Does Advertising Facilitate Supplier-Provided Trade Credit?

Farooq Omar () and Saleem Kashif
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Farooq Omar: School of Business, 101689 ADA University , Ahmedbey Agaoglu 61, Baku, AZ1008, Azerbaijan
Saleem Kashif: University of Wollongong in Dubai, Dubai, United Arab Emirates

Review of Marketing Science, 2024, vol. 22, issue 1, 253-279

Abstract: Using the data of non-financial firms from India, the paper finds that firms with large advertising budget tend to receive more trade credit from their suppliers than firms with low advertising budget. The findings are consistent with the assumption that advertising reduces information asymmetries, builds brand image, and improves firm performance. All of these factors facilitate the access to trade credit. The findings of this paper hold after numerous sensitivity checks.

Keywords: information asymmetry; accounts payable; emerging markets; marketing; India (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1515/roms-2024-0057

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