Short-term Finance and Trade Credit

• Reza Pourali, Mohammad ^[1] ; Samadi Largani, Mahmood ^[1] ; Hasanpour, Hadi ^[1] ; Ebrahimi, Mohaddeseh ^[1]
  1. [1] Islamic Azad University

     Islamic Azad University

     Irán

     
• Localización: Revista Publicando, ISSN-e 1390-9304, Vol. 5, Nº. 15, 2, 2018, págs. 1674-1687
• Idioma: inglés
• Enlaces
  • Texto completo
• Resumen

  • Trade credit plays a main role in the commercial activities of every company and trade credit in the company shows the amount of trust of suppliers and creditors to the company. Companies with the good trade credit receive their required goods and service from suppliers without payment of cash and banks and other creditors proceed to confer the facilities by consideration of trade credit of the company. Therefore, one can consider the trade credit as a short-term investment instrument. This research intends to examine the relationship between short-term finance and trade credits in the companies agreed in stock exchange of Tehran during 2012-2016. Hence, one has been selected a sample of 90 companies by the method of systematic elimination. Result of this research implies significant and reverse relationship between short-term finance and trade credit. This result shows that well-off companies with a high credit can carry their purchases as credit and have lesser requirement to the finance out of company.

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