6533b827fe1ef96bd12864b4

RESEARCH PRODUCT

Trade credit and determinants of profitability in Europe. The case of the agri-food industry

Alfredo Juan Grau GrauAraceli Reig

subject

Marketing050208 financeFood industrybusiness.industrymedia_common.quotation_subject05 social sciencesMonetary economicsTrade credit0502 economics and businessFinancial crisisProfitability indexBusinessMarket powerBusiness and International Management050203 business & managementFinanceReputationmedia_commonPanel data

description

Abstract The objective of this paper is to analyse the effect that trade credit has on the determinants of profitability during the crisis period in Europe. We use panel data for a total of 24,177 European agri-food companies from 2010 to 2014. Among our main contributions, we highlight that we isolate the sector effect and study the country effect by separating the different policies and customs with respect to the granting of trade credit. The results confirm, in general, that trade credit affects profitability depending on the country and the characteristics of size, specificity, market power or reputation.

yearjournalcountryeditionlanguage
2018-10-01International Business Review
https://doi.org/10.1016/j.ibusrev.2018.02.005