Crafty credit? the strategic use of trade credit
Joint Authors
Yassia, Salima
Boden, Rebecca
Guermat, Cherif
Source
Algerian Business Performance Review
Issue
Vol. 2012, Issue 1 (30 Jun. 2012), pp.35-50, 16 p.
Publisher
Publication Date
2012-06-30
Country of Publication
Algeria
No. of Pages
16
Main Subjects
Financial and Accounting Sciences
Topics
Abstract EN
This paper explores the contribution that trade credit can and does make as a competitive device that can add value to companies when used strategically.
By reference to the literature, we argue that trade credit is not merely a short-term collection issue, and that, used proactively, it can be a source of competitive advantage.
We then develop an empirical model to test the relationship between trade credit and sales / profitability to determine whether, and the extent to which, trade credit constitutes a strategic tool.
We find, inter alia, evidence that, when used strategically to enhance competitive advantage, firms have a discernible optimal level of trade credit.
Despite data limitations, we conclude that our model demonstrates a viable methodology that could be applied usefully to an extended data set.
American Psychological Association (APA)
Yassia, Salima& Boden, Rebecca& Guermat, Cherif. 2012. Crafty credit? the strategic use of trade credit. Algerian Business Performance Review،Vol. 2012, no. 1, pp.35-50.
https://search.emarefa.net/detail/BIM-340995
Modern Language Association (MLA)
Guermat, Cherif…[et al.]. Crafty credit? the strategic use of trade credit. Algerian Business Performance Review No. 1 (2012), pp.35-50.
https://search.emarefa.net/detail/BIM-340995
American Medical Association (AMA)
Yassia, Salima& Boden, Rebecca& Guermat, Cherif. Crafty credit? the strategic use of trade credit. Algerian Business Performance Review. 2012. Vol. 2012, no. 1, pp.35-50.
https://search.emarefa.net/detail/BIM-340995
Data Type
Journal Articles
Language
English
Notes
Includes appendix : p. 50
Record ID
BIM-340995