632
Views
13
CrossRef citations to date
0
Altmetric
Articles

The value of trade credit under risk controls

, , &
Pages 2498-2521 | Received 18 Sep 2018, Accepted 23 Oct 2019, Published online: 06 Mar 2020

References

  • Abad, P. L., and C. K. Jaggi. 2003. “A Joint Approach for Setting Unit Price and the Length of the Credit Period for a Seller when End Demand is Price Sensitive.” International Journal of Production Economics 83 (2): 115–122. doi: 10.1016/S0925-5273(02)00142-1
  • Annadurai, K., and R Uthayakumar. 2015. “Decaying Inventory Model with Stock-Dependent Demand and Shortages Under Two-Level Trade Credit.” The International Journal of Advanced Manufacturing Technology 77: 525–543. doi: 10.1007/s00170-014-6457-4
  • Atasu, A, L. B. Toktay, and L. N. Van Wassenhove. 2013. “How Collection Cost Structure Drives a Manufacturer's Reverse Channel Choice.” Production and Operations Management 22 (5): 1089–1102.
  • Barrot, J. N. 2016. “Trade Credit and Industry Dynamics: Evidence From Trucking Firms.” Journal of Finance 71 (5): 1975–2016. doi: 10.1111/jofi.12371
  • Bazzana, F., G. De Laurentis, R. Pisani, and R. T. Colonel. 2019. “Can Domestic Trade Credit Insurance Contracts Be Effective Collateral for Banks? A Quantitative Study of the Italian Market.” European Journal of Finance.
  • Berman, O., D. Perry, and W. Stadje. 2006. “A Fluid EOQ Model with a Two-state Random Environment.” Probability in the Engineering and Informational Sciences 20 (2): 329–349. doi: 10.1017/S0269964806060207
  • Bitler, M. P., A. M. Robb, and J. D. Wolken. 2001. “Financial Services Used by Small Businesses: Evidence from the 1998 Survey of Small Business Finances.” Federal Reserve Bulletin. Apr. 2001.
  • Board of Governors of the Federal Reserve System. 2017. “Board of Governors of the Federal Reserve System.” Report to the Congress on the Availability of Credit to Small Businesses. Sep. 2017.
  • Bradley, D. B., and M. J. Rubach. 2002. Trade Credit and Small Businesses: A Cause of Business Failures? The Small Business Advancement National Center, University of Central Arkansas.
  • Cai, G., X. Chen, and Z. Xiao. 2014. “The Roles of Bank and Trade Credits: Theoretical Analysis and Empirical Evidence.” Production and Operations Management 23 (4): 583–598. doi: 10.1111/poms.12035
  • Cao, E., and M. Yu. 2018. “Trade Credit Financing and Coordination for An Emission-Dependent Supply Chain.” Computers & Industrial Engineering 119: 50–62. doi: 10.1016/j.cie.2018.03.024
  • Chan, C. K., Y. C. E. Lee, and S. K. Goyal. 2010. “A Delayed Payment Method in Co-ordinating a Single-Vendor Multi-Buyer Supply Chain.” International Journal of Production Economics 127 (1): 95–102. doi: 10.1016/j.ijpe.2010.04.046
  • Chang, H.-C., C.-H. Ho, L.-Y. Ouyang, and C.-H. Su. 2009. “The Optimal Pricing and Ordering Policy for An Integrated Inventory Model when Trade Credit Linked to Order Quantity.” Applied Mathematical Modelling 33: 2978–2991. doi: 10.1016/j.apm.2008.10.007
  • Chao, X., J. Chen, and S. Wang. 2008. “Dynamic Inventory Management with Cash Flow Constraints.” Naval Research Logistics 55 (8): 758–768. doi: 10.1002/nav.20322
