IDEAS home Printed from https://ideas.repec.org/a/bas/econth/y2012i6p26-46,47-64.html
   My bibliography  Save this article

Factors for Trade Debts of Firms and Possibilities of Reduction of Interfirm Indebtedness

Author

Listed:
  • Galya Taseva

Abstract

The article highlights the basic theoretical principles for firm financing with trade credit and the results of empirical research by the method of multiple regression analysis of factors, influencing the level of trade indebtedness of Bulgarian non-financial enterprises. Models are constructed that have been tested for two consecutive years, separately for SME and for big enterprises that allow incorporation in the analysis of the distinctions between them, including the access to institutional financing, the quality of management etc. Some of the main conclusions of the investigation are that trade credit is a substitute for institutional financing and that firms take trade credits from other firms to finance their own trade receivables and to hedge the risk. Together with the risky management of the financial structure of SME this is a prerequisite for generation of chains of arrears. Possibilities for reduction of the interfirm indebtedness and regulation of its size in the future are also formulated.

Suggested Citation

  • Galya Taseva, 2012. "Factors for Trade Debts of Firms and Possibilities of Reduction of Interfirm Indebtedness," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 26-46,47-64.
    • Handle: RePEc:bas:econth:y:2012:i:6:p:26-46,47-64
    as

    Download full text from publisher

    File URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=8a6ee2d1-3cd0-423d-b0fe-d4678009dbf4&articleid=ed914f7c-0286-4062-bbbf-4c79804ff324#aed914f7c-0286-4062-bbbf-4c79804ff324
    Download Restriction: Fee access (Bulgarian)
    File URL: http://www.ceeol.com/aspx/issuedetails.aspx?issueid=8a6ee2d1-3cd0-423d-b0fe-d4678009dbf4&articleid=b2d55b82-84e7-43e4-b891-bfa43c8679a7#ab2d55b82-84e7-43e4-b891-bfa43c8679a7
    Download Restriction: Fee access (English)
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

    Statistics

    Access and download statistics

    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:bas:econth:y:2012:i:6:p:26-46,47-64. 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: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    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.