Skip to main content
Fachgebiete
Automobil + Motoren Bauwesen + Immobilien Business IT + Informatik Elektrotechnik + Elektronik Energie + Nachhaltigkeit Finance + Banking Management + Führung Marketing + Vertrieb Maschinenbau + Werkstoffe Versicherung + Risiko
DE
EN
Bücher
Zeitschriften
Themenseiten
Organisationspsychologie Projektmanagement Marketing Smart Manufacturing
Weitere Formate
Podcasts Webinare Technik Webinare Wirtschaft Kongresse Veranstaltungskalender Awards
Jetzt Einzelzugang starten
Zugang für Unternehmen
Referenzkunden
SLX-Digitalkonferenz: Zukunftswerkstatt 2024

Mehr Umsatz mit Top-Kontakten

Am 7. Mai erfahren Sie, wie Vertriebsteams Leadgenerierung, Leadnurturing und Leadstrategien effizient steuern können.
Erweiterte Suche
Anmelden
nach oben
Erschienen in:
The Question of Africa’s Economic Sectors and Development Kapitel lesen Erstes Kapitel lesen

2022 | OriginalPaper | Buchkapitel

Trade Credit Financing and Firm Growth: A Panel Study of Listed Firms in Africa

verfasst von : Stanley Kojo Dary, Haruna Issahaku, Benjamin Musah Abu

Erschienen in: The Palgrave Handbook of Africa’s Economic Sectors

Verlag: Springer International Publishing

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

Globally, trade credit is an important element of interfirm trade among non-financial firms. In response to the limited empirical evidence on trade credit financing and firm growth nexus, especially in Africa, this chapter examines the effects of trade credit financing on firm growth in African countries. It employs a panel of publicly listed firms in nineteen African countries for the period 1998–2016 from COMPUSTAT. Due to endogeneity and non-separability concerns, the chapter employs three stage least squares estimation procedure. Trade credit financing is found to have a statistically and economically significant positive impact on firm growth in Africa. The findings are robust to different measures of firm growth and trade credit financing. Therefore, policies that facilitate trade credit activity can spur firm growth in Africa.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 390 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Maschinenbau + Werkstoffe




 