  • Chen, L.-H., and F.-S. Kang. 2007. “Integrated Vendor-Buyer Cooperative Inventory Models with Variant Permissible Delay in Payments.” European Journal of Operational Research 183 (2): 658–673. doi: 10.1016/j.ejor.2006.10.035
  • Chen, L.-H., and F.-S. Kang. 2010. “Coordination Between Vendor and Buyer Considering Trade Credit and Items of Imperfect Quality.” International Journal of Production Economics 123: 52–61. doi: 10.1016/j.ijpe.2009.06.043
  • Chen, L., G. Kok, and J. Tong. 2013. “The Effect of Payment Schemes on Inventory Decisions: The Role of Mental Accounting.” Management Science 59 (2): 436–451. doi: 10.1287/mnsc.1120.1638
  • Chen, Y. F., Y. Lu, and M. Xu. 2012. “Optimal Inventory Control Policy for Periodic-Review Inventory Systems with Inventory-Level-Dependent Demand.” Naval Research Logistics 59: 430–440. doi: 10.1002/nav.21498
  • Chen, X., and A. Wang. 2012. “Trade Credit Contract with Limited Liability in the Supply Chain with Budget Constraints.” Annals of Operations Research 196: 153–165. doi: 10.1007/s10479-012-1119-0
  • Chod, J. 2019. “Inventory, Risk Shifting, and Trade Credit.” Management Science 63 (10): 3207–3225. doi: 10.1287/mnsc.2016.2515
  • Chod, J., E. Lyandres, and S. A. Yang. 2019. “Trade Credit and Supplier Competition.” Journal of Financial Economics 131: 484–505. doi: 10.1016/j.jfineco.2018.08.008
  • Cunat, V. 2007. “Trade Credit: Suppliers As Debt Collectors and Insurance Providers.” Review of Financial Studies 20: 491–527. doi: 10.1093/rfs/hhl015
  • Deng, S., C. Gu, G. Cai, and Y. Li. 2017. “Financing Multiple Heterogeneous Suppliers in Assembly Systems.” Manufacturing & Service Operations Management 20 (1): 53–69. doi: 10.1287/msom.2017.0677
  • Desai, P. 2000. “Multiple Messages to Retain Retailers: Signaling New Product Demand.” Marketing Science 19 (4): 381–389. doi: 10.1287/mksc.19.4.381.11793
  • Fisman, R. 2001. “Trade Credit and Productive Efficiency in Developing Countries.” World Development29 (2): 311–321. doi: 10.1016/S0305-750X(00)00096-6
  • Fisman, R., and I. Love. 2003. “Trade Credit, Financial Intermediary Development, and Industry Growth.” The Journal of Finance 58 (1): 353–374. doi: 10.1111/1540-6261.00527
  • Garcia-Teruel, P. J., and P. Martinez-Solano. 2010. “Determinants of Trade Credit: A Comparative Study of European SMEs.” International Small Business Journal 28 (3): 215–233. doi: 10.1177/0266242609360603
  • Gupta, D., and L. Wang. 2009. “A Stochastic Inventory Model with Trade Credit.” Manufacturing and Service Operations Management 11 (1): 4–18. doi: 10.1287/msom.1070.0191
  • Huang, L., Q. Ying, S. Yang, and H. Hassan. 2019. “Trade Credit Financing and Sustainable Growth of Firms: Empirical Evidence From China.” Sustainability 11: 1032. doi: 10.3390/su11041032
  • Jaber, M. Y., and I. H. Osman. 2006. “Coordinating a Two-Level Supply Chain with Delay in Payments and Profit Sharing.” Computers and Industrial Engineering 50 (4): 385–400. doi: 10.1016/j.cie.2005.08.004
