TY - JOUR
AU1 - Summers, Barbara
AU2 - Wilson, Nicholas
AB - This paper examines the firm's decision to use factoring amongst a cross‐sectional sample of 655 manufacturing companies using a rich firm‐level database. The paper develops and tests hypotheses that explain this particular choice of credit and financial management policy. We find strong evidence of a ‘financing demand’ explanation for the use of factoring, and also some support for theories which relate the decision to use a factor to the firm's product characteristics, to market characteristics and to the preferences of the factor (supply constraints). The motivation to use factoring, however, appears to be related more to a demand for asset‐based finance from small companies than to firm‐level choices about organisational structure.
TI - Trade Credit Management and the Decision to Use Factoring: An Empirical Study
JF - Journal of Business Finance & Accounting
DO - 10.1111/1468-5957.00305
DA - 2000-01-01
UR - https://www.deepdyve.com/lp/wiley/trade-credit-management-and-the-decision-to-use-factoring-an-empirical-YBVdkXJGtQ
SP - 37
VL - 27
IS - 1‐2
DP - DeepDyve