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Jetzt informieren
Vorheriges Kapitel Aid for Trade and Sustainable Development in Least-Developed African Countries
Nächstes Kapitel “Flying Geese” or False Promises: Assessing the Viability of Foreign Direct Investment-Driven Industrialization in Nigeria's Shoe Manufacturing Industry
Literatur
Alarcón, S. 2011. “Trade Credit in the Spanish Agrofood Industry.” Mediterranean Journal of Economics, Agriculture and Environment 10, no. 2 (June): 51–57.
Allen, F., M. Qian and J. Xie. 2019. “Understanding Informal Financing.” Journal of Financial Intermediation 39, no. 2019 (July): 19–33.
Amha, W., T. Ferede and M. Demeke. 2013. “The Impact of Financial Access on Firm Growth: Evidence from Ethiopian Grain Traders and Millers.” Ethiopian Journal of Economics 22, no. 1 (April): 139–171.
Bams, D., J. Bos and M. Pisa. 2016. “Trade Credit: Elusive Insurance of Firm Growth” (GSBE Research Memoranda; no. 029). GSBE.
Barrot, J.-N. 2016. “Trade Credit and Industry Dynamics: Evidence from Trucking Firms.” The Journal of Finance 71, no. 5 (October): 1975–2016.
Beck. T., A. Demirguc-Kunt and V. Maksimovic. 2008. “Financing Patterns Around the World: Are Small Firms Different?” Journal of Financial Economics, 89 no. 3: 467–487.
Belsley, D. A. 1988. “Two- or Three-Stage Least Squares?” Computer Science in Economics and Management 1, no. 1 (January): 21–30.
Blakley, D. L. and A. D. Sti 1991. “Inflation and Firm Growth: A Reassessment.” In Modelling for Financial Decisions: Studies in Financial Modelling, edited by J. Spronk and B. Matarazzo. Springer, Berlin, Heidelberg.
Blazenko, G. and K. E. Vandezande. 2003. “The Product Differentiation Hypothesis for Corporate Trade Credit.” Managerial Decision Economics 24, nos. 6/7 (September/November): 457–469.
Boissay, F. and R. Gropp. 2007. “Trade Credit Defaults and Liquidity Provision by Firms.” European Central Bank Working Paper Series 753.
Bougheas, S., S. Mateut and P. Mizen. 2009. “Corporate Trade Credit and Inventories: New Evidence of a Trade-Off from Accounts Payable and Receivable.” Journal of Banking and Finance 33, no. 2 (February): 300–307.
Chaston, I. and T. Mangles. 1997. “Core Capabilities as Predictors of Growth Potential in Small Manufacturing Firms.” Journal of Small Business Management 35, no. 1 (January): 47–57.
Chen, D., M. Liu, T. Ma and X. Martin. 2017. “Accounting Quality and Trade Credit.” Accounting Horizons 31, no. 3 (September): 69–83.
Chen, K., E. M. Babb and L. F. Schrader. 1985. “Growth of Large Cooperative and Proprietary Firms in the US Food Sector.” Agribusiness 1, no. 2 (Summer): 201–210.
Cheng, S. N. and R. Pike. 2003. “The Trade Credit Decision: Evidence of UK Firms.” Management and Decision Economics 24, no. 6/7 (September/November): 419–438.
Cunat, V. 2007. “Trade Credit: Suppliers as Debt Collectors and Insurance Providers.” The Review of Financial Studies 20, no. 2 (March): 491–527.
Dary, S. K. and H. S. James Jr. 2019. “Does Investment in Trade Credit Matter for Profitability? Evidence from Publicly Listed Agro-Food Firms.” Research in International Business and Finance 47 (January): 237–250.
Demirguc-Kunt, A. and E. Detragiache. 1998. “The Determinants of Banking Crises in Developing and Developed Countries.” IMF Staff Papers, Palgrave Macmillan 45, no. 1 (March): 81–109.
Demirguc-Kunt, A. and V. Maksimovic. 1998. “Law, Finance, and Firm Growth.” The Journal of Finance 53, no. 6 (December): 2107–2137.
Dunne, T., M. J. Roberts and L. Samuelson. 1989. “The Growth and Failure of US Manufacturing Plants.” Quarterly Journal of Economics 104, no. 4 (November): 671–698.
Emery, G. W. 1984. “A Pure Financial Explanation for Trade Credit.” The Journal of Financial and Quantitative Analysis 19, no. 3 (September): 271–285.
Emery, G. W. 1987. “An Optimal Financial Response to Variable Demand.” The Journal of Financial and Quantitative Analysis 22, no. 2 (June): 209–225.
Evans, D. S. 1987. “Test of Alternative Theories of Firm Growth.” Journal of Political Economy 95, no. 4 (August): 657–674.
Ferrando, A. and K. Mulier. 2013. “Do Firms Use the Trade Credit Channel to Manage Growth?” Journal of Banking and Finance 37, no. 8 (August): 3035–3046.
Ferris, J. S. 1981. “A Transactions Theory of Trade Credit Use.” Quarterly Journal of Economics 96, no. 2 (May): 243–270.
Fisman, R. and I. Love. 2003. “Trade Credit, Financial Intermediary Development, and Industry Growth.” The Journal of Finance 58, no. 1 (February): 353–374.
Fisman, R. and J. Svensson. 2007. “Are Corruption and Taxation Really Harmful to Growth? Firm Level Evidence.” Journal of Development Economics 83, no. 1 (May): 63–75.
Fulton, M., J. Fulton, S. Clark and C. Parliament. 1995. “Cooperative Growth: Is It Constrained?” Agribusiness 11, no. 3 (May/June): 245–261.
García-Teruel, P. J. and P. Martínez-Solano. 2010. “Determinants of Trade Credit: A Comparative Study of European SMEs.” International Small Business Journal 28, no. 3 (June): 215–233.
