[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/pkp/ijomas/v10y2021i2p52-68id1091.html
   My bibliography  Save this article

Trade Credit and Performance of Food Production Companies in Vietnam

Author

Listed:
  • Pham Thi Ha An
Abstract
Trade credit (TR) plays an important role in financial structure and impacts on company performance. The issues related to TR have long been researched, with the first studies conducted by Nadiri (1969); Schwartz (1974); Lewellen, McConnell, and Scott (1980); Ferris (1981); Emery (1984). This study applies panel regression models, such as Pooled OLS, Fixed Effects, Random Effects, and FGLS, to evaluate the impact of TR on the performance of Food Production Companies in Vietnam. Company performance is measured by the Data Envelopment Analysis model (DEA). In addition, the Bayesian analysis method is used to test the robustness of the estimators from the models evaluating the effect of TR on company performance. Using annual data from the financial statements of 35 Vietnamese Food Production companies in the period 2008-2020, provided by Thomson Reuters, the results reveal a non-linear relationship between TR and company performance with an inverted U shape. Specifically, when TR, or accounts receivable on total assets, increases, company performance will also increase. However, when the increase in accounts receivable on total assets exceeds a certain limit, company performance will decrease. Based on the results, some policy implications are suggested to manage the accounts receivables effectively in Vietnamese Food Production Companies.

Suggested Citation

  • Pham Thi Ha An, 2021. "Trade Credit and Performance of Food Production Companies in Vietnam," International Journal of Management and Sustainability, Conscientia Beam, vol. 10(2), pages 52-68.
    • Handle: RePEc:pkp:ijomas:v:10:y:2021:i:2:p:52-68:id:1091
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/11/article/view/1091/1536
    Download Restriction: no
    File URL: https://archive.conscientiabeam.com/index.php/11/article/view/1091/4681
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:ijomas:v:10:y:2021:i:2:p:52-68:id:1091. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/11/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.