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Organization capital and trade credit access

Author

Listed:
  • Zou, Siqi
  • Li, Shan
  • Sowah, Joseph Sowahfio

Abstract

We present evidence of a positive link between organization capital and access to trade credit and offer an alternative perspective to the agency view. We show that firms with high organizational capital that secures greater trade credit are also more likely to grant credit to their customers, facilitating the flow of trade credit along the supply chain.

Suggested Citation

  • Zou, Siqi & Li, Shan & Sowah, Joseph Sowahfio, 2025. "Organization capital and trade credit access," Economics Letters, Elsevier, vol. 253(C).
    • Handle: RePEc:eee:ecolet:v:253:y:2025:i:c:s016517652500237x
    DOI: 10.1016/j.econlet.2025.112400
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    References listed on IDEAS

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    JEL classification:

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

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