsibiu.ro/RePEc/blg/journl/14101abdiev.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:blg:journl:v:14:y:2019:i:1:p:5-16

Access Statistics for this article

More articles in Studies in Business and Economics from Lucian Blaga University of Sibiu, Faculty of Economic Sciences Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Mihaela Herciu ().

 
Page updated 2019-12-10
Handle: RePEc:blg:journl:v:14:y:2019:i:1:p:5-16