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Brand capital and trade credit policy

Author

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  • Akindayomi, Akinloye
  • Amin, Md Ruhul

Abstract

We proxy for customer awareness and perception of firms' range and types of products/services to examine the relation between a firm’s brand capital and its trade credit policies. We find that firms with higher stock of brand capital increase their use of supplier credit while decreasing extension of customer credit. These effects are more pronounced in firms facing higher financing constraints and those operating in a higher product market competition environment. We also document the impact of brand capital on working capital management. Overall, this study provides evidence that links brand capital with corporate trade credit policies and financing outcomes. JEL Classification: E22, G32

Suggested Citation

  • Akindayomi, Akinloye & Amin, Md Ruhul, 2025. "Brand capital and trade credit policy," Economics Letters, Elsevier, vol. 257(C).
    • Handle: RePEc:eee:ecolet:v:257:y:2025:i:c:s0165176525005245
    DOI: 10.1016/j.econlet.2025.112687
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • 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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