  • Jing, B., X. Chen, and G. Cai. 2012. “Equilibrium Financing in a Distribution Channel with Capital Constraint.” Production and Operations Management 21 (6): 1090–1101. doi: 10.1111/j.1937-5956.2012.01328.x
  • Kouvelis, P., and W. Zhao. 2011. “The Newsvendor Problem and Price-only Contract when Bankruptcy Costs Exist.” Production and Operations Management 20 (6): 921–936. doi: 10.1111/j.1937-5956.2010.01211.x
  • Kouvelis, P., and W. Zhao. 2012. “Financing the Newsvendor: Supplier Vs. Bank, and the Structure of Optimal Trade Credit Contracts.” Operations Research 60 (3): 566–580. doi: 10.1287/opre.1120.1040
  • Lee, C. H., and B. D. Rhee. 2010. “Coordination Contracts in the Presence of Positive Inventory Financing Costs.” International Journal of Production Economics 124: 331–339. doi: 10.1016/j.ijpe.2009.11.028
  • Lee, C. H., and B. D. Rhee. 2011. “Trade Credit for Supply Chain Coordination.” European Journal of Operational Research 214 (1): 136–146. doi: 10.1016/j.ejor.2011.04.004
  • Lezgovko, A., and A. Jakovlev. 2017. “The Evaluation of Trade Credit Insurance in Lithuanian Business Market As a Credit Risk Management Tool.” Economics and Culture 14 (1): 5–20. doi: 10.1515/jec-2017-0001
  • Li, L., M. Shubik, and M. J. Sobel. 2013. “Control of Dividends, Capital Subscriptions, and Physical Inventories.” Management Science 59 (5): 1107–1124. doi: 10.1287/mnsc.1120.1629
  • Li, T., X. Zhao, and J. Xie. 2015. “Inventory Management for Dual Sales Channels with Inventory-Level-Dependent Demand.” Journal of the Operational Research Society 66: 488–499. doi: 10.1057/jors.2014.15
  • Li, Y, X. Zhen, and X. Cai. 2016. “Trade Credit Insurance, Capital Constraint, and the Behavior of Manufacturers and Banks.” Annals of Operations Research 240 (2): 395–414. doi: 10.1007/s10479-014-1602-x
  • Love, I., L. A. Preve, and V. Sarria-Allende. 2007. “Trade Credit and Bank Credit: Evidence From Recent Financial Crises.” Journal of Financial Economics 83: 453–469. doi: 10.1016/j.jfineco.2005.11.002
  • MacLean, L. C., W. T. Ziemba, and G. Blazenko. 1992. “Growth Versus Security in Dynamic Investment Analysis.” Management Science 38 (11): 1562–1585. doi: 10.1287/mnsc.38.11.1562
  • Maddah, B. S., M. Y. Jaber, and N. E. Abboud. 2004. “Periodic Review (s, S) Inventory Model with Permissible Delay in Payments.” The Journal of the Operational Research Society 55 (2): 147–159. doi: 10.1057/palgrave.jors.2601675
  • Maverick, J. B. 2019. “Financial Risk: The Major Kinds That Companies Face.” Investopedia. Accessed July 17, 2019. https://www.investopedia.com/ask/answers/062415/what-are-major-categories-financial-risk-company.asp.
  • Ozsen, L. 2004. “Location-Inventory Planning Models: Capacity Issues and Solution Algorithms.” Dissertation for the Degree of Doctor of Philosophy, Northwestern University.
  • Peura, H., S. A. Yang, and G. Lai. 2017. “Trade Credit in Competition: A Horizontal Benefit.” Manufacturing & Service Operations Management 19 (2): 263–289. doi: 10.1287/msom.2016.0608
  • PYMNTS. 2019. Fundbox and OroCommerce Team to Break the $3.1T Trade Credit Logjam. June 25, 2019.
