Return
Business association membership and firms’ access to trade credit: Evidence from thirty countries
X
Z
DOI:10.1016/j.jcorpfin.2026.102999.png)
Abstract
En 中文
This paper examines the impact of business association membership on firms' trade credit accessibility using the survey data of firms in 30 countries. We find that business association membership facilitates firms' access to more trade credit. The effect is more pronounced for smaller firms, firms in competitive industries and firms that make foreign purchases as well as firms located in countries with worse creditor protection and lower government stability. The channel analysis shows that business association membership increases firms' product quality and innovation capability, and mitigates the negative impact of corruption on firms, leading to higher trade credit accessibility. Finally, we find that the increased trade credit accessibility offered by business association membership will decrease firms' financing obstacles and increase their capacity and expected sales. Collectively, the findings of this paper highlight the role of business association membership in firms' supply chain relationship.
Keywords:
business association membership
trade credit accessibility
firm performance
supply chain relationship
corruption mitigation
Journal
IF:
5.9
Papers:
2.5K
Citations:
2.0W
Organization
No organization information available
