Manufacturing SMEs' Credit Collection Period and its Determinants: Some Evidence from Malaysia

Zainudin Nasruddin and Regupathi Angappan
Additional contact information
Zainudin Nasruddin: Universiti Utara Malaysia
Regupathi Angappan: Universiti Utara Malaysia

Folia Oeconomica Stetinensia, 2010, vol. 9, issue 1, 83-104

Abstract: Collection period is the length of time taken by a company's credit customers to pay their debts. During this time, company resources are tied up as it is effectively financing its customers' purchases out of its own funds. Credit collection period is, therefore, an important factor that might have an impact on the cash flows, and hence, the survival of a company. An attempt has been made in this paper to explore the profile of credit collection period among small and medium-sized manufacturing enterprises in Malaysia. Besides that, we also identify some determinants of this credit collection period. The study is based primarily on secondary data derived from financial statements of manufacturing SMEs from 2001 through 2004. The findings of this study indicate that liquidity, efficiency, profitability, industry sub-sector and size have some influence over the credit collection period.

Keywords: trade credit; collection period; SMEs; trade credit; collection period; SMEs (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/v10031-010-0011-9 (text/html)

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:vrs:foeste:v:9:y:2010:i:1:p:83-104:n:8

DOI: 10.2478/v10031-010-0011-9

Access Statistics for this article

Folia Oeconomica Stetinensia is currently edited by Waldemar Tarczyński

More articles in Folia Oeconomica Stetinensia from Sciendo
Bibliographic data for series maintained by Peter Golla ().