  • Rui, H., and G. Lai. 2015. “Sourcing with Deferred Payment and Inspection Under Supplier Product Adulteration Risk.” Production and Operations Management 24 (6): 934–946. doi: 10.1111/poms.12313
  • Sabri, E. H., and B. M. Beamon. 2000. “A Multi-Objective Approach to Simultaneous Strategic and Operational Planning in Supply Chain Design.” Omega 28 (5): 581–598. doi: 10.1016/S0305-0483(99)00080-8
  • Sana, S. S., and K. S. Chaudhuri. 2008. “A Deterministic EOQ Model with Delays in Payments and Price-discount Offers.” European Journal of Operational Research 184: 509–533. doi: 10.1016/j.ejor.2006.11.023
  • Sellingtogiftshops.com. 2015. “Typical Payment Terms When Wholesaling (November 10, 2015).” Accessed May 15, 2016. http://sellingtogiftshops.com/2015/11/10/typical-payment-terms-when-wholesaling/
  • Shen, Z. M., and L. Qi. 2007. “Incorporating Inventory and Routing Costs in Strategic Location Models.” European Journal of Operational Research 179: 372–389. doi: 10.1016/j.ejor.2006.03.032
  • Song, J.-S., and J. Tong. 2011. “Payment Schemes, Financing Costs, and Inventory Management.” Under revision. The Fuqua School of Business, Duke University.
  • Swinney, R., G. P. Cachon, and S. Netessine. 2011. “Capacity Investment Timing by Start-ups and Established Firms in New Markets.” Management Science 57 (4): 763–777. doi: 10.1287/mnsc.1110.1309
  • Teng, J.-T., C.-T. Chang, and S. K. Goyal. 2005. “Optimal Pricing and Ordering Policy Under Permissible Delay in Payments.” International Journal of Production Economics 97: 121–129. doi: 10.1016/j.ijpe.2004.04.010
  • Tiwari, S., L.-E. Cárdenas-Barrón, A.-A. Shaikh, and M. Goh. 2020. “Retailer's Optimal Ordering Policy for Deteriorating Items Under Order-size Dependent Trade Credit and Complete Backlogging.” Computers & Industrial Engineering 139: 105559. doi: 10.1016/j.cie.2018.12.006
  • Tsao, Y.-C. 2014. “A Piecewise Nonlinear Model for a Production System Under Maintenance, Trade Credit and Limited Warehouse Space.” International Journal of Production Research 52 (10): 3052–3073. doi: 10.1080/00207543.2013.861617
  • Tsao, Y.-C., P.-L. Lee, C.-H. Chen, and Z.-W. Liao. 2017. “Sustainable Newsvendor Models Under Trade Credit.” Journal of Cleaner Production 141: 1478–1491. doi: 10.1016/j.jclepro.2016.09.228
  • Wang, Y., and Y. Gerchak. 2001. “Supply Chain Coordination when Demand is Shelf-Space Dependent.” Manufacturing & Service Operations Management 3 (1): 82–87. doi: 10.1287/msom.3.1.82.9998
  • Wang, K., R. Zhao, and J. Peng. 2018. “Trade Credit Contracting under Asymmetric Credit Default Risk: Screening, Checking or Insurance.” European Journal of Operational Research 266: 554–568. doi: 10.1016/j.ejor.2017.10.004
  • Wilson, N., and B. Summers. 2002. “Trade Credit Terms Offered by Small Firms: Survey Evidence and Empirical Analysis.” Journal of Business Finance & Accounting 29 (3 & 4): 317–351. doi: 10.1111/1468-5957.00434
  • Wu, J., L.-Y. Ouyang, L.-E. Cárdenas-Barrón, and S.-K. Goyal. 2014. “Optimal Credit Period and Lot Size for Deteriorating Items with Expiration Dates under Two-level Trade Credit Financing.” European Journal of Operational Research 237: 898–908. doi: 10.1016/j.ejor.2014.03.009
  • Wu, D., B. Zhang, and O. Baron. 2019. “A Trade Credit Model with Asymmetric Competing Retailers.” Production and Operations Management 28 (1): 206–231. doi: 10.1111/poms.12882
  • Yang, S., and J.-R. Birge. 2018. “Trade Credit, Risk Sharing, and Inventory Financing Portfolios.” Management Science 64 (8): 3667–3689. doi: 10.1287/mnsc.2017.2799
  • Zhan, J., X. Chen, and Q. Hu. 2019. “The Value of Trade Credit with Rebate Contract in a Capital-Constrained Supply Chain.” International Journal of Production Research 57 (2): 379–396. doi: 10.1080/00207543.2018.1442946

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.