Conditioning Factors of Late Payment of Trade Credit
This article presents new evidence on the practice of financial delinquency of trade credits. The low level of punctuality in pa yments to suppliers can negatively affect the liquidity of the lender and be transmitted to all companies in the value chain, creating uncertain...
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| Format: | Article |
| Language: | English |
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FUCAPE Business School
2015-01-01
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| Series: | BBR: Brazilian Business Review |
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| Online Access: | http://www.redalyc.org/articulo.oa?id=123041059004 |
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| _version_ | 1825207324595191808 |
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| author | Claudinê Jordão de Carvalho |
| author_facet | Claudinê Jordão de Carvalho |
| author_sort | Claudinê Jordão de Carvalho |
| collection | DOAJ |
| description | This article presents new evidence on the practice of financial delinquency of trade credits. The low level of punctuality in pa yments to suppliers can negatively affect the liquidity of the lender and be transmitted to all companies in the value chain, creating uncertainties in the business environment. The aim is to identify and analyse the factors responsible for delay in paymen t to suppliers. A survey with 554 brazilian companies located in the provinces of Minas Gerais and São Paulo enable application of the model of ordered logit regression analysis . T he dependent variable is the financial delinquency level of companies that d o or do not delay the payment of duties , and the independent variables are the demographic, financial , and operational inherent demand for financing and moral hazard. The results show that companies with more short - term debt s , beginner on its business acti vities , and that have a higher proportion of customers who pay their credit purchase on time are more likely to delay their obligations to suppliers. |
| format | Article |
| id | doaj-art-1ec43d2238e24b7ca3b0156d6b61b3a8 |
| institution | Kabale University |
| issn | 1807-734X |
| language | English |
| publishDate | 2015-01-01 |
| publisher | FUCAPE Business School |
| record_format | Article |
| series | BBR: Brazilian Business Review |
| spelling | doaj-art-1ec43d2238e24b7ca3b0156d6b61b3a82025-02-06T23:39:30ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2015-01-017291Conditioning Factors of Late Payment of Trade CreditClaudinê Jordão de CarvalhoThis article presents new evidence on the practice of financial delinquency of trade credits. The low level of punctuality in pa yments to suppliers can negatively affect the liquidity of the lender and be transmitted to all companies in the value chain, creating uncertainties in the business environment. The aim is to identify and analyse the factors responsible for delay in paymen t to suppliers. A survey with 554 brazilian companies located in the provinces of Minas Gerais and São Paulo enable application of the model of ordered logit regression analysis . T he dependent variable is the financial delinquency level of companies that d o or do not delay the payment of duties , and the independent variables are the demographic, financial , and operational inherent demand for financing and moral hazard. The results show that companies with more short - term debt s , beginner on its business acti vities , and that have a higher proportion of customers who pay their credit purchase on time are more likely to delay their obligations to suppliers.http://www.redalyc.org/articulo.oa?id=123041059004hidden informationinformation asymmetryfinancial crimepurchase on credit |
| spellingShingle | Claudinê Jordão de Carvalho Conditioning Factors of Late Payment of Trade Credit BBR: Brazilian Business Review hidden information information asymmetry financial crime purchase on credit |
| title | Conditioning Factors of Late Payment of Trade Credit |
| title_full | Conditioning Factors of Late Payment of Trade Credit |
| title_fullStr | Conditioning Factors of Late Payment of Trade Credit |
| title_full_unstemmed | Conditioning Factors of Late Payment of Trade Credit |
| title_short | Conditioning Factors of Late Payment of Trade Credit |
| title_sort | conditioning factors of late payment of trade credit |
| topic | hidden information information asymmetry financial crime purchase on credit |
| url | http://www.redalyc.org/articulo.oa?id=123041059004 |
| work_keys_str_mv | AT claudinejordaodecarvalho conditioningfactorsoflatepaymentoftradecredit |