Gibrat, R. 1931. Les Inégalités Econmiques. Paris: Librairie Du Recueil Sirey.
Goldsmith, R. W. 1969. Financial Structure and Development. Yale, USA and New Haven: Yale University Press.
Hao, J. and W. C. Hunter. 1997. “A Test of the Impact of Financial Innovation on Economic Growth.” Managerial Finance 23, no. 11 (November): 64–78.
Hermelo, F. D. and R. Vassolo. 2007. “The Determinants of Firm’s Growth: An Empirical Examination.” Revista ABANTE 10, no. 1: 3–20.
Hyndman, K. and G. Serio. 2010. “Competition and Inter-Firm Credit: Theory and Evidence from Firm-Level Data in Indonesia.” Journal of Development Economics 93, no. 1 (September): 88–108.
Jang, S. S. and K. Park. 2011. “Inter-Relationship Between Firm Growth and Profitability.” International Journal of Hospitality Management 30, no. 4 (December): 1027–1035.
Kwenda, F. and M. Holden. 2014. “Trade Credit in Corporate Financing in South Africa: Evidence from a Dynamic Panel Data Analysis.” Investment Management and Financial Innovations 11, no. 4 (December): 268–278.
Kruger, M. E. 2004. Entrepreneurial Theory and Reativity (Chapter 2). South Africa: University of Pretoria etd.
Levine, R. and S. Zervos. 1998. “Stock Markets, Banks and Economic Growth.” American Economic Review 88, no. 3 (June): 537–558.
Long, M. S., I. B. Malitz and A. Ravid. 1993. “Trade Credit, Quality Guarantees, and Product Marketability.” Financial Management 22, no. 4 (Winter): 117–127.
Lorunka, C., A. Kessler, H. Frank and M. Lueger. 2011. “Conditions for Growth in One-Person Startups: A Longitudinal Study Spanning Eight Years.” Psicothema 23, no. 3 (August): 446–452.
Mateev, M. and Y. Anastasov. 2010. “Determinants of Small and Medium Sized Fast Growing Enterprises in Central and Eastern Europe: A Panel Data Analysis.” Financial Theory and Practice 34, no. 3 (June): 269–295.
McKinnon, R. I. 1973. Money and Capital in Economic Development. Washington, DC: Brookings Institution Press.
McMillan, J. and C. Woodruff. 1999. “Interfirm Relationships and Informal Credit in Vietnam.” Quarterly Journal of Economics 114, no. 4 (November): 1285–1320.
Meltzer, A. H. 1960. “Mercantile Credit, Monetary Policy, and the Size of Firms.” The Review of Economics and Statistics 42, no. 4: 429–437.CrossRef
Mian, S. and C. Smith. 1992. “Accounts Receivables Management Policy: Theory and Evidence.” The Journal of Finance 47, no. 1 (March): 167–200.
Nadiri, M. I. 1969. “The Determinants of Trade Credit in the US Total Manufacturing Sector.” Econometrica 37, no. 3 (August): 408–423.
Niskanen, J. and M. Niskanen. 2006. “The Determinants of Corporate Trade Credit Policies in a Bank-Dominated Financial Environment: The Case of Finnish Small Firms.” European Financial Management 12, no. 1 (January): 81–102.
Oh, S. and W. S. Kim. 2016. “Growth Opportunities and Trade Credit: Evidence from Chinese Listed Firms.” Applied Economics 48, no. 56 (May): 5437–5447.
Petersen, M. A. and R. G. Rajan. 1997. “Trade Credit: Theories and Evidence.” The Review of Financial Studies 10, no. 3 (July): 661–692.
Rajan, R. J. and L. Zingales. 1998. “Financial Dependence and Growth.” American Economic Review 88, no. 3 (June): 559–586.
Rahaman, M. M. 2011. “Access to Financing and Firm Growth.” Journal of Banking and Finance 35, no. 3 (March): 709–723.
Santarelli, E., L. Klomp and A. R. Thurik. 2006. “Gibrat’s Law: An Overview of the Empirical Literature.” In Entrepreneurship, Growth, and Innovation: International Studies in Entrepreneurship, edited by E. Santarelli. Springer, Boston, MA.
Schwartz, R. A. 1974. “An Economic Model of Trade Credit.” Journal of Financial and Quantitative Analysis 9, no. 4 (September): 643–657.
Shaw, E. S. 1973. Financial Deepening in Economic Development. New York: Oxford University Press.
Smith, J. K. 1987. “Trade Credit and Informational Asymmetry.” The Journal of Finance 42, no. 4 (September): 863–872.
Standard and Poor's Compustat Services. 2017. Compustat Global Annual Data (1998–2016). Retrieved from Wharton Research Data Service.
Variyam, J. N. and D. S. Kraybill. 1992. “Empirical Evidence on Determinants of Firm Growth.” Economics Letters 38, no. 1992 (January): 31–36.
Yasuda, T. 2005. “Firm Growth, Size, Age and Behavior in Japanese Manufacturing.” Small Business Economics 24, no. 1 (February): 1–15.
Yazdanfar, D. and P. Öhman. 2015. “The Impact of Credit Supply on Sales Growth: Swedish Evidence.” International Journal of Managerial Finance 11, no. 3 (June): 329–340.
Zellner, A. and H. Theil. 1962. “Three-Stage Least Squares: Simultaneous Estimation of Simultaneous Equations.” Econometrica 30, no. 1: 54–78.CrossRef
Metadaten
Titel
Trade Credit Financing and Firm Growth: A Panel Study of Listed Firms in Africa
verfasst von
Stanley Kojo Dary
Haruna Issahaku
Benjamin Musah Abu
Copyright-Jahr
2022
Buch
The Palgrave Handbook of Africa’s Economic Sectors

Print ISBN: 978-3-030-75555-3

Electronic ISBN: 978-3-030-75556-0

Copyright-Jahr: 2022

DOI
https://doi.org/10.1007/978-3-030-75556-0_21

Premium Partner

    Bildnachweise