Patterns in Corporate Trade Credit Management: Insights Into the Polish Trade Sector

• Autorzy: Julia Koralun-Bereźnicka
• Języki publikacji: EN

Abstrakty

EN

Purpose: The study identifies the intra-industry and cross-size regularities in corporate trade credit policies of Polish firms operating in the trade sector. It aims to verify whether the intra-industry effect is more likely to affect corporate trade credit behaviour than the firm size effect. Design/methodology/approach: The research is based on yearly data from the ECCBSO trade credit database for three trade industry sub-sections (motor vehicle trade, wholesale trade and retail trade) and four size groups in the period 2005-2017. The rich collection of variables employed enables detailed insights into the corporate trade credit management practices. Methods include the analysis of variance, cluster analysis and multidimensional scaling. Findings: Findings provide evidence that both size-related features and intra-industry specificity are significant determinants of corporate trade credit behaviour. The study also reveals that the industrial breakdown of trade firms into sub-sections is of greater importance in comparison to the size-based classification of firms. Research limitations/implications: The dataset employed in the research offers aggregated information instead of firm-level data, which inevitably reduces the information resource, but also ensures data harmonisation and comparability. Narrowing the research to just one industrial section in Poland makes the study specific. Further investigation of the patterns in trade credit could be directed at other industries and (or) other countries. Practical implications: The reported findings might be of interest to those involved in corporate finance management. Recognising the differences in receivables and payables management resulting mainly from the intra-industry specificity can contribute to a better understanding of business financing and its operational functioning. This knowledge may support the effective management of receivables and liabilities, especially in companies operating in developing countries. Originality/value: The study contributes to the existing literature mainly through the application of the multi-sectional approach to private companies, covering the dimension of time, firm size and industry sub-section. This offers grounds for detailed multi-layered conclusions in terms of corporate trade credit behaviour in the Polish trade sector.(original abstract)

Słowa kluczowe

EN

Trade credit; Enterprise behaviour

PL

Kredyt kupiecki; Zachowania przedsiębiorstw

• Czasopismo: Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska
• Rocznik: 2022
• Numer: z. 166
• Strony: 411--433

Twórcy

autor

Julia Koralun-Bereźnicka

• University of Gdansk, Poland

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Identyfikatory

DOI

10.29119/1641-3466.2022.166.27