Factoring as a Financial Alternative for Development of Companies: Evidence from Bulgaria

Galya Taseva-Petkova ()
Additional contact information
Galya Taseva-Petkova: University of National and World Economy; Economic Research Institute – BAS, Sofia, Bulgaria

Business & Management Compass, 2017, issue 3, 252-266

Abstract: The aim of the article is to investigate the existence of a dependence between the use of factoring by the companies in Bulgaria and their financial condition and development opportunities. The analysis is based on data from an empirical sociological survey among 1000 non-financial enterprises with different main activity and size. The study by the methods ? - square and non-parametric dispersion analysis (Kruskal-Wallis test) shows the existence of consequential relationships between the use of factoring and selected indicators of financial condition and opportunities for enterprise development. Such indicators are: the turnover of firms; the growth of added value; reducing the cost of each production unit; investment and innovation activities of firms. It can be concluded that companies using factoring generally have better financial indicators, they are more innovative and have higher investment activity, which creates better opportunities for their development.

Keywords: factoring; trade credit; financial situation of enterprise; investments; Bulgaria (search for similar items in EconPapers)
JEL-codes: G30 G31 G32 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
http://journal.ue-varna.bg/uploads/20171123014210_4080107255a16d03281d47.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:vrn:journl:y:2017:i:3:p:252-266

Access Statistics for this article

Business & Management Compass is currently edited by Julian Vasilev

More articles in Business & Management Compass from University of Economics Varna Contact information at EDIRC.
Bibliographic data for series maintained by Yana Doneva ().