A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress
Trade credit, the credit extended to buyers by suppliers who let them buy now and pay later, is an important financing method for many buyers. Any policy change by buyers in accounts payable, a measure for trade credit, results in appreciation or frustration on the supplier side. Even though, such e...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2019-04-01
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| Series: | Studies in Business and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/sbe-2019-0001 |
| _version_ | 1818367196209872896 |
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| author | Abdiev Jamol Akalin Gurkan |
| author_facet | Abdiev Jamol Akalin Gurkan |
| author_sort | Abdiev Jamol |
| collection | DOAJ |
| description | Trade credit, the credit extended to buyers by suppliers who let them buy now and pay later, is an important financing method for many buyers. Any policy change by buyers in accounts payable, a measure for trade credit, results in appreciation or frustration on the supplier side. Even though, such effects have been well documented in the literature, an empirical study on the subject is surprisingly lacking. As an example, a certain buyer might change the payment policy by extending or shortening the periods of the payments. We investigate how and if the payment policy change of the buyer affects the supplier’s operations, especially on the perspective of inventory of suppliers. This study further investigates how changes in a firm’s accounts payable days and accounts receivable days affect its inventory turnover days. |
| first_indexed | 2024-12-13T22:48:12Z |
| format | Article |
| id | doaj.art-de0ffebb72d04aadac65ef57bfadf927 |
| institution | Directory Open Access Journal |
| issn | 2344-5416 |
| language | English |
| last_indexed | 2024-12-13T22:48:12Z |
| publishDate | 2019-04-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj.art-de0ffebb72d04aadac65ef57bfadf9272022-12-21T23:28:40ZengSciendoStudies in Business and Economics2344-54162019-04-0114151610.2478/sbe-2019-0001sbe-2019-0001A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial StressAbdiev Jamol0Akalin Gurkan1Eastern Illinois UniversityEastern Illinois UniversityTrade credit, the credit extended to buyers by suppliers who let them buy now and pay later, is an important financing method for many buyers. Any policy change by buyers in accounts payable, a measure for trade credit, results in appreciation or frustration on the supplier side. Even though, such effects have been well documented in the literature, an empirical study on the subject is surprisingly lacking. As an example, a certain buyer might change the payment policy by extending or shortening the periods of the payments. We investigate how and if the payment policy change of the buyer affects the supplier’s operations, especially on the perspective of inventory of suppliers. This study further investigates how changes in a firm’s accounts payable days and accounts receivable days affect its inventory turnover days.https://doi.org/10.2478/sbe-2019-0001trade creditinventorypayment policy change |
| spellingShingle | Abdiev Jamol Akalin Gurkan A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress Studies in Business and Economics trade credit inventory payment policy change |
| title | A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress |
| title_full | A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress |
| title_fullStr | A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress |
| title_full_unstemmed | A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress |
| title_short | A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress |
| title_sort | close look into supplier policy changes in response to their buyers financial stress |
| topic | trade credit inventory payment policy change |
| url | https://doi.org/10.2478/sbe-2019-0001 |
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