Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Entire DC Network
The Motives Of Trade Credit Usage And The Importance Of Risk Perception For Decision-Making Behavior, Kun Zhao
The Motives Of Trade Credit Usage And The Importance Of Risk Perception For Decision-Making Behavior, Kun Zhao
Dissertations
The objective of this study is to discuss two motives of trade credit usage for large and small firms. To examine one of the motives–transaction motive—the study models a circulation mechanism in trade credit. The nature of the mechanism is such that firms are motivated to balance their trade credit inflows (accounts payable) with their outflows (accounts receivable). An empirical test is therefore needed to examine this issue. The findings in Chapter 1 support the theory of transaction motive that firms with more bank tolerance are more likely to advance the flow of trade credit to their clients. In particular, …